SAN FRANCISCO, May 5, 2020 /PRNewswire/ -- The global public cloud market size is expected to reach USD 596.0 billion by 2027, expanding at a CAGR of 14.6% from 2020 to 2027, according to a new study conducted by Grand View Research, Inc. Owing to the high scalability and reduced operational costs offered by cloud services in the wake of digital transformation of industries, the market is witnessing rapid growth. Moreover, enterprises across the globe are gradually adopting public cloud technology to rapidly build, test, and release quality software products.
Key suggestions from the report:
Infrastructure as a Service segment is predicted to expand at the highest CAGR over the forecast period owing to elimination of capital expense, increased scalability and reliability, better security, and fast data accessibility
Amazon.com Inc.; Microsoft Corporation; Alibaba Group Holding Ltd.; Google LLP.; and IBM Corporation are some of the key IaaS vendors in the market, however there are around 160 startups that are also competing in the IaaS domain
Small and medium enterprise is anticipated to be the fastest growing segment owing to reduced costs for IT hardware and software, improved processing capacity and elasticity of storage, and greater mobility of access to data and service. The growth in adoption of technology among SMEs in emerging economies such as India, Brazil, Vietnam, and the Philippines is likely to boost the market growth over the forecast period
The manufacturing end use segment is expected to expand at the fastest CAGR over the forecast period. The industry report asserts that executive management in manufacturing, high-tech, and telecommunications are likely to adopt cloud based services completely. Moreover, the industries report that digital services such as public cloud provides around 25% of the total inputs to manufacture a finished product
Asia Pacific is expected to emerge as the fastest-growing region owing to the increasing focus of SMEs and large enterprise to enhance their digital initiatives. The presence of large companies such as IBM with their establishment of cloud computing centers in China, India, South Korea, and Vietnam is likely to boost the growth
The public cloud is a multi-tenant environment, which offers rapid elasticity and high scalability with capability to consume resources on a pay-per-use basis. Governments and institutions are planning gradually to completely integrate its conventional systems with these computing technologies. As a part of the IT Modernization effort, U.S Federal Government had initiated Cloud Smart Strategy in October 2018 to improve citizen-centric services, accessibility, and maintain cybersecurity. Moreover, adoption of the technology is rapidly gaining importance among Small and Medium Enterprise (SMEs) sector due to the cost competitiveness offered in the market.
Currently, most of the enterprises of varying sizes, are revamping from traditional to digital mode of business. The transformation is likely to create potential market for public cloud owing to its benefits such as reduced Total Cost of Ownership (TCO), agility, and flexibility. IBM Corporation states that around 89% of IT professionals expect to move business-critical workloads to cloud, which are driven by the growth in digitization.
Government organizations are also this technology services for storage, disaster recovery, risk compliance management, and identity access management applications. In October 2019, amidst corporate hostility, Microsoft Corporation was awarded the U.S Department of Defense contract, Joint Enterprise Defense Infrastructure (JEDI) worth USD 10 billion.
Grand View Research has segmented the global public cloud market based on service, enterprise size, end use, and region:
Public Cloud Service Outlook (Revenue, USD Billion, 2016 - 2027)
Infrastructure as a service (IaaS)
Platform as a service (PaaS)
Software as a service (SaaS)
Public Cloud Enterprise Size Outlook (Revenue, USD Billion, 2016 - 2027)
Small & Medium Enterprise
Public Cloud End-Use Outlook (Revenue, USD Billion, 2016 - 2027)
IT & Telecom
Retail & Consumer Goods
Energy & Utilities
Media & Entertainment
Government & Public Sector
Public Cloud Regional Outlook (Revenue, USD Billion, 2016 - 2027)
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.