Public Cloud to Top $500B in Revenues by 2023, a 50% Rise

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LONDON—The move to the cloud was already on its way, but as a result of the Covid-19 pandemic, plans accelerated and that it is expected to be reflected in overall revenue for the public cloud. According to, by 2023, global public cloud revenue will reach $500.5 billion. 

Per a Statista survey, between 2016 and 2019, global public cloud revenues increased 128%, going from $94.7 billion to $216.6 billion. In 2020, with the onset of the pandemic, global revenue jumped 25%, bringing the total to $271.9 billion. It is expected that revenue will increase by another 25% in 2021, which will result in a total revenue of $338.8 billion.

Over the next two years, it is estimated public cloud revenue will rise another $161.7 billion, bringing the total to the projected $500.5 billion in 2023. By 2025, the market could reach $679.5 billion.

Software-as-a-Service is the public cloud’s largest segment and is forecasted to net $190.9 billion in revenue in 2021, an increase of 18% year-over-year. The next two years will see continued SaaS growth as things shift from on-premise to the cloud, growing an estimated 31% to $251.4 billion. The average revenue per user is expected to rise from $55.93 to $72.51 during this period.

The largest growth segment of the public cloud market is likely to be Infrastructure as a Service (IaaS), with 70% revenue growth expected, with $87.4 billion in 2021 and nearly $148 billion in 2023. Platform as a Service, meanwhile, will reach $60.4 billion in 2021 and then is projected to increase 67% to $101.1 billion in 2023.

The U.S. is the world’s largest public cloud market, generating $172.1 billion, or 50% of the revenues for 2021. In 2023, that figure is expected to be $231.7 billion. China is the second largest market, bringing in $28.8 billion in 2021 and an estimated $57.5 billion in 2023. The U.K. rounds out the top three, with an expected $15 billion in revenue in 2021 and $19.9 billion in 2023.

As far as leading cloud source providers, Amazon Web Services is out front with a 13.7% market share in 2021. Microsoft Azure (13.1%), Salesforce (5.7%), Oracle (4.9%) and Google Cloud (4.1%) round out the top five.

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