According to new data from Synergy Research Group, public cloud revenues reached $544 billion in 2022, a 21% increase from 2021. Despite economic headwinds and a strengthening US dollar, the IaaS & PaaS segment saw the biggest growth, with a 29% increase in revenues to reach over $195 billion.
IaaS & PaaS Sees Strong Growth
The IaaS & PaaS segment saw the strongest growth in public cloud revenues, reaching over $195 billion in 2022, a 29% increase from the previous year. This growth was despite some major headwinds from the strengthening US dollar and problems in the Chinese market.
Managed Private Cloud Services, Enterprise SaaS, and CDN Also See Growth
In addition to the IaaS & PaaS segment, managed private cloud services, enterprise SaaS, and CDN also saw growth in revenues. These segments added another $229 billion in service revenues, with an average growth of 19% from 2021.
Public Cloud Providers Invest in Data Center Infrastructure
To support the growth in digital services, public cloud providers spent $120 billion on building, leasing, and equipping their data center infrastructure in 2022, a 13% increase from the previous year. This investment will support the continued growth of the public cloud ecosystem.
Leading Companies Include Microsoft, Amazon, Salesforce, and Google
The companies that featured the most prominently in the public cloud market were Microsoft, Amazon, Salesforce, and Google. Other major players included Adobe, Alibaba, Cisco, Dell, Digital Realty, Huawei, IBM, Inspur, Oracle, SAP, and VMware. In total, these companies accounted for 60% of all public cloud-related revenues in 2022.
US Remains Center of Gravity for Cloud Services
While cloud markets are growing in all regions of the world, the United States remains a center of gravity for cloud services. In 2022, the US accounted for 45% of all cloud service revenues and 53% of hyperscale data center capacity. The majority of leading players in the cloud market are US companies, followed by Chinese companies who account for 8% of all 2022 cloud service revenues and 16% of hyperscale data center capacity.
Public Cloud Ecosystem Revenues Expected to Double in Four Years
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 also expected to increase the number of operational hyperscale data centers by 50% and expand the capacity of data center networks by over 65%. This growth will continue to support the digital economy and drive innovation in the public cloud market.
In conclusion, the public cloud market saw strong growth in 2022, despite economic headwinds and a strengthening US dollar. The IaaS & PaaS segment saw the biggest growth, but managed private cloud services, enterprise SaaS, and CDN also saw growth in revenues. Public cloud providers invested heavily in data center infrastructure to support the growth in digital services. Leading companies in the market included Microsoft, Amazon, Salesforce, and Google. The United States remains a center of gravity for cloud services, with the majority of leading players being US companies. The public cloud ecosystem is expected to continue to grow, with revenues expected to double in four years.
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