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3. Public Cloud Market Size and Share: Key Growth Drivers Explained

The size of the public cloud market is anticipated to increase at a Compound Annual Growth Rate (CAGR) of 17.3% over the course of the forecast period, from USD 444.7 billion in 2022 to USD 987.7 billion by 2027.

To know about the assumptions considered for the study download the pdf brochure

The growth of the Public Cloud Market is driven by several key factors, reflecting technological advancements, changing business needs, and evolving market dynamics. Here are the primary growth factors:

• Cost Efficiency
• Scalability and Flexibility
• Innovation and Agility
• Digital Transformation
• Remote Work and Collaboration
• Security and Compliance
• Disaster Recovery and Business Continuity
• Hybrid and Multi-Cloud Strategies

Cost Efficiency:

• Operational Savings: Public cloud services eliminate the need for significant upfront capital expenditure on hardware and software, converting IT costs into variable expenses.
• Economies of Scale: Cloud providers can offer lower prices due to economies of scale, making cloud services more affordable for businesses of all sizes.

Scalability and Flexibility:

• On-Demand Resources: Public cloud services allow organizations to scale their IT resources up or down based on demand, ensuring they only pay for what they use.
• Global Reach: Cloud providers offer global infrastructure, enabling businesses to deploy applications and services closer to their customers for improved performance.

Innovation and Agility:

• Rapid Deployment: Cloud services enable faster deployment of applications and services, accelerating time-to-market for new products and features.
• Support for Emerging Technologies: Public cloud platforms support cutting-edge technologies like AI, machine learning, IoT, and big data analytics, fostering innovation.

Digital Transformation:

• Business Modernization: Organizations are leveraging cloud services to modernize their IT infrastructure, adopt new business models, and enhance digital capabilities.
• Customer Experience: Cloud-based solutions enable better customer engagement and personalized experiences through advanced analytics and AI-driven insights.

Remote Work and Collaboration:

• Distributed Workforce: The rise of remote work and geographically distributed teams has increased the demand for cloud-based collaboration and productivity tools.
• Unified Communication: Cloud services provide integrated communication and collaboration platforms, enhancing connectivity and efficiency for remote teams.

Security and Compliance:

• Advanced Security Measures: Leading cloud providers invest heavily in security measures, offering robust protection against cyber threats and ensuring data integrity.
• Compliance: Cloud providers offer services that help businesses comply with various industry regulations and standards, such as GDPR, HIPAA, and SOC 2.

Disaster Recovery and Business Continuity:

• Resilience: Public cloud services provide reliable backup, disaster recovery, and business continuity solutions, ensuring minimal downtime and data loss.
• Automated Recovery: Automated disaster recovery services enhance the resilience of business operations.

Hybrid and Multi-Cloud Strategies:

• Interoperability: Organizations are increasingly adopting hybrid and multi-cloud strategies to leverage the best features of multiple cloud providers and on-premises infrastructure.
• Risk Mitigation: Multi-cloud environments help mitigate risks associated with vendor lock-in and improve redundancy.

Public Cloud Market Share - Global Industry Landscape

Here is a brief overview of the market share and key offerings for the specified companies in the Public Cloud Market:

• AWS (US)
• Alibaba Cloud (China)
• SAP (Germany)
• Fujitsu (Japan)
• OrangeGroup (France)
• Megaport (Australia)

AWS (US):

• Market Share: AWS is the leading provider in the public cloud market, holding a significant market share due to its early entry and extensive service portfolio.
• Key Offerings: AWS offers a comprehensive range of services, including Amazon EC2 (Elastic Compute Cloud) for scalable computing, Amazon S3 (Simple Storage Service) for storage, AWS Lambda for serverless computing, and a wide array of AI, ML, database, and IoT services.

Alibaba Cloud (China):

• Market Share: Alibaba Cloud is the leading cloud provider in China and one of the top players globally, with a strong presence in the Asia-Pacific region.
• Key Offerings: Alibaba Cloud provides services such as Elastic Compute Service (ECS), Object Storage Service (OSS), Alibaba Cloud Machine Learning Platform for AI applications, and various security, database, and network solutions tailored for enterprises.

SAP (Germany):

• Market Share: SAP has a notable presence in the public cloud market, especially within the enterprise resource planning (ERP) sector.
• Key Offerings: SAP's key offerings include SAP S/4HANA Cloud, a comprehensive ERP solution; SAP Business Technology Platform, which provides integration, data management, and analytics services; and SAP SuccessFactors for human capital management.

Fujitsu (Japan):

• Market Share: Fujitsu holds a strong position in Japan's public cloud market and serves a diverse range of industries globally.
• Key Offerings: Fujitsu offers cloud services such as Fujitsu Cloud Service K5, which provides IaaS, PaaS, and SaaS solutions; Fujitsu Cloud Internet of Things Platform; and various cloud migration and management services.

Orange Group (France):

• Market Share: Orange Group is a significant player in the European public cloud market, leveraging its telecom infrastructure and regional expertise.
• Key Offerings: Orange Business Services provides flexible cloud solutions, including IaaS, PaaS, and SaaS offerings. Key services include Flexible Engine (an open cloud solution), Flexible Computing Advanced for infrastructure needs, and Managed Cloud Services for comprehensive support and management.

Megaport (Australia):

• Market Share: Megaport is a leading Network as a Service (NaaS) provider, facilitating cloud connectivity for businesses globally.
• Key Offerings: Megaport offers services that enable secure and scalable cloud interconnection, including Megaport Cloud Router for multi-cloud connectivity, direct connections to major public cloud providers, and Megaport Virtual Edge for integrating SD-WAN with cloud services.

Related Reports:

Public Cloud Market by Service Model (Infrastructure as a Service, Platform as a Service, Software as a Service, Organization Size (Large enterprises, Small and Medium Enterprises (SMEs)), Vertical and Region - Global Forecast to 2027