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Gartner Forecasts Worldwide Public Cloud Spending at $500 Billion in 2022

IaaS, DaaS and PaaS to Witness Highest Spending Growth This Year. Worldwide end-user spending on public cloud services is forecast to grow 20.4% in 2022 to total $494.7 billion, up from $410.9 billion in 2021, according to the latest forecast from Gartner, Inc.

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Worldwide end-user spending on public cloud services is forecast to grow 20.4% in 2022 to total $494.7 billion, up from $410.9 billion in 2021, according to the latest forecast from Gartner, Inc. In 2023, end-user spending is expected to reach nearly $600 billion.

“Cloud is the powerhouse that drives today’s digital organizations,” said Sid Nag, research vice president at Gartner. “CIOs are beyond the era of irrational exuberance of procuring cloud services and are being thoughtful in their choice of public cloud providers to drive specific, desired business and technology outcomes in their digital transformation journey.”

Infrastructure-as-a-service (IaaS) is forecast to experience the highest end-user spending growth in 2022 at 30.6%, followed by desktop-as-a-service (DaaS) at 26.6% and platform-as-a-service (PaaS) at 26.1% (see Table 1). The new reality of hybrid work is prompting organizations to move away from powering their workforce with traditional client computing solutions, such as desktops and other physical in-office tools, and toward DaaS, which is driving spending to reach $2.6 billion in 2022. Demand for cloud-native capabilities by end-users accounts for PaaS growing to $109.6 billion in spending.

Table 1. Worldwide Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)

 202120222023
Cloud Business Process Services (BPaaS)51,41055,59860,619
Cloud Application Infrastructure Services (PaaS)86,943109,623136,404
Cloud Application Services (SaaS)152,184176,622208,080
Cloud Management and Security Services26,66530,47135,218
Cloud System Infrastructure Services (IaaS)91,642119,717156,276
Desktop as a Service (DaaS)2,0722,6233,244
Total Market410,915494,654599,840

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Note: Totals may not add up due to rounding.

Source: Gartner (April 2022)

“Cloud native capabilities such as containerization, database platform-as-a-service (dbPaaS) and artificial intelligence/machine learning contain richer features than commoditized compute such as IaaS or network-as-a-service,” said Nag. “As a result, they are generally more expensive which is fueling spending growth.”

SaaS remains the largest public cloud services market segment, forecasted to reach $176.6 billion in end-user spending in 2022. Gartner expects steady velocity within this segment as enterprises take multiple routes to market with SaaS, for example via cloud marketplaces, and continue to break up larger, monolithic applications into composable parts for more efficient DevOps processes.

In India, end-user spending on public cloud will total $7.5 billion in 2022, growing 29.3% from 2021. Cloud system infrastructure services (IaaS) is forecast to record the highest growth in 2022 (39.4%), followed by cloud application infrastructure services (PaaS). IaaS will also be the highest spending vertical for end-users in India in 2022 (See Table 2).

Table 1. India Public Cloud Services End-User Spending Forecast (Millions of U.S. Dollars)

 202120222023
Cloud Business Process Services (BPaaS)273.7294.8321.0
Cloud Application Infrastructure Services (PaaS)1,515.72,023.92,669.6
Cloud Application Services (SaaS)1,882.32,290.02,811.5
Cloud Management and Security Services413.3510.1625.8
Cloud System Infrastructure Services (IaaS)1,698.62,368.13,241.4
Desktop as a Service (DaaS)71.383.395.4
Total Market5,854.87,570.29,764.7

BPaaS = business process as a service; IaaS = infrastructure as a service; PaaS = platform as a service; SaaS = software as a service
Note: Totals may not add up due to rounding.

Source: Gartner (April 2022)

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SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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