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Cloud Migration Service Market

Cloud Migration Service Market: Information by Service Type (Managed Service and Professional Service), Deployment Mode (Public Cloud), Application, and Regions-Forecast till 2030

Published At : 19 Sep, 2022
Updated At : 20 Sep, 2022
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Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
24.9 %
Fastest Growing Market:
North America
Largest Market:
Europe 

The global cloud migration service market size was valued at USD 136 billion in 2021. It is expected to reach USD 1,006.00 billion by 2030, growing at a CAGR of 24.9% during the forecast period (2022–2030). Cloud migration refers to moving apps, data, or other business components to a computing environment hosted on the cloud. An enterprise carries out different cloud migration processes. Moving applications and data from an on-premises or local data center to the public cloud, from one cloud platform or provider to another (cloud-to-cloud migration), and out of the cloud through cloud repatriation, reverse cloud migration, or cloud departure. The growth of the global market for cloud migration services is significantly driven by increased business agility and automation across enterprises.

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Market Dynamics

Global Cloud Migration Service Market Drivers

Pay-As-You-Go Model

The fundamental pay-per-use cloud computing model allows users to scale their infrastructure and application services. Cloud will enable companies to subscribe to or rent platforms, infrastructure, systems, technologies, and data services to scale up or down according to their needs, boosting the market growth in the coming years. Cloud migration services provide on-demand scalability, especially during seasonal traffic spikes, development, and testing, which has increased their demand among small businesses. Cloud services that enable a "build and deploy" environment should boost market growth. Cloud migration services eliminate the need to set up servers and install the required OS, allowing enterprises to jump-start server and resource setup with a pay-as-you-go model. Virtualization and cloud computing migration services reduce organizational space and maintenance costs, including cooling. Pay-as-you-go helps organizations reduce to a single data center.

Reduced Capex and OpEx

A business can modernize with agility and flexibility when it invests heavily in IT. Many companies purchase operational expenses (OpEx) and compare capital expenses (Capex) for public cloud services that use a pay-as-you-go model, which offers the most flexibility for controlling costs. This is due to the increase in the need to thrive in ever-changing markets and to meet changing client needs at high speed. Locking into a long-term cloud strategy is also a requirement for many businesses. In contrast, OpEx flexibility offers a flexible approach to IT infrastructure with a pay-as-you-go cloud service. The aforementioned vital elements are thus anticipated to propel the market for cloud migration services during the forecasted period. Additionally, cloud migration services enable businesses to provision, de-provision, and deploy IT infrastructure seamlessly and cost-effectively.

Global Cloud Migration Service Market Restraints

High Risk of Vendor Lock-In

Vendor lock-in occurs when a company relies on a single vendor's service. Businesses that choose cloud computing must consider the consequences of switching vendors later. The market may be limited by technology infrastructure and a single proprietary vendor. Migration processes have legal and financial obligations, and a vendor could fail overnight. A cloud vendor provides software or infrastructure as a service over the internet in cloud computing. While cloud-hosted apps offer SaaS, cloud-hosted servers provide IaaS. When migrating databases in a cloud environment, where data reformatting is required, there is a high reliance on the vendor. Vendor lock-in could hinder market expansion, but many large enterprises have overcome the lack of standardization with multi-cloud and hybrid cloud deployments.

Global Cloud Migration Service Market Opportunities

Increasing Investments in Cloud Globally

There are opportunities for the market for cloud migration services to grow in developing nations like India, China, Brazil, and Africa. This is explained by the fact that these nations are developing and have limited financial resources, necessitating cost-effective solutions. Utilizing cloud computing services can reduce IT spending in this circumstance. Cloud computing services are one example of how modern technology is helping businesses of all sizes prepare for future success. It is anticipated that the struggle of developing economies to achieve a competitive advantage will present a profitable opportunity for market expansion for cloud computing services during the forecast period.

Segmental Analysis

The global cloud migration service market is segmented by service type, deployment mode, application, organization size, and industry vertical.

On the Basis of Service Type

Based on service type, the global cloud migration service market is bifurcated into managed service and professional service.

The managed services segment contributed the most to the market and is expected to grow at a CAGR of 24.0% during the forecast period. PaaS, IaaS, and SaaS are included in the managed service segment. These services come with every element of a solution package and a tailored program created to address requirements. Implementation services ensure that the solution is carefully planned, installed, and configured. The demand for managed cloud migration services is also stimulated by the growing need to collect data throughout its lifespan, from conception and storage to archiving at the appropriate time. The main factors influencing the adoption of software as a service in cloud computing are more accessible system and application framework administration and global access to server resources.

Cloud management solutions assist with performance management, auditing, and security, as well as disaster recovery and contingency planning. Cloud security solutions include things like multi-service packs and multi-layered services, among other things. Primary consulting services help organizations analyze feasibility and cloud infrastructure designs and provide networking design for public cloud services, including VPC, VPN, ACL, and security groups.

On the Basis of Deployment Model

Based on the deployment model, the global cloud migration service market is bifurcated into public, private, and hybrid clouds.

The public cloud segment owns the highest market share and is expected to grow at a CAGR of 22.8% during the forecast period. A public cloud is a collection of computers or a network of computers linked to the fundamental cloud computing model. Physical resources like software and data storage can be made available by service providers in the public cloud over the internet. The lower costs of public clouds are due to third-party providers providing the services. The rise in service elasticity needs has significantly increased the demand for the public cloud. Moreover, by using public clouds, businesses can reduce additional costs because they must only pay for the resources they use. This benefit dramatically fuels the market for cloud migration services.

A hybrid cloud offers both private and public cloud features. A business could create a private cloud for its operational database and use web server services for general data. The expansion of capacity and network optimization are two advantages of hybrid clouds. The hybrid cloud offers a platform for both private and public use. For businesses, combining the public and private clouds is advantageous.

On the Basis of Application

Based on application, the global cloud migration service market is bifurcated into project management, infrastructure management, and security and compliance management.

Infrastructure management accounted for the largest share of the market and is anticipated to grow at a CAGR of 22.1% during the forecast period. Infrastructure management is a collection of procedures that aids organizations in configuring the infrastructure, managing release schedules, and setting up the production environment. Infrastructure management serves as the primary application for cloud services for companies that offer enterprise-grade VoIP solutions. The increased demand for agile infrastructure development projects is anticipated to fuel market expansion.

Many activities are carried out by modern businesses and organizations in the form of projects. Cloud project management applications are popular because they provide greater transparency throughout the project lifecycle. The growth of the project management application segment is primarily driven by the demand for automated solutions to monitor business transformation services and the surge in tracking the transformation services' development status. Project management solutions are not only limited to software development but also include transformations or migration projects.

On the Basis of Organization Size

Based on organization size, the global cloud migration service market is bifurcated into large enterprises and small and medium enterprises.

The large enterprise segment contributed the most to the market and is expected to grow at a CAGR of 24.2% during the forecast period. Successful industrial interoperability, modularity, and revolutions have consistently provided a competitive edge for large businesses. Large businesses are using cloud platform solutions because they must be present in the digital era. The usefulness of these solutions goes beyond simply resolving urgent business issues. In addition, they boost the efficiency of applications in serving as launchpads for subsequent expansion.

Small and medium-sized businesses (SMEs) are increasingly using cloud services to get around and secure the IT complexities and security issues. SMEs seek solutions to gain a competitive edge over their rivals as they become more sophisticated in managing and deploying infrastructure and applications. SMEs are using modern technologies to maintain efficient and cost-effective business operations.

On the Basis of Industry Verticals

Based on industry verticals, the global cloud migration service market is bifurcated into BFSI, manufacturing, healthcare and life sciences, IT and telecommunication, consumer goods and retail, government and public sector, and media and entertainment.

The BFSI segment contributed the most to the market and is expected to grow at a CAGR of 19.1% during the forecast period. Over a billion customers use online banking services every day worldwide due to the rise in mobile commerce in recent years. As a result, massive amounts of data have been generated, which banks and other financial services organizations can use to monitor and forecast trends and opportunities. To adopt sophisticated customer intelligence solutions that improve the banks' relationships with customers, banks must migrate to the cloud. The BFSI sector's adoption of cloud migration is driven by a rise in the demand for security and risk management.

Telecom providers primarily rely on a sizable computing infrastructure running various applications to manage and provide services. IT and telecom service providers are moving to the cloud to reduce their reliance on internal computing resources. The mobile revolution is one of the leading forces behind cloud migration in the IT and telecommunications industries.

Regional Analysis

By region, the global cloud migration service market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Europe Dominates the Global Market

Cloud-Migration-Service-Market-Regional-Analysis

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Europe is the largest global cloud migration service market shareholder and is expected to grow at a CAGR of 24.3% during the forecast period. The UK, Germany, France, Russia, Italy, and the rest of Europe make up the European region's market for cloud migration services. As international cloud service providers expand their businesses in Europe, the area is increasingly adopting multi-cloud and hybrid cloud environments. The growth of the Europe cloud migration services market is driven by factors like an increase in the adoption of cloud communications to offer a more flexible communication environment.

North America is expected to grow at a CAGR of 21.8%, generating USD 231.32 billion during the forecast period. The United States and Canada are included in the region of North America for cloud migration services. Due to the significant presence of numerous large industries, North America is one of the largest markets for cloud migration services. Since North America was one of the first regions to adopt cloud computing services, it is anticipated that it will lead the way in developing and implementing cloud migration services. This area has demonstrated a willingness to adopt this technology across all industries. The IT industry has already embraced this technology. In North America, the expanding healthcare industry is a lucrative market for cloud computing services.

The market study for cloud migration services in Asia-Pacific takes into account China and India, Japan, South Korea, Australia, and the rest of Asia-Pacific. Asia-Pacific is seeing an increase in demand for public cloud application services as businesses look to advance their digital transformation. Business intelligence, Big Data analytics, compliance and risk management, and enterprise asset management are among the business applications for which companies in the region use cloud services. The region's growing adoption of software-as-a-service (SaaS) and platform-as-a-service (PaaS) across various industries is one of the critical drivers for workload and application migration from on-premise infrastructure to cloud environments.

Cloud migration services are developing in Latin America as a result of artificial intelligence (AI), the Internet of Things (IoT), and big data. Governments in the gulf region are funding public cloud initiatives to enhance cloud service availability and the uptake of emerging technologies by SMEs in the Middle East. LAMEA is experiencing a proliferation of data centers throughout the region. The demand for cloud migration services in LAMEA is increasing as data center services are increasingly being adopted by industries like BFSI, media and entertainment, and government agencies.

Competitive Analysis

List of key cloud migration service market companies profiled

  • Amazon Web Services
  • Cisco Systems Inc
  • DXC Technology Company
  • Google LLC
  • International Business Machines Corporation
  • Microsoft Corporation
  • NTT Data Corporation
  • Rackspace Hosting Inc
  • Rivermeadow Software Inc
  • Vmware Inc.

Recent Developments

  • September 2022- Amazon CloudWatch metrics for data protection jobs can now be viewed centrally in the AWS Backup console due to AWS Backup.
  • August 2022- FCM Bank Malta is utilizing Temenos Platform and DXC Technology to Modernize its Core Banking System.

Global Cloud Migration Service Market: Segmentation

By Services

  • Managed Services
  • Professional Services

By Deployment Mode

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

By Organization Size

  • Large Enterprises
  • Small and Medium Enterprises

By Applications

  • Project Management
  • Infrastructure Management
  • Security and Compliance Management
  • Others

By Industry Vertical

  • BFSI
  • Manufacturing
  • Healthcare and Life Sciences
  • IT and Telecommunications
  • Consumer Goods and Retail
  • Government and Public Sector
  • Media and Entertainment
  • Others

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • LAMEA
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