Public Cloud - United States

United States

Revenue in the Public Cloud market is projected to reach US$388.50bn in 2024.
Software as a Service dominates the market with a projected market volume of US$190.10bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 18.14%, resulting in a market volume of US$894.20bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$2,242.00 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in United States has been experiencing significant growth in recent years, driven by customer preferences for flexible and scalable computing resources.

Customer preferences: One of the key factors driving the growth of the Public Cloud market in United States is the increasing demand for flexible and scalable computing resources. Businesses are increasingly adopting cloud services to meet their dynamic computing needs, as the Public Cloud offers the ability to scale resources up or down as required. This flexibility allows businesses to quickly respond to changing market conditions and customer demands, without the need for significant capital investments in on-premises infrastructure. Another customer preference that is driving the growth of the Public Cloud market in United States is the increasing adoption of Software-as-a-Service (SaaS) solutions. SaaS allows businesses to access software applications over the internet, eliminating the need for on-premises installations and maintenance. This not only reduces costs for businesses, but also provides them with the latest software updates and features, ensuring they stay competitive in the market.

Trends in the market: One of the key trends in the Public Cloud market in United States is the increasing adoption of hybrid cloud solutions. Hybrid cloud combines the benefits of both Public Cloud and private infrastructure, allowing businesses to leverage the scalability and cost-effectiveness of the Public Cloud, while keeping sensitive data and critical applications on-premises. This trend is driven by the need for businesses to balance the benefits of the Public Cloud with their specific security and compliance requirements. Another trend in the Public Cloud market in United States is the growing popularity of multi-cloud strategies. Businesses are increasingly using multiple cloud providers to diversify their risk and avoid vendor lock-in. This allows them to choose the best-in-class services from different providers, optimizing their cloud infrastructure for specific workloads and applications.

Local special circumstances: The United States has a highly developed technology ecosystem, with a large number of tech startups and established technology companies. This creates a conducive environment for the growth of the Public Cloud market, as businesses in the United States are more likely to embrace new technologies and adopt cloud services.

Underlying macroeconomic factors: The United States has a strong economy and a highly competitive business environment, which drives the adoption of cloud services. The Public Cloud allows businesses to reduce their IT infrastructure costs and increase their operational efficiency, which is especially important in a competitive market. Furthermore, the United States has a large and diverse population, which creates a significant demand for cloud services. Businesses in the United States need to cater to the needs of a wide range of customers, and the Public Cloud provides them with the flexibility and scalability to do so. In conclusion, the Public Cloud market in United States is experiencing significant growth due to customer preferences for flexible and scalable computing resources. The increasing adoption of hybrid cloud solutions and multi-cloud strategies are also driving the growth of the market. The highly developed technology ecosystem and strong economy in the United States further contribute to the growth of the Public Cloud market.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.