The public cloud market has grown tremendously over the past years as billions worldwide have started using cloud storage to manage and store private data. Since 2017, the entire sector has nearly quadrupled, reaching a $773 billion value this year. The impressive double-digit growth will continue in the following years, helping the market to hit a new record value, much higher than thought before.
According to data presented by Stocklytics.com, the public cloud market is expected to hit a $1.5 trillion value by 2028, $500 billion more than in the earlier forecast.
Twice Higher Annual Growth Rate by 2028
The rise of public cloud services in recent years has been nothing less than impressive. The surging need for data storage and processing power, digital transformation, remote work, and the innovation, scalability, and cost efficiency of public cloud services have helped the entire market to grow by an average of 25% per year since 2017, something not many industries have experienced.
The growing ecosystem of cloud-native applications and services, such as AI, machine learning, and IoT, has only fueled market growth, causing the new market forecast to become much more optimistic than nine months ago.
According to Statista’s market forecast from the beginning of the year, the entire sector was expected to hit $690.3 billion in value in 2024; now, that figure is 12% higher and stands at $773 billion. According to this new, more optimistic scenario, data centers will become a trillion-dollar industry in 2026, or two years earlier than thought before.
The revenue difference between the Statista forecasts from January and July becomes even more significant in the next four years. According to the latest data, the global public cloud market will hit a $1.56 trillion value in 2028, or half a trillion dollars more than in the earlier forecast.
The annual growth rate in the public cloud sector will also skyrocket. While the previous data showed the annual growth rate will float between 9.7% and 15.9% in the following years, that figure is now adjusted and stands between 17.2% and 22.4%.
IaaS Segment to Grow 4x More than Expected, Revenue to Surge by 141% by 2028
A deeper insight into public cloud market segments also shows much higher growth rates than in the earlier forecast. The market’s largest segment, software as a service (SaaS) is expected to skyrocket by 141%, four times more than expected, and hit a $818 billion value by 2028.
All other market segments will also grow significantly. The latest Statista forecast shows the global platform as a service (PaaS) revenue will jump by 125% by 2028, 50% more than in the earlier forecast, and hit a $387 billion value. Infrastructure as a service (IaaS) will skyrocket by 151%, nearly twice as much as expected, reaching a $462 billion value by 2028. The business process as a service (BPaaS) segment follows with a three times higher growth rate of 73% and $128.8 billion in revenue in the next four years.
