The global cloud computing market size was valued at USD 480 billion in 2022 and is expected to hit USD 2297.37 billion by 2032 with a registered CAGR of 17% from 2023 to 2032.
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Key Takeaway:
The U.S. cloud computing market size was reached at USD 97.44 billion in 2022 and is predicted to be worth USD 458.45 billion by 2032 with a CAGR of 16.80%% from 2023 to 2032.
North America was the leading cloud computing market with highest revenue share in 2022. US emphasizes the adoption of advanced technologies across the industries and prefers digital transformation. US is one of the early adopters of various novel technologies like AI, IoT, AR/VR, ML, connected industries, additive manufacturing, and big data analytics. Furthermore, the rapid adoption of the 4G and 5G technologies owing to the presence of strong and well-established IT and telecommunications infrastructure. Moreover, the presence of tech giants like Amazon, Microsoft, Apple, and Google have significant contributions in the growth of the North America cloud computing market.
Asia Pacific is expected to witness the highest CAGR during the forecast period. Rapidly rising emerging economies like China and India and the emergence of regional tech giants like Alibaba are contributing to the market growth. Furthermore, various government initiatives like Make in India has attracted huge investments in the manufacturing and IT industry, which is expected to boost the demand for the cloud computing services in the forthcoming years.
The rising popularity of the latest novel technologies like artificial intelligence and machine learning and its rapid adoption in the cloud computing is empowering the growth of the global cloud computing market. There has been a rapid increase in the technological advancements since the outbreak of the COVID-19 pandemic across the developed and the developing economies. The cloud computation is enabling the enterprises to sustain their business functions amid the rising adoption of work from home model. The cloud computing technology enables the enterprises to efficiently store, access, and manage critical data. With the rising adoption of the smartphones, laptops, and internet, the need for storing and processing huge volumes of data has significantly increased that enables the enterprises to offer customer-centric services to their customers and clients.
The rising focus on customer satisfaction, increasing need for controlling operational expenditure, and need for controlling capital expenditure are some of the most prominent factors that are significantly driving the growth of the global cloud computing market. Data security, fulfilling compliance requirement, and quick data recovery are major factors that boost the demand for the cloud computing services across the globe.
The rising demand for the various Over the Top (OTT) platforms such as Amazon Prime, Netflix, Disney+Hotstar, and Apple TV along with the increased adoption of the online communication platforms like Microsoft Teams, Google Meet, Zoom, and Skype are the major factors that has contributed significantly towards the growth of the cloud computing market in the past few years. Rapid digitization has compelled the various organizations to digitize and modernize their infrastructural landscape boost cost efficiency and agility. Furthermore, the rising investments in the development of strong telecommunications and IT infrastructure is expected to further fuel the growth of the global cloud computing market during the forecast period.
In June 2023, Smart Nation Singapore and Digital Government Office launched government cloud cluster platform based on artificial intelligence. The government agencies have partnered with Google Cloud for boosting the acceptance of artificial intelligence solutions in the public sector of Singapore. The acceptance of cloud computing by government agencies serves as a significant driver for the cloud computing market.
Governments across the globe are focused on accepting cloud computing solutions for validating security, scalability and cost-effectiveness of deployed technology. This in turn encourages private sector organizations to follow suit. This acceptance also fosters innovation in the public sector while providing the local cloud-solution providers with continuous and stable revenue. All these combined effects with the government acceptance are thus observed to fuel the market’s growth.
Unstable or lack of proper internet connectivity in underdeveloped areas poses a challenge for the cloud computing market as cloud service heavily depend on a reliable and fast internet connection. Inconsistent access can lead to slow data transfers, service disruptions and reduced usability of cloud applications, limiting the benefits of scalability and remote access that cloud computing offers. This hinders the adoption of cloud services in these regions, impacting the growth and profitability of cloud providers. Thus, the unstable internet connectivity in underdeveloped areas is observed to be the restraint for the market.
The integration of specialized computing solutions as per the industry’s requirements presents a significant opportunity for the cloud computing market to grow. The integration of such solutions enables more efficient and tailored processing of specific tasks. Cloud solutions providers can offer specialized hardware and accelerates as services, allowing customers to access these resources without the need for large investments in hardware infrastructure. With the specialized solutions, the workload can be managed, and cost can be optimized. Thus, as industries start focusing on integrating specialized computing solutions, the market for cloud computing solutions is expected to grow. RCH Solutions, based in the United States is one of the most prominent providers of specialized computing solutions. The company offers specialized solutions to help research and development teams accelerate the delivery of scientific breakthroughs.
Regulatory hurdle for the adoption of cloud computing solutions is a major challenge for the market. Varying laws and regulations across different countries and regions can impact data privacy, security and compliance. Providers must navigate these complexities, adapting their services to meet different standards. This can slow down the expansion, increase costs of setting up the cloud computing systems and create uncertainty for both providers and users. Additionally, such regulations may restrict data sharing across borders, limiting the seamless global nature of cloud services. Thus, regulatory hurdles are observed to be a challenge that the global cloud computing market needs to address.
| Report Coverage | Details |
| Market Size by 2032 | USD 2297.37 Billion |
| Growth Rate from 2023 to 2032 |
CAGR of 17% |
| North America Market Share in 2022 | 40% |
| Software as a Service (SaaS) Segment Market Share in 2022 | 55% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Deployment, Service, End User, Organization SizeWorkload, Geography |
| Companies Mentioned, | Adobe Inc., Alibaba Group Holding Limited, Amazon.com Inc., Google LLC, International Business, Machines Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc., SAP SE, Workday, Inc. |
Based on deployment, the private deployment segment garnered highest revenue share in 2022. The private deployment cloud computing services are available to a small users groups. The major features of private deployment segment includes self-service, elasticity, and scalability that makes it more adaptable by the enterprises. The private clouds offers higher security and privacy for the third party service providers by using internal hosting and firewalls that ensures enhanced data protection.
The hybrid deployment is anticipated to be the most opportunistic segment during the forecast period. It is an integration of the public and private cloud models. The hybrid models is gaining traction among the industries to enhance their cost optimization, business model, application modernization, business operations, and user experience. The rapid emergence of the edge computing is expected to boost the demand for the hybrid clouds across the enterprises all over the globe in the upcoming future.
Software as a Service (SaaS) was the dominant segment in 2022. It is estimated that there is a rapid rise in the number of enterprises shifting towards cloud. More than 70% of the companies are shifting majority of their application to the Software as a Service (SaaS) platform. The increased adoption of remote working has resulted in a significant rise in the demand for the SaaS platform and this trend is expected to continue over the forecast period.
With the SaaS products experiencing a strong growth across the globe, its total cost of ownership (TCO) is expected to become equal to that of the on premise models. The surging number of businesses providing cloud based services and growing demand for SaaS delivery models is anticipated to boost the growth of the SaaS segment. SaaS offers great flexibility, options, and web based subscriptions that help is accessing program remotely. All these factors are boosting the growth of this segment and SaaS is also expected to be the fastest growing segment during the forecast period.
Depending on the end user, the BFSI segment garnered highest revenue share in 2022. A significant rise in the online banking activities is a major driver of the cloud computing market in the BFSI sector. Cloud computing helps the BFSI to control expenses, increase flexibility, boost innovation, and improve client connection. Furthermore, the rising adoption of cloud services for storing and administration of the consumer related data is attributable to the growth of the BFSI segment in the market. Online money transfer, unified customer experience, digital wallets, and payment gateways are expected to play a crucial role in the BFSI industry in the forthcoming future, which will have a significant impact on the growth of the cloud computing market.
The manufacturing is expected to be the most opportunistic segment during the forecast period. This industry is anticipated to be a prime user of the cloud services due to its benefits like real-time visibility and seamless management of data. The cloud service models helps the manufacturing sector by incorporating novel technologies like big data, machine learning, artificial intelligence, internet of things, and big data analytics. The rising adoption of the cloud services in the manufacturing sector for storing information, supply chain handling, and planning enterprise resources is expected to boost the growth of this segment during the forecast period.
Key Market Developments
Some of the prominent players include:
Segments Covered in the Report
(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)
By Deployment
By Service
By End User
By Organization Size
By Workload
By Geography
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