According to GMI Research, the Cloud Computing Market was valued at USD 483.0 billion in 2022 and is expected to grow at a double-digit CAGR of 18.7% between 2023 and 2030, reaching USD 1,906.7 billion by 2030.
Cloud Computing Market Trends and Drivers
Major factors driving the cloud computing market includes rapid digital transformation across many industries, rising internet and smart device penetration globally, and increased use of big data. Furthermore, increased used of IOT, 5G, machine learning and the use of actual AI are the technologies being used used by various industries to drive the market. on the other hand multiple efficient ways that can boost the market are increasing use of cloud computing in architecture to run business more efficiently, effectively and easily for for the adaptation of changing market environment. These advantages of moving to an on-cloud organization will fuel industry expansion.
According to the World Economic Forum, the fourth industrial revolution prepared the door for the adoption of advanced technologies such as IoT, AI, and cloud computing. As a result, companies among various industries are turning towards cloud computing to power this technology. Whereas, the cloud services are boosting due to the increased use of technologies such as SaaS, PaaS, infrastructure as a service market and SMEs. The governments of established and emerging countries are stressing the introduction of initiatives and programs to assist the acceptance of innovative technologies across many industries such as retail, BFSI, manufacturing, and so on. Some of the digital initiatives, including 5G are introduced by the UAE government. Invoicing via digital means. Smart Dubai, as well as various other technology-related initiatives. In the next years, this endeavour will generate countless opportunities and increase demand for cloud computing services. Furthermore, the inclination of organizations has evolved dramatically toward digital transformation, and the growing emphasis on providing excellent customer experience are important elements that support the adoption of cloud computing services. With the increasing volume of data generated by mobile apps and websites, businesses are focusing more on developing customer-centric applications to assure consumer satisfaction.
The public cloud market is driven by the benefits such as increased elasticity and scalability, lower initial investment, and speedier access to the technology. Furthermore, public cloud helps companies access latest technologies because cloud providers offer latest software and hardware at lower cost than if customers had to purchase on their own. The public cloud allows businesses to focus on their core competencies while outsourcing the effort of owning, managing, and operating IT infrastructure to public cloud service providers. Companies have capitalized on this, resulting in a wave of innovative thinking mostly driven by business to focus on new product creation. Slowly, workload deployment in the cloud is shifting from a single cloud service provider to a multi-cloud environment, in which enterprises deploy applications across cloud services based on the best cloud environment for each unique application or workload.
Based on service model, SaaS is projected to increase at a higher CAGR.
On the basis of service model, during the forecast period the SaaS market is anticipated to grow at a higher CAGR. Globally small and medium enterprises are linked to the highest demand of SaaS. SMEs are increasingly opting for SaaS products in order to avoid big upfront licensing fees and significant capital costs. Hardware and software license costs lower than the traditional paradigm costs because of its multitenant and shared environment. Whereas, SaaS applications can be used with ease, they are scalable and need less efforts to set up all these factors help to grow the market. Furthermore, the approach provides users with the freedom to administer data through simpler deployment and maintenance, which will drive market expansion. Salesforce.com, for example, is a service application that provides customer relationship management solutions to collect information and leads on a single web platform.
Based on Industry Verticals, BSFI is expected to dominate the market in next six years.
The BFSI sector is likely to dominate the industry verticals during the next six years. To meet client expectations and compete effectively in a highly competitive market, leading banks and financial institutions are increasingly turning to cloud-based software and solutions. Cloud computing can help BFSI organizations respond swiftly to changing market conditions and technology demand. Furthermore, the growing volume of data collected has increased the demand for solutions and tools to store and maintain customers confidential information, such as account holder personal information, transaction details, and credit and debit card details.
Based on Organizational Size, the large enterprise segment is anticipated to grow at faster CAGR.
In the future years, the large enterprise segment is expected to increase at a quicker CAGR. The rising demand for hybrid cloud, particularly among large companies such as government, education, transportation, retail, logistics, and the oil and gas industry, is a major factor driving market expansion over the projection period. Data security and recovery are critical concerns for any large firm. Large-scale enterprises demand safe and dependable data deployment services. As a result, large companies adopted cloud solutions to secure their data and use big data analytics technologies to provide the finest services to their customers. The increased use of the cloud by large enterprises to simplify operations by delegating regular tasks and focusing on key activities has fuelled industry expansion.
The cloud industry is gaining pace as enterprise workloads migrate to the cloud, particularly CRM, which is one of the most popular. However, Structured Data Management workloads are migrating to the cloud at the quickest rate.
Based on Region, North America is anticipated to acquire the market share in next six years.
North America is predicted to lead the market in the next six years, according to the region. The robust presence of market leaders such as AWS, Azure, and others are critically driving market demand. According to regional analysis, the asia pacific cloud computing market is expected to acquire the highest CAGR during the forecast period. As regional business such as Alibaba groups, result in a good growth in countries like India and China.
High scaling companies such as Amazon Web Services are getting benefitted from the increasing demand for cloud services because of the emerging countries like Indonesia, Malaysia, and Thailand. Plans to build more data centers Microsoft and Google had taken the initiatives. All these factors are projected to fuel market demand in the approaching years. Europe is expected to hold a bigger position over the projected period, owing to increased investment by government and private
Major players are Microsoft Corporation, IBM, Fujitsu, Oracle, Inc., VMware, Adobe Inc., Google LLC, Salesforce.com, Amazon Web Services, Inc., Alibaba Cloud, Inc., and Rackspace Inc.
Segmentation by Service
o Infrastructure as a Service
o Platform as a Service
o Software as a Service
Segmentation by Organisation Size
o Small & Medium – Sized Enterprises
o Large Enterprises
Segmentation by Workload
o Storage, Backup, and Disaster Recovery
o Application Development and Testing
o Database Management
o Business Analytics
o Integration and Orchestration
o Enterprise Resource Management
o Collaboration and Content Management
Segmentation by Industrial Vertical
o Banking, Financial Services and Insurance
o IT and Telecommunications
o Government and Public Sector
o Retail and Consumer Goods
o Energy and Utilities
o Media and Entertainment
o Healthcare and Life Science
Segmentation by Region
• Asia Pacific
o Rest of APAC
• North America
o United States of America
o United Kingdom
o Rest of Europe
o South Africa
o Saudi Arabia
Our Related Reports:
About GMI Research
GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and business decisions.