The cloud market is experiencing unprecedented growth, driven by advancements in technology and increasing demand across industries. According to the latest update from the International Data Corporation (IDC), worldwide spending on public cloud services is forecast to reach $805 billion in 2024 and is expected to double by 2028, achieving a compound annual growth rate (CAGR) of 19.4%.
Cloud technology now dominates spending across infrastructure, platforms, and applications. The IDC report highlights that the three largest industries—Banking, Software and Information Services, and Retail—will collectively spend $190 billion on public cloud services in 2024. Furthermore, industries like Capital Markets, Life Sciences, and Insurance are projected to see the fastest growth, each with a CAGR of around 23% through 2028.
The surge in cloud spending is significantly driven by advancements in artificial intelligence (AI) and machine learning (ML). Organizations are increasingly building, testing, and deploying AI platforms, which are highly dependent on robust cloud infrastructure. IDC's Andrea Minonne points out that AI platforms will be the fastest-growing technology segment, with a five-year CAGR of 51.1%.
SaaS—Applications will remain the largest category of cloud computing, capturing more than 40% of all public cloud spending in 2024. The leading SaaS applications include enterprise resource management (ERM) and customer relationship management (CRM), with content workflow, management applications, and collaborative applications also seeing substantial investment.
PaaS and IaaS are set to deliver nearly 20% of all public cloud spending in 2024. PaaS, led by data management software, will be the fastest-growing category, while IaaS, comprising compute, storage, and networking devices, will also see significant growth.
New data from Synergy Research Group shows that enterprise spending on cloud infrastructure services reached $79 billion in Q2 2024, marking a 22% year-on-year increase. Amazon continues to lead the market, holding 32% of the market share, followed by Microsoft at 23% and Google at 12%. Notably, tier two providers like Oracle, Huawei, Snowflake, and MongoDB are also experiencing high growth rates.
The United States remains the largest market for public cloud services, with spending expected to exceed $432 billion in 2024. Western Europe and the Asia-Pacific (excluding Japan and China) regions follow, with significant growth projected in these areas as well.
The cloud market is not just growing; it is evolving to meet the needs of various industries and technological advancements. With AI and ML driving much of this growth, companies like Impossible Cloud are well-positioned to offer innovative, scalable, and cost-effective solutions. Their commitment to security, compliance, and performance ensures that they can meet the diverse needs of their clients, from data management and backup to advanced AI applications.
As businesses across the globe continue to embrace cloud technology, the future looks bright for providers who can offer robust, secure, and efficient services. Impossible Cloud, with its decentralized architecture and competitive pricing, is poised to be a key player in this rapidly expanding market.
International Data Corporation (IDC). (2024). Worldwide Spending on Public Cloud Services is Forecast to Double Between 2024 and 2028. Retrieved from IDC.
Synergy Research Group. (2024). Cloud Market Growth Stays Strong in Q2 While Amazon, Google and Oracle Nudge Higher. Retrieved from Synergy Research Group.
This article is based on data from IDC and Synergy Research Group. As the cloud market evolves quickly, figures may change. Please conduct your own research and consult advisors before making decisions. Impossible Cloud is not liable for the accuracy of the information provided.
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