USD 484.23 billion
Cloud Services Market Size, Share, Growth Analysis, By Deployment Model(Private, Hybrid, Public), By Enterprise Size(Large Enterprise, Small & Medium Enterprise), By Service Model(Infrastructure as a Service (Primary Storage, Archiving, Storage, and Disaster Recovery & Backup)), By Vertical(BFSI, Energy & Utilities, Telecommunications, Others), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2130 |
Region:
Global |
Published Date: September, 2024
Pages:
197
|Tables:
62
|Figures:
77
Cloud Services Market Insights
Cloud Services Market size was valued at USD 565.58 billion in 2022 and is poised to grow from USD 660.60 billion in 2023 to USD 2288.12 billion by 2031, at a CAGR of 16.8% during the forecast period (2024-2031).
By utilising cloud services, businesses can cut more than 35% of their annual operational expenses. The second factor consists of all the practical characteristics that enhance an organization's capacity for business operations. As businesses prioritised digitization initiatives to address market challenges, global investment in cloud infrastructure services increased 34% to $55.9 billion in the January–March quarter (Q1). The top three cloud service providers, which grew 42 percent year over year and accounted for 62 percent of worldwide consumer spending, benefited from expanding usage and size, claims market research firm Canalys. Of the top three, Google Cloud had the strongest performance, growing by 54% in the most recent quarter to account for 8% of the market. Expanding digital transformation among enterprises, rising internet and mobile device penetration globally, and higher Big Data consumption are the main factors propelling the market's expansion. Industrial solutions of the future will be cloud-enabled, and to exhibit their digital business skills, a cloud platform will be needed. In addition, businesses are anticipated to value computing technology more as a result of the deployment of IoT, 5G, edge computing, and real-time analytics made possible by Machine Learning (ML) and Artificial Intelligence (AI).
US Cloud Services Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Private
Fastest Growth
Private
Growth Rate
16.8% CAGR
Global Cloud Services Market ($ Bn)
Country Share for North America Region (%)
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Cloud Services Market Segmental Analysis
Global Cloud Services Market is segmented based on service model, deployment model, enterprise size and region. Based on service model, the market is segmented into IAAS, PAAS, BPAAS. Based on deployment model, market is segmented into private, public, hybrid. Based on enterprise size, the market is segmented into large enterprise size, small & medium enterprise size. Based on vertical it is segmented into BFSI, energy & ulities, Telecommunications and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Cloud Services Market Analysis by Deployment Model
More than 45.90% of total revenue in 2023 came from the private deployment segment, which represented the largest share. Private clouds provide computational capabilities across a private network or the internet, but only a small number of people have access to them. It offers companies elasticity, self-service, scalability, more customization, and controls that are hosted on an on-premise computer system. By utilizing internal hosting and firewalls to provide high-level data protection, private clouds also provide third-party providers with privacy and security.
The hybrid deployment segment, which comprises an integrated environment with both public and private models, is anticipated to have considerable growth over the course of the projected year. Across industries, the hybrid implementation paradigm is becoming more and more common. Many companies place a high priority on creating hybrid cloud models and clever strategies to enhance business operations, cost optimization, resource usage & consumption, user experience, and application modernization while boosting the benefits.
Cloud Services Market Analysis by Enterprise Size
With more than 51.00% of the total revenue in 2022, the large enterprises segment had the largest share. Due to remote working's ability to give collaborative teams access to formerly centralized data, the need for cloud computing services has increased. Demand is affected by a number of factors, such as operating expenses being lower, teamwork being improved, having more flexibility, and having a faster time to market. Large-scale companies can automate repetitive operations with cloud computing, resulting in faster completion.
Large companies are anticipated to use this technology to streamline procedures more frequently, assisting in the expansion of the sector. As major corporations grow in both developed and developing nations, demand for cloud computing services will rise. During the anticipated period, SMEs are anticipated to develop at the fastest CAGR. To improve workflows and save operational costs, SMEs are anticipated to demand cloud computing services. Costs are cut, monotonous chores are eliminated, teamwork is enhanced, and priorities are determined using cloud computing.
Cloud Services Market Analysis by Vertical
Based on the industries, cloud computing service is divided into many categories, but the major ones include Banking, Financial Services, and Insurance (BFSI), Energy and Utility, and Telecommunication industries. Cloud computing is deployed in every segment in a way that adds superior value to each sector’s operations.
IT departments in BFSI remain the most keen on adopting cloud solutions, which is integral to developing better products and core banking services in financial organizations. Cloud security also has its function to be performed since it makes sure that the firms are compliant to the required laws especially in the area of data storage and management. Furthermore, cloud-based advanced analytic and AI are improving the fraud detection and risk while the customer satisfaction is increasing though the cloud CRM and mobile banking. Moreover, cloud =based automation of back-office tasks implies upliftment in operational efficiency.
Presently, the Energy & Utilities industry is in the process of updating smart grid management solutions on the cloud platform to monitor and control energy supply and usage. With regards to preventive measurement, Cloud analytics helps in the analysis of infrastructure to point out early signs of deficiency. Cloud platforms also solve the issue of connecting renewable energy sources to the power grid, thus maintaining the eco-friendliness of energy resources. Mobile applications for energy consumption control and account management are used to engage the customers through the cloud.
The Telcos especially get to benefit from cloud computing’s ability to virtualize the network creating flexible ones that they can scale up or down as needed. The application of the cloud infrastructure intensifies the establishment of 5G networks that call for a high bandwidth as well as low latency period. OTT services such as Video streaming require high capacity and on-demand scalability which is provided by cloud platforms. The new software development environments provided by the clouds enable Telcos to deliver new services to their clients at a faster rate and this is cheap. Last but not the least, the use of cloud tools for networks’ control and services provisioning increases operational effectiveness in Telcos.
Global Cloud Services Market Size By Deployment Model (%)
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Cloud Services Market Regional Insights
In 2022, North America dominated the industry globally and was responsible for the largest portion of the total revenue, or more than 39.45%. The American corporate sector places a high priority on digital transformation and is frequently credited with being an early adopter of technologies like big data analytics, augmented reality (AR), artificial intelligence (AI), virtual reality (VR), machine learning, and 4G, 5G, and LTE. As more American businesses use diverse technology, this fosters the expansion of the cloud computing industry. Due to the presence of numerous suppliers, including as Oracle Corp., Microsoft Corp., International Business Machines Corp. the region is predicted to keep its place in the sector.
Over the forecasted period, Asia Pacific is expected to have the highest CAGR. The regional market expanded quickly as a result of China's and India's rapid economic expansion as well as the creation of local businesses like Alibaba Group. In India, the need for cloud computing has grown as a result of programmes like Make in India, which has made significant investments in the manufacturing industry.
Global Cloud Services Market Size By Geography
- Largest
- Fastest
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Cloud Services Market Dynamics
Cloud Services Market Drivers
More People Are Using Cloud Services due to its Superior Properties
- Making the switch to cloud computing offers financial benefits like cost-cutting and a decrease in capital expenditures. With cloud computing services, the cost of purchasing physical IT resources is reduced, reducing the need for capital expenditure. A solid method for lowering total running expenses is to establish cloud services properly, whether they be in the form of private, public hybrid, or community clouds.
- A study by the Microsoft Corporation found that small and medium-sized businesses contributed more than 76% to the GDP of all countries. Another study found that 79% of business owners said technology might make work more enjoyable. The majority of SMB IT businesses use the cutting-edge technology of cloud computing services to expand their operations and make a name for themselves across many geographies. Numerous functional advantages are provided by cloud computing services, which also actively contribute to the market growth of cloud services as a whole. The functional advantages of cloud computing include distributed resources, the absence of upgrading and installation tasks, and the effective utilisation of IT employees. The user benefits from the removal of routine upgrades and installations because upgrading, patching, and Installations of add-ons are handled by the service provider.
Cloud Services Market Restraints
Security Breach to Hinder Market Growth
- While cloud computing has numerous benefits, it also addresses some risks. The securitization of sensitive data is a significant barrier to the market for cloud computing. Large-scale data exchange is made possible by the cloud computing platform. But businesses are hesitant to save their private information in the cloud. As a result, the company is more exposed to information loss and data breaches. The privacy concerns of the organisation may suffer significant harm from hackers and unreliable personnel. Private clouds are typically seen as being more secure than other forms of clouds.
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Cloud Services Market Competitive Landscape
The most effective means for businesses to advance their technology capabilities and gain quick access to expanding markets are anticipated to be alliances, strategic mergers, and acquisitions.
Cloud Services Market Top Player’s Company Profiles
- Amazon Web Services (AWS) (United States)
- Microsoft Azure (United States)
- Google Cloud Platform (United States)
- Alibaba Cloud (China)
- IBM Cloud (United States)
- Salesforce (United States)
- Oracle Cloud (United States)
- SAP Cloud Platform (Germany)
- VMware Cloud (United States)
- Rackspace (United States)
- Adobe Experience Cloud (United States)
- ServiceNow (United States)
- Cisco Cloud Services (United States)
- Dell Technologies Cloud (United States)
- Hewlett Packard Enterprise (HPE) Cloud (United States)
- Box (United States)
- Dropbox (United States)
- Red Hat OpenShift (United States)
- Tencent Cloud (China)
- Fujitsu Cloud (Japan)
- NTT Communications Cloud (Japan)
Cloud Services Market Recent Developments
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In may 2024, Emerging economies are witnessing a surge in cloud adoption as organizations seek to improve their digital operations. The increasing affordability and accessibility of cloud services are fueling this growth [Precedence Research].
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In april 2024, The rise of hybrid and multi-cloud solutions is a key trend. These solutions offer businesses greater flexibility and control over their cloud deployments, allowing them to tailor their cloud strategy to specific needs [The Brainy Insights].
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In early 2024, The overall cloud computing market size was estimated at $602.31 billion in 2023, and is projected to grow at a Compound Annual Growth Rate (CAGR) of 21.2% until 2030 [Grand View Research]. This rapid growth is fueled by factors like businesses recognizing the transformative potential of cloud computing in boosting efficiency and agility..
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In late 2023, The global cloud infrastructure service market continued its strong growth trajectory, with spending reaching over $76 billion in Q1 2024, a 21% increase year-over-year [Statistia]. This highlights the increasing adoption of cloud services by businesses of all sizes.
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In April 2022, Oracle announced Oracle ME, an employee experience platform, to help companies increase employee engagement and ensure employee success. Oracle ME, a part of Oracle Fusion Cloud Human Capital Management (HCM), made it possible for HR and business management to increase talent retention by fostering a welcoming and trustworthy workplace.
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In March 2022, Azure Health Data Services were introduced by Microsoft Corporation. It is a platform as a service (PaaS) that is intended to accommodate both analytical and transactional workloads. It combines health data and enables cloud-based artificial intelligence (AI), which only supports protected health information (PHI).
Cloud Services Key Market Trends
- Organizations are increasingly adopting hybrid and multi-cloud strategies, combining public and private cloud services to meet their specific requirements. Hybrid cloud environments allow businesses to leverage the benefits of both public and private clouds, optimizing flexibility, scalability, and security. Multi-cloud approaches involve using multiple cloud service providers to avoid vendor lock-in and enhance redundancy and resilience.
Cloud Services 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 the robust Secondary Desk research.
According to our analyses, the global cloud services market is experiencing robust growth and is poised to continue expanding in the coming years. Organizations across industries are increasingly adopting cloud computing solutions to drive digital transformation, improve operational efficiency, and enhance business agility. The global cloud services market is experiencing substantial growth as organizations recognize the numerous benefits offered by cloud computing. Cost efficiency, scalability, flexibility, digital transformation enablement, global accessibility, security, and industry-specific solutions are driving market expansion. As businesses continue to prioritize agility, innovation, and cost optimization, cloud services will remain a critical component of their IT strategies, shaping the future of the global cloud services market.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 565.58 billion |
| Market size value in 2031 | USD 2288.12 billion |
| Growth Rate | 16.8% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| 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 Services 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 Services 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 Services 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 Services 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 Services Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Cloud Services 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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