Cloud Computing Market is projected to reach $1,402.7 billion by 2030, at a CAGR of 16.8% from 2024 to 2030. The growth of this market is driven by the increase in adoption of cloud computing services, personalized customer experience, rising demand for AI, and increasing adoption of technologies such as ML and IoT. However, data security & privacy concerns may restrain the market’s growth. The rising government initiatives and consistently rising adoption of cloud computing solutions among businesses are expected to offer significant growth opportunities for the cloud computing market. Furthermore, complexities related to the adoption of the multi-cloud model are expected to pose challenges to the growth of the cloud computing market. The latest trends in the global cloud computing market are cloud gaming and serverless computing.
Impact of COVID-19 on the Cloud Computing Market
The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms were imposed across several countries. These negatively affected multiple industries, including the cloud computing industry. Uncertainty regarding the duration of the lockdowns made it difficult for the key market players to anticipate the recovery of the cloud computing market.
Numerous providers of cloud computing were under immense pressure due to the COVID-19 pandemic. However, economies are shifting their focus from responding to the pandemic to economic recovery. Various growth opportunities are expected to emerge for the cloud computing market players due to the consistently rising adoption of cloud computing solutions among businesses. Furthermore, the media & entertainment industry witnessed the massive acceptance of several OTT platforms, such as Netflix, Disney+, and Amazon Prime Video. As this industry is heavily dependent on cloud resources, the cloud computing market is expected to recover to its original track after 2024.
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Increasing adoption of Technologies Such as AI, ML, and IoT to Fuel the Market Growth
AI and ML are now becoming essential to information security. These technologies can swiftly analyze millions of data sets and track the wide variety of cyber threats such as malware menaces and shady behavior. With the emergence of ML and deep learning, cybersecurity systems can analyze patterns and learn from them to contain similar attacks and respond to altering behavior. These help cybersecurity teams become more aggressive in preventing threats and responding to active attacks in real time.
As data security and privacy standards and regulations across the global markets become progressively stringent, businesses need to design, develop, deploy and manage connected products securely. Hence, the demand for IoT-integrated cybersecurity services has increased, helping companies to design, develop and manage secure connected products across device, connectivity and application layers using numerous cybersecurity services and tools.
Collectively, the increasing adoption of technologies such as AI, ML, and IoT in cybersecurity services is improving the demand across various enterprises, which, in turn, drives the growth of the market.
Some of the recent developments in the market are as follows:
- In September 2022 , Check Point Software Technologies Ltd. (Israel) launched its Check Point Horizon, an industry-leading prevention-focused suite of security operations solutions and services that combines proactive management solutions for Managed Prevention and Response (MDR/MPR), Extended Prevention and Response (XDR/XPR), and Events.
- In June 2020, Palo Alto Networks Inc. (U.S.) launched its ML-Powered Next-Generation Firewall (NGFW), which embeds machine learning (ML) in the core of the firewall to proactively assist in intelligently stopping threats, securing IoT devices, and recommending security policies.
Such developments are expected to flourish the growth of the market.
Key Findings in the Cloud Computing Market Study:
Based on Service Model, in 2022, the Software as a Service Segment Accounted Largest Share of the Market
Based on service model, in 2022, the software as a service segment accounted for the largest share of the global cloud computing market. The large market share of this segment is attributed to the rising adoption of cloud computing services, increasing preferences for SaaS delivery models, and growing demand for AI. In addition, the benefits offered by software as a service, such as flexible costs, easy maintenance, and easy deployment, further augment the growth of this segment. Additionally, this segment is projected to register the highest CAGR during the forecast period.
Based on Deployment Mode, the Hybrid Cloud Segment is Projected to Register the Highest CAGR
Based on deployment mode, the hybrid cloud segment is projected to register the highest CAGR during the forecast period. The growing demand for scalability, the rising need for agile and cost-effective computing, and the rising demand for computational power are expected to support this segment's growth.
Based on End User, the Healthcare Segment is Projected to Register the Highest CAGR
Based on end user, the healthcare segment is projected to register the highest CAGR during the forecast period. The growing trend of digitalization of healthcare, the integration of advanced AI/ML algorithms, cloud deployment of healthcare systems, rising expenditure, inefficient facility management, and overburdened systems are creating a surge in demand for healthcare cloud computing infrastructure.
Asia-Pacific: The Fastest-growing Regional Market
In 2022, North America accounted for the largest share of the cloud computing market, followed by Asia-Pacific, Europe, Latin America, and the Middle East & Africa. However, Asia-Pacific is projected to record the fastest growth rate during the forecast period. The infrastructural growth in APAC, especially in China, South Korea, Australia, Singapore, Japan, the rapid growth rate of developing economies, rapidly developing data centers, and the growing awareness about the importance of cloud computing among small & medium-sized organizations create huge opportunities for the cloud computing market.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants between 2020 and 2022. The key players operating in the global cloud computing market are Microsoft Corporation (U.S.), IBM Corporation (U.S.), Oracle Corporation (U.S.), Amazon Web Services, Inc. (U.S.), SAP SE (Germany), Google LLC (U.S.), Salesforce, Inc. (U.S.), Workday, Inc. (U.S.), Alibaba Group Holding Limited (China), VMware, Inc. (U.S.), DXC Technology (U.S.), Nutanix, Inc. (U.S.), Cisco Systems, Inc. (U.S.), ZYMR, INC. (U.S.), and SAS Institute, Inc. (U.S.).
Scope of the Report:
Cloud Computing Market, by Service Model
- Infrastructure as a Service
- Platform as a Service
- Software as a Service
Cloud Computing Market, by Deployment Mode
- Public Cloud
- Private Cloud
- Hybrid Cloud
Cloud Computing Market, by Organization Size
- Large Enterprise
- Small & Medium Enterprises
Cloud Computing Market, by End User
- BFSI
- Healthcare
- IT and Telecom
- Government & Public Sector
- Retail
- Manufacturing
- Energy & Utilities
- Media & Entertainment
- Other End Users
Cloud Computing Market, by Geography
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- Japan
- China
- India
- Singapore
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East & Africa
Key questions answered in the report:
