Worldwide spending on public cloud services and infrastructure is forecast to reach $160bn (£114bn) in 2018, according to IDC.
The analyst's latest Worldwide Semiannual Public Cloud Services Spending Guide revealed the 23.2 per cent increase from 2017.
While annual spending growth is expected to slow over the 2016-2021 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 21.9 per cent, with public cloud services spending totalling $277bn in 2021.
The industries that are forecast to spend the most on public cloud services in 2018 are discrete manufacturing ($19.7bn), professional services ($18.1bn), and banking ($16.7bn).
The process manufacturing and retail industries are also expected to spend more than $10bn each on public cloud services in 2018.
In the UK, the top three industries of banking, retail, and discrete manufacturing will provide more than 40 per cent of the region's public cloud spending in 2018.
"The industries that are spending the most - discrete manufacturing, professional services, and banking - are the ones that have come to recognise the tremendous benefits that can be gained from public cloud services," said Eileen Smith, programme director, customer insights and analysis at IDC.
"Organisations in these industries are leveraging public cloud services to quickly develop and launch third-platform solutions, such as big data and analytics and the Internet of Things, that will enhance and optimise the customer's journey and lower operational costs."
The US will be the largest country market for public cloud services in 2018, with its $97bn accounting for more than 60 per cent of worldwide spending. However, the UK and Germany will lead public cloud spending in Western Europe at $7.9bn and $7.4bn respectively. Japan ($5.8bn) and China ($5.4bn) will round out the top five countries in 2018.
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