The Total Addressable Market (TAM) for cloud computing was valued at USD 337.76 billion in 2022. It is projected to reach USD 1412.39 billion by 2031, growing at a CAGR of 17.23% during the forecast period (2023–2031). Cloud expansion is made possible by the advent of cutting-edge technologies like AI and machine learning, which give businesses access to AI resources. There will be an uptick in cloud computing due to consumers' increasing willingness to use multi-cloud approaches. The past few years have been a golden age for cloud computing, with the trend gaining traction in every industry. Cloud services increasingly becoming a priority for businesses worldwide to cut back on expensive infrastructure expenses and increase operational agility. These businesses have been continuously innovating their cloud services ever since.
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Growing Need among Organizations to Meet Cloud Computing Services
Businesses and their employees have benefited from the increased productivity and adaptability made possible by cloud computing services and cloud-based applications. However, most companies worry that the risks to cloud computing systems are growing faster than their ability to implement adequate countermeasures. The benefits of using the cloud as a foundation for innovation in terms of performance, cost, and responsiveness are numerous. With cloud computing, for instance, companies can accelerate innovation in the Internet of Things product development space at a previously impossible rate. Because of cloud computing, the Internet of Things (loT) industry has been able to create and release game-changing innovations that are reshaping the global economy. It has pushed more businesses, especially SMEs, into the cloud due to financial constraints.
Data Security and Privacy Concerns
Security and privacy issues may arise when using cloud computing due to the high number of third parties involved. Infrastructures in mobility, networks, endpoints, databases, the Cloud, web applications, and virtualization are all included. As a result, companies' immediate reservations about cloud computing continue to center on safety and privacy fears. Since the Cloud was designed to be used by many people, there are more potential attack entry points. As more people and devices connect to the Cloud, cybercriminals' chances of breaking in increase. Due to a lack of cloud expertise, many businesses cannot take advantage of the Cloud and other new technologies, causing them to lose ground in the marketplace and valuable resources. The shortage of IT workers with the necessary technical skills, especially in cloud computing, is to blame.
Increasing Government Initiatives
Businesses in the modern digital age are increasingly turning to the cloud for scalable and adaptable data storage. Consequently, governments around the world are spending money on cloud-computing infrastructure. The time it takes to process citizen-facing transactions is one area where governments could see significant productivity gains thanks to cloud computing's ability to streamline IT operations. Using cloud computing, governments can respond rapidly to citizen feedback and expand services as needed. The information generated by loT gadgets must be stored and processed, either locally or on a remote server. In many loT use cases, remote data hosting and analytics provide a more practical and cost-effective solution.
The global cloud computing market is segmented by model, deployment, application, and industry vertical.
Based on the model, the global cloud computing market is bifurcated into IaaS, PaaS, and SaaS.
The SaaS segment is the highest contributor to the market and is expected to grow during the forecast period. SaaS adoption is on the rise in the current market because of factors such as the evolving nature of business-to-business interactions, the availability of cutting-edge solutions, rising public understanding of the advantages of such solutions, and the imperative to gain a competitive edge. Due to its high customer lifetime value and low operating expenses, the model is seen as a promising financial opportunity, particularly by private equity firms keen on investing access funds in light of the shifting global tax landscape.
Based on deployment, the global cloud computing market is bifurcated into public, private, and hybrid.
The hybrid segment is the highest contributor to the market and is expected to grow during the forecast period. Due to the hybrid cloud's ability to help businesses save money and time while improving their data security, application speed, and overall IT management, an IBM study found that companies could gain a competitive edge by using it. More businesses are establishing hybrid cloud models and smart methods to improve business operations, resource utilization, cost optimization, user experience, and application modernization while maximizing benefits. Edge computing has emerged as a significant factor when it comes to encouraging businesses worldwide to adopt hybrid cloud models.
Based on application, the global cloud computing market is bifurcated into database management, business analytics, storage backup and recovery, application development and testing, integration and orchestration, content management, and others.
The business analytics segment is the highest contributor to the market and is expected to grow during the forecast period. With the rise of the algorithm economy, cloud providers are racing to develop cutting-edge analytical tools to offer their corporate clients. In the coming years, cloud analytics is predicted to alter the competitive landscape of the manufacturing and service sectors. Companies like Ingram Micro, General Electric, FedEx Corporation, and UPS are turning to cloud analytics to understand their markets better. IBM, Google, SAS, Microsoft, and Salesforce are significant providers of cloud-based analytics platforms.
Based on industry vertical, the global cloud computing market is bifurcated into IT and telecom, BFSI, manufacturing, government and public sector, retail and consumer goods, healthcare, energy and utilities, and media & entertainment.
The BFSI segment is the highest contributor to the market and is expected to grow during the forecast period. Due to rising demand in the BFSI sector, financial institutions are embracing digital transformation, with cloud computing playing a pivotal role. The BFSI sector has significantly benefited from cloud computing's decreased costs, increased innovation, strengthened client connections, and increased adaptability. Consumers' increasing reliance on cloud services for archiving and managing their data has contributed to this expansion. The BFSI sector is expected to benefit significantly from cloud deployment, particularly in payment gateways, online fund transfers, digital wallets, and unified customer experiences.
North America Dominates the Global Market
The global cloud computing market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
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North America is the most significant shareholder in the global cloud computing market and is expected to grow during the forecast period. The United States dominates the regional market regarding value share, while Canada is expected to increase. Because of the proliferation of major cloud providers in Canada, cloud computing has been gaining popularity. People in Canada want their government to provide services that are accessed online, and this demand has boosted the popularity of cloud computing. By transitioning to cloud-based technologies, the Canadian government supports the forward movement of emerging cyber trends. As a result of supportive government initiatives, cloud computing is gaining traction quickly across Canada.
Asia-Pacific is expected to grow during the forecast period. Market expansion in the region was fueled by countries like China and India's meteoric economic rise and the emergence of regional players like Alibaba Group. Demand in India's cloud computing market has risen thanks to government initiatives like Make in India, which have pumped a lot of money into the manufacturing and IT sectors. More importantly, the demand for cloud computing services is predicted to rise in the coming years due to numerous government initiatives, such as Make in India, which has attracted massive investments in the manufacturing and IT industries.
The Nordic countries are predicted to become profitable sites for various cloud investors with the highest CAGR forecast period in Europe. The Nordic countries, which include Finland, Sweden, and others, make up a developed market for cloud services. In response to the growing popularity of BYOD (Bring Your Device) and analytics, the manufacturing sector has begun to adopt cloud computing. These countries' vendors offer a wide range of cloud services that combine private, public, and hybrid clouds for mission-critical business settings. VMware claims that in these regions, public cloud deployment is more common than any other type.
The global cloud computing market’s major key players are
|Market Size||USD 1412.39 in Billion By 2031|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Model (IaaS, SaaS, PaaS), Deployment (Public, Private, Hybrid), Application, Vertical (IT and Telecom, Manufacturing)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Adobe, Alibaba, AWS, CenturyLink, Fujitsu, Google, IBM, Microsoft, NTT Communication, Oracle, Rackspace, SAP, Verizon, and Vmware are a few of the identified in the market.|
|Key Market Opportunities||The Technology Industry'S Substantial Growth Fuels The Cloud Computing Market|