IDC's Worldwide Cloud Platform as a Service Taxonomy, 2025

This IDC study provides a detailed description of IDC's cloud platform as a service market. IDC defines the cloud PaaS market as 100% of the revenue of IT capability in the application development and deployment (AD&D) primary software market when it is composed and delivered as a cloud service.PaaS is segmented into seven secondary markets:Analytics and business intelligence softwareApplication development softwareApplication platformsArtificial intelligence platformsData management softwareIntegration and orchestration middlewareSoftware quality and life-cycle toolsThese secondary markets are combinations of existing AD&D functional software markets that reflect the most prevalent combinations of integrated functionality based on customer use cases and the most typical supplier offerings, in addition to other market factors such as the primary problem being solved by the service."The cloud platform as a service taxonomy describes the PaaS market, which grew by greater than 29% in 2023 to reach more than $123 billion in revenue," said Adam Reeves, research director, Platform as a Service for Developers of Modern and Edge Applications at IDC. "The taxonomy defines the seven secondary markets that drive the market growth, including artificial intelligence platforms and data management software."