US Cloud Market 2024: Size, Trends, Growth & Top Cloud Providers
Of all the contenders in digital networking and infrastructures, Cloud computing takes center stage in the management of digital systems. We are sharing this informative guide to explore the US cloud market in 2024, providing business professionals, IT decision-makers, and investors like you with an in-depth look at what is happening with the US cloud market size, growth forecasts, dominant trends, and key players.
What is Cloud Computing?
“The cloud” is another name by which the internet is referenced. Cloud computing allows individuals and businesses alike to access computing efficiently, effectively, and safely. Three service models dominate in technology offered by cloud service providers in the US:
- Software as a Service (SaaS), where all applications are delivered over the internet. This includes software that assists in running servers, storage devices, databases, networking, and more. This model is forecasted to represent the largest portion of the worldwide market in 2024, at 36%. (Gartner )
- Platform as a Service (PaaS), where customers develop, run, and manage applications on a platform provided to them as a service. This model represents 26% of the forecasted market for 2024. (Gartner )
- Infrastructure as a Service (IaaS), where fundamental computing resources are offered within a virtualized environment, is forecasted to represent 27% of the 2024 worldwide market. (Gartner )
Although cloud Business Process Services (BPaaS) are increasing in popularity, this sector is forecasted to represent only 11%, a predicted 2% increase over 2022. Additionally, Cloud Desktop-as-a-Service (DaaS) accounts for less than 1% of worldwide cloud spend. (Gartner )
The use of public cloud servers and end-user spending is forecasted to increase 20.4% according to Gartner’s latest forecast, representing a significant increase from $563.6 billion in 2023 to $678.8 billion in 2024.
Additionally, Gartner predicts that enterprises will accelerate their business initiatives and this will account for more than 70% of industry cloud platform use by 2027. This is a huge increase from less than 15% in 2023.
Key Factors Driving Growth
So, what is driving the cloud computing growth in the USA for 2024? Several key factors are at play:
- Digital Transformation: Businesses continue to digitize their operations, driving the need for scalable and flexible IT solutions.
- Remote Work Adoption: The shift towards remote and hybrid work models has necessitated robust cloud infrastructure to facilitate seamless collaboration and access to corporate resources from anywhere.
- AI and Machine Learning Integration: Cloud platforms are increasingly integrating AI and machine learning to provide advanced analytics and automated process enhancements.
- Hybrid and Multi-Cloud Solutions: Businesses are leveraging hybrid environments (combining private and public clouds) and multi-cloud strategies to optimize their operations and enhance security.
The Big Players in the Cloud Service Arena
The US cloud market is dominated by a few key players, each offering unique capabilities. These key players are:
- Amazon Web Services (AWS): Continues to lead with its extensive service offerings ranging from enterprise applications to machine learning tools.
- Microsoft Azure: Known for its seamless integration with Microsoft’s software products and a strong emphasis on AI and analytics.
- Google Cloud: Stands out with its data analytics capabilities and strong infrastructure as a service (IaaS) offerings.
Impact on Different Industries
While cloud computing can be transformative for any business, the greatest impact of cloud computing in US industries has been found in:
- Healthcare: Facilitating telemedicine and patient data management with enhanced security and compliance capabilities.
- Finance: Supporting real-time data processing and mobile banking solutions while adhering to strict regulatory requirements.
- Retail: Enabling e-commerce platforms to scale operations rapidly, especially during peak periods.
Future Outlook and Emerging Trends
Emerging cloud computing trends in the US, are expected to continue this upward trajectory. They include the following:
- Sustainable Cloud Solutions: With an increasing focus on environmental impact, cloud providers are likely to invest more in sustainable, energy-efficient data centers.
- Edge Computing: This technology will grow in relevance as it enables data processing to be done closer to where it is needed, reducing latency and bandwidth use.
- Serverless Computing: Set to expand as it allows businesses to focus on application development without the overhead of managing servers.
The US cloud market as a strategic business must and is poised to redefine competitive landscapes across industries. Reflecting more than just economic growth, this significant expansion to $678.8 billion is a marked shift towards more agile, efficient, and innovative business practices… enabled by cloud computing!
Your time to tap into the potential of cloud computing is now. Reach out to our team at Molnii for more information on how to make the cloud work better for your business.
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Frequently Asked Questions (FAQs)
• How big is the cloud computing market in 2024?
The market is expected to reach around $678.8 billion in end-user spending, marking significant growth from previous years. (Gartner )
• What is the cloud market forecast for 2025?
While specific figures for 2025 are yet to be published, the trend indicates continued robust growth beyond 2024, with expanding applications in AI and sustainable technologies. (Gartner)
• What are the statistics for cloud migration in 2024?
A majority of businesses are now utilizing cloud environments, with a significant shift towards hybrid and multi-cloud strategies to optimize their IT infrastructures (Mordor).
