Industry Cloud Market

Industry cloud Market Overview

The global Industry Cloud Market size was valued at USD XYZ billion in 2023 and is predicted to reach USD XYZ billion by 2030 with a CAGR of XY% from 2024-2030.

The industry cloud market also known as vertical cloud market refers to the industry specialized in cloud computing services tailored to meet the unique needs and regulatory requirement of specific industries. These industry cloud solutions provide customized platform, application, and infrastructure that are designed to optimize industry specific workflows, enhance operations efficiently, and ensure compliance with industry standards. Organization adopts industry cloud services to leverage advanced technologies including artificial intelligence (AI) and big data analytics that are integrated into cloud solutions to address sector specific challenges and drive innovation. The industry includes a range of products and services offered by cloud providers, facilitating digital transformation and competitive advantage for businesses.

Market Dynamics and Trends

The rising adoption of industry cloud solutions across various industries including healthcare, financial, retail, and manufacturing to address large volume of data and regulatory requirement is boosting the industry cloud market growth. As per a survey conducted by Gartner, in North America and Europe around 39% enterprises adopted industry cloud solutions and it is estimated more 17% enterprises to adopt industry cloud solutions by the end of 2026. Industry cloud solutions offer customized features that optimize operation such as specialized data analytics for manufacturing process or advanced security measure for handling sensitive data transfer. Through providing these targeted features, industry cloud solutions enable businesses to operate more effectively, meet regulatory standards and effectively tackle industry specific challenges.

Moreover, the rise in the frequency and sophistication of cyberattacks are pushing businesses to adopt secure and advanced industry cloud solutions. These solutions offer high tech security measures to protect sensitive data from breaches and unauthorized access. Between 2022 and 2023 there was a significant growth in data breach incident, from 1802 data compromised in 2022, it rose to 3205 in 2023, registering a huge 78% increase. This surge in the number of data breaches creates demand for reliable and secure data security solutions including industry cloud to safeguard sensitive information, thus fueling the market growth.

However, the subscription fees and potential charges for additional service or data usage associated with industry cloud solutions accumulate over time impacting the total cost of ownership that restrains the industry cloud market expansion. On the other hand, the integration of blockchain in the industry cloud to enhanced security and transparency, particularly in areas such as supply chain management & financial services, is expected to create ample growth opportunities for the market in the future.

Market Segmentation and Scope of Study

The global industry cloud market report is segmented on the basis of service type, deployment model, enterprise size, application, industry vertical, and region. Based on service type, the market is classified into infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). Based on the deployment model, the market is segmented into public cloud, private cloud, and hybrid cloud. On the basis of enterprise size, the market is categorized into SME’s and large enterprises. Based on application the market is divided into, asset management, customer relationship management (CRM), enterprise resource management (ERM), supply chain management (SCM), project & portfolio management, and others. On the basis of industry vertical, the market is divided into BFSI, healthcare, retail, manufacturing, and others. Geographical breakdown and analysis of each of the aforesaid classifications include regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the industry cloud market share and is potently expected to remain dominant in the market throughout the forecast period. This is attributed to the growing number of data theft and breaches in countries such as U.S. and Canada. As per the Identity Theft Research Center (ITRC) Annual Data Breach Report, in 2023 the number of data breaches in the U.S. reached record high of 72% growth from previous year. This surge in the number of data breaches is significantly boosting the demand for industry cloud services as businesses are seeking secure and reliable cloud solutions to protect sensitive information. Industry cloud platform offers advanced security features, compliance with regulatory standards, and high-tech data protection to enhance data security within organizations.

Moreover, the presence of major market players such as Amazon Web Services and IBM Corporation that are adopting strategies including product launches is further accelerating the growth of the industry cloud market trends. For instance, in December 2022, Amazon Web Services, Inc. collaborated with Accenture to launch a platform named ’Velocity’. This platform helps clients to drive up to 50% faster business transformation by removing the complexity of building as well as operating enterprise-scale applications and estates in the cloud.

On the other hand, Asia Pacific shows substantial growth in the global industry cloud market demand owing to the rise in the e-commerce sector in the region that produces large volume of data. This vast amount of generated data requires efficient and secured data management solution such as industry cloud.

According to the latest report published by the International Trade Administration, China holds the largest e-commerce market globally, generating almost 50 percent of the world’s transactions. This surge in the e-commerce industry is pushing businesses to adopt robust cloud solutions that are capable of streamlining operation, improve customer experience and protect sensitive information. This increase reliance on cloud technology to support the growing e-commerce sector is fueling the demand for industry specific cloud solutions in the region.

Moreover, the rise in government initiatives such as China’s “Made in China 2025”, and India’s “Digital India” programs are significantly driving the adoption of cloud technology and development of digital infrastructure. These programs are aimed at modernizing industries, improve efficiency, and promote innovation in the region. Consequently, businesses are increasingly adopting industry specific cloud solutions to align with government strategies, accelerating the growth of the market.

Competitive Landscape

Various key players operating in the industry cloud industry include IBM Corporation, VMware Inc., Microsoft Azure, Google Cloud Platform, Alibaba Cloud, Amazon Web Services, Oracle Cloud, Cisco Systems Inc, Rackspace Technology Inc., Hewlett Packard Enterprise, and others. These market players are adopting strategies such as product launches and collaboration to maintain their dominance in the market.

For instance, in April 2024, Microsoft launches new industrial AI innovation leveraging advanced AI capabilities from the Microsoft cloud to the factory floor. This innovation was aimed at improving operational efficiency, reduce downtime, and enhanced product quality, leveraging cloud-based AI solutions.

Also, in January 2023, Alibaba Cloud, launched the first international product innovation center and partner management center, to further enhance customer services and better facilitate customers’ digitalization journey. This centre aimed at the development of future roadmaps for more market-specific solutions, as well as oversee the management of product updates based on continuous worldwide consumer demand.

Moreover, in November 2022, VMware Inc. collaborated with Equinix, Inc., to deliver new digital infrastructure and multi-cloud services. Together, the companies launched VMware Cloud on Equinix Metal, a new distributed cloud service which provides a more performant, secure, and cost-effective cloud solution to run corporate applications.

Furthermore, in December 2021, IBM launched new center focused on accelerating the adoption of hybrid cloud computing. The IBM Z and Cloud Modernization Center enables customers to modernize their applications and infrastructure by leveraging IBM's mainframe technology and cloud services.

Key Benefits

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

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

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

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

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

Industry cloud Market Key Segments

By Service Type

• Infrastructure-as-a-Service (LaaS)

• Platform-as-a-Service (PaaS)

• Software-as-a-Service (SaaS)

By Deployment Type

• Public Cloud,

• Private Cloud

• Hybrid Cloud

By Enterprise Size

• SMEs

• Large Enterprises

By Application

• Asset Management

• Customer Relationship Management (CRM)

• Enterprise Resource Management (ERM)

• Supply Chain Management (SCM)

• Project & Portfolio Management

• Others

By Industry Vertical 

• BFSI

• Healthcare

• Retail

• 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:

Key Players

• IBM Corporation 

• VMware Inc.

• Microsoft Azure

• Google Cloud Platform

• Alibaba Cloud

• Amazon Web Services 

• Oracle Cloud

• Cisco Systems Inc

• Rackspace Technology Inc. 

• Hewlett Packard Enterprise