The global cloud computing market size was valued at USD 446.51 billion in 2022 and is expected to hit USD 1,614.10 billion by 2030 with a registered CAGR of 17.43% from 2022 to 2030.
Key Takeaway:
Growth Factors
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.
Report Scope of the Cloud Computing Market
| Report Coverage | Details |
| Market Size by 2030 | USD 1,614.10 Billion |
| Growth Rate from 2022 to 2030 |
CAGR of 17.43% |
| North America Market Share in 2021 | 40% |
| Software as a Service (SaaS) Segment Market Share in 2021 | 55% |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| 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. |
Deployment Insights
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.
Service Insights
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.
End User Insights
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.
Region Insights
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.
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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