Cloud Computing Market - Forecasts from 2023 to 2028

The global cloud computing market was valued at US$428.844 billion in 2021 and is expected to grow at a CAGR of 16.32% to reach US$1,235.408 billion by 2028.

Cloud computing is constantly using computer resources housed in a distant data center and controlled by a cloud services provider, such as programs, servers (both physical and virtual), data storage, development tools, networking capabilities, and more. These materials are made available by the CSP for a monthly subscription fee, or they are billed based on consumption. Emerging technologies like artificial intelligence (AI) and machine learning allow businesses to use such technologies, which promotes cloud expansion. The COVID-19 pandemic has emerged as a major threat to the world economy. Because of the pandemic, companies have allowed their employees to choose remote work, and this trend is anticipated to last for a while. Cloud computing can assist businesses in overcoming the obstacles to company continuity posed by lockdowns, work-from-home, social isolation, and other market mandates.

Factors driving the demand for the cloud computing market include the rising trend of Artificial Intelligence (AI) and surge in OTT platforms and applications.

The cloud computing industry is expanding because of the increased popularity of cutting-edge innovative technologies like artificial intelligence and machine learning and their quick adoption in cloud computing. Some of the most significant aspects that are considerably fuelling the growth of the cloud computing market include the increasing importance of customer satisfaction, the growing demand for controlling operating costs, and the rising need for controlling capital expenditure. The primary factors that have contributed significantly to the growth of the cloud computing market over the past few years include the increasing demand for various OTT platforms like Prime Video, Netflix, Hotstar, and so on, as well as the increased adoption of online communication tools like MS Teams, Zoom, Zoho and Skype. Companies have been forced by rapid digitization to upgrade and modernize their infrastructural landscape to increase cost-effectiveness and adaptability. Additionally, it is anticipated that during the forecast period, growing expenditures in the construction of reliable telecom and IT infrastructure will further fuel the expansion of the cloud computing market.

The increasing threat of cyberattacks

The threat of cyberattacks has grown significantly as digital technologies are being adopted at an increasing rate. Cybersecurity and data privacy are significant problems forh market participants and consumers of cloud computing services. Businesses and customers have experienced large-scale financial and non-financial damages because of cyberattacks. As a result, the service providers must cover the cost of maintaining higher security. Additionally, many small and medium-sized businesses are discouraged from using cloud-based services due to the significant initial capital costs.

Market Developments:

• In September 2022,the tech giant Google LLC introduced new data and analytics capabilities for its data cloud to preview a series of new and upgraded tools during the company's virtual user conference. The general availability of BigLake and Analytics Hub, both of which were in preview, and the addition of Log Analytics in Cloud Logging, which is now in preview, are among the new tools announced.
• In September 2020,Accenture announced the launch of Accenture Cloud, a US$3 billion investment spread over three years. It will assist clients across all industries quickly transform into "cloud first" businesses and accelerate their digital transformation to generate higher value at scale and speed. The world's largest cloud providers consider Accenture one of their top partners. Accenture's leadership extends from Software as a Service, provided through the business' Intelligent Platform Services, through its migration, infrastructure, and application cloud services, with around $11 billion (about US$34 per person in the US) in cloud sales.
• In January 2020,IBM announced the release of Advertising Accelerator with Watson. This first-to-market product uses artificial intelligence (AI) to forecast the ideal combination of creative components to promote high engagement and conversion for a specific audience. The IBM predictive solution uses Watson to develop marketing strategies intended to comprehend and engage customers while tackling business problems like targeting and personalization. Advertisers now have easier access to AI owing to IBM Advertising Accelerator with Watson, which helps to accelerate predictive models, improve creative performance and audience discovery, and provide actionable insights. Advertisers can use the new solution's continuous learning and prediction skills to better understand their audience's demographics and tastes and influence future media plans.

During the forecast period, manufacturing is anticipated to be the category with the greatest opportunity.

Due to the advantages of cloud services, such as real-time visibility and seamless data management, this sector is predicted to be a major user. Cloud service models benefit the manufacturing industry by merging cutting-edge technologies like big data, machine learning, artificial intelligence, the Internet of Things, and big data analytics. The manufacturing industry's increasing use of cloud services for data storage, managing the supply chain, and organizing the company's assets are anticipated to fuel this segment's growth throughout the forecast period.

The BFSI segment gains from cloud computing in terms of cost management, flexibility, accelerated innovation, and enhanced customer interaction. Furthermore, the expansion of the BFSI segment in the market is responsible for the increased usage of cloud services for storing and managing consumer-related data. Digital wallets, payment gateways, online money transfers, and unified user experiences are anticipated to be crucial in the BFSI sector soon, which will have a big impact on the expansion of the cloud computing market.

The North American region is expected to hold the highest market share in cloud computing.

North America is an early adopter of cutting-edge technology such as AI, VR/AR, ML, big data analytics, and IoT. The uptake of cloud computing services results from the growing focus on adopting cutting-edge digital technology by North American enterprises to improve operations and cut costs. Huge IT powerhouses like IBM, Oracle, Google, Apple, etc have considerably enhanced the expansion of the cloud computing business in North America. The region's manufacturing, healthcare, and other significant sectors have all quickly adopted cloud computing technologies, creating a tremendous demand for these services. The easy availability of ICT services and favorable government efforts ahas significantly helped the expansion of cloud computing market.

Market Segmentation:

By Type

• Private
• Public
• Hybrid

By Service

• Platform-as-a-Service
• Software-as-a-Service
• Infrastructure-as-a-service

By Organization Size

• Large Enterprises
• Small and medium Enterprises

By Industry

• Communication and Technology
• BSFI
• Manufacturing
• Healthcare
• Government
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Thailand
• Indonesia
• Taiwan