The global cloud computing market size was valued at USD 483.98 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% from 2023 to 2030. The market is expected to increase due to factors such as the functional ability of cloud computing to improve business performance in large enterprises, hybrid models and Omni-cloud systems, and pay-as-you-go models. Additionally, as businesses need to improve their digital activities, cloud services have increased in popularity in developing countries. Moreover, large businesses are rapidly adopting cloud services due to on-demand availability. For instance, in April 2023, Accenture plc and Microsoft Corporation together with joint venture named Avanade, completed the migrations of business operations over the cloud for Unilever, a consumer goods company, helps Unilever to meet the changing consumer needs faster, market products and services faster, and allocate resources more effectively.
Large enterprises increasingly use cloud-based technologies to control and lower Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), as well as optimize data generation through websites and mobile apps. Moreover, Pay-as-you-go models, which let companies pay for cloud services depending on how frequently users use them and lead to cheaper costs, are available on the cloud. However, data privacy and security risks as increased use of cloud computing constrain market growth.
Adoption of cloud-based system among a large number of small and medium-sized organizations are driving the cloud computing market expansion. Additionally, governments in many developing nations are investing in cloud computing delivery models due to cloud computing's ability to stream technological operations and boost government productivity. For instance, in June 2023, UAE’s Ministry of Economy (MoE) partnered with Amazon Web Services, Inc., a provider of cloud computing platforms, to launch the AWS Connected Community initiative supporting digitization of small and medium enterprises (SMEs). The initiative would help SMEs expand and grow in local and international markets with the help of virtual workshops and sessions to enhance digital economy and technology capabilities, such as cloud computing, IoT, digital media, smart applications, Blockchain, robots, digital databases, and storage.
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, enabling multiple lines of businesses to navigate around the tech policies to get things done. Cloud trends essentially guide 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. Major vendors are launching new cloud solutions, services, and workloads and enhancing the capabilities of their current ones to increase their position in the market. For instance, in February 2023, Airtel India, a provider of communication services based in India, partnered with Vultr, a cloud computing company, to offer cloud solutions for enterprises in India, including Cloud GPU and fractionalized GPU, Cloud Compute, and Optimized Cloud Compute.
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 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.
Software as a Service (SaaS) segment accounted for a market share exceeding 50% in 2022. Owing to factors such as easy maintenance, flexible costs, and easy deployment. A surge in demand for SaaS services is resulting from remote working, which allows collaborative teams to access data that was previously centralized.
Infrastructure-as-a-service (IaaS) segment is anticipated to register the highest growth over the forecast period. IaaS adoption can be attributed to a reduction in IT complexities, hiring a skilled workforce to manage IT infrastructures, and reducing deployment costs for data centers. Moreover, digitalization among businesses and the deployment of enterprise-based computing capabilities are expected to enhance the usage of cloud computing. IaaS enables businesses to launch new applications, allows users to customize and access storage capacity, and helps manage the purchasing of on-premise hardware.
Private deployment segment accounted for the highest market share of over 40% in 2022. A small individual has access to private clouds, which offer computing capabilities across a personal network or the internet. It provides businesses with scalability, self-service, elasticity, additional customization, and controls hosted on an on-premise computer system. Additionally, private clouds give third-party providers privacy and security by leveraging internal hosting and firewalls to ensure high-level data protection.
Hybrid cloud segment is anticipated to register the highest CAGR over the forecast period. Many businesses emphasize developing hybrid cloud models and smart techniques to help improve business operations, cost optimization, resource usage & consumption, user experience, and application modernization while increasing the benefits. Moreover, edge computing has increased the adoption of hybrid cloud models in businesses globally.
Large enterprises segment accounted for the highest market share of over 50% in 2022. A surge in demand for cloud computing services results from remote working, allowing collaborative teams to access previously centralized data. Variables influencing demand include decreased enhanced teamwork, operating costs, better flexibility, and a shorter time to market. Cloud computing allows large businesses to automate routine tasks to be completed more quickly. Large firms are expected to increasingly utilize this technology to streamline processes, which will support the segment's growth. Demand for cloud computing services will increase as large enterprises expand in developed and developing countries.
SMEs are expected to witness a significant growth rate over the forecast period due to the growth of SMEs in developing countries like China and India. Furthermore, SMEs are expected to demand cloud computing services to streamline workflows and reduce operating expenses. Cloud computing reduces costs, stops repetitive tasks, improves teamwork, and sets priorities.
BFSI segment accounted for the highest market share of over 20% in 2022 due to a surge in online banking activity, leading money lenders to embrace the digital revolution, with cloud computing playing a crucial part in this strategy. Cloud computing has aided businesses in the BFSI sector by fostering innovation, lowering costs, enhancing flexibility, and enhancing client relationships. Moreover, using cloud computing services for storing and managing customer data is a key factor for the market's growth. Services, including funds transfer capabilities, payment gateways, unified customer experiences, and digital wallets.
Manufacturing sector is anticipated to register the highest growth over the forecast period. This growth can be attributed to advantages including seamless data management and real-time visibility. Incorporating various technologies like sensors, AI, ML, big data analytics, and Internet of Things (IoT) would enable cloud service models to significantly benefit manufacturers. In addition, the manufacturing industry uses computing services for enterprise resource planning, supply chain management, and data archiving by effectively analyze, access, and exchange information using cloud computing services. Additionally, cloud services provide platforms for ongoing innovation, business focus, availability, scalability, flexibility, and cost reductions that are further anticipated to increase.
North America dominated the global market with a share of over 35% in 2022. The U.S. business community prioritizes digital transformation and is often considered an early adopter of technologies such as big data analytics, augmented reality, artificial intelligence, virtual reality, machine learning, 4G, 5G, and LTE technologies. U.S. companies are increasingly embracing various technologies, helping the cloud computing sector to grow. This area is anticipated to maintain its position in the market due to the presence of multiple suppliers, including Oracle Corporation, Microsoft Corporation, International Business Machines Corporation, and Amazon.com Inc.
Asia Pacific is anticipated to register the fastest growth over the forecast period. A quick rise of India and China and prominence of local firms like Alibaba Group accelerated the regional market expansion. Furthermore, hyper-scale cloud providers like Amazon.com Inc., Google LLP, and Microsoft Corporation are building data centers in regions like Thailand and Indonesia to meet government data sovereignty demands.
Partnerships, strategic mergers, and acquisitions are projected to be the most efficient ways for industry companies to increase technological capabilities and obtain speedy access to growing markets. For instance, in May 2023, Five9, Inc., a cloud contact center software provider in the U.S. expanded its partnership with BT Group plc, a telecommunication company based in London, to increase the choice of contact center solutions and services across the globe. Through this partnership, new and existing customers of the BT Group plc can use the Five9 Intelligent Customer Experience (CX) Platform. Moreover this partnership would also allow BT Group plc to access Five9 Intelligent Virtual Agent (IVA).
Additionally, market players focus on product diversification and upgrades. For instance, in March 2023, SmartSimple Software Inc., a cloud-based software provider based in Canada, launched SmartSimple Cloud + AI allowing each workflow to be enriched with AI and allows end-users to customize workflows according to their specific needs. Some prominent players in the cloud computing market include:
Alibaba Group Holding Limited
International Business Machines Corporation
Market size value in 2023
USD 619.01 billion
Revenue Forecast in 2030
USD 1,554.94 billion
CAGR of 14.1% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD billion and CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Service, deployment, enterprise size, end-use, region
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; U.K.; Germany; France Japan; China; India; South Korea; Australia; Brazil; Mexico; United Arab Emirates (UAE); Saudi Arabia; South Africa
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.
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
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 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, 2018 - 2030)
Infrastructure As A Service (IaaS)
Platform As A Service (PaaS)
Software As A Service (SaaS)
Deployment Outlook (Revenue, USD Billion, 2018 - 2030)
Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)
Small & Medium Enterprises
End-use Outlook (Revenue, USD Billion, 2018 - 2030)
IT & Telecom
Retail & Consumer Goods
Energy & Utilities
Media & Entertainment
Government & Public Sector
Regional Outlook (Revenue, USD Billion, 2018 - 2030)
United Arab Emirates (UAE)
b. The global cloud computing market size was estimated at USD 483.98 billion in 2022 and is expected to reach USD 619.01 billion in 2023.
b. The global cloud computing market is expected to witness a compound annual growth rate of 14.1% from 2023 to 2030 to reach USD 1,554.94 billion by 2030.
b. The North American cloud computing market accounted for the largest revenue share of over 35% in 2022. The presence of numerous cloud computing vendors in the region and the higher propensity to adopt new technologies is expected to help the regional market maintain its positions in the market.
b. Adobe Inc., Alibaba Group Holding Limited, Amazon.com Inc., Google LLC, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc., SAP SE, and Workday, Inc., are some of the prominent players present in the cloud computing market.
b. The cloud computing market report scope covers segmentation by service, workload, company size, deployment, end-use, and region.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now
"The quality of research they have done for us has been excellent."