Cloud Computing Market is Rapidly Growing at a CAGR 17% By 2032

Published Date : 12 Apr 2024

The global cloud computing market size surpassed USD 559.2 billion in 2023 and is estimated to gain around USD 2297.37 billion by 2032, growing at a CAGR of 17% from 2023 to 2032. The growth of the cloud computing market is due to increasing demand in the life science and healthcare industries as well as consumer and retail goods.

Cloud Computing Market Size and Growth Rate From 2023 to 2032

Market Overview

The cloud computing market plays an important role in customer support, the public sector, and healthcare sectors. Instead of maintaining, owning, and buying physical data centers, cloud computing is the on-demand delivery of IT resources over the Internet with pay-as-you-go pricing. The market is attributed to an increase due to factors such as pay-as-you-go models, Omni cloud systems, and hybrid models, as well as to developing business performance. Due to on-demand availability, large businesses are rapidly adopting cloud services. It has estimated the fastest growth owing to the growing adoption of 5G technologies, edge computing, big data, machine learning, and artificial intelligence. These modern technologies help to drive the growth and demand of the market.

Green computing of cloud computing to fuel the market growth

By lowering energy use, using computer resources, and maximizing cloud computing, e-waste reduction can support environmental sustainability. By utilizing technologies like load balancing and virtualization to maximize the use of cloud providers, computer resources can operate large data centers built for energy efficiency, resulting in smaller carbon footprints and lower energy usage. These advantages of cloud computing give companies the capacity to use cutting-edge technology offered by cloud service suppliers while maximizing data security, scalability, cost savings, and productivity. They also allow them to concentrate on their major capacities. These green computing factors may drive the growth of the cloud computing market.

However, limited control and customization may restrain the growth of the cloud computing market. Using platforms and standardized services offered by the cloud service supplier is a common part of cloud computing. As a result, organizations may have less capacity to control and customize their security measures, applications, and infrastructure. Sometimes, it may be difficult for some companies to improve cloud computing services to specifically match their requirements if they have special demands or compliance requirements. Hence, it may restrain the growth of the market.

Cloud Computing Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 559.2 Billion
Projected Forecast Revenue by 2032 USD 2297.37 Billion
Growth Rate from 2023 to 2032 CAGR of 17%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Cloud Computing Market Key Players

  • Workday, Inc.
  • Huawei
  • SAP SE
  • Inc.
  • Oracle Corporation
  • Microsoft Corporation
  • International Business Machines Corporation
  • Google LLC
  • Inc.
  • Alibaba Group Holding Limited
  • Adobe Inc.

Recent Development by Huawei

  • In April 2024, Huawei launched a new product, cloud computing instances, for small-medium businesses. The Huawei innovative instance is called HECS X. This cloud instance is a more comfortable and flexible version of HECS l.

Recent Development by NVIDIA

  • In March 2024, NVIDIA launched Cloud Quantum, a computer simulation microservices available through major cloud suppliers. The NVIDIA simulation platform helped scientists with algorithm research and advanced quantum computing.

Regional Insights

Asia Pacific is expected to grow fastest in the forecast period. Rapidly growing developing countries like India and China are contributing to the growth of the cloud computing market. In the Asia Pacific region, the digitalization and explosion of data are influencing factors in market growth. Businesses are processing and producing vast volumes of data due to the advancement of technologies like artificial intelligence, big data, and the Internet of Things.

In India, cloud computing technology has become popular. Consumers want to invest more in cloud computing due to its increased cost predictability, maintenance, security, and scalability. Due to its low responsibility and low skill bar, SaaS is the most interesting of the various models of cloud computing in India. The big three cloud service suppliers, GCP, AWS, and Azure, continue their investments in India. Microsoft has planned to launch its largest data center in India. These innovative investments by major companies have influenced the growth of the cloud computing market in India.

  • For instance, In April 2024, E2E Cloud decided to collaborate with IIT Ropar’s iHub-AwaDH. The purpose of this collaboration is to provide cloud-based solutions to AI startups in India. It will drive competitiveness and innovation in the Indian AI market.

North America dominated the cloud computing market in 2023 due to the early acceptance of advanced technologies such as the cloud, Internet of Things, robotics, Blockchain, and artificial intelligence. The domination of North America is due to countries like the U.S.  and Canada, which are the dominating countries when it comes to technological advances and utilization. The U.S. has the largest share in the North American region.

The U.S. has some of the biggest cloud services providing companies, including Amazon Web Services, NVIDIA, IT Svit, Microsoft, Vrinsoft Technology, CodeBright, VMWare, Verizon, Zymr, and so on. Apart from that, the majority of the companies in the U.S. and out of the U.S. are using the cloud-based services provided by these companies, which boosts the growth of the cloud computing market.

  • For instance, The US Department of Defense has announced significant advancements in developing its cloud computing strategic initiatives.

Market Potential and Growth Opportunities

AI will dominate the cloud computing market

The next platform of cloud computing will be dominated by artificial intelligence (AI), which will be used to improve consumer productivity, functional processes, and customer experiences. The president of data modernization at Rocket Software said that this artificial intelligence will need to be influenced by a more complete view of trusted information, which will need to be consistently combined into cloud computing from back-end transactional systems. So many industries are already using AI to smooth cloud computing operations, with a rising emphasis on security detection. So, AI is the most crucial invention in cloud computing and may drive the growth of the cloud computing market in the coming years.

Cloud Computing Market News

  • In January 2024, Vodafone and Microsoft announced a ten-year strategic alliance to bring digital services, cloud, and generative AI to over 300 million customers, public sector organizations, and businesses across Europe and Africa. The enterprises can collaborate to boost the experience of Vodafone consumers with Microsoft’s generative AI.
  • In April 2024, AWS launched Deadline Cloud for content providing. This content renders management tasks for creating visual effects and computer-generated 3D and 2D graphics.
  • In March 2024, the government of Malaysia and Google launched new initiatives for artificial intelligence (AI) skills and cloud. They have aimed to provide 500 Google certificates to 161 organizations and improve public service delivery with the cloud.
  • In March 2024, in Finland, IQM Quantum Computers launched IQM Resonance, a cloud service for modern research and exploration. This has given scientists seamless, easy access to IQM’s modern systems to plan, benchmark, test, and develop their quantum algorithms.

Market Segmentation

By Deployment

  • Private
  • Hybrid
  • Public

By Service

  • Software as a Service (SaaS)
    • Customer Relationship Management (CRM)
    • Enterprise Resource Management (ERM)
    • Human Capital Management (HCM)
    • Content Management
    • Collaboration and Productive Suites
    • Supply Chain Management (SCM)
    • Others (Business Intelligence (BI) and Analytics, PPM and operations and manufacturing applications)
  • Infrastructure as a Service (IaaS)
    • Primary Storage
    • Disaster Recovery and Backup
    • Archiving
    • Compute
  • Platform as a Service (PaaS)
    • Application Development and Platforms
    • Application Testing and Quality
    • Analytics and Reporting
    • Integration and Orchestration
    • Data Management

By End User

  • IT and Telecom
  • BFSI
  • Manufacturing
  • Healthcare
  • Retail and Consumer Goods
  • Media and Entertainment
  • Energy and Utilities
  • Government and Public Sector
  • Others

By Organization Size

  • Small and Medium-sized Enterprises (SMEs)
  • Large Enterprises

By Workload

  • Storage, Backup, and Disaster Recovery
  • Application Development and Testing
  • Database Management
  • Business Analytics
  • Integration and Orchestration
  • Enterprise Resource Management
  • Collaboration and Content Management

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