The global cloud-based apps market is expected to grow at a significant pace owing to the increasing demand for mobility in data usage, cost saving in IT infrastructure for enterprises, and multiple devices access from anywhere. The solutions offer benefits such as ubiquitous access, scalability, and reduced technology infrastructure cost and economies of scale.
The main driver of this industry is increasing adoption of the application in small and medium enterprises and big data management. Small and medium enterprise markets are untapped markets and offer industry participants growth opportunities owing to low cost infrastructure requirement and other benefits of the technology. Mobility in data and ease of access has increased and is expected to increase the cloud-based apps market demand over the forecast period. It offers benefits such as data integration and easy data accessing from single point Big data can be managed easily as they are stored in server.
Rapid increase in the use of mobile-based apps is the primary reason for a significant increase in demand. Convenience provided by the apps in accessing data, making financial transaction, extracting vital information, real time sharing information, improving flexibility thereby increasing productivity.
Data theft is a main concern due to possibility of hacking. Data privacy issues may hinder industry growth over the forecast period. Advancement in app technology is expected to offer a great opportunity. Advancement is expected to improve customer experience, safety in transaction for banking apps, and data optimization. Automation of enterprise can be done using cloud based application. Through automation of enterprise logistics can be tracked, inventory can be maintained easily.
The cloud-based apps market is segmented by types: Customer Relationship Management (CRM), Analytics, Content management, Finance and Accounting, ecommerce, Collaboration, Enterprise Resource Planning (ERP), Human capital management (HCM), Supply Chain Management (SCM) Procurement and distribution, Content Management System (CMS), Project and Portfolio Management (PPM), Legal and risk management, other industry specific application.
Adoption of customer relation management is expected to increase over the next seven years owing to increase demand in life sciences and hospitality sector, prominence of market automation, popularity of social and mobile CRM. CMS helps enterprise in handling website content. Supply Chain Management helps enterprise in managing supply chain process and achieves benefits such as real time flow of data, inventory management, increasing speed of transaction.
The cloud-based apps market is also segmented by vertical: education, Banking Financial Services, and Insurance (BFSI), telecommunication & IT, retail, government, healthcare & life sciences, media & entertainment, oil & gas, discrete manufacturing, and others. On the basic of end user, it is segmented as large, small, and medium enterprise.
Healthcare sector is anticipated to be a key regional segment owing to data transparency requirement. Telecommunication will see growth in this technology due to sharing of data is more with customers; through cloud based app it can be easily.
Geographical segmentation is done on five regions North America, Europe, Latin America, Asia-Pacific, Middle East and Africa. North America is anticipated to be a key regional segment over the next seven years owing to increasing IT enterprise IT budget. Large enterprise in order to save cost of IT infrastructure uses cloud application and gives the employees flexibility in accessing data. Growth rate in the European market is expected to slow down due to economic downturn and slow recovery. Asia-Pacific is the fastest growing market owing to the presence of fast developing economy such as India and China. Indian, Chinese, and Japanese economies are growing at a dynamic pace and these economies have an increasing demand for cloud technology.
Key players in cloud-based apps industry are Salesforce.com, IBM, SAP AG, Workday Inc., Cisco, NetSuite Inc., Ultimate software group, Adobe, and Microsoft. Microsoft launched Azure in March 2015 which offers a wide range of services such as powerful new Logic/Workflow App and API App capabilities, along with built-in connectors that make it super easy to build logic workflows that integrate with dozens of popular SaaS application such as Office 365, SalesForce, Dynamics, OneDrive, Box, DropBox, Twilio, Twitter, Facebook, Marketo, and others.
The industry may witness a number of merger and acquisition for instance, in November 2015, new innovations in Oracle Marketing Cloud was introduced by Oracle to help marketers deliver better customer experience. In September 2014, the company announced the acquisition of Front Porch Digital, which offers content storage management solutions.
In March, 2016 Cisco acquired CliQr Technologies to expand its product range and modify their cloud deployment. Industry making a huge investment in research and development in order to gain a competitive edge, for instance, in 2014, SAP invested USD 2.5 billion in research and development.
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.