The global cloud computing market is estimated to witness a robust growth rate of over 15% during the period of 2019–2028. Growing demand for cloud-based business continuity tools and services, increasing inclination of enterprises towards automation and agility, and increased return on investment with lower infrastructure and storage costs are some of the pivotal factors for the market growth. The proliferation of digital content and upsurge in internet usage has also positively influenced the market growth in recent years. As per the International Telecommunication Union (ITU), the proportion of individuals using the internet globally has increased significantly from 43% in 2016 to 63% in 2021. This has led to an increase in the flow of data, which in turn has significantly driven the demand for cloud computing across the globe.
Moreover, the consumption of digital content has skyrocketed amid the recent outbreak of COVID-19. Mandatory quarantine measures coupled with the imposed lockdowns to limit the spread of the deadly virus have put manufacturing and service corporate facilities under temporary locks except for the essential one. Organizations have incorporated remote working culture, which has significantly driven the demand for cloud computing. The adoption of cloud computing enhances customer experiences with personalization and collaboration, which has also driven market growth in recent years.
Based on the Deployment Model, the Hybrid Cloud Segment is Expected to Dominate the Global Market
On the basis the of deployment model, the market is segmented into public, private, and hybrid. The hybrid deployment model is estimated to dominate the global cloud computing market. The hybrid cloud is gaining traction among organizations on account of the ongoing migration of applications over the cloud, increased user and resource mobility, and the emergence of sophisticated threats. Hybrid clouds are extensively used by industries that prioritize compliance, security, and customer experience. Verticals that opt for hybrid cloud include healthcare and medical sciences, BFSI, and the government and public sector. Moreover, leading players operating in the global cloud computing ecosystem are eying on strengthening their presence in the hybrid cloud segment by adopting various strategies. For instance, in July 2021, IBM Corp. acquired Spain-based Bluetab Solutions Group. This acquisition was aimed to expand IBM’s data, and hybrid cloud consulting market and further reinforce the company’s presence in Latin America and Europe.
The Asia Pacific is Likely to Observe Lucrative Market Growth over the Forecast Period
Geographically, the market is analyzed in North America, Western Europe, Eastern Europe, Asia Pacific, Latin America, and the Middle East and Africa. Asia Pacific cloud computing market is estimated to grow at the fastest pace among other regions over the forecast period. Faster adoption of cloud computing in the Asia Pacific is backed by the factors such as increasing availability of skilled labor and the significantly large number of enterprises and keen focus provided by them to enter and grow in the region. Further, enterprises operating in the region are seeking to enhance their digital initiatives, which has led to the increased adoption of public cloud in the Asia Pacific. North America and Europe are expected to contribute majorly to the market on account of higher internet penetration, well-established ICT infrastructure, the high adoption rate of cloud computing services, and the presence of a large number of enterprises.
Competition Landscape and Key Market Developments
The global cloud computing market is fragmented in nature with the presence of various players operating in the market. Some of the prominent players that contribute significantly to the market growth include Adobe Inc., Alphabet Inc. (Google Inc.), Amazon.com Inc., Cisco Systems Inc., Hewlett Packard Enterprise, IBM Corp., Microsoft Corp., Oracle Corp., Salesforce, Inc., SAP SE, and VMware, Inc., among others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Acquisitions and product launches are among the key strategies adopted by major industry players. For instance,
- In February 2022, IBM Corp. acquired Neudesic, an application development, and cloud computing services company. Neudesic has been integrated into the Consulting segment of IBM. The acquisition would further enable strengthening of the IBM’s cloud computing solutions offerings.
- In September 2021, Health Cloud 2.0 platform was launched by Salesforce. Health Cloud 2.0 facilitates the delivery of enhanced safety to the employees and customers of the company using various modules, including Dreampass, and Contact Tracing. The new product launch would reinforce the revenue stream of Salesforce by broadening product and service offerings.
Key Market Segmentation
RationalStat has segmented the global cloud computing market on the basis of service model, deployment model, end-user, and region.
- By Service Model
- Infrastructure-as-a-Service (IaaS)
- Platform-as-a-Service (PaaS)
- Software-as-a-Service (SaaS)
- By Deployment Model
- By End-Use
- Banking, Financial Services, and Insurance (BFSI)
- IT & Telecommunications
- Government and Public Sector
- Retail and Consumer Goods
- Energy and Utilities
- Media and Entertainment
- Healthcare and Life Sciences
- Others (Education, Travel and Hospitality, and Transportation and Logistics)
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, Cloud Computing Association, and company documents
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for cloud computing service providers, government organizations, market educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global cloud computing market is expected to grow at a CAGR of over 15% during the forecast period 2022-2028.
North America is dominating the global cloud computing market in 2021.
The global cloud computing market is estimated at around US$ 400 billion in 2021.
The growing demand for cloud-based businesses is the key driver in the global cloud computing market.
Major companies operating in the global cloud computing market include Adobe Inc., Alphabet Inc. (Google Inc.), Amazon.com Inc., Cisco Systems Inc., Hewlett Packard Enterprise, etc.