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The global cloud computing market size was valued at USD 405.65 billion in 2021 and is projected to grow from USD 480.04 billion in 2022 to USD 1,712.44 billion by 2029, exhibiting a CAGR of 19.9% during the forecast period. Based on our analysis, the global market exhibited a growth of 13.8% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with cloud computing experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.
Cloud computing is the technique of processing, storing, and managing data on a network of remote computers hosted on the internet rather than on a personal computer or a local server. It particularly refers to a shared storage area that allows all network devices to access data at the same time. Cloud computing is an IT service delivery approach in which third-party service providers use the internet to supply computing resources and software tools. In this service model, the customer only pays for the time they spend on the computer as well as the storage and bandwidth they utilize.
The major drivers fueling the market expansion are expanding digital transformation across businesses, rising internet and mobile device adoption around the world, and increased consumption of Big Data. Next-generation industrial solutions will be cloud-enabled, and a cloud platform will be required to demonstrate their digital business capabilities. Furthermore, the adoption of IoT, 5G, edge computing, and real-time analytics enabled by Machine Learning (ML) and Artificial Intelligence (AI) is expected to increase the value of computing technology among businesses.
However, data security is a major impediment to the growth of these services since enterprises believe their data is more secure in their data centers rather than on a virtual cloud network.
Surge in Investment to Develop Cloud Infrastructure to Propel the Market
Cloud computing has been one of the fastest-growing technologies among developed and developing nations and has witnessed a dramatic acceleration in 2020. Almost every sector has moved or is planning to move its business to the cloud since the world encountered the COVID-19 pandemic. Cloud services have become a new essential catalyst for enterprises looking for digital transformation. For instance,
Moreover, the increasing investment by these prominent market players to develop data centers across the world in response to the COVID-19 pandemic is anticipated to drive the market in the coming years. For instance,
Thus, the growing investment by cloud providers to develop data centers is expected to create significant market opportunities for market growth post-pandemic period.
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Substantial Adoption of Omni-cloud over Multi-cloud to Boost the Industry Growth
Large companies are applying multi-cloud solutions in their business operations to organize their employees across cloud-based platforms. Also, as cloud-based applications, such as Gmail, Facebook, Dropbox, among others, are becoming more robust and flexible, the processing cycle needs to be faster in a real-time scenario.
As a result, businesses are migrating to omni-cloud solutions to take advantage of a variety of benefits, including simplicity of data use, better decision-making, safe data availability, and real-time scalability.
Omni-cloud provides enhanced connection services to businesses, allowing data to be integrated and reorganized across numerous platforms. With the omni-cloud computing system, the data location system is more accurate and ordered. To grow the market share, key market players are employing a variety of business strategies such as new product launches, mergers and acquisitions, and collaborations. For instance,
As a result, the global cloud computing market is expected to grow during the forecast period.
Integration of Big Data, AI, and ML with Cloud to Spur to Market Growth
The increasing adoption of Big Data, Artificial Intelligence (AI), Machine Learning (ML), and others is expected to drive the market growth. These technologies transform the market landscape, as they assist users in monitoring, analyzing, and visualizing the unprocessed data.
Adopting these developing technologies in conjunction with cloud solutions assist organizations in improving their visualization capabilities and making complex data accessible and usable. The widespread adoption of AI and ML technologies in businesses has increased data usage and reduced data storage issues. These technologies also aid in increasing business productivity, improving decision-making processes, and lowering operating expenses.
Enterprises embrace AI-powered solutions to become more strategic, efficient, and insight-driven. AI can automate repetitive and challenging processes to increase productivity and conduct data analysis without manual participation. IT teams can also use AI to monitor and oversee essential workflows.
The companies offering cloud solutions and services are constantly focusing on R&D activities, product enhancements, and new product launches with the integration of Big Data, AI, and ML. For instance,
Thus, the increasing adoption of big data, AI, and ML is expected to drive the market growth.
Data Privacy and Information Security Concerns Associated with Cloud Solutions to Impede Growth
Users deploy cloud services to save sensitive data about their business and personal activities over cloud-based platforms. However, data security and privacy concerns regarding data loss, data breaches, unanticipated emergencies, application vulnerabilities, and internet cyber-attacks are projected to hamper the progress of cloud computing.
While cloud services assist businesses to increase company efficiency and cut costs, data kept in the cloud is vulnerable to cyber-attack. Cyber-attacks such as cloud malware injection, meltdown, account or service hijacking, and man-in-the-cloud assaults expose company data vulnerabilities, which may result in business closure and losses. However, cyber-attacks disrupt corporate operations, limiting the growth of the cloud services market.
According to the arXiv.org e-Print source, roughly 60% of corporate-related data and information was retained insecurely on storage devices in 2019.
Moreover, due to changing company needs, the necessity for meeting regulatory and compliance requirements is continually increasing. In addition, organizations must seek to remain in the market by taking steps to meet regulatory requirements.
Hence, the aforementioned factors are expected to hamper the cloud computing market growth.
Public Cloud to Dominate Owing to Rapid Digital Transformation
Based on type, the market is allocated into private cloud, hybrid cloud, and public cloud.
The hybrid cloud segment is expected to grow at the fastest rate over the forecast period due to SMEs' increasing use of cloud-based solutions to increase productivity and reduce operational costs. Furthermore, rising demand for scalable, secure, and cost-effective solutions is expected to surge private cloud demand across large enterprises. During the estimated period, public cloud services are expected to lead the market in terms of the cloud computing market share. The growth can be attributed to increased penetration of connected devices, digital transformation, and growing automation among small & medium-sized businesses.
Rising Demand among Various Enterprises to Increase Software-as-a-Service (SaaS)
Based on service, the market is divided into Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
In 2021, Software as a Service (SaaS) was expected to have the largest market share. This growth is due to its ease of deployment, low maintenance costs, and low cost of ownership. During the forecast period, Infrastructure as a Service (IaaS) is expected to grow at the fastest rate. The increase can be attributed to the increasing adoption of hybrid cloud platforms as well as the rising demand for business data storage and security solutions.
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Higher Adoption of Cloud Computing Solutions to Propel IT and Telecommunications
Based on industry, the market is divided into Banking, Financial Services, & Insurance (BFSI), government, IT & telecommunications, healthcare, consumer goods and retail, manufacturing, and others.
During the study period, the healthcare segment is expected to grow at the highest Compound Annual Growth Rate (CAGR). This growth can be attributed to the increased deployment of cloud-based software, mobile applications, wearable healthcare devices, and smart healthcare equipment, among others. Other industries, such as retail and consumer goods, BFSI, government, manufacturing, and others, are expected to grow at a significant rate, owing to increased government and cloud provider initiatives and investment plans to support cloud adoption among start-ups. For instance,
North America Cloud Computing Market Size, 2021 (USD Billion)
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Geographically, the market is divided into five key regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.
North America is expected to dominate the market in terms of revenue during the forecast period due to the early adoption of technologies such as Artificial Intelligence (AI), robotics, IoT, and cloud. The presence of prominent cloud providers, including IBM Corporation, Microsoft Corporation, Oracle Corporation, and others contributes to the region’s cloud adoption. The cloud service providers are focusing on investing in technical skills, partnerships, and expansion of cloud centers. For instance,
Europe is expected to gain a significant share of the market during the projected period of 2022 to 2029. Investments by government and private corporations to accelerate cloud adoption across the countries drive the market growth. For instance,
Asia Pacific is expected to grow at an exponential rate. The rise in demand for cloud-based solutions in the manufacturing and healthcare industries is driving the expansion. In addition, the region's growth is predicted to be fueled by rising demand for smart Electric Vehicles (EVs), increasing internet penetration, and expanding digitalization. For instance,
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The Middle East & Africa and South America are expected to grow at a rapid pace in the coming years. The increase is attributed to increased government investments in emerging technologies such as Artificial Intelligence (AI), 5G, Machine Learning (ML), Big Data, cloud, and others by governments such as Israel, Brazil, and Mexico.
Key Players Emphasize Advanced Solutions to Strengthen their Positions
The global market comprises a vibrant start-up ecosystem. The market is expected to have more than 100 start-ups developing and innovating solutions and services for consumers. Such a fragmented market is likely to create intense competition by forcing existing companies to continuously upgrade and adopt new developments in the cloud offerings. Hence, increasing competition is expected to increase the market size creating more opportunities for market players. For instance,
An Infographic Representation of Cloud Computing Market
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The report includes prominent areas throughout the world to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted at a quick rate on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.
Value (USD Billion)
By Type, Service, Industry, and Geography
The market is projected to reach USD 1,712.44 billion by 2029.
In 2021, the market stood at USD 405.65 billion.
The market is projected to grow at a CAGR of 19.9% in the forecast period (2022-2029).
By type, the public cloud segment is likely to lead the market.
Integration of Big Data, AI, and ML with cloud to spur the market.
Amazon.com Inc., Oracle Corporation, IBM Corporation, Alibaba Group Holding Limited, Microsoft Corporation, VMware, Inc., Google LLC, Rackspace Technology, Inc., SAP SE, and Salesforce, Inc. are the top players in the market.
North America is expected to hold the highest market share.
By industry, the healthcare segment is expected to grow with the highest CAGR.
Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem
This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share.
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