Global Public Cloud Application Services Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• In September2019, Oracle partnered with VMware to offer support customers in implementing hybrid cloud strategies. Under this partnership, customers will be able to execute their hybrid cloud strategies by running VMware Cloud Foundation on Oracle Cloud Infrastructure. This partnership would enable customers to easily migrate VMware vSphere workloads to Oracle’s Generation 2 Cloud Infrastructure and take advantage of consistent infrastructure and operations.

• In August 2019, AWS expanded its global presence by opening new data centers in Hong Kong. This newly launched data center allows its commercial customers to run applications and store their content in data centers in Hong Kong while connecting to the global AWS network.

The global public cloud application services market can be segmented into several key categories based on the types of services offered and their specific functionalities, catering to diverse enterprise needs across different stages of application development and deployment. One of the primary segments within this market is Platform as a Service (PaaS), which provides developers with platforms and tools to build, deploy, and manage applications without the complexity of infrastructure management. PaaS offerings typically include development frameworks, database management systems, middleware, and application lifecycle management tools. These services enable enterprises to streamline development processes, accelerate time-to-market for new applications, and scale resources dynamically based on demand. Leading cloud providers like AWS Elastic Beanstalk, Microsoft Azure App Service, and Google Cloud App Engine offer PaaS solutions that support various programming languages, frameworks, and deployment models, catering to diverse application development needs across industries.

The era of cloud-native application development. Platforms such as Kubernetes, offered by cloud providers as managed Kubernetes services (e.g., Amazon EKS, Azure Kubernetes Service, Google Kubernetes Engine), facilitate the deployment, scaling, and management of containerized applications across hybrid and multi-cloud environments. Container orchestration platforms enable enterprises to achieve greater agility, portability, and efficiency in deploying and managing modern applications built using microservices architecture. These platforms are essential for optimizing resource utilization, ensuring high availability, and supporting DevOps practices that emphasize automation and continuous delivery. Integration platforms form a crucial segment within the public cloud application infrastructure services market. These platforms provide tools and capabilities for connecting, integrating, and orchestrating data and workflows across heterogeneous systems, applications, and cloud services. Integration platforms as a service (iPaaS) offerings, such as AWS Step Functions, Azure Logic Apps, and Google Cloud Dataflow, enable seamless communication between cloud-based and on-premises applications, APIs, and data sources. They support enterprises in achieving interoperability, data synchronization, and real-time data processing, critical for driving business agility, enhancing customer experiences, and accelerating digital transformation initiatives.

Global Public Cloud Application Services Segment Analysis

In this report, the Global Public Cloud Application Services Market has been segmented by Enterprise, Vertical, and Geography.

Global Public Cloud Application Services Market, Segmentation by Enterprise

The Global Public Cloud Application Services Market has been segmented by Enterprise into Large Enterprise and Small & Medium Enterprise.

Large enterprises represent a significant segment driving demand for public cloud application services. These organizations typically have extensive IT resources, complex application portfolios, and stringent performance requirements. Public cloud services such as Platform as a Service (PaaS) are particularly valuable for large enterprises, offering scalable development environments, robust middleware solutions, and integrated tools for application deployment and management. PaaS platforms enable large enterprises to accelerate software development cycles, foster innovation through agile methodologies, and efficiently manage diverse workloads across global operations. Moreover, container orchestration platforms like Kubernetes are leveraged by large enterprises to orchestrate complex microservices architectures, ensuring scalability, resilience, and operational efficiency in hybrid and multi-cloud environments. Application integration platforms also play a crucial role in large enterprises by facilitating seamless connectivity between disparate systems, enabling data synchronization, and supporting enterprise-wide integration initiatives. These capabilities are essential for large enterprises seeking to enhance agility, optimize IT costs, and leverage advanced technologies such as artificial intelligence (AI) and machine learning (ML) for competitive advantage in the global marketplace.

Small and medium enterprises (SMEs) represent another critical segment in the public cloud application services market. SMEs often face resource constraints and operational challenges compared to their larger counterparts but benefit significantly from the scalability, cost-efficiency, and flexibility offered by public cloud services. PaaS solutions enable SMEs to accelerate application development, minimize upfront investment in infrastructure, and scale resources based on evolving business needs. Container orchestration platforms provide SMEs with the agility to deploy and manage containerized applications without the overhead of managing complex infrastructure, thereby enabling faster time-to-market and improved resource utilization. Application integration platforms as a service (iPaaS) are instrumental for SMEs in achieving seamless connectivity between cloud-based and on-premises systems, supporting business growth, and enhancing operational efficiency through automated workflows and data synchronization. For SMEs, leveraging public cloud application infrastructure services enables them to compete effectively in the digital economy, innovate rapidly, and meet customer demands with enhanced agility and responsiveness.

Global Public Cloud Application Services Market, Segmentation by Vertical

The Global Public Cloud Application Services Market has been segmented by Vertical into Government, BFSI, Healthcare, Telecommunication, Media & Entertainment, Energy & Utilities, Retail/ Wholesale, Manufacturing, Transportation, and Others.

Government agencies worldwide are increasingly adopting public cloud application services to modernize IT systems, improve service delivery, and enhance citizen engagement. Cloud platforms enable governments to streamline operations, reduce costs associated with maintaining on-premises infrastructure, and deploy scalable applications for public services. Key applications include e-government initiatives, digital transformation projects, and data-driven governance solutions that leverage cloud-based platforms for enhanced transparency, efficiency, and citizen-centric services.

In the BFSI (Banking, Financial Services, and Insurance) sector, public cloud application infrastructure services play a critical role in driving digital transformation, improving customer experiences, and optimizing operational processes. Financial institutions leverage cloud platforms for agile development of fintech solutions, risk management, compliance, and customer relationship management (CRM) systems. PaaS offerings enable banks and insurance companies to accelerate application development, deploy scalable solutions for mobile banking, payment processing, and insurance underwriting, while ensuring data security and regulatory compliance in the cloud environment.

Healthcare organizations are increasingly adopting public cloud application infrastructure services to support electronic health records (EHR), telemedicine platforms, medical imaging, and healthcare analytics. Cloud-based PaaS solutions facilitate the development of healthcare applications that improve patient care coordination, enhance clinical workflows, and enable real-time data sharing among healthcare providers. The scalability and flexibility of cloud platforms support healthcare providers in managing big data analytics, AI-driven diagnostics, and personalized medicine initiatives, driving advancements in patient outcomes, operational efficiency, and healthcare delivery models.

Global Public Cloud Application Services Market, Segmentation by Geography

In this report, the Global Public Cloud Application Services Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Public Cloud Application Services Market Share (%), by Geographical Region, 2023

North America remains a dominant force in the adoption of public cloud services, driven by the presence of leading cloud service providers, technological innovation, and widespread digital transformation initiatives across industries. The region's advanced IT infrastructure and robust regulatory frameworks support the rapid deployment of cloud-based applications and infrastructure services in sectors such as healthcare, finance, technology, and government. Enterprises in North America leverage public cloud application infrastructure services to enhance agility, scalability, and operational efficiency, while also capitalizing on emerging technologies like AI, IoT, and big data analytics to drive innovation and competitive advantage.

In Europe, the adoption of public cloud application infrastructure services is accelerating, fueled by stringent data privacy regulations, increasing demand for digital services, and a competitive business landscape. Countries such as the UK, Germany, and France are at the forefront of cloud adoption, with industries like BFSI, healthcare, manufacturing, and retail leveraging cloud platforms for agile application development, data management, and customer engagement. European enterprises prioritize cloud solutions that offer compliance with GDPR (General Data Protection Regulation), scalability to meet fluctuating demand, and capabilities to support cross-border operations and digital transformation initiatives.

Asia Pacific represents a rapidly growing market for public cloud application infrastructure services, driven by the region's economic growth, expanding digital infrastructure, and rising adoption of cloud computing in emerging markets such as China, India, and Southeast Asia. Cloud adoption in Asia Pacific is driven by diverse industries including telecommunications, manufacturing, e-commerce, and government, which seek to harness cloud platforms for cost-effective IT modernization, scalability, and rapid deployment of digital services. Cloud providers in the region are investing in data centers, hybrid cloud solutions, and localized services to cater to regional regulatory requirements and support the growing demand for cloud-native applications and services.

In the Middle East and Africa (MEA), the adoption of public cloud application infrastructure services is gaining traction, supported by increasing investments in digital transformation, smart city initiatives, and infrastructure modernization across sectors such as energy, government, healthcare, and telecommunications. Cloud adoption in MEA is driven by the need for scalable IT solutions, enhanced operational efficiency, and improved service delivery to meet growing population and urbanization trends. Cloud providers are partnering with local governments and enterprises to deploy cloud-based applications and services that address regional challenges and capitalize on opportunities for economic growth and digital innovation.

Latin America is also witnessing significant growth in the adoption of public cloud application infrastructure services, driven by digital transformation efforts in sectors such as retail, banking, healthcare, and manufacturing. Countries like Brazil, Mexico, and Argentina are leading adopters of cloud computing, leveraging cloud platforms to enhance customer experiences, streamline operations, and accelerate innovation in a competitive market environment. Cloud providers in Latin America are expanding their data center footprint, offering localized cloud services, and collaborating with enterprises to address data sovereignty concerns, regulatory compliance, and the unique business requirements of the region.