Global Cloud Discovery Market By Component (Solution, Services), By Enterprise Size (Small and Medium-Sized Enterprises, Large Enterprises), By Industry Vertical (IT and Telecommunications, BFSI, Retail and E-commerce, Healthcare, Manufacturing, Government and Public Sector, Other Industry Verticals), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Cloud Discovery Market size is expected to be worth around USD 6.1 Billion By 2033, from USD 1.4 Billion in 2023, growing at a CAGR of 15.8% during the forecast period from 2024 to 2033.

Cloud discovery refers to the process of identifying and cataloging all cloud applications, services, and resources within an organization’s IT infrastructure. This process is crucial for gaining visibility into the cloud landscape, ensuring compliance with data governance policies, and managing cybersecurity risks.

Cloud discovery tools automatically detect and analyze the use of cloud applications by monitoring network traffic and scanning cloud environments. These tools provide detailed insights into unauthorized cloud usage, help optimize cloud resource allocation, and ensure that cloud services align with organizational policies and industry regulations.

The cloud discovery market is experiencing significant growth, driven by the increasing adoption of cloud-based technologies and the need for enhanced visibility and control over cloud resources. As businesses continue to migrate critical applications and data to the cloud, the demand for comprehensive cloud discovery solutions escalates.

These solutions are pivotal in identifying shadow IT, managing cloud expenditures, and mitigating security vulnerabilities. The market’s expansion is also bolstered by stringent regulatory requirements that mandate thorough monitoring and reporting of cloud environments to ensure data protection and compliance.

The growth of the cloud discovery market can be attributed to several key factors. The surge in cloud adoption across various sectors necessitates robust mechanisms to manage and secure cloud environments effectively. Organizations are increasingly aware of the risks associated with unauthorized or unmanaged cloud applications, including data breaches and compliance violations.

Additionally, the expansion of multi-cloud and hybrid cloud architectures complicates the management of IT resources, further driving the demand for advanced cloud discovery solutions that can provide comprehensive visibility across diverse cloud platforms.

In the evolving landscape of the cloud discovery market, several opportunities stand out. There is a growing need for solutions that can provide deeper integration with existing security and management frameworks. This integration allows for more streamlined operations and enhanced security postures.

Another significant opportunity lies in developing cloud discovery tools that cater to specific industry regulations, offering tailored solutions that ensure compliance and facilitate audit processes. Furthermore, as organizations increasingly adopt edge computing and IoT technologies, there is a notable opportunity to expand cloud discovery capabilities to include these new nodes, ensuring all parts of the network are visible and secure.

According to experts, The cloud applications market is currently valued at over ~$150.2 billion, highlighting the substantial demand and growth within the sector. It is projected that by 2025, approximately 200 zettabytes (ZB) of data will be stored in cloud environments. Presently, 60% of the world’s corporate data resides in the cloud, underscoring its pivotal role in business operations.

Cloud data centers are significant energy consumers, accounting for 3% of global energy consumption. This reflects the extensive infrastructure required to support massive data volumes and computing services. Revenue from cloud infrastructure services has reached an impressive $178 billion annually, driven by widespread adoption and evolving technological needs.

Regarding enterprise cloud strategies, 90% of large enterprises have implemented a multi-cloud infrastructure. On average, enterprises utilize 2.6 public and 2.7 private clouds, indicating a preference for diversified cloud solutions to mitigate risks and optimize performance.

In the competitive landscape, Amazon AWS leads with a 32% market share in total cloud spending. Microsoft Azure follows as a strong contender, holding a 23% market share. Google Cloud maintains a 10% market share. Collectively, these major players have experienced a significant growth rate of 26%, reflecting their dominant presence and ongoing expansion in the cloud services market.

Key Takeaways

• The Cloud Discovery Market is projected to reach USD 6.1 Billion by 2033, up from USD 1.4 Billion in 2023, with a Compound Annual Growth Rate (CAGR) of 15.8% during the forecast period from 2024 to 2033.
• In 2023, North America secured a leading position in the Cloud Discovery market, holding more than 36.1% of the market share, with revenues tallying up to USD 0.5 billion.
• The Solutions segment achieved a commanding presence in the cloud discovery market in 2023, capturing over 68.9% of the market share.
• Large Enterprises dominated the Cloud Discovery market in 2023, representing more than 64% of the market.
• In 2023, the IT and Telecommunications sector maintained a substantial share in the Cloud Discovery market, accounting for over 23.5% of the market.

Cloud Discovery Market In North America

In 2023, North America held a dominant market position in the Cloud Discovery market, capturing more than a 36.1% share with revenues amounting to USD 0.5 billion. This leadership can be primarily attributed to the high concentration of cloud service providers and a robust digital infrastructure across the region. North America’s pioneering stance in cloud technology adoption, coupled with stringent data protection regulations, has significantly driven the deployment of cloud discovery solutions.

North America held a dominant position in the Cloud Discovery market for several key reasons:

• Advanced Technological Infrastructure: North America boasts a highly developed technological infrastructure, facilitating faster and more extensive adoption of cloud technologies. This infrastructure supports the complex deployments and integrations required for effective cloud discovery.
• Presence of Major Cloud Providers: The region is home to leading cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform. This proximity allows for enhanced service offerings and early access to innovative cloud solutions, including cloud discovery tools.
• Stringent Regulatory Compliance: With regulations such as the California Consumer Privacy Act (CCPA) and other federal mandates, organizations in North America are compelled to maintain strict oversight of their data environments. Cloud discovery plays a crucial role in ensuring compliance, thereby driving its adoption.
• High Emphasis on Cybersecurity: Given the increasing cyber threats, North American businesses prioritize robust cybersecurity measures. Cloud discovery tools are essential for identifying unauthorized cloud services and mitigating potential security risks.
• Corporate Adoption and IT Spend: The region has a high level of corporate readiness and willingness to invest in new IT solutions to improve efficiency and competitiveness. The significant IT budgets allow for the adoption of advanced cloud discovery solutions to optimize cloud resource usage and management.

Component Analysis

In 2023, the Solution segment held a dominant market position within the cloud discovery market, capturing more than a 68.9% share. This prominence is largely due to the critical need for robust cloud discovery solutions that provide comprehensive visibility into cloud applications and resources.

As organizations increasingly migrate their operations to cloud-based platforms, the necessity to monitor, manage, and secure these environments has become paramount. Cloud discovery solutions address these needs by offering automated tools that identify and categorize cloud services, detect shadow IT, and assess security configurations and compliance with regulatory standards.

The leadership of the Solution segment is further reinforced by its role in optimizing cloud resource usage and expenditure. These solutions enable businesses to map out their cloud landscapes, helping them understand resource allocation, usage patterns, and potential redundancies. This detailed insight allows organizations to streamline operations, enhance performance, and achieve cost efficiencies by eliminating unnecessary services and optimizing subscription plans.

Moreover, the Solution segment’s dominance is supported by its adaptability to the evolving technological landscape. As cloud environments become more complex with the integration of multi-cloud and hybrid models, the demand for solutions that can provide a unified view and control over these diverse infrastructures continues to rise. Cloud discovery solutions that can seamlessly integrate with multiple cloud providers and offer real-time analytics are particularly valuable, driving the segment’s growth and prominence in the market.

Enterprise Size Analysis

In 2023, the Large Enterprises segment held a dominant market position in the cloud discovery market, capturing more than a 64% share. This dominance is primarily attributed to the complex IT infrastructures and extensive cloud deployments characteristic of large enterprises. These organizations typically manage a vast array of cloud applications and platforms, necessitating advanced cloud discovery solutions to maintain visibility and control.

The inherent complexities of handling large volumes of data and maintaining compliance with various regulatory standards make cloud discovery tools indispensable for large enterprises. Furthermore, large enterprises are more likely to invest in comprehensive cloud discovery solutions due to their higher risk profiles and greater resources.

The potential impact of security breaches and non-compliance in such organizations can lead to significant financial and reputational damage. Therefore, investing in robust cloud discovery solutions that offer detailed insights into cloud usage and security postures is seen as a critical expenditure for safeguarding their operations.

Additionally, the push towards digital transformation in large enterprises drives the need for cloud discovery solutions that can provide oversight across multiple cloud environments, including hybrid and multi-cloud setups. As these organizations continue to expand their digital footprints, the ability to monitor and manage cloud resources effectively becomes a cornerstone of their IT strategy, further cementing the leading position of the Large Enterprises segment in the cloud discovery market.

Industry Vertical Analysis

In 2023, the IT and Telecommunications segment held a dominant market position in the cloud discovery market, capturing more than a 23.5% share. This sector’s leadership is primarily driven by its foundational reliance on advanced technological infrastructures and the critical need for streamlined operations.

IT and telecommunications companies, given their focus on delivering uninterrupted services and managing vast amounts of data, prioritize robust cloud discovery solutions to monitor and optimize their cloud environments effectively. These tools are essential for ensuring operational continuity, enhancing security measures, and complying with stringent regulatory requirements.

Moreover, the rapid pace of innovation and adoption of new technologies in the IT and telecommunications industry necessitates constant vigilance and adaptability. Cloud discovery solutions enable these companies to quickly identify and integrate new cloud services into their existing frameworks, while also managing risks associated with shadow IT and cyber threats.

The ability to gain comprehensive insights into cloud resource utilization helps these firms optimize costs and improve service delivery, making cloud discovery tools indispensable. Additionally, as the industry moves towards more integrated and complex multi-cloud and hybrid cloud architectures, the demand for cloud discovery solutions that offer real-time visibility and control across different cloud platforms continues to grow.

The IT and Telecommunications sector, being at the forefront of this technological shift, relies heavily on cloud discovery to maintain a competitive edge, ensuring the segment’s leading position in the cloud discovery market.

Key Market Segments

Component

• Solution
• Services

Enterprise Size

• Small and Medium-Sized Enterprises
• Large Enterprises

Industry Vertical

• IT and Telecommunications
• BFSI
• Retail and E-commerce
• Healthcare
• Manufacturing
• Government and Public Sector
• Other Industry Verticals

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • 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

Driver

Increasing Adoption of Multi-cloud Environments

The cloud discovery market is driven by the rising adoption of multi-cloud environments among organizations, seeking to optimize their cloud infrastructure for better flexibility and efficiency. As enterprises increasingly use a mix of services from various cloud providers, the complexity of managing and securing these multi-cloud environments escalates.

Cloud discovery tools are essential for providing comprehensive visibility and control across these diverse platforms, ensuring operational efficiency and data security. The tools aid in identifying and managing the usage of multiple cloud services, which is crucial for maintaining system integrity and compliance with data protection regulations.

Restraint

Lack of Technical Expertise

A significant restraint in the cloud discovery market is the shortage of technical expertise, particularly in developing countries. The complexity of cloud discovery solutions requires skilled professionals who understand both cloud technologies and security implications.

The lack of such professionals can lead to implementation challenges, limiting the effective deployment and utilization of cloud discovery tools. This shortage is more pronounced in regions where the IT infrastructure is still developing, and educational systems may not yet fully support advanced IT training.

Opportunity

Increasing Need for Cloud Security and Compliance

With cyber threats evolving and data breaches becoming more frequent, there is a heightened emphasis on cloud security and compliance, presenting significant opportunities for the Cloud Discovery market. Cloud discovery tools play a crucial role in identifying unauthorized cloud services and applications, often referred to as Shadow IT, which can pose serious security risks.

By enabling greater visibility and control over cloud assets, these tools help organizations enhance their security posture and meet compliance requirements. As businesses continue to migrate to the cloud, the demand for comprehensive cloud discovery solutions that offer enhanced security features is expected to grow, supporting market expansion

Challenge

Managing Security in Complex Cloud Environments

A major challenge in the cloud discovery market is ensuring robust security across increasingly complex cloud environments. As organizations deploy a variety of cloud services, the potential for security vulnerabilities grows.

Effective management of these risks requires advanced cloud discovery solutions capable of continuous monitoring and analysis to detect and mitigate potential threats. The challenge is compounded by the rapid pace of technological change and the continuous evolution of cyber threats, requiring cloud discovery solutions to be equally dynamic and adaptive​.

Emerging Trends

• AI and ML Integration: The integration of artificial intelligence (AI) and machine learning (ML) into cloud computing is accelerating, enhancing automation, data security, and providing more personalized cloud experiences. This integration is poised to transform cloud services by improving their efficiency and capability​.
• Increased Adoption of Kubernetes and Docker: These technologies are critical in managing cloud deployments, offering high scalability and efficiency. Their use facilitates the automation of cloud deployments, which is becoming increasingly important as cloud environments grow more complex​.
• Hybrid Cloud Solutions: The move towards hybrid cloud environments is gaining momentum as businesses seek the flexibility of combining private and public clouds. This trend is driven by the need for more tailored and cost-effective cloud solutions that provide high scalability and the ability to handle sensitive data securely​.
• Cloud Cost Optimization: As cloud adoption grows, there is a heightened focus on optimizing cloud expenditures. Businesses are increasingly seeking ways to manage their cloud resources more efficiently to ensure cost-effectiveness without compromising on performance.
• Sovereign Cloud: In response to stringent data privacy laws, there is a growing trend towards adopting sovereign cloud solutions that comply with local data regulations. This approach helps organizations safeguard their data against unauthorized access while adhering to national regulations​.

Top Use Cases for Cloud Discovery

• Security and Compliance Monitoring: Cloud discovery tools are essential for identifying unauthorized cloud services and ensuring that cloud deployments comply with regulatory requirements. This use case is particularly vital as businesses increasingly need to manage and secure complex multi-cloud environments.
• Asset Management: Cloud discovery helps organizations maintain an inventory of their cloud assets, making it easier to manage and optimize the use of cloud resources across different platforms and services​.
• Cost Management: By providing visibility into all cloud services and resources, cloud discovery tools help businesses monitor and control their spending on cloud services, preventing budget overruns and improving financial planning.
• Performance Monitoring: These tools play a crucial role in monitoring the performance of cloud services, ensuring that they meet the operational standards required by the business and identifying areas where performance can be improved​.
• Risk Assessment and Management: Cloud discovery is used to assess and manage risks associated with cloud computing, including data breaches, unauthorized access, and other security threats. This use case is critical for maintaining the integrity and security of business data and operations.

Key Players Analysis

In the Cloud Discovery market, Microsoft Corporation, Google LLC, and ServiceNow, Inc. are recognized as key players, each demonstrating strategic movements through acquisitions, new product launches, and mergers to strengthen their market positions.

Microsoft Corporation has expanded its Cloud Discovery capabilities by acquiring specific startups that complement its Azure platform, aiming to enhance cloud management and security features. Recent product launches have focused on integrating AI to provide more automated and insightful cloud analytics.

Google LLC continues to innovate in this space by launching new products that integrate with Google Cloud, offering solutions that simplify the discovery, analysis, and monitoring of cloud resources. Google has also pursued strategic acquisitions to bolster its cloud security and compliance capabilities, aiming to provide end-to-end solutions in the cloud ecosystem.

ServiceNow, Inc. has enhanced its Cloud Discovery offerings by launching new modules within its IT Operations Management (ITOM) suite, designed to provide deeper insights into cloud resources and expenditures. The company has also engaged in mergers and acquisitions to broaden its service capabilities, thereby reinforcing its commitment to providing comprehensive IT asset and operations management solutions.

Top Key Players in the Market

• Microsoft Corporation
• Google LLC
• ServiceNow, Inc.
• BMC Software, Inc.
• Palo Alto Networks, Inc.
• OpsRamp, LLC
• Tenable, Inc.
• OpenText Corporation
• Zoho Corporation
• Other Key Players

Recent Developments

• February 2024: OpenText completed the acquisition of a cloud discovery firm, aiming to integrate advanced resource visibility capabilities into its cloud management solutions. This acquisition supports OpenText’s strategy to enhance the security and compliance features of its cloud offerings.
• June 2023: Zoho updated its cloud management suite by adding new cloud discovery functionalities. These updates help businesses more effectively identify and manage their cloud resources, reflecting Zoho’s commitment to expanding its cloud services portfolio.
• December 2023: Tenable added cloud discovery features to its Tenable.cs platform. This enhancement provides organizations with better visibility into their cloud assets and configurations, helping to identify and mitigate risks more efficiently.
• November 2023: Palo Alto Networks acquired a cloud security firm specializing in cloud discovery and security posture management. The acquisition is expected to boost the capabilities of Prisma Cloud, Palo Alto’s cloud security platform, by integrating advanced discovery features.
• October 2023: BMC Software launched an AI-powered update to its Helix Discovery platform. This new version enhances the speed and accuracy of cloud resource discovery across hybrid environments, aiding businesses in optimizing their cloud management strategies.

Report Scope