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Cloud Computing Market Size, Share & Industry Analysis, By Type (Public Cloud, Private Cloud, Hybrid Cloud), By Service (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS)), By Industry (Banking, Financial Services, and Insurance (BFSI), IT and Telecommunications, Government, Consumer Goods and Retail, Healthcare, Manufacturing, Others (Energy and Utilities, Education), and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI102697



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The global cloud computing market size stood at USD 199.01 billion in 2019 and is projected to reach USD 760.98 billion by 2027, exhibiting a CAGR of 18.6% during the forecast period.

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The market growth is driven by the rising adoption of Artificial Intelligence (AI) and Machine Learning (ML) technologies as well as increasing reliance of cloud-based services across the world. Cloud computing is the on-demand distribution of computing resources or hosted services over the internet via cloud. These services include Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).

Further, rising investments in various projects based on cloud services by countries such as the U.S., Japan, the U.K., and others are expected to propel the market size during the forecast period. For instance, in 2019, the federal government of the U.S. spent around USD 5.3 billion on cloud platform. As a part of their strategy, key players are investing in R&D to launch advance cloud computing platforms. For instance, in August 2018, Paytm launched “Paytm AI Cloud for India”, an AI-based cloud platform for various organizations. The company has invested around USD 2.5 billion for the development of its cloud infrastructure. This platform helps the company to strengthen its customer base.


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Substantial Adoption of Omni-Cloud over Multi-Cloud to Boost the Market

Most of the large enterprises operating across various industries are adopting multi-cloud services as these enterprises are consistently deploying their workloads across multiple cloud service providers. Nevertheless, as cloud-based applications such as Gmail, Dropbox, Facebook etc. are becoming more robust and portable, computation process cycles need to be faster in real-time. As a result, organizations are shifting from multi-cloud computing to omni-cloud computing to leverage numerous benefits such as data availability for security, effective decision making, scalability, and ease of data use at real-time.

Further, the main benefit of an omni-cloud system for organizations is an easily accessible organized data deployment system. This means that the processing requirements are reduced, which leads to increased efficiency, and making applications cloud-native at lower costs. Small and medium enterprises (SMEs) and large organizations are deploying cloud services from various niche providers and hyperscalers, which is one of the leading cloud computing market trends. This enables them to take advantage of the progressively differentiated deals and services to avoid high switching costs or vendor lock-in. For instance, in December 2019, Sprint launched “Omni cloud phone service”, which is developed to bring premium enterprise-quality landline phone technologies to SMEs and large enterprises. The omni-cloud also allows the end-user to use multiple devices to complete an activity or transaction. Thus, ongoing trend of the omni-cloud computing adoption over multi-cloud computing is expected to grow profoundly, which will contribute to overall increase in market share.


Increasing Adoption of Artificial Intelligence (AI) and Machine Learning (ML) Will Provide Impetus to Market Growth

Increasing dependence on AI and ML is changing the landscape of cloud service for analysing, monitoring, and visualizing data-driven business strategies. The integration of AI and ML enabled with cloud helps businesses to enhance their visualization capabilities and make complex data accessible and more usable over visual representation. Machine Learning tools are capable of using business intelligence solutions to analyze unstructured and structured data. AI provides real-time insights to organizations, which enables them in better customer experience, improving communications network, security, and accelerates digital businesses. Thus, the consolidation of AI with the cloud is enabling organizations in cognitive computing, business intelligence, chatbots, and personal assistants. For instance, in March 2018, Daimler AG implemented Microsoft Azure cloud services for developing telemetry solutions and vehicle Internet of Things (IoT) applications by using AI and ML.

Further, adoption of AI and ML has enabled ease of data access and reduce the data complexities. Their emergence is also allowing organizations to use intelligent software automation to predict issues, make decisions, and provide analytical information to reduce the operational cost. Thus, increasing adoption of ML and AI is anticipated to drive the cloud computing market growth.


Information Security and Privacy Concerns Associated with Cloud Computing to Hamper Growth

Cloud users store their sensitive data and information regarding business activities on cloud platforms. Cloud-based services are gaining popularity in SMEs and large enterprises. However, despite their popularity, security concerns about information loss, breach, application vulnerabilities, and unforeseen emergencies are also increasing. Data security and privacy protection issues can reduce the revenues in a number of areas such as academia & research, federal government departments, and financial services etc. These sectors create a huge amount of crucial information that needs to be stored under high privacy and security. Some of the risks linked to security measures of cloud system include lack of multi-factor authentication to access the service and storing data without any encryption. Further, cloud is based on various virtualization technologies that provide an on-demand infrastructure service to the end-users and result in high complexity in the cloud infrastructure. As cloud computing is dynamic and complex in nature, it becomes challenging for new users to detect cyber threats in the cloud infrastructure. Therefore, cloud developers need to take security measures to protect the users’ information from cyber-attacks. The level of issues related to security concerns are considered as one of the main restraints for this market, the market research report observes.


By Type Analysis

 Rising Adoption of Hybrid Cloud to Augment the Market Growth

Based on type, the market is divided into public cloud, private cloud, and hybrid cloud. Among these, the hybrid cloud segment is expected to rise at the highest CAGR during the forecast period. This is primarily owing to the rising adoption of cloud technology among SMEs to reduce operational costs and increase efficiency. Major cloud vendors are focusing on improving their presence in the hybrid cloud domain by using collaboration and partnership strategy. For instance, in October 2018, International Business Machines Corporation (IBM) acquired Red Hat to foster open source innovation and simplify IT operations through hybrid cloud platforms. This acquisition helped IBM to gain access to the extensive cloud portfolio and large customer base of Red Hat.

Further, the public cloud segment is anticipated to show a steady CAGR during the forecast period, owing to various benefits offered by cloud technologies. These benefits include cost-effective models, information assets, agility, seamless scalability, reliability, and better control over data. The various public cloud service providers include IBM Cloud, Microsoft Azure, AWS, Rackspace, Google Cloud Platform, Openstack (private cloud) and VMware Cloud, among others. These public cloud service providers offer robust security measures to safeguard end-user data from being retrieved by other tenants. In addition to this, the private cloud segment is expected to grow at a considerable rate owing to factors such as scalability, cost efficiency, security, and agility.

By Service Analysis

Rising Popularity of Software-as-a-Service (SaaS) among Various Enterprises to Gain Traction during the Forecast Period

Based on service, the market is divided into Infrastructure as a Service (IaaS), Software as a Service (SaaS), and Platform as a Service (PaaS). Among these services, the Software as a Service (SaaS) segment is expected to hold large market share owing to the rise in software development outsourcing, increasing adoption of vertical SaaS, and auxiliary services. SaaS also allows enterprises to run an application at nominal upfront costs and enhances the overall functionality of the enterprise. Thus, key players are focusing on mergers and acquisitions to create significant market opportunities in coming future. For instance, in September 2019, Microsoft Corporation acquired Washington-based SaaS start-up company “Movere” to help its consumers unlock opportunities and cloud innovation with seamless migration tools.

Further, Infrastructure as a Service (IaaS) segment is expected to witness steady growth owing to rising need for cost-effective IT solutions, technological developments in cloud system, and high demand for storage & safety of business data. Platform as a Service (PaaS) allows end-users to create software using libraries and tools from third-party providers. Salesforce, Heroku, Amazon Web Service (AWS), Elastic Beanstalk, and Microsoft Azure are some of the major global PaaS providers.

By Industry Analysis

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IT and Telecommunications, Healthcare, and BFSI are Key Industries Supporting Market Growth

Based on industry, the market is segregated into banking, financial services, and insurance (BFSI), IT and telecommunications, government, consumer goods and retail, healthcare, manufacturing, and others (energy and utilities, education, media and entertainment etc.). Among these, the IT and telecommunications segment is expected to hold the largest market share. The adoption of cloud systems in the IT and telecom sector has increased owing to benefits such as economics of scale, improved productivity & performance, assistance in strategic decision-making, and decrease in business losses & downtime. This rising adoption helps enterprises to reap the advantages of cloud systems for IT optimization and to tap new business opportunities. Thus, the market leaders for cloud computing are focusing on launching new products to improve customer experience. For instance, in November 2018, IBM launched new business named as “IBM Talent & Transformation Service”, aimed at helping enterprises to leverage AI and automation efficiently.

 The BFSI industry deals with a large workforce and assets in different locations and handles diverse customer profiles. The evolution in cloud technology has enabled the BFSI sector to focus on development of a digitized and customer-centric model. It also streamlines customer experience and ensures secure transactions in banks. Digital wallets, payment gateways, secure online payments, and online fund transfers are among the some of the prominent examples of cloud computing services in the BFSI sector. As the computing resources are outsourced to cloud third party providers, government budgetary allocation for ICT can significantly reduce. The growth in healthcare sector is attributed to the rising adoption of wearable medical devices, IoT in healthcare, big data analytics, and benefits of cloud practice such as flexibility, scalability of data, and improved storage. In addition, customer insights offered by big data that help retailers offer personalized offerings to end-users is an important factor that has spiked the adoption of cloud systems in the retail and consumer goods sector.


North America Cloud Computing Market, 2019 (USD Billion)

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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. They are further categorized into countries.

North America, followed by Europe, dominated the cloud computing market share in 2018 and is expected to continue its dominance in the coming years. This is primarily owing to the increasing availability of technically advanced cloud-based solutions based on AI and ML in various industries in developed countries such as the U.S. and Canada. Further, increasing spending on cloud-based technologies, supportive government regulatory environment, and growth of e-commerce industry in Europe is anticipated to play a vital role in the adoption of cloud platform. For instance, Open Clouds for Research Environments (OCRE) launched a tender to boost the cloud adoption in the European research community in February 2019.

In Asia-Pacific, various industries deploying cloud-based solutions to meet the rising need for highly secure data are anticipated to fuel the market demand. Additionally, growing internet & digitalization penetration and the increasing application of cloud-based solutions in various industries across Asia-Pacific are driving the growth of the market. Further, key players in the market are focusing on developing and investing in cloud platforms to strengthen their market position. For instance, in October 2018, Alibaba Cloud invested in industries such as entertainment, manufacturing, logistics, and retail in India. Additionally, in January 2019, Alibaba Cloud also launched its second data centre in Indonesia to offer high availability and advanced Disaster Recovery (DR) capabilities to consumers.

Middle East & Africa (MEA) and Latin America are projected to register a steady CAGR during the forecast period. This growth is mainly owing to rising deployment of 5G and increasing spending by private organizations and local governments in MEA to adopt the cloud-based technologies such as ML and AI. For instance, in March 2018, Microsoft Corporation has expanded its Azure Cloud services in the Middle East and Europe. The company also announced plans to expand its cloud services for customers in UAE, Germany, Abu Dhabi, and Dubai. The governments of Mexico, Brazil, and Gulf Cooperation Council (GCC) countries are taking various initiatives in the deployment and rollout of 5G, partnering with various stakeholders including technology providers, chipset manufacturers, and handset manufacturers. For example, GCC countries are focusing on pursuing pioneering national development projects such as the Saudi Arabia’s Vision 2030 and UAE’s Vision 2021 to improve cloud services and boost the economic diversification through the expansion of the information technology infrastructure.


Leading players to Focus on Strengthening Their Market Position

To cater to the rising demand for IT solutions based on customer requirements, key players are focused on providing cloud services to various industries. Microsoft Corporation, Amazon Web Services (AWS), Google LLC, and Oracle Corporation offers cloud services such as "Azure ExpressRoute", "AWS Direct Connect", "Cloud Interconnect", and "Oracle FastConnect" respectively. AWS offers a broad range of cloud-based products for networking, mobile, databases, analytics, developer tools, compute, storage, IoT, security, enterprise applications, and management. Further, the company is focused on expanding their geographic presence and strengthening their product portfolio. AWS provides services to government agencies, academic institutions, and various businesses to store data and deliver content. According to AWS, the company generated around USD 9.95 billion in revenue from its cloud business. The company is currently investing in the development of various cloud-based projects all across the globe.

 October 2019 - Amazon Web Services (AWS) launched “AWS Middle East (Bahrain) Region” - first AWS Region in the Middle East. With this, AWS now offers 69 Availability Zones in 22 geographic regions worldwide. In the Middle East, various organizations have adopted AWS services to run cloud applications and influence advanced technologies to drive innovation.

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  • May 2019 – SAP SE launched “SAP HANA Cloud Services”, which is aimed at enhancing employee experience as well as providing data warehousing management tools. With this launch, SAP brings the performance and power of the SAP HANA database to cloud. This can handle the challenges of distributed data landscapes.


This market is progressing towards developing new prospects for various industries including BFSI, IT and telecom, retail, manufacturing, and others. This advancement would assist the organizations to adopt advanced cloud-based solutions based on technologies, such as AI, edge computing, ML, blockchain, 5G, and others. Cloud computing offers various benefits such as high scalability, agility, faster deployment, low cost, mobility support, disaster recovery (DR), and others. In the future, several SMEs are anticipated to adopt cloud solutions based on AI to deliver enhanced customer experience. Further, key players in the market are focused on R&D spending and launching new products. Also, growing internet penetration, adoption of cloud-based services, and 5G are estimated to create abundant opportunities for market growth during the forecast period.


The cloud computing market report offers qualitative and quantitative insights on the market and detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative study of market dynamics, emerging trends, opportunities, and competitive landscape. Key insights offered in the report are the adoption trends of cloud computing, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

An Infographic Representation of Cloud Computing Market

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Report Scope and Segmentation



Study Period

  2016 – 2027

Base Year


Forecast Period

  2020 – 2027

Historical Period

  2016 – 2018


  Value (USD Billion)


By Type

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

By Service

  • Infrastructure as a Service (IaaS)

  • Platform as a Service (PaaS)

  • Software as a Service (SaaS)

By Industry

  • BFSI

  • IT and Telecommunications

  • Government

  • Consumer Goods and Retail

  • Healthcare

  • Manufacturing

  • Others (Energy and Utilities, Education, Media and Entertainment etc.)

By Region

  • North America (U.S. and Canada)

  • Europe (UK, Germany, France, Italy, Spain, Rest of Europe)

  • Asia-Pacific (China, Japan, India, Southeast Asia, and the Rest of Asia-Pacific)

  • Middle East & Africa (GCC Countries, South Africa, and the Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico, and the Rest of Latin America)

Frequently Asked Questions

Fortune Business Insights says that the market value stood at USD 199.01 billion in 2019.

By 2027, the market size is expected to reach USD 760.98 billion.

The market is expected to grow at a CAGR of 18.6% in the forecast period (2020-2027).

Market in Asia Pacific is anticipated to grow at the highest CAGR

Within industry, the IT and Telecommunications segment is expected to lead the market share during the forecast period.

Increasing adoption of cloud-based technology among enterprises, specifically small & medium enterprises, is one of the key drivers for market growth.

Amazon Web Services (AWS), IBM Corporation, Microsoft Corporation, and Oracle Corporation are the top companies in the market.

The hybrid cloud segment is expected to grow at the highest CAGR owing to its high scalability, agility, and cost efficiency.

Cloud Computing Market Size, Share and Global Industry Trend Forecast till 2026
  • Apr, 2020
  • 2019
  • 2016-2018
  • 140


  • 4850

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