Public Cloud and SaaS Spending Forecast

How much organisations spend on public cloud services worldwide, including software-as-a-service, based on Gartner's forecast.

Updated October 1, 2026
5 min read
1 source
Global

Executive Summary

Gartner forecasts worldwide end-user spending on public cloud services of $723.4 billion in 2025, up from $595.7 billion in 2024, growth of 21.5%. Software-as-a-service (SaaS) is the largest part, forecast at about $299.1 billion in 2025. Gartner expects every cloud segment to grow by double digits.

Key Numbers

Public cloud spending, 2025F: $723.4B[1]; Up 21.5% from 2024.
Public cloud spending, 2024: $595.7B[1]; Growth of 19.2% that year.
SaaS spending, 2025F: $299.1B[1]; Largest cloud segment, up 19.2%.
Hybrid cloud adoption: 90%[1]; Organisations adopting hybrid cloud through 2027 (Gartner prediction).

Charts

Public cloud spending by segment, 2025 forecast

Forecast worldwide end-user spending by cloud service type.

SaaS
$299.1B
IaaS
$211.9B
PaaS
$208.6B
DaaS
$3.8B

Unit: USD billion · 2025Source: [1] Gartner

Total public cloud spending

Worldwide end-user spending on public cloud services. 2025 is a forecast.

2024
$595.7B
2025F
$723.4B

Unit: USD billion · 2024-2025Source: [1] Gartner

Market Size

Gartner forecasts end-user spending on public cloud services to total $723.4 billion in 2025, up from $595.7 billion in 2024 [1].

Software (SaaS), 2025: $299.1 billion [1]
Infrastructure (IaaS), 2025: $211.9 billion [1]
Platform (PaaS), 2025: $208.6 billion [1]
Desktop-as-a-service, 2025: $3.8 billion [1]

Segments

SaaS, meaning software that customers rent and use over the internet, is the largest segment, at about 41% of 2025 spending by our calculation. It is forecast to grow 19.2% [1].

Infrastructure services are forecast to grow fastest, at 24.8% in 2025, followed by platform services at 21.6% [1].

Key Trends

Gartner links the growth to the use of AI in IT and business operations [1]. It also predicts that 90% of organisations will adopt a hybrid cloud approach through 2027 [1].

Methodology

All figures come from Gartner's November 2024 public cloud forecast [1]. 2025 values are forecasts, not results. Gartner notes that totals may not add up due to rounding. Segment shares are our own calculations.

Companies

Sources

[1]
Gartner Forecasts Worldwide Public Cloud End-User Spending to Total $723 Billion in 2025 / Gartner / November 19, 2024 / Accessed October 1, 2026 / View source

Figures are reproduced from the publishers above. Calculations marked as our own are derived from these figures. Always check the original source before using a number.

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