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The enterprise cloud market will reach a value of more than $1 trillion within four years, GlobalData said.
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76% of GlobalData survey respondents said their cloud services budget/spending was up in 2023.
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PaaS was tipped to be the fastest growing cloud service category.
The alarm bells associated with enterprise cloud cost optimization seem to be fading, with the big three cloud providers suddenly optimistic thanks to a boom associated with artificial intelligence. Now, there’s a forecast to back up those hopeful feelings. GlobaData predicted the enterprise cloud computing market will more than double by 2027, reaching a value of more than $1 trillion.
According to the analyst firm, the market was worth $638.6 billion in 2022. By 2027, it will be worth a hair under $1.4 trillion. By and large, enterprise cloud budgets have actually increased between 2022 and 2023 despite the optimization trend, GlobalData found.
“Among cloud computing service segments, public cloud services (SaaS, PaaS and IaaS) account for more than 60% of the total addressable market over the forecast period, with SaaS being the largest category overall,” Charlotte Dunlap, research director at GlobalData, said in a statement. SaaS, PaaS and IaaS refer to software-as-a-service, platform-as-a-service and infrastructure-as-a-service, respectively. She added Paas will actually be the “fastest growing cloud service category over the forecast period.”
According to Dunlap, PaaS growth will be driven by “the strong enterprise preference for cloud-native application development platforms.” She added Kubernetes-based application modernization projects will also contribute to PaaS market growth.
GlobalData’s forecast is based on survey inputs from 2,428 respondents across the globe. Check out these charts from GlobalData's Sandeep Kolakotla with more details from the survey and forecast.
