According to new data from the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Tracker, global revenue for the public cloud services market reached $669.2 billion in 2023, marking a 19.9% increase compared to 2022.
"In large part due to end-user investment in AI, PaaS revenue growth continues to outpace the overall cloud market," said Adam Reeves, research director, PaaS for Developers of Modern and Edge Applications. "Both market share-leading vendors and smaller providers continue to release PaaS-delivered AI offerings. Vendors are focused on being strategic partners to their customers by delivering highly performant, developer-friendly, trustworthy, and secure offerings that help users deliver intelligent applications more efficiently."
Highlights
- In 2023, the largest source of public cloud services revenue was Software as a Service – Applications (SaaS – Applications), making up nearly 45% of the market total.
- Infrastructure as a Service (IaaS) was the second-largest revenue category with 19.9% of the total. Platform as a Service (PaaS) and Software as a Service – System Infrastructure Software (SaaS – SIS) accounted for 18.4% and 17.0% of the overall revenue, respectively.
- Notably, PaaS and SaaS – SIS experienced the fastest year-over-year revenue growth.
- The leading providers of public cloud services maintained their positions in 2023 with the combined revenue of the top 5 public cloud service providers – Microsoft, Amazon Web Services, Salesforce Inc., Google, and Oracle – capturing 40.5% of the worldwide total.
- With offerings in all four deployment categories, Microsoft remained in the top position in the overall public cloud services market with 16.8% share in 2023, followed by Amazon Web Services with 12.4% share.
- IDC forecasts worldwide public cloud services revenue will surpass $800 billion in 2024, an increase of 20.5% over 2023 with a similar increase expected in 2025.
- While the annual rate of growth will slow slightly over the forecast period, the market is still forecast to deliver a five-year compound annual growth rate (CAGR) of 19.5% with worldwide revenues reaching $1.6 trillion in 2028.
