The public cloud market is witnessing healthy growth, according to new research from SafeBettingSites.com, and is expected to earn $398-billion in revenue in 2022 – a 20% year-on-year increase.
According to the data provided by Statista, the public cloud market is expected to grow at a Compound-Annual Growth Rate (CAGR) of 22% from 2016 to 2027. In 2018, the public cloud industry brought in just $173-billion in revenue. By 2021, this figure had almost doubled to $334-billion. Furthermore, if the industry continues to grow at the estimated rate, it will fetch annual revenue of $835-billion in 2026.
In addition to healthy growth, the public industry is also undergoing an evolution. Previously, software-as-a-service (SaaS) cloud services generated most of the revenue. However, the popularity of Saas services has consistently declined since then, while Infra-as-a-service (IAAS) and Platform-as-a-service (Paas) have become increasingly popular. The same trend is expected to continue in the coming years. In 2018, SaaS services generated $113-billion out of the total figure of $173-billion. By 2028, Saas services are expected to contribute just $331-billion out of the total estimated figure of $835-billion.
In comparison, IaaS services made up just $35-billion of $173-billion. However, by 2028, IaaS services would generate almost as much revenue as SaaS services.
SaaS services’ share of revenue is expected to go down from 65% in 2018 to 39% in 2028. Meanwhile, the percentage of income from IaaS services is expected to grow from 20% to 38% during the same period. For PaaS services, the share is expected to increase from 15% to 23%.
Regarding individual services, Amazon Web Services currently holds the most significant share, followed by Microsoft 365 and Google.