Public Cloud Market Report 2026

Public Cloud Market Overview

• Public Cloud market size has reached to $812.25 billion in 2025 • Expected to grow to $2119.83 billion in 2030 at a compound annual growth rate (CAGR) of 21.3% • Growth Driver: 5G Technology Surge Accelerating The Public Cloud Market • Market Trend: Avaya Introduces Experience Platform Public Cloud • North America was the largest region in 2025.

What Is Covered Under Public Cloud Market?

A public cloud refers to a form of cloud computing in which computer services and infrastructure are offered by a third party and distributed to several customers through the Internet. It is a completely virtualized environment that allows for on-demand computing and self-service provisioning. The main types of public cloud services are business process services (BPAAS), application infrastructure services (PAAS), application services, management and security services, systems infrastructure services (IAAS), and advertising. Business Process Services (BPaaS) refers to outsourcing that involves delivering business processes via a cloud service model. They are categorized into hardware and software and are used in several organizations, such as small and medium enterprises and large enterprises. These are utilized by various end-users, such as discrete manufacturing, professional services, banking, process manufacturing, retail, and others.

What Is The Public Cloud Market Growth Forecast?

The public cloud market size is expected to see exponential growth in the next few years. It will grow to $2119.83 billion in 2030 at a compound annual growth rate (CAGR) of 21.3%. The growth in the forecast period can be attributed to AI workload migration to cloud, demand for scalable computing, growth of SaaS platforms, expansion of IoT deployments, increased enterprise cloud spending. Major trends in the forecast period include on demand infrastructure provisioning, multi tenant cloud environments, scalable compute and storage services, cloud native application deployment, integrated security and management services.

Global Public Cloud Market Segmentation

1) By Component: Hardware, Software 2) By Service: Business Process Services (BPaaS), Application Infrastructure Services (PaaS), Application Services, Management And Security Services, Systems Infrastructure Services (IaaS) 3) By Organization Size: Small And Medium Enterprises, Large Enterprises 4) By End-User: Discrete Manufacturing, Professional Services, Banking, Process Manufacturing, Retail, Other End-Users Subsegments: 1) By Hardware: Servers, Storage Devices, Networking Equipment 2) By Software: Cloud Management Software, Virtualization Software, Security Software, Analytics And Monitoring Software

What Is The Driver Of The Public Cloud Market?

The rising use of 5G technology is expected to propel the growth of the public cloud market going forward. 5G is the fifth generation of mobile networks that enables a new type of network that is meant to link almost everyone and everything, including machines, objects, and devices. 5G revolutionizes business with faster speeds, lower latency, and expanded capacity, powering advanced applications like AR/VR, edge computing, and IoT, while enhancing reliable access to cloud services and virtual computers through mobile devices. For instance, in March 2024, 5G Americas, a US-based industry trade organization composed of leading telecommunications service providers and manufacturers, reported 1.76B 5G global connections at year-end 2023, adding 700M, a 66% increase in connections in 2023, and forecast to reach 7.9B by 2028. Therefore, the rising use of 5G is driving the growth of the public cloud industry.

Key Players In The Global Public Cloud Market

Major companies operating in the public cloud market are Amazon.com Inc.; Microsoft Corporation; Alphabet Inc.; Oracle Corporation; International Business Machines Corporation; Alibaba Group Holding Limited; Tencent Holdings Limited; Huawei Technologies Co. Ltd.; SAP SE; Salesforce Inc.; DigitalOcean Holdings Inc.; OVH Groupe SA; Rackspace Technology Inc.; Baidu Inc.; JD.com Inc.; ByteDance Ltd.; NTT Corporation; Fujitsu Limited; Hewlett Packard Enterprise Company; Dell Technologies Inc.; Broadcom Inc.; Workday Inc.; ServiceNow Inc.; Snowflake Inc.; Zoom Video Communications Inc.

Global Public Cloud Market Trends and Insights

Major companies operating in the public cloud market are focusing on developing technologically innovative solutions, such as public cloud platforms, to enhance scalability, flexibility, and cost efficiency for businesses. Public cloud platforms refer to cloud computing services offered by third-party providers over the internet, where users can access and utilize shared resources like computing power, storage, and networking. For instance, in September 2024, Avaya LLC, a US-based technology company, launched its Experience Platform (AXP) Public Cloud in India, offering a suite of advanced customer experience solutions tailored for various sectors, including healthcare and telecommunications. Key features include digital access through LivePerson integration, AI self-service capabilities with the Virtual Agent Ready framework, and enhanced customer support via the generative AI assistant ‘Avaya Ada.’ The platform also incorporates analytics tools through partnerships with Microsoft’s Power BI and Calabrio for workforce engagement.

What Are Latest Mergers And Acquisitions In The Public Cloud Market?

In October 2024, ITC Infotech, an India-based business solutions and technology services provider, acquired Blazeclan Technologies for 58.2 million. Through this acquisition, ITC aims to enhance its cloud capabilities, leveraging Blazeclan's multi-cloud expertise to support clients' digital transformation and expand its global presence through Cloud Competency Centers. Blazeclan Technologies is an India-based cloud services company that specializes in digital transformation and public cloud solutions within the IT services sector.

Regional Insights

North America was the largest region in the public cloud market in 2025. It is expected to be the fastest-growing region in the global public cloud market during the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Public Cloud Market?

The public cloud market consists of revenues earned by entities by providing cloud computing services such as compute and storage services, development-and-deployment services, and applications availability on-demand services. The market value includes the value of related goods sold by the service provider or included within the service offering. The public cloud market also includes sales of networking equipment, like switches, routers, firewalls, load balancers, storage arrays, backup devices, and servers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Public Cloud Market Report 2026?

The public cloud market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the public cloud industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.