The global cloud computing market was valued at USD 371.35 billion in 2020 and is expected to grow at a CAGR of 18.0% during the forecast period. The penetration of cloud-based technology provides computing solutions, application layers, and infrastructure solutions that increase access to advanced technologies are driving the market growth of cloud computing across the globe.
In addition, it offers flexibility, storage, security management, utility-based sharing models, high-level computing, and others. Furthermore, emerging economies are more inclined towards cloud computing due to cost benefits and the introduction of cloud computing products in the market portfolio, which also fuels the market demand for cloud computing in the near future.
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The outbreak of COVID-19 exhibits a positive influence on the adoption of cloud computing solutions. Numerous organizations and governments in the market are mainly reliant on IT services and solutions as well as there is considerable growth in the online stream platforms such as Amazon, Spotify, Netflix, etc. Thus, companies are selecting work from home models like Software-as-a-service (SaaS) based solutions to protect their workforce from coronavirus and continue their operational efficiency. It leads to the sudden growth in cloud-hosted services like IaaS, SaaS, and PaaS across various enterprises that accelerate the market demand of cloud computing over the forecasting period.
The increasing returns on investments with less storage and infrastructure costs are driving the market across the globe. As the maintenance cost for hosting data and implementation on a platform like on-premises is one of the major concerns among enterprises. Considering the global economic scenario and market competition stimulates the penetration of cost-effective measures for reforming business models.
Also, emerging markets in developing nations such as Africa, Brazil, China, and India fuels the market demand. Increasing demand for a cost-effective digital solution like cloud computing facilitates an organization to work efficiently. With the various applications offered by emerging technologies, small and Medium Enterprises (SMEs) and large enterprises also shift towards cloud computing. This may also flourish the market demand for cloud computing in the forecasting years.
The market is primarily segmented on the basis of service, deployment, enterprise size, end-use, and region.
By Enterprise Size
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The private deployment segment is accounted for the dominating position in the global market in 2020. Due to the factors such as private cloud computing exclusively presents computing services in a private internal network along with it is only accessible for the selected users instead of the public. The private deployment also offers some advantages to the business unit such as self-service, flexibility & scalability, as well as further customization and controls hosted in the infrastructure of on-premises computing.
The hybrid deployment segment is likely to project a vigorous growth rate in the forthcoming period. Rising adoption of the clouds in the industries such as government, BFSI, and healthcare due to the growing need for security and increasing customer experience are leading the segment growth which in turn will drive the cloud computing market further. Innovation in the hybrid cloud computing spaces by the major players also fuels the adoption of hybrid clouds. For instance, in October 20018, Red Hat was purchased by IBM for gaining a large consumer base and a wide range of cloud computing portfolio of the Red Hat.
The BFSI segment is exhibited with the highest shares in 2020 owing to the growing penetration of cloud computing services for storage and customer data management. In addition, features such as 24x7 uptime and secure storage assist the BFSI sector in focusing on digitalizing trade, wealth, and customer-centric business models.
Also, services like online fund transfer, unified experience of customers, payment gateway, and digital wallets are playing a significant role in the industry, which, in turn, fosters segment dominance across the globe. The manufacturing segment is projected to show a significant growth rate in the upcoming years. Due to it offers real-time visibility and efficient data management present by the cloud computing.
Geographically, North America holds the majority of shares in 2020. Due to the factors such existence of major market players such as Amazon Inc., Oracle Corp., International Business Machines Corp., and Microsoft Corp., as well as higher acceptance of latest technologies.
The U.S. is the key contributor to the market growth in this region due to the high adoption rate of next-generation technologies such as big data analytics, AI, MR, AR, IoT, etc., along with the companies are more inclined towards the digital transformation. Moreover, the availability of a skilled workforce and the presence of advanced infrastructure will further fuel the market demand for cloud computing in the region.
Asia Pacific is projected to exhibit a noteworthy CAGR in the upcoming years. The rapid development of emerging countries such as China, Japan, India, South Korea, and others and the introduction of several regional competitors impels the regional cloud computing market growth.
For instance, in July 2021, Google introduced its second cloud computing region in Delhi. With this launch, the company helps enterprises solve their intricate challenges by utilizing reliable and secure cloud computing technology even closer to the house. Hence, the increasing launch of cloud computing services across the region fuels the market growth in the upcoming scenario.
Major players operating the global market include Adobe Inc., Alibaba Group Holding Ltd., Amazon.com Inc., CenturyLink, DigitalOcean, DXC Technology, Fujitsu, Google LLC, Infor, International Business Machines Corporation, Joyent, Microsoft Corporation, NEC Corporation, Open Text Corporation, Oracle Corporation, OVHcloud, Rackspace Technology, Salesforce.com Inc., SAP SE, Skytap, Tencent, Virtustream, Vmware, Workday, Inc., and Zoho Corporation Pvt. Ltd.
Market size value in 2020
USD 371.35 billion
Revenue forecast in 2028
USD 1418.09 billion
18.0% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Service, By Deployment, By Enterprise Size, By End-Use, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Adobe Inc., Alibaba Group Holding Ltd., Amazon.com Inc., CenturyLink, DigitalOcean, DXC Technology, Fujitsu, Google LLC, Infor, International Business Machines Corporation, Joyent, Microsoft Corporation, NEC Corporation, Open Text Corporation, Oracle Corporation, OVHcloud, Rackspace Technology, Salesforce.com Inc., SAP SE, Skytap, Tencent, Virtustream, Vmware, Workday, Inc., and Zoho Corporation Pvt. Ltd.