Public Cloud to Become a Trillion-Dollar Industry by 2028

January 31, 2024 0 By David
Object Storage

The public cloud market has snowballed over the past years, as billions of people worldwide started using cloud storage to manage and store private data. Last year alone, public cloud platforms grossed $595 billion, or 175% more than just five years before. This figure is expected to grow by a further 16% and hit over $690 billion in 2024. The market momentum will continue in the following years, helping the public cloud industry to hit an impressive new milestone.

According to data presented by Stocklytics.com, public cloud is expected to become a trillion-dollar industry by 2028.

Market Revenue to Jump by 53% in Four Years

In the increasingly digital world, public cloud services have become essential, both in the private and business sectors. Today, examples of cloud computing are practically everywhere, from messaging apps, social networking, and streaming services to business processes, office tools, lending platforms, or chatbots.

The surging demand for these services, especially amid the COVID-19 lockdowns, has helped the market`s largest players, Amazon Web Services, Microsoft Azure, and Google Cloud Platform, to double their revenues in the past five years. Although growth rates have significantly dropped since their peak in 2019, 2020, and 2021, the market still has quite a momentum, which will continue in the following years.

According to a Statista survey, global public cloud revenues are expected to grow by 16% year-over-year and hit $690.3 billion in 2024. The following years are expected to see similar growth rates, resulting in a market volume of $1.06 trillion by 2026, and showing a massive 56% increase in four years.

In global comparison, most revenue will be generated in the United States, the world`s largest public cloud market. Statista expects US public cloud revenues to jump by 44% and hit over $476 billion by 2028, up from $330.5 billion this year.

However, as the second largest globally, the Chinese market will see even bigger growth in this period. Chinese public cloud revenues are expected to double and hit $137.1 billion by 2028. Germany and the United Kingdom follow with 120% and 41% growth rates and $37.5 billion and $37.8 billion in revenue by 2028, respectively.

IaaS is the Fastest Growing Segment, Revenue to Surge by 84% by 2028

Although software as a service (SaaS) dominates the market with a massive 40% share in 2024, other segments will see much bigger growth in the following years. Statista expects global SaaS revenues to jump by 32% and hit $374.5 billion by 2028, up from $282.2 billion this year.

The platform as a service (PaaS) segment is forecasted to grow by 70% in this period and hit over $244 billion in revenue in the next four years. The business process as a service (BPaaS) and desktop as a service (DaaS) segments will also see double-digit growth, with their revenues jumping by 18% and 55% by 2028, respectively.

However, statistics show that infrastructure as a service (IaaS) will grow the most in the next four years. According to Statista, nearly 30% of total market revenue in 2024, or $195.2 billion, will come from the IaaS segment. By 2028, this figure is expected to grow by a whopping 84% and hit nearly $360 billion.