The global cloud service brokerage market size was valued at USD 4.96 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of17.3% from 2019 to 2025. Cloud Service Brokerage (CSB) refers to intermediary parties between Cloud Service Providers (CSP) and consumers that help customize and enhance business information in multi-cloud platforms. CSB providers help and support consumers in implementation, orchestration, and integration of applications across multi-cloud platforms and assist them in selecting offerings and services that best fit their business needs.
With the rapidly growing adoption of multi-cloud platforms, enterprises are offered numerous choices. Enterprises are increasingly dependent on external expertise for selecting the best cloud solutions to ensure consistent performance and security as well as business agility. This is expected to stimulate market growth over the forecast period. Moreover, with the transforming technology landscape, business processes are continuously evolving to meet consumer demands.
Cloud service vendors are adopting a modern and agile business model for IT procurement by offering various services that are accessible and on-demand in nature. These brokers assist consumers in simplifying and leveraging services that can aggregate, customize, and improve access to business information in multi-cloud platforms.
Several enterprises are migrating their business processes on cloud to reduce the overall infrastructure costs and to increase the ease of accessibility of data from anywhere around the world. Moreover, increasing adoption of Platform-as-a-Service (PaaS) across various enterprises to develop and test applications is, in turn, boosting the demand for CSB solutions.
Besides, integrating on-premise business applications with cloud services enhances scalability and flexibility for organizations. However, the complexities involved in managing multiple cloud platforms can hamper the company’s productivity. As a result, companies are demanding services that help them reduce these complexities and streamline business processes. The scenario will thus lead to an increased demand for CSB services over the forecast period. Furthermore, increasing investments for the betterment and deployment of advanced telecom network infrastructure, coupled with rapidly growing numbers of hybrid IT solutions used across enterprises, are expected to fuel the CSB market over the forecast period.
However, lack of awareness regarding the benefits of cloud platforms among Small and Medium Enterprises (SMEs), along with rising security concerns, is anticipated to hamper market growth over the forecast period.
Based on services, the global cloud service brokerage market has been segmented into integration, sourcing, and procurement; vendor management; and governance and control. In 2018, cloud integration, sourcing, and procurement segment captured more than 40% market share in terms of revenue. The growth is attributed to the rising demand for integration services across large enterprises to integrate their businesses with clients, third-party vendors, and technology partners, which provides agility, and ease of accessibility to the business.
Moreover, in an attempt to manage orders, billings, and other requirements from numerous vendors, companies are increasingly adopting cloud-based vendor management solutions that can help them manage all vendors simultaneously. Growing demand for vendor management solutions is likely to create significant opportunities for the vendor management segment over the forecast period.
Based on deployment model, the market has been trifurcated into private, public, and hybrid. In 2018, the public cloud segment accounted for more than 45.0% market share, which is attributed to the significant demand for Software as a Service (SaaS)-, PaaS-, and Infrastructure as a Service (IaaS)-based services.
The hybrid cloud segment is expected to grow due to the rising demand from companies for scalable, cost-efficient, and agile computing coupled with the growing need for interoperability between cloud services and legacy systems.
In 2018, the internal brokerage enablement segment accounted for around 50.0% of the market share, attributed to the optimum demand to deliver unified multi-cloud/SaaS governance,compliance security, spend management, and support services to existing employees of a company.
The external brokerage enablement segment is anticipated to witness significant growth over the forecast period, driven by rapid rise in demand for CSBs for integrating and managing various vendors, resellers, and CSPs on a single platform and supporting multiple currencies, time zones, languages, and date formats.
Based on organization size, the market has been segmented into large enterprises and small and medium enterprises. In 2018, the large enterprises segment held more than 60.0% of the market share, owing to the high demand from numerous large enterprises to boost productivity and to reduce complexity with the robust adoption of multi-cloud platforms.
Furthermore, the SME segment is expected to showcase a remarkable growth over the next seven years. The growth will be chiefly attributed to the rapidly growing need for CSBs to manage optimum utilization of resources as SMEs have limited human resources as compared to large enterprises.
In 2018, IT and telecom captured a market share of approximately 20.0%, attributed to the robust demand for CSB to manage SaaS, PaaS, and IaaS platforms across various organizations, coupled with rapidly growing demand for hybrid IT services across the globe.
Moreover, the high demand for CSB from the IT and telecom industry to provide data harmonization and agility, rapid request-driven provisioning, and predictive analytics as well as to reduce the total cost of ownership of IT infrastructure is expected to drive the segment over the forecast period.
The significantly growing digital payment landscape, coupled with government initiatives aimed at promoting digital banking, are the key factors expected to drive the BFSI segment over the forecast period.
In 2018, North America captured nearly 40.0% of the overall market, attributed to the presence of a large number of IT and telecom vendors along with the significant adoption of cloud-based services in the region.
With a rapidly growing number of IT start-ups in developing countries, such as China and India, coupled with the growing demand for cloud-based solutions, Asia Pacific is expected to demonstrate significant growth over the forecast period. Moreover, vast resources being invested for upgrading telecom infrastructure and providing higher bandwidth to consumers are fueling the regional market growth.
Key market players focus on increasing their service offerings to cater to customer needs and to provide a high level of data security. For instance, in June 2018, Atos SE introduced a new set of cloud security brokerage solutions to provide improved data security across hybrid cloud environments. Furthermore, key companies focus on establishing partnerships that will help increase their service offerings and market presence. Some of the prominent players in the cloud service brokerage market include:
Cognizant Technology Solutions Corporation
DXC Technology Company
Hewlett Packard Enterprise Development LP
NTT DATA Inc.
Tech Mahindra Limited
Market size value in 2020
USD 6,481.8 million
Revenue forecast in 2025
USD 17,198.0 million
CAGR of 17.3% from 2019 to 2025
Base year for estimation
2014 - 2017
2019 - 2025
Revenue in USD million and CAGR from 2019 to 2025
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Service, deployment model, platform, organization size, end-use industry, region
North America; Europe; Asia Pacific; Latin America; Middle East & Africa
U.S.; Canada; Germany; U.K.; France; China; Japan; India; Mexico; Brazil
Key companies profiled
Accenture PLC; IBM Corp.; Atos SE; Capgemini SE; Jamcracker, Inc.; Cognizant Technology Solutions Corporation; DXC Technology Company; Infosys Limited; Hewlett Packard Enterprise Development LP; Fujitsu Ltd.; NTT DATA, Inc.; Tech Mahindra Limited; Wipro Limited
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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 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global cloud service brokerage market report based on service, deployment model, platform, organization size, end-use industry, and region:
Service Outlook (Revenue, USD Million, 2014 - 2025)
Integration, Sourcing, and Procurement
Governance & Control
Deployment Model Outlook (Revenue, USD Million, 2014 - 2025)
Platform Outlook (Revenue, USD Million, 2014 - 2025)
Internal Brokerage Enablement
External Brokerage Enablement
Organization Size Outlook (Revenue, USD Million, 2014 - 2025)
Small & Medium Enterprises
End-use Industry Outlook (Revenue, USD Million, 2014 - 2025)
IT & Telecom
Government & Public Sector
Consumer Goods & Retail
Energy & Utilities
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa (MEA)
b. The global Cloud Service Brokerage (CSB) market size was estimated at USD 5,636.4 million in 2020 and is expected to reach USD 6,481.8 million in 2020.
b. The global Cloud Service Brokerage (CSB) market is expected to grow at a compound annual growth rate of 17.3% from 2019 to 2025 to reach USD 17,198.0 million by 2025.
b. Cloud integration, sourcing, and procurement dominated the Cloud Service Brokerage (CSB) market with a share of 40.1% in 2019. This is attributable to rising demand for integration services across large enterprises, which provides ease of accessibility to businesses worldwide.
b. Some key players operating in the Cloud Service Brokerage (CSB) market include Accenture PLC; IBM Corp.; Atos SE; Capgemini SE; Jamcracker, Inc.; Cognizant Technology Solutions Corporation; DXC Technology Company; Infosys Limited; Hewlett Packard Enterprise Development LP; Fujitsu Ltd.; NTT DATA, Inc.; Tech Mahindra Limited; and Wipro Limited.
b. Key factors that are driving the market growth include adoption of multi-cloud platforms by enterprises coupled with increasing investments for the betterment and deployment of advanced telecom network infrastructure.
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