The global cloud computing market size is estimated to reach USD 2,390.18 billion by 2030, growing at a CAGR of 21.2% from 2024 to 2030, according to the recent reports of Grand View Research, Inc. The market is experiencing significant growth fueled by several key factors. Firstly, the rising adoption of cloud-native applications across diverse sectors like banking and supply chain automation is driving demand. These applications offer businesses a faster and more efficient way to develop, manage, and roll out web services. For instance, in June 2023, First Abu Dhabi Bank (FAB) partnered with IBM to migrate its applications to the cloud. This move will enable FAB to optimize its technology infrastructure and deliver a seamless digital experience for its customers. Cloud adoption empowers businesses with greater agility and scalability, allowing them to adapt more effectively to changing market demands and customer needs.
Secondly, the increasing use of cutting-edge technologies like Artificial Intelligence (AI), Machine Learning (ML), and 5G is further propelling the market. These technologies require immense data processing power and storage capabilities, which cloud computing solutions provide readily. Businesses can leverage the cloud to efficiently store, access, and manage the vast amount of data generated by modern technologies like smartphones, computers, and the Internet. This data is crucial for businesses to personalize services and deliver tailored experiences to their consumers.
Gather more insights about the market drivers, restrains and growth of the Cloud Computing Market
Detailed Segmentation:
Market Concentration & Characteristics
The major players in the market are engaged in a fierce battle for dominance. Leading the charge are the "hyperscalers" - Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These giants boast massive infrastructure, comprehensive service offerings, and constant innovation. Their growth strategies are multifaceted. Firstly, they are all aggressively expanding their global reach, establishing new data centers across the world to cater to a wider customer base. Secondly, they are continuously adding new features and functionalities to their cloud platforms, encompassing everything from artificial intelligence and machine learning tools to advanced analytics and security solutions. This diversification allows them to cater to the specific needs of a broader range of industries.
Service Insights
The SaaS segment dominated the market and accounted for around 54% of the revenue share in 2023. SaaS applications offer unparalleled ease of use and deployment. Businesses can access these applications on demand, eliminating the need for complex installations or ongoing maintenance. This user-friendly approach makes SaaS solutions highly attractive to companies of all sizes, from established enterprises to fledgling startups. Additionally, SaaS applications are typically priced on a subscription basis, offering a predictable and cost-effective way for businesses to access the software they need. Furthermore, SaaS vendors are constantly releasing updates and new features, ensuring that customers always have access to the latest functionalities. All the factors mentioned above have resulted in the increased growth of the SaaS segment in the market.
Deployment Insights
The private segment dominated the market with the largest revenue share in 2023. Private clouds offer several advantages over public clouds. Firstly, they provide a higher level of control and customization. Businesses can tailor their cloud infrastructure to meet their specific security and compliance requirements. Additionally, private clouds offer predictable performance, as resources aren't shared with other users, which is critical for businesses that run mission-critical applications. However, private clouds also come with challenges. They require a significant upfront investment in hardware and software, and ongoing maintenance can be resource intensive. To address these limitations, managed private cloud services are gaining traction.
Workload Insights
The resource management segment dominated the market with the largest revenue share in 2023. Cloud environments are becoming increasingly complex as businesses adopt hybrid and multi-cloud strategies. Managing resources across various cloud providers and on-premise infrastructure becomes a significant challenge. Resource management tools automate tasks like provisioning, scaling, and optimizing resource allocation, leading to increased efficiency and cost savings.
Enterprise Size Insights
The large enterprise segment dominated the market with the largest revenue share in 2023. Cloud computing empowers large businesses to automate routine tasks, enabling faster completion times and improved efficiency, which translates to significant cost savings. Additionally, cloud-based solutions offer greater flexibility by eliminating the need for on-premise infrastructure and associated maintenance. Large businesses can easily scale their cloud resources up or down to meet fluctuating demands. Furthermore, cloud computing fosters enhanced teamwork by facilitating seamless collaboration among geographically dispersed teams.
End-use Insights
The BFSI segment dominated the market with the largest revenue share in 2023. Cloud technology offers significant cost savings by reducing the need for expensive on-premise infrastructure and IT staff. Financial institutions are leveraging the cloud's scalability to handle surges in data processing and transactions while also benefiting from improved agility to launch new financial products and services faster. Moreover, cloud-based analytics unlock valuable insights from vast troves of customer data, empowering BFSI firms to personalize offerings and enhance customer experiences.
Regional Insights
North America held the major share of around 40% of the global cloud computing market in 2023. North America remains a dominant force in the cloud computing market, driven by the presence of major technology hubs and a mature IT infrastructure. The widespread adoption of cloud solutions across various industries, coupled with strong government initiatives promoting digital transformation, is fueling further growth.
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Key Cloud Computing Company Insights
Some of the key companies operating in the market include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Alibaba Cloud among others are some of the leading participants in the cloud computing market.
• Amazon Web Services (AWS) is one of the most extensive and popular cloud platforms globally, providing a broad range of on-demand cloud computing services and APIs to meet the requirements of individuals, businesses, and governments of any size. With an extensive global network of data centers and a convenient "pay-as-you-go" pricing structure, AWS remains the preferred choice for many who seek trustworthy and adaptable cloud solutions.
• Microsoft Azure has established itself as a leading platform for developer solutions. It is popular among developers who build cloud-based applications due to its excellent integration with Microsoft's products and developer tools. Furthermore, Azure's security features are robust, and it offers hybrid cloud solutions that meet the needs of enterprises, making it a strong contender in the market.
Cloud Computing Market Segmentation
Grand View Research has segmented the global cloud computing market based on service, deployment, workload, enterprise size, end-use, and region:
Cloud Computing Service Outlook (Revenue, USD Billion, 2018 - 2030)
• Infrastructure as a service (IaaS)
• Platform as a service (PaaS)
• Software as a service (SaaS)
Cloud Computing Deployment Outlook (Revenue, USD Billion, 2018 - 2030)
• Public
• Private
• Hybrid
Cloud Computing Workload Outlook (Revenue, USD Billion, 2018 - 2030)
• Application Development & Testing
• Data Storage & Backup
• Resource Management
• Orchestration Services
• Others
Cloud Computing Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)
• Large Enterprises
• Small & Medium Enterprises
Cloud Computing End-use Outlook (Revenue, USD Billion, 2018 - 2030)
• BFSI
• IT & Telecom
• Retail & Consumer Goods
• Manufacturing
• Energy & Utilities
• Healthcare
• Media & Entertainment
• Government & Public Sector
• Others
Cloud Computing Regional Outlook (Revenue, USD Billion, 2018 - 2030)
• North America
o U.S.
o Canada
o Mexico
• Europe
o UK
o Germany
o France
• Asia Pacific
o China
o Japan
o India
o South Korea
o Australia
• Latin America
o Brazil
• Middle East & Africa (MEA)
o United Arab Emirates (UAE)
o Saudi Arabia
o South Africa
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Recent Developments
• In April 2024, Google unveiled a custom-designed Arm-based server chip named Axion. This chip aims to revolutionize cloud computing by making it more affordable. This moves positions Google alongside competitors like Amazon and Microsoft who have already embraced similar strategies. With the launch expected later in 2024, Google plans to utilize Axion for its YouTube ad workloads. The news has generated excitement, with customer Snap expressing early interest in this innovative technology.
• In January 2024, American Tower and IBM Join Forces to Empower Businesses with Cutting-Edge Cloud Solutions. This collaboration aims to revolutionize how businesses approach innovation and customer experiences. American Tower will integrate IBM's hybrid cloud technology and Red Hat OpenShift into its existing Access Edge Data Center network. This combined offering will provide enterprises with powerful tools to leverage the potential of technologies like IoT, 5G, AI, and network automation. By working together, American Tower and IBM will empower businesses to meet the ever-evolving demands of their customers in the age of digital transformation.
• In January 2024, Eviden and Microsoft joined forces for a five-year strategic partnership. This collaboration expands on their existing relationship by bringing innovative Microsoft Cloud and AI solutions to diverse industries, which aligns with Eviden's broader alliance strategy of solidifying existing partnerships and building new ones to strengthen its global network.