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Global spending on public cloud services to reach $675.4 billion by 2024

Worldwide end-user spending on public cloud services is forecast to grow 20.4% to total $675.4 billion in 2024, up from $561 billion in 2023, according to the latest forecast from Gartner, Inc. This growth is being driven by generative AI (GenAI) and application modernization.

“The continued growth we expect to see in public cloud spending can be largely attributed to GenAI due to the continued creation of general-purpose foundation models and the ramp up to delivering GenAI-enabled applications at scale,” said Sid Nag, Vice President Analyst at Gartner. “Because of this continued growth, we expect public cloud end-user spending to eclipse the one trillion dollar mark before the end of this decade.”

All segments of the cloud market are expected to see growth in 2024. Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth at 25.6%, followed by platform-as-a-service (PaaS) at 20.6% (see Table 1).

Table 1. Worldwide Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)

2023 Spending 2023

Growth (%)

2024 Spending 2024

Growth (%)

2025 Spending 2025

Growth (%)

Cloud Application Infrastructure Services (PaaS) 142,934 19.5 172,449 20.6 211,589 22.7
Cloud Application Services (SaaS) 205,998 18.1 247,203 20.0 295,083 19.4
Cloud Business Process Services (BPaaS) 66,162 7.5 72,675 9.8 82,262 13.2
Cloud Desktop-as-a-Service (DaaS) 2,708 11.4 3,062 13.1 3,437 12.3
Cloud System Infrastructure Services (IaaS) 143,302 19.1 180,044 25.6 232,391 29.1
Total Market 561,104 17.3 675,433 20.4 824,763 22.1

“IaaS continues at a robust growth rate that is reflective of the GenAI revolution that is underway,” said Nag. “The need for infrastructure to undertake AI model training, inferencing and fine tuning has only been growing and will continue to grow exponentially and have a direct effect on IaaS consumption.”

While cloud infrastructure and platform services are driving the highest spending growth, SaaS remains the largest segment of the cloud market in end-user spending. SaaS spending is projected to grow 20% to total $247.2 billion in 2024.

“SaaS spend is driven by applications being modernized by independent software vendors to run in a SaaS-based consumption model,” said Nag. “Organizations continue to increase their usage of cloud for specific use cases such as AI, machine learning, Internet of Things and big data which is driving this SaaS growth.” Gartner

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