ID: MRFR/ICT/0507-CR | February 2020 | Region: Global | 141 pages
Market Research Future (MRFR) predicts the Cloud Computing Market size to reach USD 340.5 billion at a 19.4% CAGR from 2018 to 2024 (forecast period). Cloud computing is an IT service delivery model where third-party service providers provide computing resources and software tools through the Internet. In this service model, the user pays only for the usage of the computing device, along with the storage and bandwidth they consume. Cloud computing provides multiple advantages over on-premises hardware infrastructure like faster deployment, disaster recovery, low cost, scalability, mobility support, and less burden on IT staff to manage systems.
Cloud computing has become very important in the modern era, from games to software used by institutions and offices. E-commerce is gaining a lot of popularity in the sense of a lockdown to sell food and other important supplies. Online retailers are seeing an upsurge in transactions as they use cloud hosting tools that are flexible and do not disrupt business. Cloud computing is on the rise during the pandemic since it increases the ability of businesses to review relevant data in order to ensure an improved response. Cloud computing also provides major efficiency improvements for types of work that are not suitable for telecommuting. Cloud computing improves the efficiency of operations such as online marketing, back-office work, editing, web design, engineering, and other remote work. TeamViewer, ClickMeeting, Skype, and Slack are constantly dependent on the cloud for uninterrupted and trouble-free operations.
The lockdown has had a strong impact on the cloud computing market due to employees working remotely and businesses are using robust collaborative tools to run operations smoothly. At such times, when food and medicines are of the utmost importance, cloud computing has come to the rescue as it supports telemedicine. Remotely, access to doctors and other health professionals has become increasingly important.
The need for cloud computing has become more evident in this outbreak, particularly since the national lockdown. Businesses cannot work without cloud solutions, and the integration of such solutions has ensured the stability of web-based platforms and services.
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. In addition, staff costs and downtime issues are a few additional challenges for companies. Current competition and global economic situations have intensified the adoption of cost-effective measures to restructure business models. Growing market shifts towards digital transformation and accelerating customer experience are a few more factors contributing to the adoption of cloud computing services that eventually minimize enterprise costs. In addition, the cloud provides the advantage of a pay-as-you-go model that allows businesses to pay for their use of cloud services, resulting in reduced costs.
Need to meet regulatory and compliance policy
In recent years, the need to meet regulatory and compliance have gradually grown due to changing market needs, rising data breaches, and cyber-attacks, and increasing data security issues. In addition, companies must aim to thrive in the market by taking steps to meet regulatory needs and prevent financial penalties, prevent customer and revenue losses and avoid exposure to legal action.
Cloud Computing Industry has been segregated on the basis of Service Model, Deployment Model, Organization Size, and Vertical.
By service model, the SaaS segment to attain the highest share
The SaaS segment of cloud computing market held the largest market share of 58% in 2018, and it is expected to exhibit a high CAGR during the forecast period.
By deployment mode, the public cloud segment to display the highest share
The public cloud segment of cloud computing market captured the largest market share in 2018, and it is expected to post a CAGR of 20% during the forecast period.
By organization size, the large enterprise segment to lead the market
The large enterprise segment of cloud computing market held the larger market share in 2018, and it is expected to record a CAGR of 19% during the forecast period.
By vertical, the BFSI segment to post the highest CAGR
The BFSI segment of cloud computing market earned the largest market share in 2018, with a market value of USD 24.8 billion, it is predicted to register a CAGR of 18.6% during the forecast period.
North America to lead the global market
North America is an industry leader in terms of market share. Some of the factors responsible for the growth of the industry include the growing need for businesses to offer their workers flexible job opportunities and better internet connectivity. In addition, the involvement of major companies such as Microsoft Corporation, Amazon Web Services Inc., Cisco Systems Inc., Google, IBM Corporation, and others is one of the driving forces for cloud computing in the region.
Europe to follow North America
Europe has been divided into the United Kingdom, Germany, France, Spain, Italy, and the rest of Europe. According to the MRFR, the UK is projected to have the largest market share, followed by Germany and France. Some of the contributing factors for the cloud computing market growth include the increasing use of cloud-based solutions. Many organizations are also employee-centric and have flexible work opportunities for their employees. Increased automation and agility are a significant market driver in Europe.
Partnerships, strategic mergers, and acquisitions are expected to be the most effective way for industry players to gain fast access to emerging markets and improve their technical capabilities. Product differentiation and improvements are also expected to pave the way for the growth of companies in the cloud computing market.
The key players in the global cloud computing industry are Amazon.com Inc., Microsoft Corporation, SAP SE, Alphabet Inc, Oracle Corporation, Cisco Systems, Inc., Salesforce.com, Inc., VMware, Inc., IBM Corporation, Alibaba Group Holding Ltd., Dell EMC Corp., Rackspace Inc., Adobe Systems Inc., SAS Institute Inc, and TIBCO Software Inc.
In June 2020, Amazon launched AWS Europe (Milan) and AWS Africa (Cape Town) to extend its availability zones to 76 in 24 geographic regions worldwide. It also revealed plans for nine new availability zones and three more AWS regions in Indonesia, Japan, and Spain.
In May 2020, Microsoft released an industry-specific cloud offering for healthcare organizations and enhanced workflow efficiency and simplified interactions. Microsoft Cloud for Healthcare involves data analytics for both structured and unstructured data.
This research report explores critical drivers, constraints, and challenges in the global cloud computing market, regional and segment revenue estimates and assessments. The base year is 2018; the estimate period is 2018-2024. The segmentation of the cloud computing market is represented in the following manner
By Service Model
By Deployment Mode
By Organization size
Frequently Asked Questions (FAQ) :
As per MRFR analysis, the global cloud computing market is likely to thrive at 19.4% CAGR by 2024 owing to the extensive reliability offered by cloud computing analytics.
The growing need for work life flexibility is popularizing BYOD culture. This is expected to support the cloud computing market in North America.
Amazon.com Inc., Alphabet Inc, Microsoft Corporation, and Oracle Corporation are some well-established players that are likely to gain high traction for the global cloud computing market.
The cloud computing market is expected to value at about 340.5 billion by 2024. It is due to the diversification of product portfolio of key players that is expected generate high revenue for the market.
According to MRFR study, benefits, such as faster deployment, cost-affordability, mobility support, scalability, and disaster recovery that are offered by cloud computing technology is expected to boost the cloud computing market expansion.