IDC forecasts global public cloud services market to reach $141 billion in 2019

According to the latest research report by IT market analysis and consulting firm IDC (www.idc.com), the global public cloud services market is projected to grow at an average annual rate (CAGR) of 19.4% through 2019.

This figure is six times the growth rate of the overall IT market, and the report (Worldwide Semiannual Public Cloud Services Spending Guide) stated that the global public cloud services market is expected to more than double from $70 billion in 2015 to over $141 billion in 2019.

Among cloud computing forms, SaaS (Software as a Service) accounts for the largest share and is expected to account for about two-thirds of the total public cloud service market during the forecast period. The IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) sectors are expected to grow more rapidly than SaaS, showing average annual growth rates of 27.0% and 30.6%, respectively.

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Frank Gens, Senior Vice President and Chief Analyst at IDC, stated, "Over the past few years, the software industry has been transitioning to a cloud-first (SaaS) development and deployment model, and by 2018, most software vendors will shift entirely to a SaaS/PaaS codebase." He added, "This trend implies that many enterprise customers will prefer adopting SaaS when deciding on their next software upgrade. Consequently, new cloud-based solutions and traditional solutions migrating to the cloud will continue to drive more customers and data into the cloud."

In terms of company size, large enterprises are expected to lead the global public cloud service market, with spending on public cloud services exceeding $80 billion in 2019. However, small and medium-sized businesses (SMBs) with fewer than 500 employees are also expected to contribute significantly to total spending, accounting for more than 40% of the global market by 2019.

In terms of industry, the discrete manufacturing sector recorded the largest public cloud market size in 2015, reaching $8.6 billion. The banking and professional services sectors followed, recording $6.8 billion and $6.6 billion, respectively. However, in 2019, the professional services sector is expected to overtake banking and take second place.

These three industry sectors led the public cloud services market in the Americas, Europe, and the Middle East and Africa in 2015. On the other hand, the telecommunications sector was the second-largest market in the Asia-Pacific region and is projected to take the lead in terms of size by 2019.

In fact, the telecommunications sector is expected to show the fastest growth, growing at an average annual rate of 22.2% globally during the forecast period. The media, central and local government, education, retail, transportation, and resource sectors are also expected to show growth of over 20%.

Eileen Smith, Program Director at IDC, stated, “Cloud services are an essential foundation for the 3rd Platform,” and predicted that as the cloud services market enters the ‘innovation stage,’ new cloud-based solutions and value creation will increase explosively.
He continued, “As companies seek solutions that reflect their unique business and industrial needs, industry-specific applications will act as a driving force in the market, and as the number and diversity of services in the market increase significantly and cloud-first strategies expand across all industries, digital transformation for companies will become possible.”