Global Cloud Services Market to Grow at a CAGR of 16.6% by 2030.

Introduction

Cloud computing is storing, processing, sharing, and managing data over a network of remote computers housed on the Internet instead of a local server or personal computer. Cloud services refer to the services provided by cloud computing technology. It refers primarily to a shared storage area through which all network devices can simultaneously access data. With cloud services, businesses can reduce their annual operational expenses by more than 35 percent. The second factor consists of all the functional competencies that improve the business performance of businesses.

Market Dynamics

Increase in Demand for Cloud Services to Drive the Global Cloud Services Market

Choosing cloud-computing services can result in cost reductions and decreased capital expenditures. With cloud computing services, the cost of investing in physical IT resources is lowered, reducing capital expenditure. Appropriate deployments of cloud services, whether they are private, public, hybrid, or community clouds, can be an effective method for reducing total operating expenses.

According to a Booz Allen Hamilton study, cloud computing services' deployment reduces the total cost of ownership by up to 50 to 60 percent. Another poll done by CIO magazine assesses the perceptions of company leaders towards implementing cloud computing services in terms of cost reduction. According to the poll, 88% of respondents highlighted the benefits of cost reduction. With the emergence of cloud computing services, the performance of firms in various industries has grown dramatically over time. These elements contribute to the enhancement of business performance.

• Reduced costs and expenditures adequately aligned with business requirements

• Strategies and rollouts of new services in response to client requirements

• Enhanced business resilience as a result of the availability of disaster recovery services

Cloud computing services offer a good return on investment, automatically increasing corporate agility. According to a survey by FCW (Federal business technology), 44% of businesses believe that cloud-computing services provide a rapid return on investment. Consequently, these factors all contribute to the expansion of the market.

Enhanced Adoption in the Manufacturing Sector to Drive the Global Cloud Services Market

The growth of technologies such as cloud, analytics, big data, and mobility is causing a significant transformation in the industrial sector. In the manufacturing industry, the rising availability of flexible pricing models and fast provisioning of redundant resources to manage agility is driving the demand for cloud storage. To assure efficiency in manufacturing physical items and managing product lifecycles, manufacturing firms are gradually migrating to the cloud, as cloud-based apps improve supply chain visibility and forecasting accuracy. For instance, the "Make in India" and "Digital India" initiatives of the Indian government facilitate the use of cloud computing by SMBs and significant firms in the manufacturing sector. In addition, the availability of cost-effective cloud computing solutions and services for manufacturing organizations is driving the widespread adoption of cloud computing in the manufacturing industry to improve scalability and market competitiveness.

Regional Insights

Based on region, the global cloud services market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue contributor and is estimated to grow at a CAGR of 15.3%. North America was the first region to adopt cloud computing services. This region has demonstrated its openness to adopting this technology across all industries. The IT industry has already used this technique. The healthcare industry is the emerging area for cloud computing services in North America. Cloud computing services are mainly used to record and store clinical and non-clinical data. Email is the most widely utilized cloud computing application to date. However, other applications such as coloring, disaster recovery, and customer-facing e-commerce have been implemented at significantly higher rates in the North American market. This region's rapid embrace of technology is responsible for the expansion. As a developed and investment-capable region, North America has always been an appealing market for innovative technologies and services.

Europe is the second largest region. It is estimated to reach an expected value of 435 billion by 2030, registering a CAGR of 15.9%. Europe is the second most prevalent adopter of cloud computing services worldwide. The IaaS market in Europe has grown significantly during the past few years. Europe has developed several initiatives to promote the adoption of cloud computing services through the European Commission's regulatory authority. Google Inc., Microsoft Corporation, HP, Dell, and Yahoo! Inc. are the market leaders in cloud computing in Europe. Due to its propensity to cope with various security challenges, Europe quickly becomes a global leader in privacy protection. Amazon Web Services is on the verge of developing new products with security features in this region. This surge is mainly attributable to expanding cloud computing services in the healthcare sector. In the healthcare industry, the benefits of cloud computing services include cost management, better communication across geographies, streamlined processes, and expedited treatment. These advantages serve as the driving force behind the European healthcare sector.

Asia-Pacific is the third largest region. Asia-Pacific has established the Asia Cloud Computing Association (ACCA), a member-driven organization designed to expedite the adoption of cloud computing services. Members include cloud service providers, government entities, and cloud users. It is anticipated that China will invest billions in infrastructure as a service. In addition, the competitive landscape of the Asia-Pacific area is highly enticing. The titans of the market for cloud computing services are attempting to capture the new Asia-Pacific market. This serves as an impetus for the Asia-Pacific market.

Key Highlights

• The global cloud services market was valued at 300 billion in 2021 and is estimated to reach an expected value of 1200 billion by 2030, registering a CAGR of 16.6% during the forecast period (2022 – 2030).
• By service model, the global cloud services market is categorized into IaaS, PaaS, SaaS, BPaaS, and management and security services. The software as a service segment was the highest contributor to the market and is estimated to grow at a CAGR of 16.8% during the forecast period. 
• Based on the deployment model, the global cloud services market is divided into public cloud, private cloud, and hybrid cloud. The public cloud segment was the highest contributor to the market and is estimated to grow at a CAGR of 15.9% during the forecast period. 
• By enterprise size, the global cloud services market is categorized into large enterprises and small and medium enterprises. The Large Enterprises segment was the highest contributor to the market and is estimated to grow at a CAGR of 16% during the forecast period. 
• Depending on the industry vertical, the global cloud services market is categorized as BFSI, IT & telecommunications, government, retail, healthcare, energy & utilities, media & entertainment, manufacturing, and others. The BFSI segment was the highest contributor to the market and is estimated to grow at a CAGR of 15.8% during the forecast period. 

Competitive Players

1. Alibaba Cloud
2. Amazon Web Services Inc.
3. Google LLC
4. Hewlett Packard Enterprise Development LP
5. Cisco System Inc.
6. International Business Machine (IBM) Corporation
7. Microsoft Corporation
8. Dell Technologies Inc.
9. Oracle Corporation
10. Rackspace Hosting Inc.

Recent Developments

• June 2024 - Global provider of technology services, ESDS Software Solutions, announced that it will build two new data centers in the next two years, one each in Noida and Kolkata. The company's current centers in Bangalore and Mumbai are to be expanded as well.
• June 2024 - Macquarie Cloud Services launched Macquarie Flex by utilizing strong alliances with Dell Technologies and Microsoft. Microsoft Azure Stack HCI (hybrid cloud infrastructure) and Dell Technologies APEX Cloud Platform for Microsoft Azure power Macquarie Flex. In public, private, and hybrid cloud environments, the solution offers workload flexibility, a single management plane, a consistent experience, mission-critical support that operates around-the-clock, and evergreen compliance.

Segmentation

1. By Service Model
   1. IaaS
   2. PaaS
   3. SaaS
   4. BPaaS
2. By Deployment Model
   1. Public Cloud
   2. Private Cloud
   3. Hybrid Cloud
3. By Enterprise Size
   1. Large Enterprises
   2. Small and Medium Enterprises
4. By Industry Vertical
   1. BFSI
   2. IT & Telecommunications
   3. Government
   4. Retail
   5. Healthcare
   6. Energy & Utilities
   7. Media & Entertainment
   8. Manufacturing
   9. Others