Cloud Computing Market Trends and Forecast
The future of the global cloud computing market looks promising with opportunities in BFSI, telecommunication, government and public sector, retail and consumer goods, and manufacturing industries. The global cloud computing market is expected to reach an estimated $2,191 billion by 2030 with a CAGR of 19% from 2023 to 2030. The global cloud computing market has experienced substantial growth, owing to factors such as increasing demand of cloud computing in MNC, cost savings, security and compliance, and global expansion. Cloud computing is widely used in industries such as telecommunication, IT and ITES, government and public sector, retail and consumer goods, and others. The major drivers for this market are the shifting from traditional to cloud based technology due to increasing adoption of artificial intelligence and machine learning, growing automation, and increasing need of advanced technology to increase return on investment with lower infrastructure and storage cost.
In this regard, the Cloud’s components are a combination of physicals and software systems. In the cloud, server hardware encompasses processors, memory modules and storage drives that are vital in terms of computing as well as data storage. There are network facilities such as routers plus fiber optic cables which facilitate the movement of information packets. Virtualization software and operating systems like Linux help to manage available resources within the cloud environments. Cloud service providers charge their services differently depending on several factors like location among others. Major providers such as AWS, Azure or GCP usually offer competitive rates along with scalability option for resource acquisition purposes. Charges for compute instances; storage; data transfer and other services are usually part of price structures used by vendors in this industry segment. Thus, it is generally believed that moving to the cloud is advantageous because it offers cost effective solutions than traditional on premise options characterized by high upfront costs or investment outlays thus requiring flexible models like pay-as-you-go scalable platforms for use in various scenarios.
• Lucintel forecasts that public cloud will remain the largest market due to increasing demand for big data and the growing rate of IT spending for cloud computing.
• Software as a service will remain the largest segment due to rising usage of mobile apps and increasing API connections.
• North America will remain the largest market over the forecast period due to increasing adoption of emerging technologies such as artificial intelligence, machine learning, and IoT.
Country wise Outlook for the Cloud Computing Market
The cloud computing market is witnessing substantial growth globally, driven by increased demand from various industries such as BFSI, telecommunication, government and public sector. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major cloud computing producers in key regions: the USA, China, India, Germany, and United Kingdom.
Emerging Trends in the Cloud Computing Market
Emerging trends in the cloud computing market shaping its future applications and market dynamics:
• Growing Adoption of Artificial Intelligence (AI) in Cloud Computing: AI adoption in cloud computing is increasing. Innovations in artificial intelligence has made cloud computing more impactful. AI in cloud computing has enhanced the technology of cloud computing Artificial intelligence aids with the interpretation of raw data to give information-based conclusions.
• Machine Learning: Machine learning is a form of data analysis that automates analytical model creation. it is a computer algorithm study that can be improved by experience and use of data.
• Growing Adoption of Hybrid Cloud: The growing adoption of hybrid cloud in cloud computing is driven by its ability to combine the benefits of both public and private clouds. Organizations leverage hybrid cloud for flexibility in scaling resources based on fluctuating demands and optimizing cost efficiencies. It ensures data security and compliance by allowing sensitive workloads to remain on-premises while utilizing public cloud for less critical applications. Hybrid cloud supports integration with legacy systems and facilitates robust disaster recovery solutions, enhancing resilience and business continuity..
• Edge Computing: Edge computing is increasingly gaining momentum as it allows for processing data closer to its source (e.g., IoT devices), lowering latency, and enhancing real-time analytics capabilities.
• Serverless Computing: Serverless architectures where the providers handle all infrastructure management and resources scale automatically are now being widely adopted in search of cost savings and simplified implementation processes.
• Security Enhancements: Increasing cases of data breaches and cyber threats have led to an increased focus on improving cloud security through enhanced encryption, identity management, and compliance frameworks.
A total of 92 figures / charts and 91 tables are provided in this 210-page report to help in your business decisions. A sample figure with insights is shown below.
Recent Developments in the Cloud Computing Market
Ongoing innovations and advancements in various sectors of the cloud computing market which have been highlighted by recent developments:
• Edge Computing: There is a growing adoption of edge computing, which enables data processing closer to the source of data generation (e.g., IoT devices). This reduces latency and improves real-time decision-making capabilities.
• Serverless Computing: Serverless architectures continue to gain popularity, allowing developers to focus on writing code without managing the underlying infrastructure. This trend simplifies deployment, reduces costs, and improves scalability.
• Artificial Intelligence and Machine Learning: Cloud providers are enhancing their offerings with AI and machine learning capabilities, making it easier for businesses to integrate advanced analytics, natural language processing, and computer vision into their applications.
• Hybrid and Multi-Cloud Strategies: Organizations are increasingly adopting hybrid and multi-cloud strategies to avoid vendor lock-in, optimize workload placement, and leverage best-of-breed solutions from multiple cloud providers.
• Security and Compliance Enhancements: There is a heightened focus on improving cloud security with advanced encryption, identity management, and compliance frameworks to address growing cybersecurity threats and regulatory requirements.
Strategic Growth Opportunities for Cloud Computing Market
The cloud computing market is changing very fast because of the recent advances in technology, the rise of digital transformation projects from various industries and a movement that supports remote working and online service. These are strategic growth opportunities for the cloud computing market:
• Hybrid and Multi-Cloud Adoption: Hybrid and multi-cloud environments become popular as organizations move to optimize their IT infrastructure. These strategies allow companies to exploit different strengths of public clouds (like AWS, Azure, Google Cloud) for scalability and private clouds for enhanced security and regulatory compliance. The strategic opportunity lies in providing seamless integration, management, and security across these diverse cloud environments.
• Edge Computing Expansion: Edge computing complements cloud computing by processing data closer to its source hence reducing latency while enhancing real-time decision-making process. The adoption of edge computing solutions has been fueled with the increased number Internet of Things (IoT) devices as well as applications requiring low-latency processing. This trend can be capitalized on by offering hybrid edge-cloud solutions that are tightly integrated with existing cloud infrastructures.
• Industry-Specific Solutions: Creating customized cloud services to address specific business requirements or/and meeting regulations set by authorities in healthcare such finance or manufacturing is a huge growth area. The specialized industry-specific features offered by these types of solutions include compliance, data residency; industry specific applications addressing key pain points leading to wider adoption within those sectors by enterprises.
• Artificial Intelligence and Machine Learning Integration: Artificial intelligence (AI) and machine learning (ML) models can be deployed at scale using a platform provided by cloud computing technology. The integration of AI/ML capabilities into cloud services allows for more effective automation, prediction analytics, personalization among other customer experiences .Differentiate themselves from competitors through offerings robust AI/ML tools including frameworks specifically designed for ease deployment as well as management of enterprise customers.
• Security and Compliance Enhancements: Increasing cyber threats together with stringent data protection regulations (e.g., GDPR, CCPA) have led to the demand for secure and compliant cloud solutions. The strategic growth lies in enhancing cloud security capabilities including encryption, identity and access management (IAM), and proactive threat detection. Besides that, transparent compliance frameworks as well as certifications help enterprises trust their data protection efforts.
• Global Expansion and Localization: The global reach of cloud providers is also expanding due to the growing demand for cloud services around the world. Localization efforts such as having data centers in different regions enable providers to offer low-latency services, comply with data sovereignty regulations, and gain market share in emerging economies. This is done through strategic partnerships with local businesses and governments which facilitate market entry as well as expansion.
By taking advantage of these strategic growth opportunities, the cloud computing market can realize its full potential and transform numerous industries through strength, lightness, versatility.
Cloud Computing Market Driver and Challenges
Cloud computing has a very important role in many industries including telecommunication, government and public sector, retail and consumer goods. The changing market dynamics are being driven by the scale and flexibility, expense reductions and digital transition. However, challenges like security issues, data privacy and vendor lock-in the cloud computing sector.
The factors responsible for driving the cloud computing market include:
1. Scale and flexibility: Cloud computing allows firms to change up or down the level of their resources in line with what is demanded, which gives them flexibility and cost effectiveness when compared to traditional IT infrastructures.
2. Expense Reductions: Cloud services save companies capital costs on hardware and maintenance by shifting such expenses to operational ones. This liquidity preference is very attractive to business organizations that are keen on budget optimization.
3. Digital Transition: By increasing agility, innovation and time-to-market for new products/services, cloud computing facilitates fast-tracking of digital transformation programs.
4. Supporting a Remote Workforce: The need for online collaboration tools, virtual offices, as well as secure access to corporate data from anywhere has increased with the rise of remote work.
5. Data Storage / Backup: Cloud services offer scalable storage solutions with reliable, automated backup/recovery options ensuring resilience of data stores and business continuity.
Challenges facing the cloud computing market are:
1. Security Issues: Insecurity, hacking and conformity to legal requirements with regard to data protection (e.g. GDPR, CCPA) are the most common challenges involved. Good security measures including encryption, access control and routine auditing must be taken into account.
2. Data Privacy: Addressing worry on where is the data held? Who can reach it? And making sure to adhere to different global regulations concerning privacy of data could be intricate.
3. Vendor Lock-in: Interoperability problems as well as potential reliance on distinct cloud platforms might make changing from one cloud provider or integrating solutions of different suppliers problematic.
In the cloud computing market, innovation is accelerating across multiple fronts. Serverless computing platforms like AWS Lambda and Azure Functions are automating infrastructure management, enhancing scalability and efficiency for developers. Edge computing is reducing latency and improving real-time application performance by processing data closer to its source. AI and machine learning capabilities embedded in cloud services such as TensorFlow and Azure Machine Learning are democratizing access to advanced analytics and automation. Containerization with Docker and Kubernetes is streamlining application deployment across hybrid and multi-cloud environments, fostering portability and operational flexibility.
Cloud Computing Suppliers and Their Market Shares
In this globally competitive market, several key players such as Microsoft, Amazon Web Services, IBM, Salesforce, Google etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players contact us. If you wish to deep dive in competitive positioning of these players then you can look into our other syndicated market report on “cloud computing report".
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies cloud computing companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cloud computing companies profiled in this report include.
• Microsoft
• Amazon Web Services
• IBM
• Salesforce
• Google
These companies have established themselves as leaders in the cloud computing industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the cloud computing market are evolving, with the entry of new players and the emergence of innovative cloud computing technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Cloud Computing Market by Segment
Major segments of cloud computing experiencing growth include Infrastructure as a Service (IaaS) for scalable computing resources, Platform as a Service (PaaS) for streamlined application development, and Software as a Service (SaaS) for subscription-based software access. Edge computing is expanding for low-latency data processing, while AI and machine learning services are integrating advanced analytics into cloud platforms.
This cloud computing market report provides a comprehensive analysis of the marketÄX%$%Xs current trends, growth drivers, challenges, and future prospects in all major segments like above. It covers various segments, including cloud computing models, organization size, and end-user industries. The report offers insights into regional dynamics, highlighting the major markets for cloud computing and their growth potentials. The study includes a forecast for the global cloud computing market by deployment model, service model, organization size, end use industry, and region as follows:
Cloud Computing Market by Deployment Model [Value ($B) shipment analysis for 2018 – 2030]:
• Public Cloud
• Private Cloud
• Hybrid Cloud
Cloud Computing Market by Service Model [Value ($B) shipment analysis for 2018 – 2030]:
• Software as a Service
• Infrastructure as a Service
• Platform as a Service
• Others
Cloud Computing Market by Organization Size [Value ($B) shipment analysis for 2018 – 2030]:
• Small-and Medium-Sized Enterprises
• Large Enterprises
Cloud Computing Market by End Use Industry [Value ($B) shipment analysis for 2018 – 2030]:
• BFSI
• Telecommunication
• IT and ITES
• Government and Public Sector
• Retail and Consumer Goods
• Manufacturing
• Media and Entertainment
• Healthcare and Life Science
• Others
Cloud Computing Market by Region [Value ($B) analysis for 2018 – 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of Cloud Computing Market
• Market Size Estimates: Cloud computing market size estimation in terms of value ($B)
• Trend and Forecast Analysis: Market trends (2018-2023) and forecast (2024-2030) by various segments and regions.
• Segmentation Analysis: Market size by deployment model, service model, organization size, and end use industry.
• Regional Analysis: Cloud computing market breakdown by North America, Europe, Asia Pacific, and the Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different deployment model, service model, organization size, end use industry, and regions for the cloud computing market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the cloud computing market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in cloud computing or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the cloud computing market size?
Answer: The global cloud computing market is expected to reach an estimated $2,191 billion by 2030.
Q2. What is the growth forecast for cloud computing market?
Answer: The cloud computing market is expected to grow at a CAGR of 19% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the cloud computing market?
Answer: The major drivers for this market are shifting from traditional to cloud based technology due to increasing adoption of artificial intelligence and machine learning, growing automation, and increasing need of advanced technology
Q4. What are the major applications or end use industries for cloud computing?
Answer: BFSI are the major end use industries for cloud computing.
Q5. What are the emerging trends in cloud computing market?
Answer: Emerging trends, which have a direct impact on the dynamics of the industry, include growing adoption of hybrid cloud and machine learning.
Q6. Who are the key cloud computing companies?
Answer: Some of the key cloud computing companies are as follows:
• Microsoft
• Amazon Web Services
• IBM
• Salesforce
• Google
Q7. Which cloud computing deployment model segment will be the largest in future?
Answer: Lucintel forecasts that public cloud will remain the largest market due to increasing demand for big data and the growing rate of IT spending for cloud computing.
Q8. In cloud computing market, which region is expected to be the largest in next 5 years?
Answer: North America is expected to remain the largest region and witness the good growth over next 5 years
Q9. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 11 key questions
Q.1 What are some of the most promising potential, high growth opportunities for the global cloud computing market by deployment model (public cloud, private cloud, and hybrid cloud), service model (software as a service, infrastructure as a service, platform as a service, and others), organization size (small-and medium-sized enterprises and large enterprises), end use industry (BFSI, telecommunication, IT and ITES, government and public sector, retail and consumer goods, manufacturing, media and entertainment, healthcare and life science, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2 Which segments will grow at a faster pace and why?
Q.3 Which regions will grow at a faster pace and why?
Q.4 What are the key factors affecting market dynamics? What are the drivers and challenges of the market?
Q.5 What are the business risks and threats to the market?
Q.6 What are the emerging trends in this market and the reasons behind them?
Q.7 What are the changing demands of customers in the market?
Q.8 What are the new developments in the market? Which companies are leading these developments?
Q.9 Who are the major players in this market? What strategic initiatives are being implemented by key players for business growth?
Q.10 What are some of the competitive products and processes in this area and how big of a threat do they pose for loss of market share via material or product substitution?
Q.11 What M & A activities have taken place in the last 5 years in this market?
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