Gartner: Worldwide Public Cloud End-User Spending to Total $723 Billion in 2025

Worldwide end-user spending on public cloud services is forecast to total $723.4 billion in 2025, up from $595.7 billion in 2024, according to the latest forecast from Gartner.

“The use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes,” said Sid Nag, Vice President Analyst at Gartner. “Cloud use cases continue to expand with increasing focus on distributed, hybrid, cloud-native, and multi-cloud environments supported by a cross-cloud framework, making the public cloud services market achieve a 21.5% growth in 2025.”

Gartner predicts that 90% of organizations will adopt a hybrid cloud approach through 2027, and the most urgent GenAI challenge necessary to address over the next year will be data synchronization across the hybrid cloud environment.

In 2025, organizations will increasingly be attracted to the efficiencies of cloud infrastructure and platform services (CIPS) offerings. Gartner defines the CIPS market as a full-featured platform in which IaaS and PaaS capabilities are delivered as integrated cloud services. Gartner expects end-user spending on CIPS will grow 24.2% in 2025 to reach $301 billion. In 2025, CIPS offerings are projected to account for 72% of IT spending on IaaS and PaaS, up from 70% in 2022.

“Organizations are choosing CIPS because workloads of today are complex, and organizations are seeking integrated platforms to simplify development, deployment and operations. Organizations deploying a multi-cloud adoption model, which is still recording growth, are also driving spend on CIPS,” added Nag.

Gartner clients can read more in “Forecast: Public Cloud Services, Worldwide, 2022-2028, 3Q24 Update.”

Channel Impact^®
The report quantifies the impressive growth currently happening in the public cloud space.