Cloud market continues to grow at near 20 percent annually

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The worldwide public cloud services market is expected to grow 17 percent in 2019 to total $206.2 billion, up from $175.8 billion in 2018, according to a new report from Gartner Inc.

In 2018, Gartner forecasts that the market will grow 21 percent, from $145.3 billion in 2017. The fastest-growing segment of the market is infrastructure-as-a-service (IaaS), which is forecast to grow 28 percent in 2019 to $39.5 billion, from $31 billion in 2018.

By 2022, Gartner expects that 90 percent of organizations purchasing public cloud IaaS will do so from an integrated IaaS and platform-as-a-service (PaaS) provider, and will use both the IaaS and PaaS capabilities from that provider.

"Demand for integrated IaaS and PaaS offerings is driving the next wave of cloud infrastructure adoption," said Sid Nag, research director at Gartner. “We expect that IaaS-only cloud providers will continue to exist in the future, but only as niche players, as organizations will demand offerings with more breadth and depth for their hybrid environments.”

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Already, strategic initiatives such as digital transformation projects resulting in the adoption of multi-cloud and hybrid cloud environments are fueling the growth of the IaaS market, Nag said.

Software-as-a-s-service (SaaS) remains the largest segment of the cloud market, with revenue expected to grow 18 percent to reach $85.1 billion in 2019.

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