Public Cloud Spending to Surpass $1 Trillion in 2026

According to International Data Corporation, global public cloud spending projected to surpass $1 trillion in 2026. This growth, in particular, is driven by demand for AI-enabled platforms and cloud-native development. At the same time, the rising adoption of Platform-as-a-Service (PaaS) is accelerating AI and data platform deployment. Meanwhile, the Asia-Pacific region and China together expected to become the third-largest cloud market, with spending around $84 billion.

According to IDC’s Worldwide Software and Public Cloud Services report, global public cloud spending grows 21% year over year in 2026. This growth, in particular, is driven by rising adoption of Platform-as-a-Service (PaaS) for AI systems and cloud-native applications. However, Software-as-a-Service (SaaS) remains the largest segment of public cloud spending. In fact, SaaS still accounts for more than half of the market as organizations rely on it for enterprise software and collaboration tools.

Regionally, the United States will lead global spending with approximately $647 billion, followed by Europe at $255 billion. Meanwhile, the Asia-Pacific region and China together are expecting to represent the third-largest market with around $84 billion in cloud spending. 

IDC analysts expect the growth trajectory to continue beyond 2026. Public cloud spending could double by 2029, fueled by enterprise adoption of AI-enabled platforms, industry-specific cloud solutions, and large-scale digital transformation programs. 

The report highlights several sectors where PaaS adoption is accelerating particularly quickly. In banking, institutions are modernizing core systems while deploying AI-driven fraud detection and real-time financial services. In retail, cloud platforms support dynamic pricing, inventory optimization, and digital commerce applications. Meanwhile, aerospace and defense organizations are increasing investment in secure cloud environments to support advanced analytics and mission-critical operations. 

However, analysts warn that future growth may face challenges such as regulatory fragmentation, cloud cost pressures, and talent shortages. Despite this, cloud migration remains central to enterprise digital strategy. As a consequence, public cloud platforms remain foundational for scalable and secure digital services.

Source: 

https://www.itnews.asia/news/public-cloud-spend-to-cross-a-trillion-in-2026-and-double-in-another-3-years-624218