Public Cloud Industry: Market Size, Growth Trends, and More

Public Cloud Industry - Verito Technologies

In the last few decades, very few innovations have left as profound an impact as the emergence of cloud computing. It has transformed the way businesses and individuals access, store, and manage data, thereby ushering in a new era of digitalization and connectivity. As we stand at the threshold of a new decade, the public cloud industry continues to be a driving force in shaping the global technological landscape.

The rise of cloud technology has been nothing short of revolutionary. Businesses and organizations across the globe have started harnessing its power to streamline operations, enhance scalability, and drive innovation. From startups to Fortune 500 companies, the cloud has become an indispensable tool to benefit from unparalleled flexibility and efficiency. Moreover, the global COVID-19 pandemic accelerated the adoption of cloud solutions and underscored their resilience and adaptability in times of crisis.

While everyone uses cloud computing technology in one way or another, not all know how the cloud industry is evolving. Keeping this aspect in mind, we bring this complete guide to the public cloud industry, including statistics and more.  The foundational knowledge provided in this guide can serve as a valuable reference point to understand the industry’s growth trajectory and its significance in the broader technological ecosystem.

Let’s start with the basics of public cloud

What is Public Cloud?

Public cloud, as the name suggests, refers to the cloud computing model that delivers a wide array of computing services, resources, and applications over the Internet to the users. It is typically chargeable on a pay-as-you-go basis. Unlike private clouds, which are restricted to one organization, public clouds are hosted and managed by third-party cloud service providers who make their infrastructure and services available to the general public.

Key Characteristics of the Public Cloud

  • Accessibility

One of the defining features of the public cloud is its accessibility. Users can access cloud services and resources from anywhere using the Internet. This enables unprecedented flexibility and remote collaboration.

  • Sharing of resources

In a public cloud environment, multiple users and organizations can share resources such as servers, storage, and networking. This multi-tenancy model allows providers to achieve economies of scale and pass cost savings on to customers.

  • Scalability

Public cloud services are designed to scale effortlessly to meet fluctuating demands. Whether you need to accommodate a sudden surge in user traffic or expand data storage capacity, you can scale resources up or down as needed under this cloud model.

  • Cost-savings

Public cloud providers typically follow a pay-as-you-go pricing model, where users are charged only for the resources and services they actually use. This way, users do not need to make large upfront investments in hardware and infrastructure.

  • Managed services

Many reputable cloud providers also offer a suite of managed IT services, including infrastructure management, security, and maintenance. This allows organizations to focus on their core business objectives while offloading the operational burden to experts.

Also Read: An All-Inclusive Guide to Public Cloud

Public Cloud Market Statistics

Given below are the primary statistics about the public cloud industry1:

  • The public cloud market revenue is expected to reach the mark of US$525.60 billion in 2023 and continue to grow at 13.81% CAGR to reach US$881 billion market volume by 2027.
  • The Software-as-a-Service or SaaS segment is expected to dominate this industry with a projected volume of US$253.90 billion in 2023. 
  • In 2023, the average spend per employee in this market is about to reach US$151 in 2023.
  • In comparison to the global market, the majority of the revenue is generated from the U.S. alone. 

You should also know that2:

  • 44% of the global cloud provider revenue is based in the U.S.
  • Some of the major public cloud vendors include Microsoft, AWS, Google, Salesforce, Alibaba Cloud, Oracle, and many others. 

Public Cloud Trend Analysis

Here are some of the key insights obtained about the public cloud market from a reliable report3:

  • The rise in Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and 5G technology is likely to boost the usage of public cloud.
  • The enterprise usage of public cloud services can lead to 35%(apx.) savings in annual operational costs.
  • The user spending on SaaS applications was expected to grow by 23% during 2017-22. 
  • Around 170 SaaS-based acquisitions took place in 2018, with a mean acquisition price of US$1.3 billion, thus indicating strong growth in the coming years.
  • Small and medium enterprises constituted a majority of the revenue share (around 70%) in 2019. 
  • Besides the U.S., the APAC region is expected to emerge as the fastest-growing public cloud market during 2020-2027.


  1. Worldwide Public Cloud
  2. The information in this blog post is based on data from reliable sources and carefully selected research materials. While we have taken great care to ensure accuracy, it’s important to note that statistics, market data, and competitor insights can change over time.

    We strongly recommend that the readers independently verify the most current information by consulting official reports, industry publications, and authoritative sources. This blog post provides an informative overview but should not replace professional advice or research. The authors/publishers of this blog post are not responsible for decisions or actions taken based on this information.

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