USD 626.4 billion
Cloud Computing Market Size, Share, Growth Analysis, By Service(Software As A Service ( Customer Relationship Management, Enterprise Resource Management, Human Capital Management, Content Management), By Deployment Mode(Private Cloud, Public Cloud, and Hybrid Cloud), By Enterprise Size(Large Enterprises, and Small & Medium Enterprise), By End-use(IT &ITES ( Devops, Big Data And Analytics, IT Security And Compliance, Others)), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45D2031 |
Region:
Global |
Published Date: June, 2024
Pages:
173
|Tables:
158
|Figures:
77
Cloud Computing Market Insights
Global Cloud Computing Market size was valued at USD 626.4 billion in 2022 and is poised to grow from USD 720.99 billion in 2023 to USD 2220.9 billion by 2031, growing at a CAGR of 15.1% during the forecast period (2024-2031).
Cloud computing changes the data processing, storage, and management functions to cloud computer networks which are built over the internet rather than using only local servers or personal computers. The standard shift of the shared space ensures secure storage environment where all devices from the network can access simultaneously. The explosive development of cloud computing is the result of certain reasons mainly the digitization of companies, the spread of internet and mobile devices worldwide of the growing use of big data. While industries are in the process of regeneration, their access and ability to use cloud platforms in supplement of digital business solutions are critical. Furthermore, the coming together of newer technologies similar the Internet of Things (IoT), edge computing, 5G connectivity, real-time analytics with AI and ML leads to the elevation of cloud computing in all the sectors. For instance, In December 2023, Bitdeer and Nvidia announced a cloud computing service combining Bitdeer's AI and ML expertise and Nvidia's capabilities, representing a huge advance in cloud computing services innovation.
The evolution cloud computing market growth is propelled by the rising utilization of cloud-based systems in small and medium-sized enterprises (SMEs). Another key factor is that governments in many developing countries have adopted cloud computing delivery models as a way of enhancing their expertise on technology and increasing productivity in the government. For instance, in June 2023, The Ministry of Economy (MoE) collaborated with Amazon Web Services, Inc., to launch the AWSConnected Community Initiative. This is one of the dedicated SMEs digitization efforts that is aimed at helping the SMEs to thrive and compete internationally. Fujitsu brings into the play a new concept, known as "Fujitsu CaaS" (Computing as a Service), allows clients get cloud access to the latest computing resources. Among the flagship services offered within CaaS, namely "Fujitsu Cloud Service HPC--utilizing Fugaku, the world's fastest supercomputer that provides high-performance computing capabilities.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Small & Medium Enterprises
Fastest Growth
Small & Medium Enterprises
Growth Rate
15.1% CAGR
Global Cloud Computing Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Cloud Computing Market Segmental Analysis
Global Cloud Computing Market is segmented by service, deployment mode, organization size, end use, and region. Based on service, the market can be segmented into Software as a service (customer relationship management, enterprise resource management, human capital management, content management, collaboration and productivity suites, supply chain management, other SaaS service models), Platform as a service (application development and platform, application testing and quality, analytics and reporting, integration and orchestration, data management), Infrastructure as a service (Primary Storage, Disaster Recovery and Backup, Archiving, Compute), and Others. Based on deployment mode, the market is segmented into Private Cloud, Public Cloud, and Hybrid Cloud. Based on Enterprise Size, the market can be segmented into Large Enterprises, and Small & Medium Enterprises. Based on End User, the market is segmented into IT &ITES (DevOps, big data and analytics, IT security and compliance, others), Telecommunications (network function virtualization, software defined networking, edge computing, others), Retail & Consumer Goods (e-commerce and online marketplaces, customer relationship management, point of sale systems others), Manufacturing (supply chain management, product lifecycle management, others), Energy & Utilities (smart grid management energy, monitoring and management, renewable energy and forecasting, other energy and utility services), Healthcare (electronic health records, remote patient monitoring, genomic sequencing and bioinformatics, others), Media & Entertainment (Content storage and distribution, media streaming, content production and post production), Government & Public Sector (government infrastructure migration, digital government and E government services, open data and transparency, other government and public sector services), and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Cloud Computing Market Analysis by Deployment Mode
The public cloud sector dominated the cloud computing market by deployment mode, became the leading segment. The growth of this dominance is driven by the increasing demand for secure, scalable and cost-effective options, especially among large corporations. Moreover, the growth of connected devices, automation, and digital transformation projects in multiple industries will faster drive the adoption of public cloud services.
The hybrid cloud is the fastest growing segment. This growth pattern is based on the increasing adoption of cloud-native solutions and the special benefits that hybrid cloud environment has over its public and private variants. Foremost among these benefits are cost optimization, augmented control through a combination of public and private cloud resources, reinforcement of security mechanisms and improved risk management strategies. For Instance, in December 2023 Lenovo’s collaborated with Intel, both introduced the latest hybrid cloud platform and related services. The ThinkAgile hybrid cloud solution scores for its specialized capability in boosting Artificial Intelligence performance and speeds up the process of carrying cloud solutions out. Lenovo's new offering represents a major strategic leap forward in the hybrid cloud solutions by significantly increasing computing power and memory capacity of Lenovo's product line.
Cloud Computing Market Analysis by Enterprise Size
The largest segment by enterprise size is the large enterprises in the Global cloud computing market. The emergence of Cloud technology becomes a necessity for large enterprises through which all these previously unimaginable operational efficiencies, scalability, and other added value can be achieved. it also enables the constant involvement of remote collaboration with location neutrality, making the communication channels more effective and the security measures impregnable to escape out sensitive data.
The small and medium enterprises are the fastest growing segment by enterprise size. The cloud technology continues to transform the business operations landscape, especially among the SMEs segments. The cloud solution has been the game-changer for small and medium businesses, allowing them to transform their operations while limiting the expensive cost of buying hardware and software. The flexible payment options, alike pay-as-you-go, would not only reduce the payable number of SMEs but would also change the general course of their expenditure. Furthermore, the market sees customized cloud solutions are created and able to achieve the distinct needs of SMEs that, in turn, have a role of boosting the adoption of cloud technology within SMEs. This approach could be demonstrated in the case of the DE-IX and BasicBrix introduced of cloud computing solutions targeted for SMEs in Malaysia in August 2022. Enabling users to access BasicBrix's convenient computing services, while being able to connect directly to the high-speed secure connection provided by DirectCLOUD, provided by DE-CIX, will enable Malaysian businesses as well as start-ups to realize the benefits of these advanced solutions.
Global Cloud Computing Market By Enterprise Size
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Cloud Computing Market Regional Insights
North America is largest market by region, because it was the first to adopt advanced technologies. As a result of big cloud vendors’ major presence in the area, the adoption of cloud services will also increase in the region. The cloud service vendors are mainly in the North America, investing in technological expertise, making strategic partnerships and increasing their cloud infrastructure. For instance, in September 2023, Oracle announced a partnership with TELMEX-Triara and so having the first two cloud regions in Mexico, which makes Oracle the first hyperscale to achieve the milestone. Organization that will find Oracle’s Cloud Infrastructure (OCI) useful will be those that offer better performance, more secure measures, integrating data analytics capabilities and having distributed cloud proficiency.
The Asia Pacific region is the fastest growing region in the cloud computing market with the use of cutting-edge technologies such as IoT, AI, edge computing, and 5G across all sectors. The growth of private sector investments, strong government support and big population are factors that facilitate the rapid spread of new and emerging technologies in this place. The application of AI and machine learning in different sectors in the Asia-Pacific region and in Japan is going to be accepted as a leading country in ICT development that never stops improving and deploying the newest technologies. The trend of cloud technology is to be more and more available to all the enterprises in Japan. As a result, cloud migration will be a major consideration for most of the core applications of the enterprises. cloud computing will be greatly favoured by the implementation of the IaaS and PaaS models, bringing the creation of SaaS models to the background.
Global Cloud Computing Market By Region
- Largest
- Fastest
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Cloud Computing Market Dynamics
Cloud Computing Market Drivers
Merging of AI, Machine Learning, and Big Data with Cloud to enhance market advancement
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The AI, Machine Learning, and Big Data's integration with cloud solutions translates into an extra benefit of enhancing the data visualization capabilities of organizations to make disparate data accessible and actionable. In the process of collecting data and training algorithms, large capacity of computing resources and storage capacity are needed which is cheaper and more easily procured as-a-service. Cloud providers are increasingly using AI for multiple tasks, such as handling extensive distributed networks necessary for the provisioning of storage services, optimizing power and cooling systems in data centres, and bolstering cybersecurity solutions that protect data. Businesses are adopting AI-based solutions to obtain the competitive advantage by automating the current practices, making strategic decisions and increasing productivity. AI can eliminate such repetitive and complex tasks, bringing the productivity to the highest level ever, and performing data analysis without any human participation. In this way, IT departments, with the help of AI, can monitor and supervise critical workflows accurately. In addition to the giants like Google, Amazon and Microsoft, the providers of cloud services begin to introduce artificial intelligence (AI) in their services. They strive to provide users with more efficient and cost-effective solutions. For instance, in August 2023, Microsoft announced the Microsoft Studio which is targeted at enterprises to expedite the AI and cloud movement. With this new product, Globant's well-developed knowledge and expertise matching Microsoft's proven computing and AI technologies capabilities are brought together.
Increased Investment in Cloud Services
- Companies are in an urgency to expand their businesses and to become the first in the market, they need to have every relevant data and easy to use operations. The cloud computing services have a great importance in the improvement of business functions because without time or location limitation one can access their information from any device. Along with businesses that align themselves with changing customer preferences, the demand for cloud computing services is getting more intense, and at the same, the availability and reliability of these services is improving. The further demand leads to the necessity to have larger, secure, reliable, and cost-effective resources away from the premises.
Restraints
Insufficient Technical Knowledge Hinders the Market Growth
- Organizations necessitate personnel equipped with technical acumen to effectively deploy, manage, analyse, and safeguard cloud solutions. there exists a significant deficit in technical proficiency among IT professionals, particularly in cloud computing. This shortage of expertise is impeding companies from capitalizing on the advantages offered by the cloud and emerging technologies, resulting in a potential loss of market share and revenue. The challenges in sourcing suitable candidates include swift hiring procedures, elevated salaries for seasoned cloud professionals, and the difficulty in finding individuals who harmonize with the organizational culture.
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Cloud Computing Market Competitive Landscape
Global Cloud Computing market is characterized by intense competition among key players striving to gain a significant market share. The partnerships and strategic alliances between cloud providers and other technology companies, as well as acquisitions and mergers within the industry, further shape the competitive landscape. These collaborations enable companies to expand their service offerings, access new markets, and strengthen their position in the highly competitive cloud computing market.
Top Players in the Cloud Computing Market
- Amazon Web Services (AWS) (US)
- Microsoft Azure (US)
- Hewlett Packard Enterprise Development LP (US)
- Tencent Cloud (China)
- Google Cloud Platform (US)
- Alibaba Cloud (China)
- IBM Cloud (US)
- Oracle Cloud Infrastructure US ()
- Salesforce (US)
- SAP Cloud (Germany)
- Rackspace (US)
- Verizon Cloud (US)
- CenturyLink Cloud (US)
- Fujitsu Cloud (Japan)
- VMware Cloud (US)
- NTT Communications Cloud (Japan)
- Adobe Cloud (US)
- Cisco Cloud (US)
- Dell Cloud (US)
- HPE Cloud (US)
Cloud Computing Market Recent Developments
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In February 2024, Gcore announced the launch of FastEdge, an advanced serverless product transforming application deployment and performance.
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In February 2024, Erricson and HPE announced their collaboration at MWC 2024, to deploy Fintech cloud services on HPE GreenLake.
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In January 2023, Alibaba Cloud introduced the Apsara Developer Community, a novel hub designed to assist developers globally by providing an enhanced array of diverse developer tools and services. The initiative aims to nurture the ongoing growth of the developer community while promoting the advancement of the digital economy across various markets.
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In November 2022, Wipro Ltd., collaborated with VMware, a cloud computing service provider based in the United States. This partnership aims to deliver a cloud computing and remote work platform, enabling enterprises to extend their security standards and other services to a distributed workforce.
Cloud Computing Key Market Trends
- Increasing adoption of Omni-Cloud solutions: Major corporations are integrating multi-cloud solutions into their operations to oversee their workforce across various cloud-based platforms. Additionally, with the increasing robustness and flexibility of cloud-driven applications like Gmail, Facebook, and Dropbox, the demand for swift handling cycles in real-time scenarios is growing. Nevertheless, the integration of disparate cloud infrastructures often lacks efficiency due to fragmented coordination. Consequently, enterprises are transitioning to omni-cloud solutions to capitalize on numerous benefits, including streamlined data utilization, enhanced decision-making capabilities, real-time scalability, and improved data availability.
- Rising uptake of cloud computing: Entrepreneurs and their SMEs have experienced substantial growth over the past few decades. There's a notable surge in demand for cloud computing services due to the associated benefits such as cost savings and increased business flexibility, particularly advantageous for startup ventures. The expansion of these SMEs has heightened the reliance on cloud computing services. According to Microsoft Corporation, small and medium-sized enterprises contribute approximately 76% to the GDP of all nations. Additionally, 79% of business owners believe that technology can enhance their job satisfaction. A significant portion of SMB IT firms leverage cutting-edge cloud computing technology to expand their operations and establish a presence across various geographical locations.
Cloud Computing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the cloud computing market continues its robust growth trajectory, driven by the increasing digital transformation initiatives across industries, widespread adoption of advanced technologies such as AI, IoT, and big data analytics, and the demand for scalable and cost-effective IT solutions. The COVID-19 pandemic further accelerated the adoption of cloud services as businesses sought remote work capabilities and digital transformation to adapt to changing market dynamics. Large enterprises are having highest share and small and medium enterprises are growing at a fast face. North America is having highest share by region and Asia Pacific is growing quickly. One main trend is the increasing adoption of omni-cloud solutions. Major players such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) maintain dominant positions, while niche players and regional providers offer specialized services to cater to specific industry needs. Hybrid and multi-cloud strategies gain traction as organizations prioritize flexibility, security, and innovation in their cloud deployments. Furthermore, the expansion of edge computing and the emergence of industry-specific cloud solutions are poised to drive further market growth and innovation in the foreseeable future.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 626.4 billion |
| Market size value in 2031 | USD 2220.9 billion |
| Growth Rate | 15.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Cloud Computing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Cloud Computing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Cloud Computing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Cloud Computing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Cloud Computing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cloud Computing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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