Finance Cloud Market Segments - by Type (Solution [Governance, Risk & Compliances, Security, Financial Reporting & Analysis, and Financial Forecasting] and Service [Managed Services and Professional Services]), Application (Financial Forecasting, Financial Reporting and Analysis, Risk and Compliance, Managed Services, Revenue Management, Wealth Management, Account Management, Customer Relationship Management, and Others), Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), End-user (Insurance and Banking & Financial Services), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
Finance Cloud Market Outlook 2031
The global finance cloud market size was valued at USD 14.47 Billion in 2022 and is expected to surpass USD 94.41 Billion by 2031, expanding at a CAGR of 23.17% during the forecast period, 2023-2031. The growth of the market is attributed to the increasing demand from banking and insurance companies for digital applications, growing requirements for operational efficiency, and rising cyber threats to the financial sector.
Finance cloud is employed to manage an organization’s financial planning on cloud computing. It manages operations to run the financial infrastructure more efficiently and scale business needs as per change. It arms business operations and finance teams with an ecosystem of connected tools to manage accounts, create financial reports, process payments, handle payroll, and manage budgets. For instance,
- In June 2023, Wipro a multinational corporation that provides consultant, information technology, and business process services declared the launch of an innovative suite of banking and financial services solutions built using Microsoft Cloud. This partnership is expected to put forward Microsoft Cloud functionalities with Wipro FullStride Cloud and strengthen Capco’s and Wipro’s deep financial expertise.
Clients accelerate their growth with these new solutions as the finance cloud enables businesses with the affordability of financial and operational tools and benefits such as cost-effectiveness, lower maintenance charges, a subscription-based pricing model, and access to data from anywhere and anytime.
The research report finds that the COVID-19 pandemic boosted the finance cloud market. The economy slowed down, due to the increased cases of COVID-19. However, various organizations such as financial services, banking, and insurance sectors continued operating during this crucial time. Financial services adopt remote working which in turn increases the investments in cloud-based infrastructure.
Financial system implementations and accounting in the cloud environment are not that much different than those in an on-premises environment. Moreover, the cloud environment offers flexibility to carefully plan out project timings, responsibilities, data migration, and accounting structure. It keeps internal operations running effortlessly in the post-pandemic scenario. For instance,
- In May 2021, Google Cloud introduced a data share solution for financial services. This solution enables the sharing of market data with ease and enhanced security across the major markets including investment banks, assets managers, hedge funds, and market data issuers similar to providers and exchangers.
Impact of Artificial Intelligence on the Finance Cloud Market
Integrating new technology turns out to be a threat, amplifying the burden on all organizations that provide AI-based services. Organizations in the market are working towards combating the risk of fraud. Financial services take the help of artificial intelligence to combat fraud effectively. It helps them to understand the customer and their behavior by optimizing the customer experience and collecting data.
It assists payment providers in automating aspects of cybersecurity by analyzing and continuously monitoring network traffic. Furthermore, it enhances the client-first approach (chatbots) with a personalized and flexible digital banking experience that is anticipated to meet client needs securely.
The advent of the finance cloud has enabled businesses with the affordability of financial as well as operational tools and benefits such as cost-effectiveness and lower maintenance charges.
Finance Cloud Market Dynamics
Major Drivers
Increasing demand for the deployment of applications through the cloud, and growing requirements for customer management, operational efficiency, and business agility are anticipated to drive the market during the forecast period. Furthermore, the rising growth of the industries offering cloud services and the need for cost-effective solutions is expected to boost the market in the coming years.
Existing Restraints
Increasing concerns over regulatory compliances and complexities involving the protection of intellectual property rights (IPR) are major factors anticipated to hinder the market expansion during the forecast period. Additionally, concerns over data privacy, service provider reliability, and disaster recovery are expected to impede market growth.
Emerging Opportunities
Increasing adoption of the finance cloud computing technology by large corporations and emerging technologies with cloud solutions are projected to offer significant opportunities for the market players. For instance,
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In November 2021, Amazon Web Services, Inc., announced a long-term partnership with Nasdaq, Inc. to develop a next-generation technology cloud-based infrastructure for key markets across the globe. This technology is open to other market players and infrastructure operators to relocate their trading platforms to the cloud.
Scope of Finance Cloud Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.
Attributes | Details |
Report Title | Finance Cloud Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year | 2022 |
Historic Data | 2016–2021 |
Forecast Period | 2023–2031 |
Segmentation | Type (Solution [Governance, Risk & Compliances, Security, Financial Reporting & Analysis, and Financial Forecasting] and Service [Managed Services and Professional Services]), Application (Financial Forecasting, Financial Reporting and Analysis, Risk and Compliance, Managed Services, Revenue Management, Wealth Management, Account Management, Customer Relationship Management, and Others), Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), and End-user (Insurance and Banking & Financial Services) |
Regional Scope | Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage | Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report | CloudSigma Holding AG; Microsoft; Alphabet Inc.; IBM Corporation; Red Hat; Hewlett Packard Enterprise Development LP; SAP; Kamatera; VMware; Salesforce; Verizon; ServiceNow; Oracle; Alibaba Cloud; DigitalOcean Holdings. Inc.; Cisco Systems; Workday. Inc; Adobe; and Logicworks. |
Finance Cloud Market Segment Insights
Type Segment Analysis
Based on type, the market is bifurcated into solution and service. The solution segment is further fragmented into governance, risk & compliances, security, financial reporting & analysis, and financial forecasting.
The service segment is further bifurcated into managed services and professional services. The service segment is projected to account for a large market share, due to reduced IT costs, scalability, business continuity, collaboration efficiency, and flexibility of services in accordance with work practices.
Finance cloud service provide businesses with faster implementation, anywhere access to applications and content, and higher utilization of infrastructure investments which is expected to drive market expansion in the coming years.
The solution segment is anticipated to account for a considerable market share during the forecast period, as companies are integrating cloud solutions to improve efficiency and ensure significant information integration.
Financial companies need access to all important information at a rapid pace to take needed business action, due to the augmented competition and quick changes in a business environment.
Cloud solutions enhance transparency and efficiency in business operations. In terms of security financial cloud platforms run entirely in a secure cloud environment. The software works seamlessly in sync which allows organizations to build their own solutions which integrate efficiently.
Application Segment Analysis
On the basis of application, the finance cloud market is segmented into financial forecasting, financial reporting and analysis, risk and compliance, managed services, revenue management, wealth management, account management, customer relationship management, and others.
Customer relationship management segment is expected to expand at a significant pace in the coming years, due to its increasing demand from the banking and financial sector for integrated tools to manage customer query resolution, satisfaction, and feedback.
Customer relationship management with AI improves customer experience and feedback and is expected to develop a strong bond with several company’s customers.
The managed services and account management segment are projected to grow at a steady CAGR during the forecast period, owing to the increasing adoption of financial cloud management tools and their integration into business operations for improving efficiency. Several enterprises obtain various benefits by using cloud-based management software solutions, including financial accountability, effective operations, accurate tracking, and simple reporting.
Deployment Segment Analysis
In terms of deployment, the finance cloud market is segregated into public cloud, private cloud, and hybrid cloud. The public cloud segment is projected to exhibit a high CAGR during the forecast period, owing to the increasing demand for public cloud infrastructure from translational and global organizations.
Public cloud offers several benefits such as high elasticity, scalability, and low-cost subscription-based price tier. It minimizes the cost as organizations pay for the resources they use, which cuts down extra costs on idle resources. Furthermore, as per the demand for the cloud, organizations have the freedom to simply scale up or down.
The private cloud segment is expected to hold a substantial CAGR in the coming years. Private Cloud offers various tools and services to manage cloud applications, including monitoring, data storage, and security with minimal expenditure.
Organizations avail many benefits using the private cloud without compromising control security and customization. Moreover, it provides different advantages and freedom to customize hardware and software without compromising regulatory compliance and standards and great security and access control.
End-user Segment Analysis
Based on end-user, the finance cloud market is bifurcated into insurance and banking & financial services. The insurance segment is expected to hold a large market share during the forecast period, due to the rising demand for cloud services from the insurance sector. Organizations straighten their digital experience and operational processes with the help of the finance cloud.
The banking & financial services segment is anticipated to account for a substantial market share in the coming years, owing to increasing security concerns, reduced customer acquisition costs, and the need for disaster recovery. Financial institutions and banks are collaborating for cloud adoption with finance cloud providers. For instance,
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In August 2020, Standard Chartered and Microsoft Corp. partnered to speed up the latter’s digital transformation with the cloud-first strategy. JP Morgan is turning its retail operations to Thought Machine’s cloud-based core banking system among other industry pioneers.
Regional Analysis
On the basis of regions, the finance cloud market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to represent a major market share during the forecast period, due to the increasing demand for wealth management services, growing adoption of finance cloud computing, and rapid digitization. Moreover, minimum capital expenditure (CapEx), enhanced agility and security, and reduced IT administration complexity are some key factors that are expected to fuel the market in the region.
Asia Pacific is expected to exhibit a rapid growth rate in the coming years, owing to the rapid growth of the banking and insurance sector in developing countries across the region. The increasing demand for customer management, increased digitalization, and growing client needs are expected to boost the market in the coming years.
The Government of India aims to digitalize the payment process and broaden financial inclusion through fintech projects including Jan Dhan Yojana, Adhar, and United Payments systems (UPI). This development propelling India's digital economy, which in turn expected to boost the market growth in the coming years. This development propelling India's digital economy, which in turn expected to boost the market growth in the coming years.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Finance Cloud Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Finance Cloud Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Finance Cloud Market - Supply Chain
4.5. Global Finance Cloud Market Forecast
4.5.1. Finance Cloud Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Finance Cloud Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Finance Cloud Market Absolute $ Opportunity
5. Global Finance Cloud Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Finance Cloud Market Size and Volume Forecast by Types
5.3.1. Solution
5.3.2. Service
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Finance Cloud Market Analysis and Forecast by Applications
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Applications
6.2.2. Y-o-Y Growth Projections by Applications
6.3. Finance Cloud Market Size and Volume Forecast by Applications
6.3.1. Financial Forecasting
6.3.2. Financial Reporting and Analysis
6.3.3. Risk and Compliance
6.3.4. Managed Services
6.3.5. Revenue Management
6.3.6. Wealth Management
6.3.7. Account Management
6.3.8. Customer Management
6.3.9. Others
6.4. Absolute $ Opportunity Assessment by Applications
6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Finance Cloud Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Finance Cloud Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Finance Cloud Demand Share Forecast, 2019-2026
8. North America Finance Cloud Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Finance Cloud Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Finance Cloud Market Size and Volume Forecast by Types
8.4.1. Solution
8.4.2. Service
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Finance Cloud Market Size and Volume Forecast by Applications
8.7.1. Financial Forecasting
8.7.2. Financial Reporting and Analysis
8.7.3. Risk and Compliance
8.7.4. Managed Services
8.7.5. Revenue Management
8.7.6. Wealth Management
8.7.7. Account Management
8.7.8. Customer Management
8.7.9. Others
8.8. Basis Point Share (BPS) Analysis by Applications
8.9. Y-o-Y Growth Projections by Applications
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Finance Cloud Demand Share Forecast, 2019-2026
9. Latin America Finance Cloud Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Finance Cloud Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Finance Cloud Market Size and Volume Forecast by Types
9.4.1. Solution
9.4.2. Service
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Finance Cloud Market Size and Volume Forecast by Applications
9.7.1. Financial Forecasting
9.7.2. Financial Reporting and Analysis
9.7.3. Risk and Compliance
9.7.4. Managed Services
9.7.5. Revenue Management
9.7.6. Wealth Management
9.7.7. Account Management
9.7.8. Customer Management
9.7.9. Others
9.8. Basis Point Share (BPS) Analysis by Applications
9.9. Y-o-Y Growth Projections by Applications
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Finance Cloud Demand Share Forecast, 2019-2026
10. Europe Finance Cloud Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Finance Cloud Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Finance Cloud Market Size and Volume Forecast by Types
10.4.1. Solution
10.4.2. Service
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Finance Cloud Market Size and Volume Forecast by Applications
10.7.1. Financial Forecasting
10.7.2. Financial Reporting and Analysis
10.7.3. Risk and Compliance
10.7.4. Managed Services
10.7.5. Revenue Management
10.7.6. Wealth Management
10.7.7. Account Management
10.7.8. Customer Management
10.7.9. Others
10.8. Basis Point Share (BPS) Analysis by Applications
10.9. Y-o-Y Growth Projections by Applications
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Finance Cloud Demand Share Forecast, 2019-2026
11. Asia Pacific Finance Cloud Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Finance Cloud Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Finance Cloud Market Size and Volume Forecast by Types
11.4.1. Solution
11.4.2. Service
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Finance Cloud Market Size and Volume Forecast by Applications
11.7.1. Financial Forecasting
11.7.2. Financial Reporting and Analysis
11.7.3. Risk and Compliance
11.7.4. Managed Services
11.7.5. Revenue Management
11.7.6. Wealth Management
11.7.7. Account Management
11.7.8. Customer Management
11.7.9. Others
11.8. Basis Point Share (BPS) Analysis by Applications
11.9. Y-o-Y Growth Projections by Applications
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Finance Cloud Demand Share Forecast, 2019-2026
12. Middle East & Africa Finance Cloud Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Finance Cloud Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Finance Cloud Market Size and Volume Forecast by Types
12.4.1. Solution
12.4.2. Service
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Finance Cloud Market Size and Volume Forecast by Applications
12.7.1. Financial Forecasting
12.7.2. Financial Reporting and Analysis
12.7.3. Risk and Compliance
12.7.4. Managed Services
12.7.5. Revenue Management
12.7.6. Wealth Management
12.7.7. Account Management
12.7.8. Customer Management
12.7.9. Others
12.8. Basis Point Share (BPS) Analysis by Applications
12.9. Y-o-Y Growth Projections by Applications
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Finance Cloud Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Finance Cloud Market: Market Share Analysis
13.2. Finance Cloud Distributors and Customers
13.3. Finance Cloud Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. Microsoft
13.4.2. Alphabet Inc.
13.4.3. IBM Corporation
13.4.4. Red Hat
13.4.5. SAP
13.4.6. Kamatera
13.4.7. VMware
13.4.8. Oracle
13.4.9. Salesforce
13.4.10. Cisco Systems
13.4.11. Verizon