Cloud Computing Market by Service (Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS)), Workload (Application Development and Testing, Data Storage and Backup, Resource Management, Orchestration Services, and Others), Deployments (Public, Private, and Hybrid), Enterprise Size (Large and SMEs), End-uses (BFSI, IT & Telecom, Manufacturing, Retail & Consumer Goods, Media & Entertainment, and Government & Public Sector), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global cloud computing market was valued at USD 371.4 billion in 2020 and is expected to reach USD 832.1 billion by 2028, expanding at a CAGR of 14.9% during the forecast period, 2021 – 2028. The growth of the market is attributed to rising adoption of innovative technologies such as artificial intelligence (AI), machine learning (ML), and increasing dependence on cloud-based solutions.

Cloud computing is an IT service model where third party service providers offer software tools and computing resources via internet. In this model, the user has to pay only for the usage of computing device, coupled with bandwidth, and storage they consume. Cloud computing has several advantages over on-premise infrastructure.

Market Trends, Drivers, Restraints, and Opportunities:

• Rising competition and global economic situation boosted the adoption of cost-effective solutions. This in turn drives the market.
• Changing company preferences towards adoption of new technology and tracking customer experience are the key factors driving the market.
• Factors such as increase in edge computing, Internet of Things, use of real time analytics, and 5G is anticipated to boost the market.
• Decreased infrastructure and storage costs along with rising return on investments in cloud computing are expected to fuel the market.
• Several advantages are provided by cloud computing such as scalability, flexibility, and agility which leads to rising demand.
• Data stored on cloud computing system is prone to cyber-attacks which hampers the market growth.
• Increasing initiatives towards digital transformation and rising volume of data usage has rapidly increased the number of cyber-attacks.

 Scope of the Report:

The report on the cloud computing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights:

The software as a service segment held a major share of more than 54% of the total revenue in 2019
Based on services, the global cloud computing market is segregated as Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). The SaaS segment is anticipated to expand at a rapid pace during the forecast period. Growth of the segment is attributed to easy maintenance, flexible costs, and deployment. The industry survey suggests that increasing number of companies are inclining towards cloud-based services. Additionally, the IT industry analysis reports that 60% of the organizations utilize an external service provider’s cloud managed services. The PaaS and IaaS segments are expected to expand at a steady rate, owing to rising adoption of these services by several industries worldwide.

The resource management segment held a major market share of the total revenue in 2019
On the basis of workload, the global cloud computing market is segregated as application development and testing, data storage and backup, resource management, orchestration services, and others. The growth of the resource management segment is attributed to factors such as low cost of ownership and simplicity over other cloud solutions. Increasing data-intensive workload, development of hybrid cloud, and advancement in infrastructure to support huge workflows are expected to increase the efficiency of the resource management segment. Additionally, government institutions and research & scientific establishments are projected to be benefitted the most by cloud resource management applications.

The application development & testing segment is projected to expand at a rapid pace during the forecast period. Growth of the segment is attributed to ongoing relocation of applications over the cloud segment and worldwide increasing usage of mobile devices and internet. For instance, in 2017, the Apple app store provided 2 million apps and Google Play provided around 2.2 billion apps. Cloud applications are developed at a rapid pace in sectors such as personal fitness, entertainment, and education.

The public segment held a major market share of more than 60% of the total revenue in 2019
In terms of deployments, the global cloud computing market is classified as public, private, and hybrid. The public segment is expected to expand at a substantial CAGR during the forecast period. Factors such as flexibility & scalability of cloud technology control over data center and security aspects are projected to boost the market.

Integration of the hybrid segment with private and public models is expected to expand at a robust CAGR during the forecast period. Hybrid deployment is expected to be the most preferred type of deployment model among industries that will drive the cloud industry. The industry survey indicated that almost 77% of enterprise decision makers, who plan to upgrade or implement cloud technology, prefer hybrid deployment. Additionally, the mixture of hybrid and edge computing is estimated to increase the value of organizations.

The large enterprises segment held a major market share of the total revenue in 2019
Based on enterprise size, the global cloud computing market is bifurcated into large and SMEs. Growth of the large segment is attributed to increased flexibility, low operating costs, and effective collaboration. Till now, enterprises used cloud-based services for developing applications, but now they use it to modernize business processes and applications. According to the study by Cisco Systems, Inc., around 94% of the global workload is estimated to be processed by cloud data centers until 2021.

The SMEs segment is projected to expand at a high CAGR during the forecast period, due to rising employee productivity, flexible pricing models by CSPs, and increasing number of collaborations and innovations. SMEs are largely using technology for financial management, marketing, project management, and building customer relationships.

The BFSI segment held a major market share of more than 30% of the total revenue in 2019
On the basis of end-uses, the global cloud computing market is fragmented as BFSI, IT & telecom, manufacturing, retail & consumer goods, media & entertainment, and government & public sector. Development of BFSI segment is attributed to increasing adoption of cloud for management and storage of customer data. Features such as secure storage, interoperability, and all time availability helped the BFSI sector to emphasize on digitalization of wealth & trade and customer-centric business model. Moreover, factors such as online fund transfer, payment gateways, and digital wallets are expected to play an important role in the BFSI sector.

The manufacturing industry is projected to be the early adopter of cloud services, due to its benefits such as real time visibility and unified data. Additionally, the manufacturing segment used computing services for planning resources, managing services, storing information, and supply chain management. The industry report specifies that cloud computing provides almost 25% of total benefits of finished products.

The market in Asia Pacific held a major share of more than 51% of the total revenue in 2019
In terms of regions, the global cloud computing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is anticipated to expand at a significant CAGR during the forecast period. Easy availability of skilled labor and keen willingness of SMEs and large enterprises to grow & enter in the region are driving the market. Presence of major players such as Alibaba Group, Amazon Web Services (AWS), and Azure is anticipated to boost the regional market.

The market in North America held a share of around 49% in 2019, owing to early adoption of cloud solutions. Moreover, presence of several vendors such as Microsoft, IBM, and Oracle in the region is expected to drive the market. European countries are a hub for technology development, mainly in financial sector.