New data presented by Wette, has indicated that the Software as a Service (SaaS) segment of public cloud services known as Cloud Application Services are set to make close to half a trillion dollars next year, making them the largest contributor to cloud spending’s total revenue and is projected for a bright next few years.
According to data, public cloud application SaaS end-user spending will reach $145.5B in 2021 and is expected to experience a compound annual growth rate of (CAGR) of 19.34% from 2020-2022.
“Cloud services have become ubiquitous in the global economy with its usage seen in many exciting emerging markets such as gaming, fintech and blockchain, among many others. The SaaS segment within Cloud Services looks particularly strong and 2020’s pandemic only highlighted the importance of such tools, further solidifying its already bright future,” said Rex Pascual, editor at Wette.
Cloud services as a concept can be traced back to the 1960s but started to take their current shape after the turn of the new millennium. Since then the industry has blossomed into near-necessity in today’s digital age. Cloud Application Services which is the SaaS segment of public cloud services, generated 36.73% of 2021’s end-user spending – the largest out of all the segments.
In 2021 end-user spending within the segment is projected to reach $145.5B in 2021 – a 20.55% YoY increase from 2020. The segment is projected to experience a further 18.14% in 2022 and reach $171.9B. From 2020-2022 the segment is projected to experience a CAGR of 19.34%.
The total market size of cloud services end-user spending is estimated to be around $396.15B in 2021 and is projected to reach over $480B in 2022. After Cloud Application Services, Cloud System Infrasturuce Servies (IaaS) is the next largest with an estimated $91.54 but is expected to grow the most in 2022 with a projected 32.86% growth.