Gartner: Global Public Cloud Spending to Hit $723 Billion by 2025

Technology

Gartner: Global Public Cloud Spending to Hit $723 Billion by 2025

Gartner, Inc. has projected global end-user spending on public cloud services to soar to $723.4 billion in 2025, marking a significant increase from $595.7 billion in 2024. This growth underscores the expanding role of cloud computing in enabling business operations and outcomes.

AI and Cloud Computing Drive Growth

“The adoption of AI technologies in IT and business operations is rapidly accelerating, cementing the role of cloud computing as a cornerstone for achieving business objectives,” stated Sid Nag, Vice President Analyst at Gartner. “With increasing emphasis on distributed, hybrid, cloud-native, and multicloud frameworks, the public cloud services market is set to grow by 21.5% in 2025.”

Gartner’s forecast suggests that by 2027, 90% of organizations will adopt a hybrid cloud strategy. Data synchronization across hybrid environments is expected to be a key challenge in leveraging generative AI (GenAI) technologies.

Double-Digit Growth Across All Cloud Segments

All segments of the cloud market are anticipated to experience double-digit growth in 2025, reflecting the mounting pressure on infrastructure and operations (I&O) leaders to integrate their strategies with GenAI. These leaders are expected to prepare for running AI and GenAI infrastructures at the edge.

CIPS Market Expansion

Cloud Infrastructure and Platform Services (CIPS), encompassing integrated IaaS and PaaS capabilities, are set to be a pivotal growth area. Gartner defines the CIPS market as providing comprehensive platforms to streamline development, deployment, and operational processes.

“Organizations are increasingly gravitating toward CIPS to manage the complexity of today’s workloads,” said Nag. “The adoption of multicloud models and the need for cross-cloud integration frameworks (CCIF) are fueling this demand. Cross-cloud federated GenAI capabilities, enabling advanced AI workloads, will also be key drivers of CIPS growth.”

Gartner predicts that spending on CIPS will grow by 24.2% in 2025, reaching $301 billion. By then, CIPS offerings will represent 72% of IT spending on IaaS and PaaS, up from 70% in 2022.

The Future of Hybrid and Multicloud

As hybrid cloud adoption becomes ubiquitous, organizations will focus on resolving synchronization challenges to fully capitalize on GenAI technologies. The growing demand for secure, private, and curated GenAI models tailored to industry needs will further drive investments in cloud services.