Global Cloud Services User Spending to Jump 18% YoY and Hit $305B in 2021

Recent years have witnessed a surge in the use of cloud computing, with billions of private and business users taking advantage of the on-demand technology.

However, with people spending more time indoors and online, the COVID-19 has fuelled the growth of the entire market and led to an impressive increase in global demand for cloud services.

According to data presented by AksjeBloggen.com, global cloud services user spending is set to reach $257.5bn in 2020, a 6% increase in a year. The strong upward trend is expected to continue next year with user spending growing by 18% YoY to $305bn in 2021.

User Spending Jumped Almost 50% in Five Years

Examples of cloud computing use can be found practically everywhere, from messaging apps, streaming services to chatbots or lending platforms.

Billions of people use cloud storage to manage and store private data. However, its ability to provide access to computing power that would otherwise be extremely expensive has seen cloud computing technology spread widely in the business sector, also.

The Gartner survey revealed that over 60% of respondents from industries worldwide stated that their organization was currently running apps using Amazon Web Services.

Microsoft’s intelligent cloud segment, which includes the Microsoft Azure cloud offerings, has also grown rapidly, generating more revenue than its personal computing segment. Many of the world’s largest tech firms have also started incorporating cloud service packages into their offerings.

In 2010, global public cloud services end-user spending, including business process, platform, infrastructure, software, management, security, and advertising services delivered by public cloud services, amounted to $76.9bn, revealed the Statista and Gartner data.

In 2015, this figure soared by 127% to $175bn. Statistics show that in 2016, user spending peaked at $219.6bn then tumbled to $145.3bn a year later. However, the last few years have witnessed a strong increasing trend with the figure rising from $196.7bn in 2018 to $257.5bn in 2020, a 30% jump in two years.

Gartner predicts global public cloud services end-user spending to continue growing and hit $362.3bn by 2022.

Desktop as a Service (DaaS) User Spending to Jump by 61% in 2021

Analyzed by segments, Desktop as a Service (DaaS) is expected to witness a 95.4% growth in 2020, the most significant increase among all the cloud service market segments. This service enables businesses to deliver cloud-hosted virtual desktops to any device, from anywhere. The increasing trend is expected to continue next year, with the DaaS market rising by 61% YoY.

The cloud system infrastructure services (IaaS) market is expected to witness a 26.9% increase next year, up from 15.7% YoY growth in 2020. Platform as a service (PaaS), software as a service (SaaS), and cloud management and security services follow with 26.6%, 16.1%, and 12.5% YoY growth in 2021, respectively.