Global cloud revenue reached a new high of nearly $550 billion in 2022, growing by 22.9% compared to the previous year. The Software-as-a-Service (SaaS) Applications sector played a significant role, accounting for 45.1% of the total revenue, more than double that of Infrastructure-as-a-Service (IaaS) in second place. These figures were reported by the latest IDC Tracker research, which collected data from 850 cloud services companies across 49 countries worldwide.
SaaS Applications Lead the Way: Out of the $545.8 billion in cloud revenue, an estimated $246.3 billion came from SaaS Applications, making it the largest contributor to the market. Although both SaaS Applications and IaaS experienced a slight decline in overall market share, there was notable growth in Platform-as-a-Service (PaaS) revenue, indicating a shifting landscape in cloud services.
Market Share Leaders: AWS maintains its dominance in the cloud services market, accounting for 40.5% of the foundational cloud services sector. Microsoft follows with 21.5% market share, while Google Cloud lags behind at 6.1%. AWS’s strong market position aligns with numerous studies that consistently place it ahead of its competitors.
Investment in Cloud Services and AI: Contrary to the assumption that companies are scrutinizing expenditures and streamlining operations, businesses are actively investing in cloud services. This investment is fueled, in part, by the growing interest in artificial intelligence (AI). Rick Villars, Group VP for Worldwide Research at IDC, highlighted the continued investment in cloud services and the significant role AI plays in driving adoption.
Future Outlook for SaaS Applications: According to Frank Della Rosa, Research VP for SaaS, Business Platforms, and Industry Cloud at IDC, the SaaS Applications sector shows no signs of slowing down. The next generation of SaaS applications will leverage advancements in AI to deliver enhanced personalization, customer experiences, and operational efficiency. These developments are expected to redefine functional markets across industries and drive further revenue growth in the SaaS sector.
The global cloud market experienced substantial growth in 2022, with SaaS Applications emerging as the leading revenue contributor. Cloud providers continue to invest in cloud services, driven by the demand for AI-enabled solutions. As the SaaS Applications sector continues to thrive, its revenue potential remains strong, shaping the future of the cloud industry.
