Cloud Computing Market

Cloud Computing Market Overview

The global Cloud Computing Market size was valued at USD 573.99 billion in 2023 and is predicted to reach USD 1902.66 billion by 2030 with a CAGR of 18.7% from 2024-2030. The cloud computing market refers to the delivery of computing services over the Internet, allowing users to access IT resources including computing power, storage, and databases on-demand with pay-as-you-go pricing. It eliminates the need for physical data centers and servers, enabling organizations to access technology services as needed from a cloud provider.

Cloud computing encompasses various service models such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). This market is rapidly growing, driven by factors like digital transformation, increased internet and mobile device adoption, and the utilization of big data. Cloud computing facilitates flexible resources, faster innovation, and improved productivity, making it a crucial technology for businesses across industries.

Market Dynamics and Trends

The growing adoption of advance technologies such as artificial intelligence (AI) and machine learning (ML) particularly in telecom and IT sectors is propelling the growth of cloud computing industry globally. For instance, in March 2023, NVIDIA Corporation, a provider of graphics processing units (GPUs), announced cloud services for businesses to refine, operate, and build custom large language and generative AI models.

These services empower organizations to enhance, manage, and create customized large language and generative AI models, further contributing to the dynamic growth of the cloud computing industry. Moreover, the demand for cloud-based application such as platform-as-a-service (PaaS), private cloud and hybrid cloud to improve visualization capabilities and making complex data accessible in healthcare sectors, is driving the growth of the market. 

In March 2022, Microsoft Corporation launched a Platform as a Service (PaaS) platform, Azure Health Data Service specifically designed to support both transactional and analytical workloads. This strategic move further emphasizes the pivotal role of cloud computing solutions in advancing and optimizing data management within the healthcare industry. However, cyber-attacks such as cloud malware injection and account or service hijacking in cloud computing disrupt corporate operations, restraining the growth of the market.

On the contrary, integration of internet of things (IoT), edge computing, and natural language process (NLP) into the cloud computing to reduce the demand for cloud storage by pre-filtering data and provide remote data hosting and analytics is expected to provide ample growth opportunities for the market.

For instance, in January 2024, IBM and American Tower collaborated to bring edge AI cloud services to enterprises, leveraging 5G and AI to drive edge applications across industries. By integrating IBM's hybrid cloud platform and Red Hat OpenShift into American Tower's edge data centers, the partnership facilitates the deployment of IoT applications closer to data sources, enabling faster data analysis and insights.

Market Segmentations and Scope of the Study

Cloud computing market share is segmented on the basis of type, service, end-user, and by region. On the basis of type, the market is divided public cloud, private cloud, and hybrid cloud. On the basic of service, the market is  segmented into infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). On the basis of end-user, the market is further segmented into BFSI, IT and telecommunications, government, consumer goods and retail, healthcare, manufacturing, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North-America holds the dominant share in cloud computing industry trends and is expected to continue its dominance during the forecast period. This is attributed to the factor such as growing BFSI sectors that are adopting digitization in countries in U.S. and Canada. The region emphasis on a digital transformation agenda in order to improve on the engagement and interactions with the customers.

The report from Bank Administration Institute (BAI) for 2023 reveals that there is an increase in the willingness of customers to switch institutions in order to obtain better digital features at 55 percent as compared to the previous year. For instance, fewer than 15% of Generation Z are willing to change their banks for better digital services with an improvement of almost 13% from a similar survey in 2022.

Also, the presence of prominent market players in cloud computing market such as Amazon Web Service Inc (AWS), Microsoft Corporation, and Google that are adopting various market strategies such as collaboration and product launch is boosting the market growth in the region. For example, in November 2023, Infosys, a global leader in next-generation digital services and consulting announced Strategic Collaboration Agreement (SCA) with Amazon Web Services Inc (AWS). 

This 3 years collaboration signifies a growing demand for cloud solutions in the financial sector, showcasing the industry's shift towards cloud-based technologies for enhanced efficiency and innovation. On the other hand, Asia-Pacific was estimated to exhibit in the cloud computing market growth due to the increasing use of the solutions within the IT segment. The adoption is driven by the industry’s desire for faster application deployment and the regional consolidation of data security processes. 

This includes the India IT industry which recorded a growth of 13-14% in May 2022 and a significant hike in technology uptake of 7-8% only. The factor increases the growth of the Asia-Pacific cloud computing industry in the face of emerging IT needs that will be addressed through cloud computing technologies. Moreover, government initiative in countries including India and China to promote the adoption of 5G within the telecommunication sector, are playing a pivotal role in propelling the market in the region.

According to the Press Information Bureau (PIB) as of May 2023, The Prime Minister inaugurated 5G services on October 1, 2022, and within just 8 months of the launch, an impressive 2,00,000 sites have been installed, covering 700 districts.

The 5G network has successfully been deployed across all 28 states and 8 Union Territories, marking it as one of the fastest 5G rollouts in the world. These initiatives seek to enhance internet penetration rates by enabling faster and more reliable connectivity in the region, thereby contributing to the growth of the cloud computing industry.

Competitive Landscape

The cloud computing industry comprising of various market key player such as, Amazon Web Services Inc (AWS), Microsoft Azure, Google Cloud Platform (GCP), Alibaba Cloud, Oracle Cloud, IBM Cloud (Kyndryl), Tencent Cloud, OVHcloud, DigitalOcean, Linode (Akamai), and others. These market players are adopting various strategies such as product launches to maintain their dominance in the global market.

For instance, in November 2023, Eviden, a business within the Atos Group, announced a new Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). This collaboration aims to deliver a multi-faceted program of solutions, consultancy, and innovation support to help customers quickly access critical expertise for cloud and digital transformation.

Also, in January 2023, TTEC Holdings, Inc. collaborated with Google Cloud to enable customers to use Google's Contact Center-as-a-Service features to support the real-time customer interactions across digital channels.

Moreover, in December 2022, Kyndryl, an IT services company, launched Cloud Native Services for digital modernization. This launch aims to accelerate businesses' transition to cloud-native environments, fostering innovation and agility in the cloud computing market.

Key Benefits

• The report provides quantitative analysis and estimations of the cloud computing market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep dive analysis of the current and future cloud computing market to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the cloud computing market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated on the study.

• Value chain analysis in the distributed computing market study provides a clear picture of roles of stakeholders.

Cloud Computing Market Key Segments

By Type

• Public Cloud

• Private Cloud

• Hybrid Cloud 

By Service

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

By End User

• BFSI

• IT and Telecommunications

• Government

• Consumer Goods and Retail

• Healthcare

• Manufacturing

• Others 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 573.99 Billion
Revenue Forecast in 2030	USD 1902.66 Billion
Growth Rate	CAGR of 18.7% from 2023 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The growing adoption of advance technologies such as artificial intelligence (AI) a machine learning (ML) The demand for cloud-based application such as platform-as-a-service (PaaS), private cloud and hybrid cloud boost the market growth
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Amazon Web Services Inc (AWS)

• Microsoft Azure

• Google Cloud Platform (GCP)

• Alibaba Cloud

• Oracle Cloud

• IBM Cloud (Kyndryl)

• Tencent Cloud

• OVHcloud

• DigitalOcean

• Linode (Akamai)