Global Public Cloud Spending to Surge 20.4% in 2024, Driven by AI and Application Modernization

All segments of the cloud market are expected to experience growth in 2024

According to the latest forecast from Gartner, Inc., worldwide end-user spending on public cloud services is projected to grow by 20.4% in 2024, reaching $675.4 billion, up from $561 billion in 2023. This substantial growth is attributed primarily to the advancements in generative AI (GenAI) and the ongoing trend of application modernization. Sid Nag, Vice President Analyst at Gartner, explained, “The continued growth we expect to see in public cloud spending can be largely attributed to GenAI due to the ongoing development of general-purpose foundation models and the scaling up of GenAI-enabled applications.” Nag also predicted that public cloud end-user spending will surpass the trillion-dollar mark before the end of this decade.

All segments of the cloud market are expected to experience growth in 2024, with Infrastructure as a Service (IaaS) forecasted to record the highest end-user spending growth, according to Gartner. This indicates a broad-based expansion in cloud adoption across various industries and use cases. In India, the forecast is even more optimistic, with end-user spending on public cloud services expected to grow by 30%, totaling $11.7 billion in 2024. This highlights the rapid adoption of cloud technologies in emerging markets, driven by the need for scalable and efficient IT solutions.

The significant increase in public cloud spending underscores the critical role of cloud services in modern digital transformation initiatives, with AI and application modernization at the forefront of this growth trajectory.