US Public Cloud Market , By Service Model

Growth Outlook

• The US Public Cloud Market , By Service Model market is on a steady long-term growth path. Segment value stands at roughly USD 417 Mn in 2026 and is projected to reach USD 587 Mn by 2030 — a gain of about 41% over the forecast period, translating to a CAGR in the high single digits.
• What the regional split looks like (2026): SaaS leads, holding roughly 54% of segment value — the single largest regional share. IaaS is the second-largest contributor. PaaS make up the remainder, in descending order.
• By 2030, SaaS alone is expected to reach USD 306 Mn, with IaaS at USD 174 Mn.

Market Dynamics

The US public cloud market has gained immense popularity in recent years due to its numerous benefits and advantages. The public cloud refers to a cloud computing model where resources and services are provided to customers over the internet by third-party providers. This market is dominated by major players such as Amazon Web Services, Microsoft Azure, and Google Cloud, making it highly competitive and continuously evolving to meet the demands of its customers.

One of the main reasons for the demand for the US public cloud market is its service model offerings. There are three main service models in the public cloud market: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Each model offers unique services and features that cater to specific business needs and requirements.

IaaS is a service model that provides infrastructure services such as virtual machines, networking, storage, and operating systems to customers. This allows businesses to outsource their IT infrastructure and focus on their core competencies. For example, a company can use IaaS to host their website or run their applications in the cloud without having to invest in expensive hardware and maintenance.

PaaS, on the other hand, offers a platform for software development, testing, and deployment. It provides developers with a ready-to-use environment, tools, and services to build, test, and deploy their applications. This saves time and resources as businesses do not need to build and maintain their own development platform. PaaS is beneficial for startups and small businesses as it allows them to quickly develop and launch their products without significant investments.

SaaS is a software delivery model where applications are hosted and provided to customers over the internet. This eliminates the need for businesses to install and maintain software on their local devices, reducing costs and improving efficiency. SaaS is highly scalable and customizable, making it a popular choice for businesses of all sizes.

The availability of these service models in the US public cloud market has allowed businesses of all sizes to adopt cloud computing and reap its benefits. It has also enabled new business models such as software as a service and pay-as-you-go pricing, making it more affordable and accessible. The demand for these service models continues to grow as more businesses realize the efficiency and cost-saving benefits of the cloud.