Revenue from public cloud services will reach over $195 billion in 2020, more than doubling the current market size, according to new research.
Western Europe will continue to represent around a fifth of this global market, with revenues growing from $15 billion in 2015 to $38.6 billion in 2020, research house IDC predicted.
This represents a five-year compound annual growth rate of 20.8 percent.
Software as a service accounted for over two-thirds of all public cloud revenue in 2015, and will continue to represent the largest portion in 2020.
However, platform as a service and infrastructure as a service will grow at a quicker rate, IDC said.
The forecast differs hugely to a report from Gartner in January this year, which predicted that the worldwide public cloud services market would break through the $200 billion barrier by the end of 2016.
Bo Lykkegaard, IDC’s Associate Vice President, Software & Cloud Services Trackers, said: "Public cloud services have changed how European organisations evaluate and select software.
“Aspects such as very fast rollouts, continuous upgrades, and ease of post-implementation reconfiguration are now top criteria for new application purchases.
"Some European countries have started the adoption of public cloud services later than others, due to concerns related to information security, data location, solution availability, and other issues.”
Telcos, notably Deutsche Telekom, are looking to get a share of the market, which is led by the likes of Amazon and Google.