The global Public Cloud services market is projected to grow 21.4 per cent in 2018 to total $186.4 billion — an increase from $153.5 billion in 2017, market research firm Gartner said on Thursday.
The fastest-growing segment of the market is Cloud system infrastructure services or Infrastructure-as-a-Service (IaaS) which is forecast to grow 35.9 per cent in 2018 to reach $40.8 billion.
“The increasing dominance of the hyperscale IaaS providers creates both enormous opportunities and challenges for end users and other market participants,” Sid Nag, Research Director at Gartner, said in a statement.
The research firm expects the top 10 providers to account for nearly 70 per cent of the IaaS market by 2021, up from 50 per cent in 2016.
“In response to multicloud adoption trends, organisations will increasingly demand a simpler way to move workloads, applications and data across cloud providers’ IaaS offerings without penalties,” Nag added.
Software as a service (SaaS) remains the largest segment of the Cloud market, with revenue expected to grow 22.2 per cent to reach $73.6 billion in 2018.
SaaS is expected to reach 45 per cent of total application software spending by 2021.
Within the platform as a service (PaaS) category, the fastest-growing segment is database platform as a service (dbPaaS) is expected to reach almost $10 billion by 2021.