Cloud Computing Market Trends

Cloud Computing Market Overview

The Cloud Computing Market size is projected to grow from USD 633.42 Billion in 2024 to USD 2082.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.04% during the forecast period (2024 - 2032). Additionally, the market size for cloud computing was valued at USD 534.4 Billion in 2023.

Enterprises are concerned about the initial deployment and maintenance expenses of hosting data on-premises, as well as the rising return on investment with decreased infrastructure and storage costsare the key market drivers enhancing the market growth.

Figure 1: Cloud Computing Market Size, 2022-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud Computing Market Trends

Market CAGR for cloud computing is being driven by the integration of big data, analytics, and machine learning with the cloud.The growing use of Big Data, Artificial Intelligence (Al), Machine Learning (ML), and other technologies is predicted to fuel market expansion. These technologies are changing the market landscape because they help users monitor, analyse, and visualise raw data.Adopting these emerging technologies in tandem with cloud solutions helps organisations improve their visualisation capabilities and make complex data accessible and usable. The expanding use of Al and ML technologies in enterprises has increased data utilisation while decreasing data storage concerns. These technologies also help to boost business efficiency, improve decision-making processes, and reduce operating costs. Businesses are embracing Al-powered solutions in order to become more strategic, efficient, and insight-driven.

Al can automate repetitive and difficult procedures to enhance production and execute data analysis without the need for manual intervention. IT departments can also utilise Al to monitor and manage critical work flows. For instance, In March 2022, Microsoft Corporation launched Azure Health Data Services. It is a platform as a service (PaaS) designed to support analytical and transactional workloads. It supports PHI alone and unifies health data while enabling cloud-based Artificial Intelligence (AI). As a result, big data, artificial intelligence, and machine learning are expected to grow more popular.

Additionally, cloud computing services and cloud-based apps have enhanced productivity and adaptability for businesses and their employees. However, most businesses are concerned that the threats to cloud computing systems are outpacing their ability to develop sufficient solutions. There are various advantages to leveraging the cloud as a platform for innovation in terms of performance, cost, and reactivity. Companies, for example, can use cloud computing to expedite innovation in the Internet of Things product development field at previously unheard-of rates. The Internet of Things (loT) industry has been able to build and distribute game-changing inventions that are revolutionising the economy thanks to cloud computing. Due to budgetary restrictions, it has forced more firms, particularly SMEs, onto the cloud.

Cloud Computing Market Segment Insights

Cloud Computing Service Model Insights

The Cloud Computing Market segmentation, based on service model includes Software as a Service (Saas), Infrastructure as a Service (laas), and Platform as a Service (PaaS). In 2022, the software as a service (Saas) segment dominated the industry, accounting for more than 53.95% of total revenue. The category is expected to develop at a steady rate, maintaining its leadership position during the projected period. The popularity of SaaS can be due to its ease of use, low prices, and quick deployment. Remote working has resulted in an increase in demand for SaaS services.

Cloud Computing Deployment Mode Insights

The Cloud Computing Market segmentation, based on deployment mode, includes private, public, hybrid cloud. The hybrid cloud segment is the market's largest contributor and is predicted to expand during the forecast period. An IBM study discovered that firms might gain a competitive edge by embracing the hybrid cloud because of its capacity to help businesses save money and time while enhancing data security, application speed, and overall IT management. More firms are implementing hybrid cloud models and smart approaches to improve business operations, resource utilisation, cost optimisation, user experience, and application modernisation while reaping the most benefits.

Figure 2: Cloud Computing Market, by Deployment Mode, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud Computing Organization Size Insights

Small and medium-sized organisations, as well as large enterprises, comprise the Cloud Computing Market segmentation. The large enterprises segment will account for more than 51.00% of total revenue in 2022. By allowing collaborative teams to access previously centralised data, remote working raises demand for cloud computing services. Factors such as lowered better cooperation, cheaper operational costs, greater flexibility, and a faster time to market all influence demand. Large-scale organisations can employ cloud computing to automate and accelerate common activities.

Cloud Computing Vertical Insights

The cloud computing market is segmented by vertical, including government and public sector, retail and consumer goods, manufacturing, technology and telecommunications, banking financial services and insurance (BFSI), and retail and public sector. More than 24.75% of the total income was supplied by the banking financial services and insurance (BFSI) category. The BFSI sector has seen a growth in online banking activity, which has led money lenders to embrace the digital revolution. Cloud computing has been essential to this strategy. By encouraging innovation, reducing expenses, boosting flexibility, and enhancing client relationships, cloud computing has benefited businesses in the BFSI sector.

Cloud Computing Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Cloud Computing Market area will dominate this market, owing to the early use of cloud computing solutions. The presence of several vendors in the region, combined with a stronger proclivity to adopt new technology, is projected to assist these regions strengthen their market positions.

Further, the major countries studiedin the market reportare The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CLOUD COMPUTING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Cloud Computing Market accounts for the second-largest market share due to the presence of strong and well-established IT and telecommunications infrastructure. Further, the German Cloud Computing Market held the largest market share, and the UK Cloud Computing Market was the fastest growing market in the European region

The Asia-Pacific Cloud Computing Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing availability of skilled labor and keen focus provided by SMEs and large enterprises to enter and grow in this region. Moreover, China’s Cloud Computing Market held the largest market share, and the Indian Cloud Computing Market was the fastest growing market in the Asia-Pacific region.

Cloud Computing Key Market Players & Competitive Insights

Leading market players are investing heavily in R&D to expand their product lines, which will help the Cloud Computing Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cloud Computing industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Cloud Computing industry to benefit clients and increase the market sector. In recent years, the Cloud Computing industry has offered some of the most significant advantages to medicine. Major players in the Cloud Computing Market, including Google LL.CA, International Business Machines Corporation, Alibaba Group Holding Limited, Oracle Corporation: Workday Inc., Microsoft Corporation and others are attempting to increase market demand by investing in R&D operations.

Amazon Web Services, Inc. (AWS) is an Amazon company that offers metered, pay-as-you-go cloud computing platforms and APIs to consumers, businesses, and governments. Clients frequently utilise this in conjunction with autoscaling (a procedure that allows a client to use more compute during periods of heavy application activity and subsequently scale down to decrease expenses during periods of low application usage). Through AWS server farms, these cloud computing web services provide a variety of services relating to networking, computation, storage, middleware, IoT, and other processing resources, as well as software tools. 

In March 2022, Amazon Web Services (AWS) announced plans to open the first data centre region in New Zealand as part of a NZ $7.5 billion investment strategy. The business intends to open its data centre in Auckland by 2024. Furthermore, the business intends to build 24 additional availability zones and eight additional AWS regions in Australia, India, Indonesia, Israel, Spain, Switzerland, and the United Arab Emirates. Microsoft Corporation is an international technology corporation with headquarters in Redmond, Washington. Microsoft's most popular software products include the operating system Windows, the Microsoft Office suite, its Internet Explorer and Edge web browsers, and the Microsoft Office suite. Major hardware products include the Xbox gaming consoles and the Microsoft Surfaces family of touchpad personal computers. 

Microsoft ranked fourteenth on the list of Fortune 500 of the greatest US companies by total revenue in 2022; it was the world's greatest software manufacturer by revenue in 2022. In addition to Alphabet (Google's parent company), Amazon, Apple, and Meta (formerly Facebook), it is considered one of the Big Five American telecommunications companies. In October 2021, Microsoft introduces three new Azure industry-specific cloud offerings: Microsoft Cloud for Financial Services, Microsoft Cloud for Manufacturing, and Microsoft Cloud for Nonprofit.

Key Companies in the Cloud Computing market include

• Amazon.com Inc


• Alphabet Inc


• Oracle Corporation


• Salesforce.com Inc.


• Microsoft Corporation


• VMware Inci


• IBM Corporation Ltd


• Alibaba Group Holding


• Dell EMC Corp.


• Rackspace inc


• Adobe Systems Inc.


• SAS Institute Inc


• TIBCO Software Inc

Cloud Computing Industry Developments

Cloud Computing Market Segmentation

Cloud Computing Market Service Model Outlook

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  Software as a Service (Saas)

  
  


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  Infrastructure as a Service (laas)

  
  


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  Platform as a Service (PaaS)

  
  

Cloud Computing Market Deployment Mode Outlook

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  Private

  
  


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  Public

  
  


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  Hybrid Cloud

  
  

Cloud Computing Market Organization Size Outlook

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  Small- and Medium-Sized Enterprises

  
  


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  Large Enterprises

  
  

Cloud Computing Market Vertical Outlook

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  Banking Financial Services and Insurance (BFSI)

  
  


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  IT and Telecommunications

  
  


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  Government and Public Sector

  
  


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  Retail and Consumer Goods

  
  


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  Manufacturing

  
  

Cloud Computing Regional Outlook