Cloud Computing Market

Cloud Computing Market size reached USD 641.3 billion in 2023 and is estimated to reach USD 2.5 trillion in 2031 and the market is estimated to grow at a very high double digit CAGR of 18.7% from 2024-2031.

To have an edge over the competition by knowing the market dynamics and current trends of “Cloud Computing Market,” request for Sample Report here

Overview of Cloud Computing Market

Rapid digital transformation among various industries, rising penetration of the internet and smart devices globally, followed by the growing usage of big data, are prominent factors contributing to the rising demand for cloud services globally. Moreover, the increasing adoption of the Internet of Things (IoT), 5G, Machine Learning (ML), and the use of real-time analytics by Artificial Intelligence (AI) will propel the adoption of cloud technology amongst large organizations. Increasing adoption of Cloud computing architecture to help operate the business in an efficient and faster ways and adapt the changing market environment rapidly. These benefits of switching to an on-cloud company will drive the market growth.

As per the World Economic Forum, the fourth industrial revolution paved the way to adopt advanced technologies such as IoT, Artificial Intelligence, and cloud computing. Hence, companies across various verticals are using cloud computing to run these advanced technologies. Furthermore, the accelerating adoption of Infrastructure as a Service (SaaS), Software as a Service, and Platform as a Service (Paas), especially among the Small and Medium Enterprises (SMEs), is an additional factor surging the demand for cloud services. To support the acceptance of innovative technologies across different industries like retail, BFSI, consumer goods, manufacturing, etc., the government of the developed and developing economies is emphasizing launching initiatives and programs. The UAE government has introduced digital initiatives and programs such as the 5G, Digital Invoicing, Smart Dubai, and several other technology-related programs. This initiative will create numerous opportunities and surge the demand for cloud computing services in the coming years. Moreover, the preference of enterprises has significantly shifted towards digital transformation, and the rising focus on offering exceptional customer experience are other vital factors that strengthen the adoption of cloud computing services. With the growing volume of data produced on mobile apps and websites, organizations are increasingly emphasizing on developing customer-centric applications to ensure customer satisfaction. Thus, the increasing adoption of the cloud to shift its workload to a cloud platform in order to help them emphasize of key business tasks will strengthen the market. Other factors such as the growing need to reduce risk, minimize infrastructural and storage complications and enhance business functioning will bolster the market growth. Increasing appetite for generative AI capabilities among companies is projected to significantly drive cloud computing market growth in coming years.

The public cloud market is primarily driven by the benefits it provides to organizations of all scales such as greater elasticity and scalability, less initial investment, access to latest technologies faster. Public cloud provides organization to adjust its capacity based on its usage in low and high traffic situations, as the initial investment cost is low customers can easily deploy workloads on clouds without the need to add additional computer capacity, moreover public cloud also helps companies to access latest technologies as cloud provider offer latest software and hardware owing to economic of scales compared to if customer have to purchase on their own. Public cloud helps companies to focus on their core business while transferring the work related to owning, managing, operating the IT infrastructure as public cloud service providers manages all these. Companies have taken advantage of this and as result in a wave of innovative primarily driven by business to focus on new product development. Slowly the workload deployment on cloud is moving from a single cloud service provider to multi cloud environment whereby enterprises are deploying application across cloud services based on optimal cloud environment for each individual application or workload.

The emergence of the COVID-19 has abruptly changed the way we work and workplaces altogether, and it has emerged a new way of working. Work from home became mainstream to protect the safety, well-being of workers and to manage business continuity. This shift from workplaces to work from home has created tremendous opportunities for cloud services such as Software-as-a-Service (SaaS)-based collaboration solutions. As cloud adoption by enterprises is keep on increasing owing to increase on spending by enterprises on cloud and the cloud spending is increase higher than on non-cloud or traditional IT spend infrastructure. More and more enterprises and migration more and more workloads on clouds. It is estimated that more than 60% of the total spending on software application will be on cloud based software in the 3 to 4 years. Therefore, COVID-19 has raised the focus on staying at home and keeping social distance, so now individuals have enough ideal time, as they prefer to stay at home. This aspect has encouraged them to use different streaming platforms such as Amazon, Apple TV, Netflix, Hulu, YouTube, and Disney+, which in turn, is raising the demand for IaaS to capture the changing consumer’s needs. On the other hand, the increasing incidence of cyber-attacks and critical digital loss are the two crucial factors likely to hamper the cloud market.

Do you want to know more about the Research process and detailed Methodology, Request Research Methodology of this report

Service Model Segment Analysis

Based on the service model, the Software as a Service (SaaS) segment is forecast to surge at a higher CAGR during the forecast period. It is attributed to the substantial demand for (SaaS), particularly among the Small and Medium Enterprises (SMEs) across the globe. At present, SMEs are increasingly choosing SaaS products to avoid large-up front licensing fees and high capital costs. The SaaS offers beneficial cost saving as it generally resides in a multi-tenant or shared environment wherein the license cost of Software and hardware is low than the traditional model. Moreover, SaaS offerings are easy to use, provide scalability, and minimize the time spent on installation. All these factors are accountable for the segment’s growth in the market. Also, the model offers users the flexibility to administer data with simpler deployment and maintenance, which will expand the market growth. For instance, Salesforce.com, a service application, allows customer relations management solutions to gather information and leads in a single online platform.

Industry Verticals segment Analysis

Based on the industry verticals, the BFSI segment is expected to dominate in the next six years. Leading banks and financial institutions have been increasingly choosing cloud-based Software and solutions to match customer expectations and compete effectively in the highly competitive market. Cloud computing can enable BFSI firms to respond quickly to customer needs, changing markets, and technological demand. Banks are embracing cloud especially post covid, most of the banks are estimated to increase their spending on public cloud in 2022 compared to previously as cloud helps bank to enable them by building customized solutions on software applications also on infrastructure to improve and make banking operations more agile and streamline. In addition to this, the rising volume of data generated has fueled the demand for solutions and tools to save and maintain customers’ confidential information, including personal information of the account holder, transaction details, and credit and debit card details.

Organization Size Segment Analysis

The large enterprise segment is projected to grow at a faster CAGR in the coming years. The increasing demand for hybrid cloud, especially among large enterprises such as government, education, transportation, retail, logistics, and oil and gas industry, is a significant factor contributing to the market growth over the forecast period. Data security and recovery are the concerns that are important for every large organization. Large-scale organizations require safe and reliable services to deploy their data. Thereby, various large players prefer cloud solutions to secure their data and utilize big data analytics tools to offer the best services to their end-users. The growing adoption of cloud by large organizations to simplify operations by delegating their routine work and emphasizing on core activities has augmented the market growth.

Cloud market is gaining traction as enterprise workloads are getting on cloud especially CRM which is one of the largest followed however Structured Data Management workloads getting deployed on a cloud at the fastest rate.

In case, any of your pain points areas are not covered in the current scope of this report, Request for Free Customization here

Regional Analysis

Based on the region, the North America region is expected to lead the market in the next six years. The strong presence of the leading players such as AWS, Azure, and other companies is a crucial factor driving the market demand. On the other hand, the Asia-Pacific region is expected to grow at a faster CAGR over the forecast period. It is due to the significant growth in India and China due to the presence of regional players such as Alibaba Group.

As the demand for cloud services is growing in emerging markets such as Indonesia cloud computing market, Malaysia, and Thailand, hyper-scale cloud companies like Amazon Web Services, Microsoft, and Google have announced to build new data centers in these countries. All the above factors are expected to drive the demand of the market in the upcoming years. Europe is estimated to hold a larger share over the forecast period, owing to the increasing investment by government and private corporations to expedite the cloud adoption across the countries drive the market growth. For instance, In 2022, SAP SE, a Germany-based software company, introduced a sovereign cloud platform for data processing domestically.

Cloud players are opening data canters in Middle East countries as well as the Saudi Arabia cloud computing market and UAE cloud computing market are providing ample opportunities for the player.

Top Market Players

Various notable players operating in the market include IBM, Microsoft Corporation, SAP SE, Oracle, Salesforce.com, Inc., Adobe Inc., Amazon Web Services, Inc., Google LLC, Alibaba Cloud, VMware, Inc., Fujitsu, and Rackspace Inc., among others. 

Key Developments:

• • In 2022, Google launched its cloud region in Madrid, Spain, with three cloud zones to cater to the increasing need for technology for Spanish businesses. It will further accelerate digital transformation across various industries.
  • In 2022, Microsoft planned to expand its footprint by setting up its 4th data centre in Hyderabad, India, operational by 2025. The company will strengthen its cloud services for the private and government sectors through this expansion.
  • In 2021, Microsoft launched government cloud services, i.e., Top Secret for US government intelligence agencies and supporting organizations. The US government planned to establish its cloud portfolio to serve its national security mission and empower various government agencies.
  • Huawei Technologies Co revealed a US$100 million initiative to grow its cloud services operations in the Asia-Pacific region at its inaugural Huawei Cloud Spark Founders Summit held in Singapore and Hong Kong on August 3, 2021.
  • Microsoft has declared plans to build its first data center region in Malaysia, with Google and AWS reportedly set to follow. The company introduced its “Bersama Malaysia” initiative in which it will invest $1 billion over the next five years in Malaysia. By the end of 2023, the company also proposes to provide digital skills to additional one million Malaysians and help form the ‘My Digital Alliance Leadership Council’ to cooperate on cloud-first and digital-native policy recommendations. April 19, 2021.
  • Microsoft will establish the first data center region in Indonesia as part of the Berdayakan economy Digital Indonesia initiative to deliver credible cloud services locally, with world-class data privacy, security, and the capability to store data in-country. Microsoft also declared plans to competent an additional 3 million Indonesians to achieve its aim of empowering over 24 million Indonesians by the end of 2021 through its long-established skills programs designed to generate inclusive economic opportunities in the digital era. February 25, 2021.
  • Alibaba Cloud is set to build new data centers in South Korea and Thailand next year to help the cloud computing requirements of businesses in the two countries. The move follows aggressive plans by the Chinese cloud supplier to increase its regional footprint, which now covers markets such as Singapore, Malaysia, Indonesia, and, more recently, the Philippines. October 20, 2021.

Segments Covered in the Report:

The global Cloud Computing Market has been segmented based on Service Model, Organisation Size, and Industry Vertical. Based on Service Model, the market is segmented into Infrastructure as a Service, Platform as a Service, and Software as a Service. Based on organisation size, the market is segmented into Small and Medium-Sized Enterprises, and Large Enterprises. Based on industry vertical, the market is segmented into Banking, Financial Services and Insurance, IT and Telecommunications, Government and Public Sector, Retail and Consumer Goods, Manufacturing, Energy and Utilities, Media and Entertainment¸ Healthcare and Life Sciences, and Others.

 For detailed scope of the “Cloud Computing Market” report request a Sample Copy of the report

Market Segmentation

Global Cloud Computing Market by Service Model

• • Infrastructure as a Service
  • Platform as a Service
  • Software as a Service

Global Cloud Computing Market by Organization Size

• • Small and Medium-Sized Enterprises
  • Large Enterprises

Global Cloud Computing Market by Industry Vertical

• • Banking, Financial Services and Insurance
  • IT and Telecommunications
  • Government and Public Sector
  • Retail and Consumer Goods
  • Manufacturing
  • Energy and Utilities
  • Media and Entertainment
  • Healthcare and Life Sciences
  • Others

Global Cloud Computing Market by Region

• • North America Cloud Computing Market (Option 1: As a part of the free 25% customization)

    • By Service Model
    • By Organisation Size
    • By Industry Vertical
    • US
    • Canada

  • Europe Cloud Computing Market (Option 2: As a part of the free 25% customization)

    • By Service Model
    • By Organisation Size
    • By Industry Vertical
    • UK
    • Germany
    • France
    • Spain
    • Rest of Europe

  • Asia-Pacific Cloud Computing Market (Option 3: As a part of the free 25% customization)

    • By Service Model
    • By Organisation Size
    • By Industry Vertical
    • China
    • India
    • Japan
    • Rest of APAC

  • RoW Cloud Computing Market (Option 4: As a part of the free 25% customization)

    • By Service Model
    • By Organisation Size
    • By Industry Vertical
    • Brazil
    • South Africa
    • Saudi Arabia
    • UAE
    • Rest of world (remaining countries of the LAMEA region)

Global Cloud Computing Leading Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • IBM
  • Microsoft Corporation
  • SAP SE
  • Oracle
  • com, Inc.
  • Adobe Inc.
  • Amazon Web Services, Inc.
  • Google LLC
  • Alibaba Cloud
  • VMware, Inc.
  • Fujitsu
  • Rackspace Inc.