Global Cloud Computing Market By Deployment Type (Hybrid, Private, and Public), By Service (Infrastructure, Software, and Platform Service) By Enterprise Size, By End User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Cloud Computing Market size is expected to be worth around USD 2,321 Billion by 2032 from USD 546.1 Billion in 2022, growing at a CAGR of 16% during the forecast period from 2022 to 2032.

The Machine Learning and Artificial Intelligence enable cloud growth by allowing companies to tap into AI capabilities. The global economy faces major challenges due to the COVID-19 pandemic. Cloud computing market growth is able to help enterprises overcome the challenge of keeping business continuity in the times of COVID-19 lockdown, social distancing, and other mandates that have affected the cloud computing market growth. Despite this, businesses, employees, and managers continue to choose remote work due to the pandemic. This trend is likely to continue in the long term.

Note: Actual Numbers Might Vary In The Final Report

Adapting business operations according to changing cloud computing market share conditions is easier and faster with cloud computing. In other words, it streamlines the computerization of technology. As a result, it has opened up unprecedented possibilities for creating highly engaging customer experiences. As a result of cloud computing, behaviors have changed among people and businesses, and multiple lines of business are now able to navigate around tech policies to achieve their goals. The cloud is essentially guiding organizations’ investment strategies, digital business decision processes, and vendor and technology selections.

Key Takeaways

• Market Growth: The global Cloud Computing Market is projected to reach USD 2,321 Billion by 2032, growing at a CAGR of 16%.
• Role of AI and ML: Machine Learning and Artificial Intelligence are playing a significant role in propelling the growth of cloud computing. These technologies enable companies to leverage AI capabilities, contributing to the market’s expansion.
• Drivers of Growth: Increasing focus on cost control and data security is fueling the demand for cloud computing services globally.
• Challenges: Data security and privacy concerns remain significant hurdles for the market’s expansion.
• Trends Shaping the Market: The modernization of infrastructure to enhance business agility is a prominent trend guiding organizations’ digital business decisions, investment strategies, and technology selections in the cloud computing market.
• Service and Deployment Analysis: In 2022, Software as a Service (SaaS) accounted for 55.1% of the market share, followed by private deployment at 47.2%. The hybrid deployment model is expected to witness significant growth in the forecast period.
• Enterprise Size and End-Use Analysis: Large enterprises held the largest market share in 2022, followed by Small and Medium Enterprises (SMEs). The BFSI sector had the highest revenue share, owing to the increased adoption of cloud services for activities like online banking and digital transformation.
• Regional Analysis: North America led the market in 2021, while Asia Pacific is expected to grow rapidly, supported by the rise of countries like India and China.
• Key Players: Major players include Adobe, Google, Alibaba, Microsoft, Amazon, Salesforce, and SAP. Strategic partnerships and acquisitions are driving market growth.

Driving Factors

Affordable operational expenditure is driving the cloud computing market growth.

Some of the most significant aspects that are considerably fueling the expansion of the worldwide cloud computing market size include the increasing emphasis on controlling operational expenditure, the increasing need for controlling capital expenditure, and customer satisfaction. The demand for cloud computing services is increasing globally due to several key criteria, including speedy data recovery, meeting compliance requirements, and data security.

Backup infrastructure and recovery facilities.

Vendors offer important security services such as data encryption, authorization management, and access control, cloud integration, monitoring &auditing, business continuity services, and communication security. Vendors such as Amazon Web Services., Microsoft Corporation, Google LLP, and Microsoft Corporation provide 99.9% uptime which alleviates organizations of the responsibility of maintaining backup infrastructure and recovery facilities.

Restraining Factors

Data security and privacy concern are restraints for the Cloud computing market growth.

Organizations are concerned about data security and privacy. Information storage, use, and transmission must all be protected digitally. According to surveys, 61% of business-sensitive data on hard drives is insecure. Cloud computing allows various third parties to outsource skills which can cause a theft to their security and data concerns. This includes network infrastructure, mobility, endpoints, databases, virtualization, and web application. Therefore, according to companies’ concerns, privacy and security remain top restraints in adopting cloud computing.

Growth Opportunities

Enables Various lines for business to work around the tech policies.

Cloud computing market size is a faster and more efficient way to adapt to the cloud engineering market size that changes and manages business operations. It simplifies technology consumption. It opens up new avenues for creating high-quality interactions with customers. cloud engineering market share has influenced behavior change in people and businesses. It has also enabled many lines of business to work around the tech policies and get things done. With cloud computing, costs associated with maintaining, establishing, and acquiring technological services are reduced.

Trending Factors

Modernization of infrastructure to increase business agility.

cloud computing market trends guide organizations’ digital business decisions, investment strategies, vendors (Amazon Web Services, Microsoft Corporation, Google LLP, and Microsoft Corporation), and technology selection.

Organizations are being forced to modernize their infrastructure and application landscapes to increase business agility and cost efficiency. Cloud solutions and services can be used to support key business activities, transfer business workloads to the cloud, and reduce latency.

Service Analysis

In 2022, Software as a Service (SaaS), accounted for a 55.1% revenue share. SaaS’s flexibility, ease of maintenance, and deployment are the reasons for high demand. According to industry estimates, 74.01% of enterprises have moved most of their applications to the SaaS platform. Remote work has led to a rise in the demand for SaaS services, which allow Allied teams to access previously centralized data and analysis.

SaaS products will see strong growth over the next years, as their Total Cost of Owning (TCO), will be the same as that of on-premise deployment models. Over the forecast period, SaaS segment growth will be accelerated by increasing demand for SaaS delivery models and the increasing number of cloud-based businesses.

SaaS offers organizations more flexibility, options, and the ability to access the program remotely via web-based subscriptions. SaaS is a delivery model that focuses on software solutions that can reach many people.

Deployment Analysis

With a share of more than 47.2% in the cloud computing market share, the private deployment segment was at the top of this cloud computing market size over a private network or the internet, private clouds provide computer services. They are not accessible to the general public, but rather to a small number of individuals.

It offers many advantages to enterprises such as self-service and scalability. Further customization and controls are also available on-premise. Private clouds offer third-party providers greater privacy and security by using internal hosting and firewalls that ensure high-level data protection.

Hybrid deployment, which includes both public and private models, will see a significant growth rate during the forecast period. The hybrid model is the most popular implementation model across industries.

Many firms are increasingly focusing their efforts on hybrid cloud models and smart ways to improve business operations, resource utilization, cost optimization, user experience, application modernization, and maximizing the benefits. The most important force expected to accelerate the adoption of the hybrid cloud model in enterprises around the globe is edge computing.

Enterprise Size Analysis

In 2022, the largest cloud computing market share was held by large enterprises at 52.6%. Demand is driven by lower operating costs, better collaboration, greater flexibility, and faster time to market. Cloud computing allows companies to delegate repetitive work to technology that can complete them quicker.

Cloud computing is expected to grow in popularity as more companies use it to streamline their operations. The projected growth in the number of large enterprises in both established and emerging countries will drive demand for cloud computing services.

Over the forecast period, the fastest-growing segment will be the Small and Medium Enterprises segment (SMEs). This is due to the increasing number of SMEs in emerging countries like India and China. The cloud computing market share will continue to grow due to a rise in demand for cloud computing services by SMEs to improve workflow and lower operational costs.

Cloud computing helps SMEs to reduce costs, eliminate repetitive operations, prioritize work, and improve team collaboration. These benefits are expected to increase the adoption of cloud computing within this segment over the next few years.

End-use Analysis

In 2021, the BFSI segment had the highest revenue share at over 26.4%. Online banking has increased in the BFSI sector, which has led moneylenders and banks to embrace digital transformation. Cloud computing plays a crucial role in this process. Cloud computing has allowed firms to reduce expenses, increase innovation, strengthen client relationships, and increase flexibility within the BFSI sector. The COVID-19 epidemic has changed the way people communicate and do business.

Cloud services are being used to store and manage consumer data. BFSI will continue to see a significant role in the development of cloud services. This includes digital wallets, online funds transfers, payment gateways, and a unified customer experience. Cloud services are expected to be adopted by the manufacturing sector as they offer benefits like seamless data management and real-time visibility.

The cloud service model is poised to provide significant value for manufacturers, as it incorporates advanced technologies like sensors, AI(Artificial Intelligence) and ML, big-data analytics, IoT, and big-data analytics. The manufacturing sector also uses computing services to plan enterprise resources, manage the supply chain management, and store information related to enterprise manufacturing. Cloud computing services are a great way to share, analyze, and access large amounts of information in the manufacturing sector. Cloud computing services can also be used to improve business agility, innovation, business focus, and scale, as well as cost savings.

Note: Actual Numbers Might Vary In The Final Report

Kеу Маrkеt Ѕеgmеntѕ

By Service

• Infrastructure as a Service(laas)
• Software as a Service (SaaS)
• Platform as a Service (PaaS)

By Deployment

• Hybrid
• Private
• Public

By Enterprise Size

• Small & Medium Enterprises
• Large Enterprises

By End-use

• IT & Telecom
• BFSI
• Retail & Consumer Goods
• Energy & Utilities
• Manufacturing
• Government & Public Sector
• Media & Entertainment
• Healthcare
• Other End-uses

Regional Analysis

With a more than 41.2% revenue share in 2021, North America was the dominant market. U.S. companies are known for their strong focus on digital transformation. North America is often regarded as an early adopter and innovator of new technologies like the IoT and additive manufacturing, big-data analytics, connected industries, and AI. Businesses in the U.S. continue to use cutting-edge technology, which bodes well for their growth.

Over the forecast period, Asia Pacific will be the fastest-growing region. The region’s market growth has been boosted by the rapid rise of India and China, as well as the emergence of regional players such as Alibaba Group. Initiatives, like Make in India, have made substantial investments in the IT and manufacturing sectors, which has increased the demand for cloud computing in India. Additionally, in order to meet the objectives of the governments regarding data sovereignty, hyper-scale cloud services providers like Microsoft Corporation, Amazon.com Inc., and Google LLP are building data centers in regions like Indonesia and Thailand.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Industry players will find that strategic mergers, partnerships, and acquisitions are the best ways to quickly access emerging markets and improve their technological capabilities. Barco, for example, chose Salesforce in May 2021 to improve its customer, partner, and employee experience and prepare itself for future growth.

Microsoft Corporation partnered in October 2020 with ZEISS Group to improve patient care and manufacturing quality using data solutions. ZEISS Group was to adopt Microsoft Azure as its cloud platform under this partnership to offer its German manufacturing partners digital experiences, quickly address changing market conditions, and improve overall productivity and efficiency.

Service expansion, product differentiation, upgrades, and product differentiation are all expected to help companies grow in this market. IBM Corporation, for example, announced in January 2020 the launch of the Advertising Accelerator with Watson. This predictive solution uses AI and leverages Watson in order to create campaigns that can help advertisers and marketers understand the preferences and provide actionable insights.

Маrkеt Kеу Рlауеrѕ:

• Adobe Inc.
• Google LLC
• Alibaba Group Holding Limited
• International Business Machines Corporation
• Amazon.com Inc.
• Oracle Corporation
• Salesforce.com Inc.
• Microsoft Corporation
• SAP SE
• Other Key Players

Recent developments

• In November 2019, Sprint Corporation and Ooma, Inc. formed a partnership. The partnership was completed to create and market “Omni,” a cloud-based enterprise mobile solution. The goal is to provide SMEs and large organizations with enterprise-level landline phone technology.
• In February 2021, Accenture teamed up with VMware to form a specialized business group to assist businesses in implementing a cloud-first strategy. This release will enable faster app development, cloud relocation, and the utilization of the cloud as the cornerstone for new businesses and innovation.

Report Scope