GVR Report cover Cloud Computing Market Size, Share & Trends Report

Cloud Computing Market Size, Share & Trends Analysis Report By Service (IaaS, PaaS, SaaS), By Deployment (Public, Private, Hybrid), By Enterprise Size, By End Use (BFSI, IT & Telecom, Retail & Consumer Goods), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68038-210-5
  • Number of Pages: 130
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global cloud computing market size was valued at USD 368.97 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.7% from 2022 to 2030. The introduction of emerging technologies such as Artificial Intelligence (AI) and machine learning enables cloud growth by empowering companies to tap into AI capabilities. The COVID-19 pandemic has appeared as a significant challenge for the global economy. Cloud computing can support enterprises to survive the business continuity challenges presented due to the lockdown, work from home, social distancing, and other mandates affecting the market. However, as businesses, managers, and employees continue to opt for remote working due to the pandemic, remote working has emerged as the latest trend and is expected to continue in the long term.

U.S. Cloud Computing Market size, by service, 2020 - 2030 (USD Billion)

The pandemic is expected to induce one of the most significant workplace transformations. It is transforming the way businesses leverage smart technologies such as mobile supercomputing, IoT, big data, and artificial intelligence to accelerate Industry 4.0, the fourth industrial revolution. The cloud-computing market accelerated the demand in Q3 2020 as organizations continued to migrate their workloads from traditional channels to digital formats. Numerous enterprises across various verticals have adopted the work from home model to maintain employee well-being and operational efficiency, increasing the demand for Software-as-a-Service (SaaS)- based solutions.

For instance, Microsoft Team platform users surged to 44 million globally owing to the high demand for collaboration solutions. While the standalone 8x8 Video Meetings cloud solution witnessed a more than 300% surge in registered users in the last week of February 2020 across 150 countries. There is a substantial increase in the demand for streaming platforms, such as Amazon Prime, Disney+, Twitch, Netflix, Hulu, YouTube, and Apple TV, as most people stayed at home due to lockdowns. This surge in Video-on-Demand (VoD) has augmented the demand for Infrastructure as a service (IaaS) to tackle consumer demands.

Cloud computing offers more efficient and faster ways to adapt and run business operations according to changing market environments. It streamlines the consumerization of technology. It has unleashed unprecedented possibilities to create highly engaging customer experiences. Cloud has driven a behavioral change among people and businesses and enabled multiple lines of businesses to navigate around the tech policies to get things done. Cloud trends are essentially guiding organizations’ investment strategies, digital business decision processes, and vendor and technology selection.

Rapid digitization is compelling organizations to modernize their application and infrastructure landscape to drive cost efficiency and business agility. By adopting cloud solutions and services, organizations can support their key business activities effectively, move business workloads to a cloud platform, and avoid the latency of the network.

Data security and privacy are the primary concerns of organizations, wherein storage, use, and transmission of information must be digitally protected. Surveys suggest that about 60% of the business-sensitive information on hard drives is held insecurely. Data encryption, authorization management, access control, cloud integration, communication security, monitoring &auditing, and business continuity services are some of the important security services offered by the vendors. For instance, vendors such as Google LLP, Microsoft Corporation, and Amazon.com Inc. provide 99.9% uptime, which relieves organizations from the burden of creating and maintaining recovery facilities and backup infrastructure.

Service Insights

The Software as a Service (SaaS) segment accounted for a revenue share exceeding 54% in 2021. The demand for SaaS can be attributed to its flexible costs, easy maintenance, and easy deployment. The industry estimates suggest that there is a rise in the number of companies moving to the cloud, with 73% of enterprises moving most of their applications to the SaaS platform. Remote working has resulted in a surge in demand for SaaS services that enable collaborative teams to access formerly centralized data and analytics.

SaaS products are expected to witness strong growth in the forthcoming years as their Total Cost of Ownership (TCO) will be equal to that of the on-premise deployment models. The increasing number of businesses offering cloud-based services and increasing preferences for SaaS delivery models are expected to accelerate SaaS segment growth throughout the forecast period. SaaS provides a pay-as-you-go model that gives organizations greater flexibility and options and web-based subscriptions to access the program remotely. The SaaS delivery model focuses on delivering software solutions that have the potential to reach many people.

Deployment Insights

The private deployment segment led the cloud computing market with a revenue share of over 46% in 2021. Private clouds provide computing capabilities over a personal network or the internet, and they are available to a small group of users rather than the public. Scalability, self-service, and elasticity are among the advantages it offers enterprises, as are further customization and controls hosted on on-premise computer infrastructure. Furthermore, private clouds give a higher level of privacy and security for third-party providers by utilizing internal hosting and firewalls to assure high-level data protection.

The hybrid deployment segment, which is an integrated environment including public and private models, is anticipated to register a considerable growth rate over the forecast period. Among industries, the hybrid model has emerged as the preferred implementation model. Several firms are increasingly focusing on establishing hybrid cloud models and smart methods to help enhance business operations, resource usage, cost optimization, user experience, and application modernization while maximizing the benefits. Edge computing has emerged as one of the most critical forces expected to hasten the adoption of hybrid cloud models in enterprises throughout the world.

Enterprise Size Insights

The large enterprises segment accounted for the highest market share of over 51.5% in 2021. Lower operating expenses, improved collaboration, increased flexibility, and a faster time to market are all factors driving demand. Cloud computing allows businesses to delegate routine work to technology that can do them faster. As a result, the segment's expansion is expected to be aided by increased usage in major organizations to streamline operations. Over the projection period, the growing number of large enterprises in established and emerging nations would drive up demand for cloud computing services.

The Small and Medium Enterprises (SMEs) segment is expected to emerge as the fastest-growing segment over the forecast period. The increase can be attributed to the growing number of SMEs in emerging markets like China and India. Furthermore, the market is predicted to develop due to a surge in demand for cloud computing services among SMEs to streamline workflow and reduce operational costs. Cloud computing assists SMEs in reducing costs, eliminating repetitive operations, prioritizing work, and improving team collaboration. These advantages are anticipated to drive the adoption within the segment in the forthcoming years

End-use Insights

The BFSI segment accounted for the highest revenue share of over 25% in 2021. The BFSI sector has experienced an increase in online banking activity, which has prompted moneylenders to embrace digital transformation, with cloud computing playing a key role in this approach. Cloud computing has helped firms decrease expenses, encourage innovation, strengthen client connections, and increase flexibility in the BFSI sector. The COVID-19 pandemic has altered how individuals communicate and conduct business regularly. The adoption of cloud services for the storage and administration of consumer data can be accredited to the growth. Payment gateways, online fund transfers, digital wallets, and unified customer experiences, among other services, are likely to play a big role in the BFSI industry, aiding the entire shift to cloud deployment.

Global Cloud Computing Market share, by end use, 2021 (%)

The manufacturing industry is expected to be the prime adopter of cloud services owing to benefits such as seamless data management and real-time visibility offered by these services. Cloud service models are poised to offer significant value to manufacturers by incorporating advanced technologies such as sensors, AI, ML, big data analytics, and IoT. Moreover, the manufacturing sector uses computing services for planning enterprise resources, handling supply chain management, and storing information related to enterprise manufacturing. Cloud computing services provide an effective way to analyze, access, and share a large amount of information across the manufacturing industry. Cloud services also offer the platforms for continuous agility, innovation, business focus, availability, ability to scale and flexibility, and cost savings are further projected to accelerate the adoption.

Regional Insights

North America dominated the global market with a revenue share of over 40% in 2021. Companies in the U.S. place a strong emphasis on digital transformation and are frequently regarded as early adopters of next-generation technologies such as the IoT, additive manufacturing, big data analytics, connected industries, AI, AR, ML, and VR, as well as the latest telecommunication technologies such as 4G, 5G, and LTE. The ongoing use of cutting-edge technology by businesses in the U.S. bodes well for growth. The presence of numerous vendors such as Microsoft Corporation; Oracle Corporation;Amazon.com Inc.; and International Business Machines Corporation and the higher propensity to adopt new technologies are expected to help this region maintain its position in the market.

The Asia Pacific is anticipated to emerge as the fastest-growing region over the forecast period. The rapid rise of China and India, as well as the emergence of regional players like Alibaba Group, boosted the regional market growth. The initiatives such as Make in India have made significant investments in the manufacturing and IT sector, which has increased demand for the market for cloud computing in the country. Furthermore, hyper-scale cloud providers such as Microsoft Corporation;Amazon.com Inc.; and Google LLP are developing data centers in markets such as Indonesia and Thailand to suit the governments' data sovereignty needs. 

Key Companies & Market Share Insights

Partnerships, strategic mergers, and acquisitions are anticipated to be the most effective ways for industry players to gain quick access to emerging markets and enhance technological capabilities. For instance, in May 2021, Barco has chosen Salesforce to enhance its partner, customer, and employee experiences, and prepare its operations for future growth. Furthermore, in October 2020, Microsoft Corporation partnered with ZEISS Group to provide better care for patients and enhance manufacturing quality through data solutions. Under this partnership, ZEISS Group planned to adopt Microsoft Azure as its cloud platform to provide its German manufacturers with digital experiences, rapidly address dynamic market conditions, and increase overall productivity and efficiency.

Furthermore, product differentiation and upgrades, and service expansion are expected to pave the way for the growth of companies in the market. For instance, in January 2020, IBM Corporation announced the launch of Advertising Accelerator with Watson, a predictive solution that uses AI and leverages Watson to develop campaigns that can potentially help marketers and advertisers in understanding the preferences of their audiences and subsequently provide actionable insights. Some of the prominent players operating in the global cloud computing market are:

  • Adobe Inc.

  • Alibaba Group Holding Limited

  • Amazon.com Inc.

  • Google LLC

  • International Business Machines Corporation

  • Microsoft Corporation

  • Oracle Corporation

  • Salesforce.com Inc.

  • SAP SE

  • Workday, Inc.

Cloud Computing Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 483.98 billion

Revenue forecast in 2030

USD 1,554.94 billion

Growth rate

CAGR of 15.7% from 2022 to 2030

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, deployment, enterprise size, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Adobe Inc.; Alibaba Group Holding Limited; Amazon.com Inc.; Google LLC; International Business Machines Corporation; Microsoft Corporation; Oracle Corporation; Salesforce.com Inc.; SAP SE; Workday, Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cloud computing market report based on service, deployment, enterprise size, end use, and region:

  • Service Outlook (Revenue, USD Billion, 2017 - 2030)

    • Infrastructure as a Service (IaaS)

    • Platform as a Service (PaaS)

    • Software as a Service (SaaS)

  • Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

    • Public

    • Private

    • Hybrid

  • Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

    • Large Enterprises

    • Small & Medium Enterprises

  • End-use Outlook (Revenue, USD Billion, 2017 - 2030)

    • BFSI

    • IT & Telecom

    • Retail & Consumer Goods

    • Manufacturing

    • Energy & Utilities

    • Healthcare

    • Media & Entertainment

    • Government & Public Sector

    • Others

  • Regional Outlook (Revenue, USD Billion, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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