Worldwide end-user spending on public cloud services is forecast to grow by 20.4% to $675 billion in 2024, from $561 billion in 2023, according to the latest forecast from Gartner Inc. The growth is being driven by demand for generative AI (GenAI) and application modernisation.
Organisations in Thailand are expected to spend $1.8 billion on public cloud services, an increase of 30.1% from 2023, the technology research and consulting group said. Spending on infrastructure-as-a-service (IaaS) will have the largest growth with an increase of 39.6%, followed by platform-as-a-service (PaaS) at 26%.
"The continued growth we expect to see in public cloud spending can be largely attributed to GenAI due to the continued creation of general-purpose foundation models and the ramp-up to delivering GenAI-enabled applications at scale," said Sid Nag, vice-president analyst at Gartner.
"Because of this continued growth, we expect public cloud end-user spending to eclipse the one-trillion-dollar mark before the end of this decade."
All segments of the cloud market are expected to see growth in 2024. IaaS is forecast to experience the highest end-user spending growth worldwide at 25.6%, followed by PaaS at 20.6%.
"IaaS continues at a robust growth rate that is reflective of the GenAI revolution that is under way," said Mr Nag. "The need for infrastructure to undertake AI model training, inferencing and fine-tuning has only been growing and will continue to grow exponentially and have a direct effect on IaaS consumption."
While cloud infrastructure and platform services are driving the highest spending growth, software-as-a-service (SaaS) remains the largest segment of the cloud market among end-users. SaaS spending is projected to grow 20% to total $247.2 billion in 2024.
"SaaS spending is driven by applications being modernised by independent software vendors to run in an SaaS-based consumption model," said Mr Nag.
"Organisations continue to increase their usage of the cloud for specific use cases such as AI, machine learning, Internet of Things and big data, which is driving this SaaS growth."
