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The cloud computing market size is projected to increase by USD 404.7 billion, at a CAGR of 15.19% between 2023 and 2028. Cloud computing has gained significant traction in the business world, including healthcare, due to its cost-effective, scalable, and flexible nature. In this model, IT services are delivered via the Internet or virtualization, enabling companies to access on-demand computing resources. These services can be offered at no cost or on a subscription basis, contingent upon the computing resources consumed. The primary drivers of cloud computing adoption include reduced capital expenditures, increased agility, and the ability to handle dynamic workloads. Companies can leverage this technology to streamline operations, enhance collaboration, and focus on their core competencies. Additionally, the integration of cloud computing with telecom billing revenue systems can enhance financial management and operational efficiency for telecom providers.
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The market continues to expand across diverse sectors including retail and consumer goods, healthcare and life sciences, leveraging ML and edge computing to harness 5G technologies. Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) support digital transformation with industrial solutions integrating real-time analytics. Leading providers like Bitdeer and Vultr cater to large enterprises and the private deployment segment through cloud infrastructure services for video-on-demand and public cloud services. The shift towards AI and Big Data enhances Internet connectivity, optimizing local server and personal computer functionalities.
Embracing images and videos in real-time analytics, cloud platforms drive AI advancements in edge computing for seamless operational efficiencies. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The increased use of containers will boost adoption and will notably drive the market growth. With the emergence of multiple platforms and OSes, organizations are looking for consistency in the application development environments. Containers and microservices are emerging as an alternative solution to virtual machines (VMs) that consume higher resources. Containers have their dedicated CPUs and memory, such as VMs, but they share the kernel of the server OS. As a result, containers do not need a guest OS or a hypervisor, which makes them lighter than VMs. Several organizations face issues when moving applications among environments. Containers package the applications and all the OS dependencies in a single package. This enables easy movement of applications among such platforms and makes the container and microservices architecture a viable solution for the this environment. Containers provide an increased level of visibility toward application performance. They also provide agility and cost benefits that are otherwise difficult to achieve with virtualization technologies as they consume higher system resources.
Container and microservice architecture allow rapid scaling across different environments. The scalability of their IT infrastructure is critical as organizations are looking to expand their business. The container and microservices architecture aid in scaling effectively and efficiently. Docker is among the most popular container technologies that organizations are leveraging. It offers similar functionalities as VMs without affecting host resources. However, Docker lacks uniform support across different platforms. As a result, several organizations are opting to deploy Kubernetes. Google Kubernetes Engine (GKE) and RedHat Inc.'s OpenShift are also gaining traction in the market. Furthermore, Cloud computing is increasingly utilized in lawful interception processes to securely manage and analyze large volumes of data in real time. The above-mentioned factors will spur the market growth and trends during the forecast period.
An increase in cloud orchestration and cloud management software is one of the major market trends. The adoption of hybrid solutions has increased in recent years as it offers agility. However, managing a hybrid cloud can be a challenge as there are different management tools for on-premises infrastructure and for managing the public cloud. The rise in hybrid deployments has resulted in a subsequent increase in the orchestration software.
Cloud orchestration refers to the use of programming techniques to manage interconnections between the different public and private cloud computing environments. It is used to provision and deploy equipment, manage networking, and create VMs, among other functions. This software can work across multiple environments and in different geographical environments with different service providers. This makes cloud orchestration software an ideal solution for hybrid cloud deployments.
The companies lock-in and operational complexities are major challenges impeding the market growth. companies lock-in, also known as customer lock-in or proprietary lock-in, is where a customer using a product or service cannot easily transition to another companies's product or service. This makes a customer dependent on a companies for products and services, due to which the enterprise/customer cannot use the technology, solution, or service developed by other companies. Therefore, it may be difficult to switch to public service providers after all the data has been stored in the private platform. It also becomes more difficult to switch among different private companies because an application is built using a specific platform and set of tools. Each companies may not support the same languages, libraries, APIs, architecture, or OS used to build and run applications or store information.
Although it is possible to switch between private cloud providers, the process can be time-consuming, labor-intensive, and expensive. Switching between companies may even result in rebuilding or altering an application to fit the new platform. However, at the time of filing its S1, its infrastructure was directly tied to Google Cloud, which prevented the company from making this transition and led to additional costs and excess resource allocation. Thus, company lock-in can pose a challenge for the global private services market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alibaba Group - The company's key offerings include?a multi-model cloud-native database and distributed cloud services.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including Adobe Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Microsoft Corp., NetApp Inc., Nutanix Inc., Oracle Corp., Rackspace Technology Inc., Red Hat Inc., Salesforce Inc., SAP SE, Tata Consultancy Services Ltd., and VMware Inc.
The market share growth by the public cloud segment will be significant during the forecast period. More than half of enterprises worldwide are using multiple services. Public adoption is expected to grow significantly in the next three years.
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The public cloud segment accounted for USD 143.8 billion in 2018. Over half of businesses currently use system for data storage and management. The demand for public services in the financial services industry is rising due to an increase in the number of SMEs in developing economies such as China, India, and Mexico, which demand solutions for business-related insights.
Based on services, the SaaS segment holds the largest market share. In 2022, Software-as-a-Service (SaaS) dominated the global market. SaaS allows users to access software via the internet, eliminating the need for diverse application development. It simplifies mobile workforce mobilization, while these providers ensure data security.
SaaS offers ERP, CRM, HRM, and platform solutions like AI, big data, and IoT for real-time decision-making. Messaging apps and social media usage boost SaaS adoption. Private SaaS enhances data security, migration ease, and software customization. AWS offers Xacta 360 for IT risk and compliance management. SaaS aids remote access for emails, calendars, and marketing services like Salesforce's Email Studio. Demand for SaaS-driven CRM grows in retail, healthcare, BFSI, telecom, and IT sectors for improved operations and cost efficiency. Private SaaS partnerships will fuel growth in this market segment.
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North America is estimated to contribute 48% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
In 2022, North America was the largest regional segment of the global market. Buyers of the services are enterprises from various end-user industries such as government, IT, BFSI, retail, and others. Organizations are increasingly adopting these solutions as they are cost-effective, scalable, and require minimal management. The majority of the established services providers, such as AWS, Google, and others, are headquartered in the US and are investing in the region to strengthen their offerings.
The Cloud Computing market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the Cloud Computing market growth analysis report also includes key purchase criteria, market trends and analysis, and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
The Cloud Computing market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In today's digital landscape, cloud storage services like Amazon S3, Microsoft Azure Blob Storage, and Google Cloud Storage are pivotal for managing vast amounts of documents and files across connected devices. As businesses navigate digital transformation, technical knowledge and expertise in IT workers are essential along with talent management software despite challenges such as lack of skilled workers. Payment processing through payment gateways and digital wallets enhances unified customer experiences, supported by reporting and mobile payments. Furthermore, cloud computing enables multiexperience development platforms to deliver seamless, scalable, and integrated solutions across various devices and touchpoints, enhancing user experiences in digital environments. Innovations in AI and machine learning by companies like Nvidia drive ROI with solutions like AlloyDB Omni and Lenovo's ThinkAgile. Connectivity via DE-CIX and BasicBrix facilitates Internet infrastructure for large enterprises and SMEs, fostering real-time analytics and edge computing in hybrid cloud environments.
Industry Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.19% |
Market growth 2024-2028 |
USD 404.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.86 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 48% |
Key countries |
US, China, Canada, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adobe Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Citrix Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Microsoft Corp., NetApp Inc., Nutanix Inc., Oracle Corp., Rackspace Technology Inc., Red Hat Inc., Salesforce Inc., SAP SE, Tata Consultancy Services Ltd., and VMware Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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