|Alibaba Group Holding Ltd.|
|Dell EMC Corp.|
|Adobe Systems Inc.|
|SAS Institute Inc|
|and TIBCO Software Inc.|
|Market Driving Forces|
|Rising return on investment with lower infrastructure and storage costs|
|Enterprises are concerned about the initial deployment and maintenance costs of hosting data on-premises|
According to projections, the cloud computing market size for cloud computing would grow at a 18.53% CAGR from 2022 to 2030, reaching around USD 1738.44 billion. A model or network where software or apps run and can be accessed by numerous servers or devices is referred to as a "cloud." The advent of emerging technologies like Artificial Intelligence (AI) and machine learning enables cloud growth by empowering businesses to tap into AI capabilities. Cloud computing technology is a shift in the computing tradition, providing newer and faster methods to provide computing solutions, infrastructure solutions, and application layers. Cloud computing is one of the most popular applications in the BFSI, IT, and healthcare industries. Cloud edge computing facilitates and makes sharing electronic medical records safer, boosting the sector's productivity. The market is expanding primarily due to increased demand for cloud-based information systems and technological improvement.
COVID-19 Impact Analysis
The cloud computing concept is built to handle varying demands and, if used effectively, should be able to meet capable of supporting heightened demands like those brought on by the COVID-19 problem. Considering the pandemic, cloud computing and service providers must consider the challenges of increased demand. Streaming is another option for remote work.The high demand has grow as services and digital events replace live gatherings. In both developed and developing countries, cloud computing has been one of the technologies with the quickest growth rates, and it has have a sharp acceleration in 2020. Since the COVID-19 pandemic hit the world, almost every sector has migrated or plans to move its operations to the cloud. Cloud services have emerged as a crucial driver for businesses trying to change into digital businesses. For instance, Accenture Solutions Pvt Ltd. established Cloud First in September 2020 with a USD 3 billion investment to accelerate digital transformation and cloud adoption. In addition, it is projected that the market has experience growth over the next few years due to these major market participants' growing investments in constructing data centers around the globe in response to the COVID-19 pandemic. For instance, Google LLC created four cloud regions in South Korea, Indonesia, and the United States in December 2020. The business also disclosed plans to build new cloud data centers in France, Italy, and Qatar.
Cloud Computing Market Dynamics
As businesses continued to shift their workloads from analog to digital formats, the cloud computing market size saw an increase in demand in Q3 2020. The need for Software-as-a-Service (SaaS) based solutions has increased as many businesses as possible across numerous industries have embraced the work-from-home model to maintain employee well-being and operational effectiveness. Due to the strong demand for collaboration tools, for instance, Microsoft Team platform users increased to 44 million ly. While in the final week of February 2020, 150 different countries saw a more than 300% increase in registered users for the standalone 8x8 Video Meetings cloud service. Due to lockdowns, there has been a significant surge in demand for streaming services like Amazon Prime, Disney+, Twitch, Netflix, Hulu, YouTube, and Apple TV. To meet consumer demands, the demand for infrastructure as a Service (IaaS) has increased due to the rise of Video-on-Demand (VoD).
The market expansion is anticipated to be fueled by the growing adoption of Big Data, AI, ML, and other technologies. Due to their ability to help users monitor, analyze, and visualize raw data, these technologies are changing the market landscape. Organizations can enhance their visualization skills and make complex data accessible and usable by implementing these emerging technologies in conjunction with cloud solutions. The extensive use of AI and ML in enterprises has raised data utilization and decreased problems with data storage. Additionally, these technologies help reduce operator costs, enhance decision-making processes, and boost business efficiency. Businesses choose AI-powered solutions to become more strategic, effective, and insight-driven. AI can automate tedious and difficult tasks to boost productivity and execute data analysis without human intervention. IT departments can use AI to oversee key procedures and monitor activity. Companies that provide cloud solutions and services are continually concentrating on R&D initiatives, product upgrades, and new product launches with the integration of Big Data, AI, and ML. For instance, Microsoft Corporation introduced Azure Health Data Services in March 2022. It is a platform as a service (PaaS) created primarily to accommodate analytical and transactional workloads. It supports Protected Health Information alone and unifies health data while driving cloud-based Artificial Intelligence (AI). Consequently, big data, AI, and ML are projected to become more widely used.
Users use cloud services to store sensitive information about their professional and personal activities on cloud-based platforms. However, it is anticipated that data security and privacy worries about data loss, breaches, unexpected emergencies, application vulnerabilities, and internet cyber-attacks would impede the development of cloud computing. Data stored in the cloud is susceptible to cyberattacks, even while cloud services help organizations save expenses and improve operational efficiency. Cyberattacks expose data security flaws, including cloud malware injection, meltdowns, account or service hijacking, and man-in-the-cloud attacks, which could lead to business shutdowns and financial losses. Cyberattacks jeopardize business operations, however, which restrains the market for cloud services from expanding. In 2019, almost 60% of data and information relevant to businesses were kept on storage devices without adequate security, according to the arXiv.org e-Print source. Additionally, because business needs are constantly changing, it is more important than ever to comply with regulatory standards.
Organizations must move to the cloud in this era of digitization if they want affordable, flexible, on-demand data storage solutions. As a result, governments worldwide are spending money on cloud computing delivery strategies. The cost of purchasing, establishing, operating, and maintaining technical services is reduced through cloud computing. Governments may significantly enhance productivity by streamlining their IT operations due to cloud computing, which is especially evident in how quickly transactions involving citizens are handled. Governments can also easily expand public services as needed with cloud computing. IoT hardware generates data that must be gathered and processed either locally or remotely in a server. In many loT applications, remote data hosting and analytics are a more workable and affordable approach. Edge computing, which keeps some data processing capacity at the network edge rather than outsourcing everything to the cloud, is receiving much attention as both loT and cloud computing continues to grow.
Cloud Computing Market Segmentation
The cloud computing market report segmentation, based on service, is infrastructure as a service (Iaas), platform as a service (Paas), and software as a service (Saas).The software as a service (Saas) category held a major share in 2021. Its low cost of ownership, maintenance, and ease of deployment contribute to this expansion. Demand for SaaS services that allow collaborative teams to access formerly centralized data and analytics has increased due to remote working. As SaaS products' Total Cost of Ownership (TCO) approaches that of on-premise deployment strategies, they are anticipated to experience rapid growth in the years to come. Throughout the forecast period, the expansion of the SaaS segment is anticipated to be accelerated by rising demand for SaaS delivery models and an increase in the number of companies providing cloud-based services. Besides this, the infrastructure as a service (IaaS) segment was the fastest growing segment due to the rise in demand for commercial data storage and security solutions, as well as the growing adoption of hybrid cloud platforms, both responsible for the surge.
The cloud computing market research segmentation, based on the types, is public, private and hybrid. The private category had a prominent share in 2021. In addition, increasing demand for scalable, secure, and affordable solutions are anticipated to drive up demand for private clouds among large organizations. However, the hybrid segment is anticipated to be the fastest growing due to SMEs increasingly using cloud-based solutions to boost productivity and save operating costs.
Organization Size Insights
The cloud computing market segmentation, based on organization size, is small and medium-sized enterprises (SMEs) and large enterprises. The large enterprise category had a prominent share in 2021. Demand is driven by lower operating costs, enhanced collaboration, greater flexibility, and shorter market time. As a result, growing utilization in big businesses to streamline processes is anticipated to support the segment's growth. The number of large businesses expanding across developed and developing countries would increase demand for cloud computing services over the projection period.Besides this, the small and medium-sized enterprises (SMEs) segment is anticipated to be the fastest growing. The rise is attributable to the expansion of SMEs in developing nations like China and India. The market has grown due to an increase in SMEs' need for cloud computing services to streamline workflow and save operating expenses. SMEs may cut costs, stop repetitive tasks, set priorities, and improve teamwork using cloud computing.
The cloud computing market segmentation, by verticals, is banking, financial services, insurance (BFSI), telecommunications, IT, government and public sector, retail and consumer goods, manufacturing, energy and utilities, media and entertainment, healthcare and life sciences, and others. In 2021 the banking, financial services, and insurance (BFSI) category had a major share in the market; moneylenders have adopted digital transformation due to a growth in online banking activity in the BFSI industry, with cloud computing playing a crucial part in this strategy. In the BFSI industry, cloud computing has aided businesses in cutting costs, fostering innovation, enhancing customer relationships, and expanding flexibility. However, manufacturing was the fastest growing due to advantages like seamless data management and real-time visibility provided by these services; the manufacturing sector is anticipated to be the primary adopter of cloud services. By merging cutting-edge technologies like sensors, AI, ML, big data analytics, and IoT, cloud service models are ready to provide significant value to manufacturers. Additionally, the manufacturing industry uses computing services for corporate resource planning, supply chain management, and data archiving.
Global Cloud Computing Market Share, by Region, 2021 (%)
Cloud Computing Market Overview, by Region
By region, the cloud computing market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the most extensive market share. Europe is projected to exhibit the highest CAGR during the review period.
North America anticipated the most extensive cloud computing market share in 2021. Companies in the United States prioritize digital transformation. They are frequently seen as early adopters of cutting-edge technologies like the Internet of Things (IoT), additive manufacturing, big data analytics, connected industries, AI, augmented reality (AR), machine learning (ML), and virtual reality (VR), as well as the newest telecommunications technologies like 4G, 5G, and LTE. The continued adoption of cutting-edge technology by American corporations is encouraging future expansion.
Europe was anticipated to encounter the fastest growth rate in cloud computing market in 2021. Government and private sector investments drove market expansion to speed up cloud adoption ly. For instance, the German software company SAP SE introduced its sovereign cloud platform for domestic data processing in February 2022.
Cloud Computing Market Competitive Landscape
The market includes tier-1, tier-2, and local players. The most efficient means for industry participants to increase their technical skills and get speedy access to growing markets are projected to be partnerships, strategic mergers, and acquisitions. A thriving startup ecosystem exists in the worldwide market. More than 100 startups are anticipated to operate in this industry, creating cutting-edge products and services for customers. Due to the need to constantly update and adopt new cloud products, a market with this much fragmentation is likely to experience strong rivalry. For instance, in February 2022, Kyndryl and Amazon Web Services collaborated to open a center of excellence for AWS cloud computing. Kyndryl intends to create its infrastructure in the AWS cloud with this agreement.
Furthermore, in April 2022, Salesforce introduced Customer Relationship Management (CRM) Analytics in every sector. It is an AI-powered data and analytics solution with a PaaS approach that enables Salesforce customers from all industries to offer prognostic information. Any data can be placed at the center of CRM by the customers.
Prominent players in the cloud computing market include Salesforce.com Inc.; Adobe Inc.; SAP SE; Amazon.com Inc.; Google LLC; International Business Machines Corporation; Alibaba Group Holding Limited; Oracle Corporation; Workday, Inc. Microsoft Corporation, among others.
Scope of the Cloud Computing Market Report
Organization Size Outlook
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Cloud Computing Market Forecast & Size:
To identify and estimate the market size for the cloud computing market segmented by service, type, organization size and verticals by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of Cloud computing between 2022 and 2030
Market Landscape and Trends:
To identify and infer the drivers, restraints, opportunities, and challenges for the cloud computing market growth
Market Influencing Factors:
To find out the factors which are affecting the sales of cloud computing among consumers
Impact of COVID-19:
To identify and understand the various factors involved in the cloud computing market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: USD 1738.44 billion|
|CAGR||18.53% CAGR (2022-2030)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Service, Organization Size, and Verticals|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Salesforce.com Inc.; Adobe Inc.; SAP SE; Amazon.com Inc.; Google LLC; International Business Machines Corporation; Alibaba Group Holding Limited; Oracle Corporation; Workday, Inc. Microsoft Corporation; among others,|
|Key Market Opportunities||Increasing government efforts to speed up the adoption of cloud computing|
|Key Market Drivers||Integration of cloud, big data, AI, and ML|
The study period of the cloud computing market is 2022 - 2030
The cloud computing market is growing at a CAGR of 18.53% over the next 10 years.
Europe is expected to register the highest CAGR during 2022 - 2030
North America held the largest share in 2021
Endoca BV, Cannoid, LLC, Medical Marijuana, Inc., FOLIUM BIOSCIENCES, and Elixinol are the major companies operating in the cloud computing market.