Global Public Cloud Market by Service (PaaS, SaaS, IaaS), by End Use (BFSI, Manufacturing), by Enterprise Size (Large Enterprises, SMEs) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global public cloud market was worth USD 211.5 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 14.6%) between 2020 and 2027. Market growth is primarily driven by rapid digital transformation in industries, increased penetration of internet and mobile devices, as well as a rise in big data consumption.

Cloud-enabled industrial solutions are being developed and will require a platform for digital businesses to display their capabilities. The rise in internet of things, edge computing, 5G and the use of real-time analysis enabled by artificial intelligence (AI) and machine learning (ML), are all likely to increase the utility of this computing technology within the organizations.

Digital transformation is transforming industries. This has led to a shift in the business model and operations. Public cloud provides a great platform to establish an inter-company network. This is due to the increase in communication with customers, partners, and other industries. The public cloud covers many functions. These include storage, processing and networking power, as well as artificial intelligence and natural language processing. Standard office applications are also available.

By 2022, Platform as a Service and Infrastructure as a Service will offer more computing power than enterprise data centers. According to industrial data, enterprises can save up to 35% on their annual operating expenses by using public cloud services. The shift to cloud computing continues. Solution providers will likely tap the growing potential of the market in the future owing to the innovation and acquisitions made in 2019 by large market players such as Amazaon.com Inc. and Google LLP. Microsoft Corporation.

According to the World Economic Forum, the fourth industrial revolution will include the use of IoT, AI and machine learning in combination with cloud computing. IoT and public cloud will be enhanced by machine learning and AI technologies to accelerate technology growth. These technologies are being integrated by organizations from many verticals.

Universal mCloud Corp. acquired Fulcrum Automation Technologies in July 2019. Fulcrum Automation Technologies is a provider of SaaS and subscription-based data analysis. mCloud Corp. can now use cloud computing and IoT for the oil and gas industry with the AssetCare platform.

Public clouds offer the possibility to use the infrastructure that is managed and owned by the provider. These services can be shared or dedicated and offer the possibility to scale on demand. They also provide accountability and the benefit of being accountable. These services provide unlimited capacity and potentially attractive costs that rise from large-scale infrastructures. They also offer a pay-as you-go pricing model, which makes it obsolete to buy server hardware upfront.

Small and Medium Enterprises (SMEs), thanks to the pay-per-subscription model of service providers, have the freedom to reach their full potential. Despite security concerns and legacy systems being barriers to growth, the market is expected to continue its rapid growth in the future.

Organizations are still concerned about data security and privacy. Information storage, transmission, and use must all be digitally secured. According to surveys, 60% of business-sensitive data on hard drives are unsecure. The vendors offer several important security services, including data encryption, authorization management and access control, as well as integration security, monitoring, auditing and business continuity services.

Vendors such as Google LLP and Microsoft Corporation provide 99.9% uptime which alleviates organizations of the responsibility of maintaining backup infrastructure and recovery facilities.

COVID19 Insights

Many countries and their economies have been severely affected by the recent pandemic COVID-19, or Coronavirus. Industrial operations are temporarily suspended, and the crisis mode is being used by national governments. COVID-19's effects are having a significant impact on ICT sectors. They disrupt the electronics value chain, causing an inflationary risk for products. The disruption has also accelerated remote work culture and emphasized the importance of evaluating the entire value chain.

Public cloud technology will increase access to data services, and facilitate connectivity between individuals and businesses. According to LogicMonitor (a SaaS-based IT platform provider), 83% of a company's work can be done via the cloud by 2020. Many media companies, financial institutions, educational institutions, as well as global enterprises, will be able operate and run apps on various mobile devices. Cloud technology will likely be a benefit to companies that are technology-driven and can operate remotely for long periods of time after the COVID-19 disaster.

Service Insights

Software as a Service (SaaS), which offers flexibility, low maintenance costs, and large enterprise sizes, accounted for 54% of the market. According to industry estimates, 73% of enterprises have moved almost all their applications to the SaaS platform. The enterprise data also suggests that business intelligence SaaS application user spending is expected to increase by 23.3% between 2017-2022. The IT industry survey also suggests that around 60% of enterprises will use an external Cloud Service Providers (CSP) managed services offering by 2022. This is double the share of companies from 2018.

The PaaS segment will likely see significant growth over the forecast period. PaaS is not HTML3_ but includes more than just infrastructure components like servers, networking and storage. It also includes development tools, middleware and Business Intelligence (BI), services and database management systems. Moreover, the PaaS services are rising at a rapid rate owing to the growth of technologies such as machine learning, IoT, and container-as-a-service.

SaaS products are expected to grow rapidly in the future as their Total Cost of Ownership will be equal to the on-premise model. With a mean acquisition price of USD 1.3 billion, there were 169 SaaS-based acquisitions in 2018. Qualtrics International Inc. (USD 8 billion) & GitHub Inc. (USD 7.5 billion), were two of the most significant acquisitions. Market growth will be driven by more mergers and acquisitions. The establishment of innovative startups within the public cloud space is expected to increase over the forecast period.

End-use Insights

BFSI held the largest market share, with more than 25% of the revenue in 2019, thanks to the adoption cloud services for storage management and customer data. BFSI has been able to focus on customer-centric business models, digitalization of wealth and trade, as well as secure storage and interoperability. Services such as payment gateways and online fund transfer will be key to the BFSI sector, which will facilitate the shift towards public cloud solutions.

Cloud services are expected to be adopted by the manufacturing industry as the most prominent. This is due to the benefits of seamless data management and real time visibility. This computing technology will also play a significant role in the development and democratization of new manufacturing production systems, such as 3D printing and generative design. With the introduction of telemedicine, e-health and other technologies, the healthcare industry has also become an active user of this technology. Nuance Communications Inc.'s cloud-hosted PowerScribe One platform, which uses AI to assist in radiologists' diagnosis and support their decisions, is an example.

Enterprise Size Insights

With a market share of over 70%, the small and medium enterprises segment dominated in 2019. Due to their lower operating costs and better collaboration, large enterprises are the most frequent adopters. They also have a faster time to market, greater flexibility, and greater flexibility. Cloud was previously used by enterprises to build applications and rehost infrastructure. However, these companies are now using it to modernize their core business processes and applications. Flexera, a software company based in Illinois (U.S.), conducted a survey in 2019 and found that businesses are likely to spend 24% less on public cloud over the next five years.

The SMEs market has been the largest shareholder in 2019, thanks to flexible pricing models provided by CSPs, increased employee productivity, collaboration and innovation, and the flexibility of the pricing models. According to the IT industry survey, 88% of SMEs had used at least one cloud service by 2018. This number is expected to rise rapidly over the next few years. SME's are key in the use of cloud technology for marketing, financial management, and building customer relations. The top priorities of enterprises who adopt cloud include optimizing and managing costs, setting policies and choosing the right cloud provider to run specific applications.

Regional Insights

Due to its early adoption of technology, North America was the dominant market in 2019, with 49%. These regions are expected to maintain their market positions due to the presence of many vendors, including Microsoft Corporation, Oracle Corporation, Amazon.com Inc. and IBM Corporation. It is also estimated that over 50% of U.S. government agencies have used the services. The European countries are a hub of cloud technology development, especially in the financial sector. This attracts billions in investment around the world.

Over the forecast period, Asia Pacific will likely be the fastest-growing region in the market. Recent years have seen a positive effect on regional market growth due to the rapid growth of India and China, as well as the rise of regional players like Alibaba Group. Hyperscale cloud providers like Amazon Web Services (AWS), Google LLP, and Azure have established data centers in countries such as Indonesia, Thailand, and Indonesia to fulfill the data sovereignty requirements of governments.

The creation of the Asia Cloud Computing Association, a forum based within the region, with the collaboration between Cisco Systems, Rackspace and Telenor. Telenor, EMC Corporation. NetApp, Nokia Siemens Networks. Microsoft, Alcatel-Lucent. Verizon.

Market Share Insights & Key Companies

Industry players will find partnerships and strategic mergers & acquisitions the best way to quickly access emerging markets and improve their technological capabilities.

Companies will also benefit from product differentiation and upgradation. The rising startup culture, as well as cloud service provider startups like Snowflake Inc. and Zoom Video Communications, are all contributing factors. Potential competition will be Slack Technologies, Stripe; Uptake and Stratoscale.

Red Hat, the leading open-source cloud software provider in the world, was acquired by IBM in October 2018. IBM now has the ability to offer public cloud services to a wider range of clients through Red Hat's acquisition. IBM Corporation and Oracle Corporation won't try to compete with the global, hyperscale, public cloud platform market that is dominated primarily by Amanzon.com Inc., Microsoft Corporation (Azure), Google LLP and Alibaba in the future. IBM will instead focus on helping companies to use OpenShift's development platform, in order to modernize their core business applications. Among the most prominent players in the market for public cloud are:

• Alibaba Group Holding Limited

• Amazon.com Inc.

• Adobe Inc.

• Google LLC

• IBM Corporation

• Microsoft Corporation

• Oracle Corporation

• Salesforce.com Inc.

• SAP SE

• Workday, Inc.

Up Market Research published a new report titled “Public Cloud Market research report which is segmented by Service (PaaS, SaaS, IaaS), by End Use (BFSI, Manufacturing), by Enterprise Size (Large Enterprises, SMEs), By Players/Companies Workday Inc , Adobe Inc, Microsoft Corporation, Salesforcecom Inc, IBM Corporation, Oracle Corporation, Amazoncom Inc, SAP SE, Google LLC, Alibaba Group Holding Limited”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Public Cloud Market Report Segments:

The market is segmented by Service (PaaS, SaaS, IaaS), by End Use (BFSI, Manufacturing), by Enterprise Size (Large Enterprises, SMEs).

Public Cloud Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Public Cloud Market

Overview of the regional outlook of the Public Cloud Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Public Cloud Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Public Cloud Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. PaaS

                2. SaaS

                3. IaaS

                1. BFSI

                2. Manufacturing

                1. Large Enterprises

                2. SMEs

9. Market scenario by region, sub-region, and country.
10. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
11. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
12. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Public Cloud Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
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Reasons to Purchase the Public Cloud Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.