As per the latest forecast from Gartner Inc, Worldwide end-user spending on public cloud services is forecast to grow 20.4% to total $675.4 billion in 2024.
Sid Nag, Vice President, said, “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.”
“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. “Added Sid Nag.
All the cloud market segments are expected to grow 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%
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 |
Table Source: Gartner
Also further, Nag added that IaaS continues to have a robust growth rate reflective of the underway GenAI revolutions.” The need for infrastructure to undertake AI model training inferencing and fine-tuning has only been growing. It will continue to grow exponentially and directly impact IaaS consumption.”
Meanwhile, cloud infrastructure and platform services are maximizing the highest spending growth; SaaS remains the largest segment of the cloud market in terms of end-user spending. SaaS spending is predicted to grow 20% to $247.2 billion in 2024.
“The surge in SaaS spending is primarily propelled by the modernization of applications by independent software vendors, adopting a SaaS-based consumption model,” Nag explained. “Organizations are increasingly leveraging cloud services for specific use cases such as AI, machine learning, Internet of Things, and big data, a trend that is fueling the growth of SaaS.”
