Public cloud revenues jumped 21% in 2022 surpassing $500 billion

New data from Synergy Research Group shows that across the main public cloud service and infrastructure markets, operator and vendor revenues for 2022 reached $544 billion, having grown by 21% from 2021. The biggest growth was seen in IaaS & PaaS. Annual revenue from these services grew by 29% to reach over $195 billion, despite some major headwinds from the strengthening US dollar and problems in the Chinese market. In the other main service segments, managed private cloud services, enterprise SaaS and CDN added another $229 billion in service revenues, having grown by an average 19% from 2021. In order to support both these and other digital services, public cloud providers spent $120 billion on building, leasing and equipping their data center infrastructure, which was up 13% from the previous year. Across the whole public cloud ecosystem, companies that featured the most prominently were Microsoft, Amazon, Salesforce and Google. Other major players included Adobe, Alibaba, Cisco, Dell, Digital Realty, Huawei, IBM, Inspur, Oracle, SAP and VMware. In aggregate these companies accounted for 60% of all public cloud-related revenues.

While cloud markets are growing strongly in all regions of the world, the United States remains a center of gravity. In 2022, the US accounted for 45% of all cloud service revenues and 53% of hyperscale data center capacity. Across all service and infrastructure markets, the vast majority of leading players are US companies, followed by Chinese companies who account for 8% of all 2022 cloud service revenues and 16% of hyperscale data center capacity.

Synergy’s total addressable market forecast data indicates that public cloud ecosystem revenues are expected to double in size in just four years. Over that same period major cloud providers are expected to increase the number of operational hyperscale data centers by 50% and expand the capacity of data center networks by over 65%.

CT Bureau