Cloud Computing Market Overview
The Global Cloud Computing Market size was valued at USD 416.4 billion in 2021 and is projected to reach USD 1,796.25 billion by 2028, growing at a CAGR of 21.5% during the forecast period.
Artificial intelligence (AI) skills are made available to enterprises through emerging technologies like machine learning and AI, which encourage cloud expansion. The COVID-19 epidemic is now threatening the global economy. Businesses can use cloud computing to help them get over constraints like lockout, work-from-home policies, social isolation, and other market requirements that threaten business continuity. However, remote working has emerged as the newest trend due to the pandemic and is projected to endure over time as businesses, managers, and individuals continue to favor it.
COVID-19 Impact Analysis
Due to remote workers and organizations requiring powerful collaborative tools to manage operations effectively, the shutdown has significantly impacted on the cloud computing market. In these situations, when access to food and medical care is crucial, cloud computing has shown to be helpful since it supports telemedicine. In addition, access to medical professionals has grown more critical when working remotely. Since the nationwide lockdown, the need for cloud computing has become more apparent in this pandemic. Without cloud solutions, businesses cannot operate, and incorporating such solutions has guaranteed the durability of web-based platforms and services.
Cloud Computing Market Segmentation:
The Global Cloud Computing Market is segmented on the basis of Service Model (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a service (SaaS)), IaaS (Primary Storage, Disaster Recovery and Backup, Archiving, and Compute), PaaS (Application Development and Platforms, Application Testing and Quality, Analytics and Reporting, Integration and Orchestration, and Data Management), SaaS (Customer Relationship Management (CRM), Enterprise Resource Management (ERM), Human Capital Management (HCM), Content Management, Collaboration and Productive Suites, Supply Chain Management (SCM), and Others), Deployment Model (Public cloud, Private cloud, and Hybrid Cloud), Organization Size (Small and Medium-sized Enterprises (SMEs) and Large Enterprises), and Verticals (Banking, Financial Services, and Insurance (BFSI), Telecommunications, IT and ITeS, Government and Public Sector, Retail and Consumer Goods, Manufacturing, Energy and Utilities, Media and Entertainment, Healthcare and Life Sciences, and Others).
By Deployment Model, the hybrid cloud segment is accounted to be a more significant contributor to the cloud computing market growth during the forecast period
Organizations are adopting hybrid clouds due to the growing user and resource mobility, continued application migration to the cloud, and the appearance of more advanced threats. Healthcare, BFSI, and government sectors prioritizing compliance, security, and customer experience use the hybrid deployment strategy. Leading cloud providers are concentrating on enhancing their position in the hybrid cloud industry. For instance, in July 2021, IBM purchased Bluetab Solutions Group (Spain) to broaden its data, and hybrid cloud consulting market and boost its regional presence in Europe and Latin America.
By organization size, the large enterprise segment accounted for the highest Cloud Computing market share in 2021
The large enterprise segment accounted for the highest market share in 2021, owing to improved collaboration, flexibility, quicker market time, and lower operational costs. Because of cloud computing, businesses can delegate routine work to technology that can quickly finish them. As a result, increasing usage in large enterprises to streamline operations is projected to boost the segment’s growth. In addition, over the projection period, demand for cloud computing services would rise due to numerous large organizations expanding throughout established and emerging nations.
Cloud Computing Market Dynamics:
Increasing usage of cloud services to enhance business operations
Cloud computing offers speedier and more efficient alternatives to managing commercial operations to respond to rapidly changing market circumstances. The process of technology consumerization is streamlined. It has made it possible to create incredibly engaging customer experiences in ways that were unthinkable before. With the aid of the cloud, individuals and organizations have altered their behavior, and numerous business lines can now complete tasks by evading IT restrictions. Fundamentally, corporate spending, digital business decisions, and vendor and technology selection are all impacted by cloud developments —rapid digitalization forces organizations to change their application and infrastructure landscapes to improve cost-effectiveness and business agility. Successfully supporting core business processes, moving workloads to the cloud, and lowering network latency are all achievable goals for organizations.
Restraints: Cyberattacks Hamper Critical data loss and corporate operations
Services for cloud computing help businesses reduce expenses and improve operational efficiency. These services also offer many advantages like flexibility, scalability, and agility. However, even while the cloud provides many benefits and security measures, the data stored there is still susceptible to hackers. Businesses are beginning to move more toward digital transformation due to the increase in data production. Cyberattacks like Spectre, Meltdown, malware injection attacks in the cloud, account or service hijacking, and man-in-the-cloud attacks put enterprise data at risk. Threats like these can force firms to close their doors and suffer losses.
Cloud Computing Market Regional Analysis:
North America Dominates the Cloud Computing Market Growth
North America dominated the growth of the global market in 2021. Companies in the US place a high priority on digital transformation. They are frequently recognized as early adopters of cutting-edge technologies such as big data analytics, additive manufacturing, the Internet of Things (IoT), related industries, machine learning (ML), virtual reality (VR), AI, and augmented reality (AR), as well as the newest telecommunications technologies such as 4G, 5G, and LTE. Due to several providers, including Microsoft Corporation, Oracle Corporation, Amazon.com Inc., and International Business Machines Corporation, and a higher propensity to adopt new technologies, this area is predicted to maintain its position in the industry.
Key Market Players and Competitive Landscape
The most prominent players that contributed to the development of the cloud computing market are Microsoft (US), AWS (US), Salesforce (US), Oracle (US), SAP (Germany), Google (US), Workday (US), Adobe (US), IBM (US), and others.
This report categorizes the cloud computing market as follows,
Based on Service Model:
- Infrastructure as a Service (IaaS)
- Platform as a Service (PaaS)
- Software as a service (SaaS)
Based on IaaS:
- Primary Storage
- Disaster Recovery and Backup
Based on PaaS:
- Application Development and Platforms
- Application Testing and Quality
- Analytics and Reporting
- Integration and Orchestration
- Data Management
Based on SaaS:
- Customer Relationship Management (CRM)
- Enterprise Resource Management (ERM)
- Human Capital Management (HCM)
- Content Management
- Collaboration and Productive Suites
- Supply Chain Management (SCM)
Based on Deployment Model:
- Public cloud
- Private cloud
- Hybrid Cloud
Based on Organization Size:
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Based on Vertical:
- Banking, Financial Services, and Insurance (BFSI)
- IT and ITeS
- Government and Public Sector
- Retail and Consumer Goods
- Energy and Utilities
- Media and Entertainment
- Healthcare and Life Sciences