NIX Solutions: 2023 Global Public Cloud Market Analysis

IDC has released the results of a study of the global public cloud market in 2023. The industry continues to show rapid growth: total costs compared to 2022 jumped by 19.9%, reaching approximately $669.2 billion.

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The largest segment remains SaaS platforms (applications): they accounted for about $298.5 billion in 2023, and their share in the total market was 44.6%. For comparison, a year earlier the figures were $254.4 billion and 45.6%. Thus, there was an increase in costs of 17.4% year on year.

In second place in terms of expenses are IaaS services with $133.4 billion versus $115.5 billion in 2022. The growth was about 15.6%, while the share decreased year-on-year from 20.7% to 19.9%. PaaS services close the top three with $123.3 billion and a share of 18.4% compared to $95.4 billion and 17.1% a year earlier. Year-on-year growth was recorded at 29.3%. Costs in the SaaS-SIS segment (SaaS in the field of system infrastructures) increased year-on-year by 22.5% – from $93.1 billion to $114.0 billion. At the same time, the market share rose from 16.7% to 17.0%.

Leading Service Providers and Future Projections

The total share of the five leading public cloud service providers – Microsoft, Amazon Web Services (AWS), Salesforce, Google, and Oracle – amounted to 40.5% at the end of 2023. The leader is Microsoft with a score of 16.8%, and AWS is in second place with 12.4%.

IDC predicts that in 2024, global public cloud revenue will exceed $800 billion, which will correspond to growth of 20.5% compared to 2023. The five-year CAGR (compound annual growth rate) is expected to be 19.5%, bringing costs to $1.6 trillion in 2028, notes NIX Solutions.

We’ll keep you updated on the latest developments in the public cloud market as they unfold.