Cloud computing companies provide cloud-based infrastructure and services to businesses. They offer scalable and flexible solutions that enable organizations to store data, run applications, and access computing resources over the internet. Cloud computing enhances IT agility, reduces capital expenditure, and supports digital transformation initiatives, making it a cornerstone of modern business operations.
Competitive Landscape of the Cloud Computing Market
The cloud computing market is a rapidly growing and highly competitive landscape, with established giants vying for market share against innovative newcomers. This dynamic market presents a plethora of options for businesses seeking to leverage the scalability, agility, and cost-effectiveness of cloud-based solutions.
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New and Emerging Companies:
Several new and emerging companies are disrupting the cloud computing market with innovative offerings and niche specializations. Some notable examples include:
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Latest Company Updates:
February 14, 2023
Akamai Technologies, the cloud provider that powers and safeguards life online, today unveiled three cloud computing facilities that will be operational by 2023. These facilities realise Akamai's vision for a new type of cloud that will better serve the needs of contemporary applications that demand higher performance, lower latency, and true global scalability than current cloud architectures can offer.
The Federal Trade Commission (FTC) began an investigation into company practises and how they affect competition in the cloud computing sector on March 22. Regulators in the United Kingdom (UK) have started an investigation into possibly anticompetitive aspects of the cloud market, and European regulators have also started looking into the market for cloud services.
A new set of componentized, composable cloud native services called Oracle Banking Cloud Services was introduced in 2023 by Oracle, a US-based cloud technology corporation. With the help of the six new services, banks are now able to process scalable corporate demand deposit accounts, manage enterprise-wide limits and collateral, handle real-time ISO20022 international payments, control APIs, sign up and originate retail clients, and develop fresh digital self-service experiences. They are designed on a microservices architecture, which helps banks update and modernise their business capabilities more quickly and reliably.
Cloud Computing Market Size was valued at USD 450.9 Billion in 2022. The Cloud Computing Market industry is projected to grow from USD 534.4 Billion in 2023 to USD 2082.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.53% during the forecast period (2024 - 2032). Enterprises are concerned about the initial deployment and maintenance expenses of hosting data on-premises, as well as the rising return on investment with decreased infrastructure and storage costsare the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for cloud computing is being driven by the integration of big data, analytics, and machine learning with the cloud.The growing use of Big Data, Artificial Intelligence (Al), Machine Learning (ML), and other technologies is predicted to fuel market expansion. These technologies are changing the market landscape because they help users monitor, analyse, and visualise raw data.Adopting these emerging technologies in tandem with cloud solutions helps organisations improve their visualisation capabilities and make complex data accessible and usable. The expanding use of Al and ML technologies in enterprises has increased data utilisation while decreasing data storage concerns. These technologies also help to boost business efficiency, improve decision-making processes, and reduce operating costs. Businesses are embracing Al-powered solutions in order to become more strategic, efficient, and insight-driven.
Al can automate repetitive and difficult procedures to enhance production and execute data analysis without the need for manual intervention. IT departments can also utilise Al to monitor and manage critical work flows. For instance, In March 2022, Microsoft Corporation launched Azure Health Data Services. It is a platform as a service (PaaS) designed to support analytical and transactional workloads. It supports PHI alone and unifies health data while enabling cloud-based Artificial Intelligence (AI). As a result, big data, artificial intelligence, and machine learning are expected to grow more popular.
Additionally, cloud computing services and cloud-based apps have enhanced productivity and adaptability for businesses and their employees. However, most businesses are concerned that the threats to cloud computing systems are outpacing their ability to develop sufficient solutions. There are various advantages to leveraging the cloud as a platform for innovation in terms of performance, cost, and reactivity. Companies, for example, can use cloud computing to expedite innovation in the Internet of Things product development field at previously unheard-of rates. The Internet of Things (loT) industry has been able to build and distribute game-changing inventions that are revolutionising the economy thanks to cloud computing. Due to budgetary restrictions, it has forced more firms, particularly SMEs, onto the cloud.
The Cloud Computing Market segmentation, based on service model includes Software as a Service (Saas), Infrastructure as a Service (laas), and Platform as a Service (PaaS). In 2022, the software as a service (Saas) segment dominated the industry, accounting for more than 53.95% of total revenue. The category is expected to develop at a steady rate, maintaining its leadership position during the projected period. The popularity of SaaS can be due to its ease of use, low prices, and quick deployment. Remote working has resulted in an increase in demand for SaaS services.
The Cloud Computing Market segmentation, based on deployment mode, includes private, public, hybrid cloud. The hybrid cloud segment is the market's largest contributor and is predicted to expand during the forecast period. An IBM study discovered that firms might gain a competitive edge by embracing the hybrid cloud because of its capacity to help businesses save money and time while enhancing data security, application speed, and overall IT management. More firms are implementing hybrid cloud models and smart approaches to improve business operations, resource utilisation, cost optimisation, user experience, and application modernisation while reaping the most benefits.
Figure1: Cloud Computing Market, by Deployment Mode, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Small and medium-sized organisations, as well as large enterprises, comprise the Cloud Computing Market segmentation. The large enterprises segment will account for more than 51.00% of total revenue in 2022. By allowing collaborative teams to access previously centralised data, remote working raises demand for cloud computing services. Factors such as lowered better cooperation, cheaper operational costs, greater flexibility, and a faster time to market all influence demand. Large-scale organisations can employ cloud computing to automate and accelerate common activities.
The cloud computing market is segmented by vertical, including government and public sector, retail and consumer goods, manufacturing, technology and telecommunications, banking financial services and insurance (BFSI), and retail and public sector. More than 24.75% of the total income was supplied by the banking financial services and insurance (BFSI) category. The BFSI sector has seen a growth in online banking activity, which has led money lenders to embrace the digital revolution. Cloud computing has been essential to this strategy. By encouraging innovation, reducing expenses, boosting flexibility, and enhancing client relationships, cloud computing has benefited businesses in the BFSI sector.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Cloud Computing Market area will dominate this market, owing to the early use of cloud computing solutions. The presence of several vendors in the region, combined with a stronger proclivity to adopt new technology, is projected to assist these regions strengthen their market positions.
Further, the major countries studiedin the market reportare The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2:CLOUD COMPUTING MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Cloud Computing Market accounts for the second-largest market share due to the presence of strong and well-established IT and telecommunications infrastructure. Further, the German Cloud Computing Market held the largest market share, and the UK Cloud Computing Market was the fastest growing market in the European region
The Asia-Pacific Cloud Computing Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing availability of skilled labor and keen focus provided by SMEs and large enterprises to enter and grow in this region. Moreover, China’s Cloud Computing Market held the largest market share, and the Indian Cloud Computing Market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in R&D to expand their product lines, which will help the Cloud Computing Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cloud Computing industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Cloud Computing industry to benefit clients and increase the market sector. In recent years, the Cloud Computing industry has offered some of the most significant advantages to medicine. Major players in the Cloud Computing Market, including Google LL.CA, International Business Machines Corporation, Alibaba Group Holding Limited, Oracle Corporation: Workday Inc., Microsoft Corporation and others are attempting to increase market demand by investing in R&D operations.
Amazon Web Services, Inc. (AWS) is an Amazon company that offers metered, pay-as-you-go cloud computing platforms and APIs to consumers, businesses, and governments. Clients frequently utilise this in conjunction with autoscaling (a procedure that allows a client to use more compute during periods of heavy application activity and subsequently scale down to decrease expenses during periods of low application usage). Through AWS server farms, these cloud computing web services provide a variety of services relating to networking, computation, storage, middleware, IoT, and other processing resources, as well as software tools. In March 2022, Amazon Web Services (AWS) announced plans to open the first data centre region in New Zealand as part of a NZ $7.5 billion investment strategy. The business intends to open its data centre in Auckland by 2024. Furthermore, the business intends to build 24 additional availability zones and eight additional AWS regions in Australia, India, Indonesia, Israel, Spain, Switzerland, and the United Arab Emirates.
Microsoft Corporation is an international technology corporation with headquarters in Redmond, Washington. Microsoft's most popular software products include the operating system Windows, the Microsoft Office suite, its Internet Explorer and Edge web browsers, and the Microsoft Office suite. Major hardware products include the Xbox gaming consoles and the Microsoft Surfaces family of touchpad personal computers. Microsoft ranked fourteenth on the list of Fortune 500 of the greatest US companies by total revenue in 2022; it was the world's greatest software manufacturer by revenue in 2022. In addition to Alphabet (Google's parent company), Amazon, Apple, and Meta (formerly Facebook), it is considered one of the Big Five American telecommunications companies. In October 2021, Microsoft introduces three new Azure industry-specific cloud offerings: Microsoft Cloud for Financial Services, Microsoft Cloud for Manufacturing, and Microsoft Cloud for Nonprofit.
In November 2023: HCLTech and Cisco launched Meeting-Rooms-as-a-Service (MRaaS), a subscription-based solution that modernizes legacy meeting rooms and enables users to join meetings from any device using Webex technology. This collaboration simplifies the design, implementation, and maintenance of integrated meeting rooms, facilitating seamless collaboration for globally distributed teams.
June 2023: HCLTech, a global technology specialist, and Google Cloud have expanded their strategic cooperation to assist organisations in leveraging generative artificial intelligence (AI) and developing joint solutions based on Google Cloud's generative AI capabilities.
HCLTech is actively developing generative AI capabilities for its clients leveraging Google Cloud's large language models (LLMs) across three primary domains: industries, enterprise functions, innovation, and technology modernisation. HCLTech's AI platforms and solutions will use the whole array of enterprise generative AI products and services from Google Cloud, including Vertex AI, Generative AI Studio, Model Garden, and Generative AI App Builder, as well as the underlying LLMs that power these Google Cloud AI advancements.
HCLTech will build a Google Cloud Generative AI Centre of Excellence (GenAI CoE) to collaborate on cooperative solutions that would help clients to harness the value of data and unleash the full potential of generative AI. The GenAI CoE will draw on AI knowledge anchored in HCLTech Cloud Native Labs in London, Dallas, and Noida (India).
In October 2022: Siemens launched Capital Electra X, a cloud-native electrical design software as a service offering for small to medium-sized businesses. The browser-based solution enables designers and engineers to create electrical schematics easier and faster using any device for a low monthly cost. Based on technology from Radica Software, a specialist in electrical design software, the solution represents an innovative approach to electrical design.
In April 2022: Fujitsu launched "Fujitsu Computing as a Service (CaaS)," a new service that delivers customers access to cutting-edge computing technologies via the public cloud. The first service offered under CaaS is "Fujitsu Cloud Service HPC," which leverages the technology of the world's fastest supercomputer, Fugaku, to provide high-performance computing capabilities to customers.
Software as a Service (Saas)
Infrastructure as a Service (laas)
Platform as a Service (PaaS)
Private
Public
Hybrid Cloud
Small- and Medium-Sized Enterprises
Large Enterprises
Banking Financial Services and Insurance (BFSI)
IT and Telecommunications
Government and Public Sector
Retail and Consumer Goods
Manufacturing
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
Cloud Computing Market Highlights:
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