The global cloud services market size was valued at USD 454.20 billion in 2022 and it is expected to hit around USD 2192.54 billion by 2032, growing at a registered CAGR of 17.10% from 2023 to 2032.
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Cloud services permit enterprises to do better because of agile deployment, security and data management, utility-based sharing models, low total cost of ownership and high-level computing. In addition, adoption of emerging technologies like artificial intelligence (AI) and machine learning facilitates cloud growth by allowing businesses to tap into AI capabilities. Cloud computing enables the effective and speedier adaptation and operation of corporate activities in changing market settings. It simplifies technology consumerization. It has opened up hitherto unseen opportunities for creating very engaging consumer experiences. Cloud computing has influenced people's and enterprises' behavior, allowing many lines of business to work around technology rules.
Cloud trends are influencing enterprises' investment plans, digital business decision-making processes, and vendor and technology choices. Corporations' key concerns are data security and privacy, since information storage, usage, and transfer must be digitally safeguarded. As per surveys, around 60% of business-sensitive data on hard drives is held unsafely.
According to a recent analysis, worldwide Cloud infrastructure services investment surged 34% to $55.9 billion in the January-March quarter (Q1), as organizations prioritized digitalization efforts to overcome market difficulties. According to market research company Canalys, the top three cloud service providers profited from increasing adoption and size, growing 42 percent year on year and contributing for 62 percent of global consumer expenditure. Google Cloud was the best performing of the top three, rising by 54% in the most recent quarter to represent for 8% of the market.
As a result of the epidemic, foremost workplace shifts is predicted. It is transforming how organizations employ smart technologies like mobile supercomputing, IoT, big data, and artificial intelligence to drive Industry 4.0, also known as the fourth industrial revolution. The cloud-computing industry boosted demand in the third quarter of 2020 as organizations continued to transfer workloads from traditional channels to digital formats. Countless firms in a variety of industries have adopted the work-from-home model to preserve employee well-being and operational efficiency, driving up demand for Software-as-a-Service (SaaS)-based solutions.
The rising usage of Video-on-Demand (VoD) has boosted the demand for Infrastructure as a Service (IaaS) to match customer expectations. Furthermore, in healthcare, the demand is constant, and this business generates a large amount of data that must be managed for the benefit of the patients. Data may be easily shared among medical service providers through cloud services, providing patients to receive healthcare solutions. This is assisted by AI and machine learning in cloud services since they shorten the time it takes a healthcare practitioner to examine data and provide the best answer to patients.
Report Scope of the Cloud Services Market
|Market Size by 2032||USD 2192.54 Billion
|Growth Rate from 2023 to 2032||
CAGR of 17.10%
|North America Share in 2022||42%|
|Private Deployment Segment Share in 2022||47%|
|Forecast Period||2023 to 2032|
|Segments Covered||Type, Services, Organization Size, Verticals, Geography|
|Companies Mentioned||Alibaba Group Holding Limited, Amazon Web Services, Inc, Cisco Systems, Inc, Dell, Technologies Inc, Google Llc, Hewlett Packard Enterprise Development Lp, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Rackspace Hosting, Inc, RyohinKeikaku Co. Ltd., Isagenix International LLC|
In 2022, the private deployment segment topped the cloud services market with a revenue share of more than 47%. Private clouds have computational capabilities as it offers organization with higher self-service, scalability, and flexibility.
The hybrid cloud is anticipated to grow at a rapid rate over the forecast period. The increase is attributed to the increasing adoption of cloud-based solutions among the SMEs in order to boost productivity and reduce operational costs. Furthermore, surging demand for scalable, secure, and cost-effective solutions is fostering the private cloud demand among the large enterprises. During the forecast period, public cloud services segment is projected to dominate the market in terms of market share. The growth can be attributed to digital transformation, increased penetration of connected devices, and increased automation among small & medium-sized businesses. In a private cloud, you host your own data centre or intranet. You own, maintain, update, and upgrade your own server, networking, software, or platform cloud environment using your own firewall and security solutions to protect everything.
In 2022, software as a service (SaaS) had the largest market share. This is due to its ease of deployment, cost effectiveness, and low maintenance costs. During the projected timeframe, infrastructure as a service (IaaS) is anticipated to grow at the fastest rate. The growth can be attributed to the surging demand for hybrid cloud platforms as well as the growing preference for business storage of data and security solutions.
SaaS solution segment s is expected to grow at rapid pace owing to surge in the adoption by BFSI, media and entertainment sectors. For instance, Netflix application is web-based SaaS subscriptions platform that offers flexibility to use. As of 2022, Netflix SaaS application has more than 221.0 million users. Such high users of the SaaS based applications have created massive demand for the market growth.
In 2022, North America led the worldwide market with a revenue share of more than 42%. Companies in the United States place a high priority on digitalization and are frequently regarded as pioneers of next-generation technologies such as IoT, big data analytics additive manufacturing, connected industries, ML, AR, AI, and VR, as well as the most recent telecommunications technologies. Apple Inc., for example, launched its cloud computing infrastructure in June 2020 to update and expand its cloud-based solutions and services such as News Plus, Apple Music, and iCloud, and others.
During the projected period, Asia Pacific is projected to grow at an exponential rate. The rising demand for cloud-based solutions in the manufacturing and healthcare sectors is driving the expansion. Furthermore, rising demand for smart electric vehicles, rising penetration of internet, and rising digitalization propelling regional growth.
Key Market Developments
Some of the prominent players in the global cloud services market include:
Segments Covered in the Report
By Organization Size
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