Public cloud market expected to surpass $1 trillion in value by 2026
According to a recent research from Forrester, the global cloud market will surpass the $1 trillion mark by 2026. This is quite the ambitious projection seeing as the current revenue from cloud infrastructure is yet to hit half a million dollars even when combined with revenue from database and analytics, development services, and cloud applications.
However, Forrester believes the massive growth will happen due to a number of factors one of which is increased competition among hyperscaler providers.
If these projections by the industry experts are right then revenue from cloud infrastructure alone will account for about $496 billion in revenue in 2026.
Hyperscalers are currently the biggest players in the public cloud and services sector and Forrester estimates that as demand for cloud infrastructure increases, more businesses will chip up and existing companies will be forced differentiate themselves in one way or another.
This will lead to increased investment in technologies such as custom microchips and advanced wireless networking in an attempt to match competitor offerings, attract more customers, and increase the price of their services.
There will also be a heightened focus on database and analytics services as the hyperscalers attempt to meet customer demand for AI and machine learning.
“As customers seek AI and machine learning for product innovation and greater operating efficiency, database and analytics services revenue will rise threefold to $89.5 billion by 2026,” Forrester said in a statement.
Another factor that is expected to drive this growth in increased interest in development services and Forrester estimates that they will result in a $51 billion rise in revenue. “Factors including serverless becoming integral to app development on cloud platforms, automation, and integration of low-code into cloud development will fuel this growth,” Forrester added.
These projections from Forrester follow a similar finding from Gartner that concluded global end-user spending on public cloud will surpass $598 billion by 2023.
According to Gartner, Infrastructure as a Service will drive the growth significantly representing a 29.8% growth rate.
Gartner, however, noted that the growth will be affected by the tough economic times which have resulted to increased inflation. The consequence will be hiked prices for products and services as businesses look to protect their margins.