Cloud Computing Market Size & Analysis Report by Service Model, By Organisation Size, By Workload, and By Industry Vertical and By Region – Global Opportunities & Forecast, 2021-2028
Published Date: Feb-2022 | Report Format: Excel/PPT | Report Code: UP549A-00-0620
GMI Research analysis indicates that the Cloud Computing Market estimated at USD 288.5 billion in 2020 and is slated to register a double digit CAGR of 19.6% over the period, 2021-2028 and is projected to reach USD 1,207.8 billion in 2028 due to rapid digital transformation among various industries, growing penetration of the internet and smart devices at the global level.
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Key Drivers
Rapid digital transformation among various industries, rising penetration of the internet and smart devices globally, followed by the growing usage of big data, are prominent factors contributing to the rising demand for cloud services globally. Moreover, the increasing adoption of the Internet of Things (IoT), 5G, Machine Learning (ML), and the use of real-time analytics by Artificial Intelligence (AI) will propel the adoption of cloud technology amongst large organizations. Increasing adoption of Cloud computing architecture to help operate the business in an efficient and faster ways and adapt the changing market environment rapidly. These benefits of switching to an on-cloud company will drive the market growth.
As per the World Economic Forum, the fourth industrial revolution paved the way to adopt advanced technologies such as IoT, Artificial Intelligence, and cloud computing. Hence, companies across various verticals are using cloud computing to run these advanced technologies. Furthermore, the accelerating adoption of Infrastructure as a Service (SaaS), Software as a Service, and Platform as a Service (Paas), especially among the Small and Medium Enterprises (SMEs), is an additional factor surging the demand for cloud services. To support the acceptance of innovative technologies across different industries like retail, BFSI, consumer goods, manufacturing, etc., the government of the developed and developing economies is emphasizing launching initiatives and programs. The UAE government has introduced digital initiatives and programs such as the 5G, Digital Invoicing, Smart Dubai, and several other technology-related programs. This initiative will create numerous opportunities and surge the demand for cloud computing services in the coming years. Moreover, the preference of enterprises has significantly shifted towards digital transformation, and the rising focus on offering exceptional customer experience are other vital factors that strengthen the adoption of cloud computing services. With the growing volume of data produced on mobile apps and websites, organizations are increasingly emphasizing on developing customer-centric applications to ensure customer satisfaction. Thus, the increasing adoption of the cloud to shift its workload to a cloud platform in order to help them emphasize of key business tasks will strengthen the market. Other factors such as the growing need to reduce risk, minimize infrastructural and storage complications and enhance business functioning will bolster the market growth.
The emergence of the COVID-19 has abruptly changed the way we work and workplaces altogether, and it has emerged a new way of working. Work from home became mainstream to protect the safety, well-being of workers and to manage business continuity. This shift from workplaces to work from home has created tremendous opportunities for cloud services such as Software-as-a-Service (SaaS)-based collaboration solutions. Therefore, COVID-19 has raised the focus on staying at home and keeping social distance, so now individuals have enough ideal time, as they prefer to stay at home. This aspect has encouraged them to use different streaming platforms such as Amazon, Apple TV, Netflix, Hulu, YouTube, and Disney+, which in turn, is raising the demand for IaaS to capture the changing consumer’s needs. On the other hand, the increasing incidence of cyber-attacks and critical digital loss are the two crucial factors likely to hamper the cloud market.
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Service Model Segment Analysis
Based on the service model, the Software as a Service (SaaS) segment is forecast to surge at a higher CAGR during the forecast period. It is attributed to the substantial demand for (SaaS), particularly among the Small and Medium Enterprises (SMEs) across the globe. At present, SMEs are increasingly choosing SaaS products to avoid large-up front licensing fees and high capital costs. The SaaS offers beneficial cost saving as it generally resides in a multi-tenant or shared environment wherein the license cost of Software and hardware is low than the traditional model. Moreover, SaaS offerings are easy to use, provide scalability, and minimize the time spent on installation. All these factors are accountable for the segment’s growth in the market. Also, the model offers users the flexibility to administer data with simpler deployment and maintenance, which will expand the market growth. For instance, Salesforce.com, a service application, allows customer relations management solutions to gather information and leads in a single online platform.
Industry Verticals segment Analysis
Based on the industry verticals, the BFSI segment is expected to dominate in the next six years. Leading banks and financial institutions have been increasingly choosing cloud-based Software and solutions to match customer expectations and compete effectively in the highly competitive market. Cloud computing can enable BFSI firms to respond quickly to customer needs, changing markets, and technological demand. In addition to this, the rising volume of data generated has fueled the demand for solutions and tools to save and maintain customers’ confidential information, including personal information of the account holder, transaction details, and credit and debit card details.
Organization Size Segment Analysis
The large enterprise segment is projected to grow at a faster CAGR in the coming years. The increasing demand for hybrid cloud, especially among large enterprises such as government, education, transportation, retail, logistics, and oil and gas industry, is a significant factor contributing to the market growth over the forecast period. Data security and recovery are the concerns that are important for every large organization. Large-scale organizations require safe and reliable services to deploy their data. Thereby, various large players prefer cloud solutions to secure their data and utilize big data analytics tools to offer the best services to their end-users. The growing adoption of cloud by large organizations to simplify operations by delegating their routine work and emphasizing on core activities has augmented the market growth.
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Regional Analysis
Based on the region, the North America region is expected to lead the market in the next six years. The strong presence of the leading players such as AWS, Azure, and other companies is a crucial factor driving the market demand. On the other hand, the Asia-Pacific region is expected to grow at a faster CAGR over the forecast period. It is due to the significant growth in India and China due to the presence of regional players such as Alibaba Group. As the demand for cloud services is growing in emerging markets such as Indonesia, Malaysia, and Thailand, hyper-scale cloud companies like Amazon Web Services, Microsoft, and Google have announced to build new data centers in these countries. All the above factors are expected to drive the demand of the market in the upcoming years. Europe is estimated to hold a larger share over the forecast period, owing to the increasing investment by government and private corporations to expedite the cloud adoption across the countries drive the market growth. For instance, In 2022, SAP SE, a Germany-based software company, introduced a sovereign cloud platform for data processing domestically.
Various notable players operating in the market include IBM, Microsoft Corporation, SAP SE, Oracle, Salesforce.com, Inc., Adobe Inc., Amazon Web Services, Inc., Google LLC, Alibaba Cloud, VMware, Inc., Fujitsu, and Rackspace Inc., among others.
Key Developments:
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- In 2022, Google launched its cloud region in Madrid, Spain, with three cloud zones to cater to the increasing need for technology for Spanish businesses. It will further accelerate digital transformation across various industries.
- In 2022, Microsoft planned to expand its footprint by setting up its 4th data centre in Hyderabad, India, operational by 2025. The company will strengthen its cloud services for the private and government sectors through this expansion.
- In 2021, Microsoft launched government cloud services, i.e., Top Secret for US government intelligence agencies and supporting organizations. The US government planned to establish its cloud portfolio to serve its national security mission and empower various government agencies.
- Huawei Technologies Co revealed a US$100 million initiative to grow its cloud services operations in the Asia-Pacific region at its inaugural Huawei Cloud Spark Founders Summit held in Singapore and Hong Kong on August 3, 2021.
- Microsoft has declared plans to build its first data center region in Malaysia, with Google and AWS reportedly set to follow. The company introduced its “Bersama Malaysia” initiative in which it will invest $1 billion over the next five years in Malaysia. By the end of 2023, the company also proposes to provide digital skills to additional one million Malaysians and help form the ‘My Digital Alliance Leadership Council’ to cooperate on cloud-first and digital-native policy recommendations. April 19, 2021.
- Microsoft will establish the first data center region in Indonesia as part of the Berdayakan economy Digital Indonesia initiative to deliver credible cloud services locally, with world-class data privacy, security, and the capability to store data in-country. Microsoft also declared plans to competent an additional 3 million Indonesians to achieve its aim of empowering over 24 million Indonesians by the end of 2021 through its long-established skills programs designed to generate inclusive economic opportunities in the digital era. February 25, 2021.
- Alibaba Cloud is set to build new data centers in South Korea and Thailand next year to help the cloud computing requirements of businesses in the two countries. The move follows aggressive plans by the Chinese cloud supplier to increase its regional footprint, which now covers markets such as Singapore, Malaysia, Indonesia, and, more recently, the Philippines. October 20, 2021.
The global Cloud Computing Market has been segmented based on Service Model, Organisation Size, Workload, and Industry Vertical. Based on Service Model, the market is segmented into Infrastructure as a Service, Platform as a Service, and Software as a Service. Based on organisation size, the market is segmented into Small and Medium-Sized Enterprises, and Large Enterprises. Based on workload, the market is segmented into Storage, Backup, and Disaster Recovery, Application Development and Testing, Database Management, Business Analytics, Integration and Orchestration, Enterprise Resource Management, and Collaboration and Content Management. Based on industry vertical, the market is segmented into Banking, Financial Services and Insurance, IT and Telecommunications, Government and Public Sector, Retail and Consumer Goods, Manufacturing, Energy and Utilities, Media and Entertainment¸ Healthcare and Life Sciences, and Others.
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Key questions answered in this research report:
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- At what pace is global Cloud Computing Market growing? What will be the growth trend in the future?
- What are the key drivers and restraints in Cloud Computing Market? What will be the impact of drivers and restraints in the future?
- What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Cloud Computing Market?
- Which service model generated maximum revenues in 2020 and identify the most promising service model during the forecast period?
- What are the various industry verticals of global Cloud Computing Market and how they are poised to grow?
- What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?
Report Coverage |
Details |
Market Revenues (2020) |
USD 288.5 billion |
Market Base Year |
2020 |
Market Forecast Period |
2021-2028 |
Base Year & Forecast Units |
Revenues (USD Billion) |
Market Segment | By Service Model, By Organisation Size, By Workload, By Industry Vertical, By Region |
Regional Coverage | Asia Pacific, Europe, North America, and RoW |
Companies Profiled | IBM, Microsoft Corporation, SAP SE, Oracle, Salesforce.com, Inc., Adobe Inc., Amazon Web Services, Inc., Google LLC, Alibaba Cloud, VMware, Inc., Fujitsu, and Rackspace Inc.,., among others; a total of 12 companies covered. |
25% Free Customization Available | We will customize this report up to 25% as a free customization to address our client’s specific requirements |
Market Segmentation
Global Cloud Computing Market by Service Model
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- Infrastructure as a Service
- Platform as a Service
- Software as a Service
Global Cloud Computing Market by Organisation Size
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- Small and Medium-Sized Enterprises
- Large Enterprises
Global Cloud Computing Market by Workload
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- Storage, Backup, and Disaster Recovery
- Application Development and Testing
- Database Management
- Business Analytics
- Integration and Orchestration
- Enterprise Resource Management
- Collaboration and Content Management
Global Cloud Computing Market by Industry Vertical
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- Banking, Financial Services and Insurance
- IT and Telecommunications
- Government and Public Sector
- Retail and Consumer Goods
- Manufacturing
- Energy and Utilities
- Media and Entertainment
- Healthcare and Life Sciences
- Others
Global Cloud Computing Market by Region
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- North America Cloud Computing Market (Option 1: As a part of the free 25% customization)
- By Service Model
- By Organisation Size
- By Workload
- By Industry Vertical
- US
- Canada
- Europe Cloud Computing Market (Option 2: As a part of the free 25% customization)
- By Service Model
- By Organisation Size
- By Workload
- By Industry Vertical
- UK
- Germany
- France
- Spain
- Rest of Europe
- Asia-Pacific Cloud Computing Market (Option 3: As a part of the free 25% customization)
- By Service Model
- By Organisation Size
- By Workload
- By Industry Vertical
- China
- India
- Japan
- Rest of APAC
- RoW Cloud Computing Market (Option 4: As a part of the free 25% customization)
- By Service Model
- By Organisation Size
- By Workload
- By Industry Vertical
- Brazil
- South Africa
- Saudi Arabia
- UAE
- Rest of world (remaining countries of the LAMEA region)
- North America Cloud Computing Market (Option 1: As a part of the free 25% customization)
Global Cloud Computing Leading Market Players (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)
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- IBM
- Microsoft Corporation
- SAP SE
- Oracle
- com, Inc.
- Adobe Inc.
- Amazon Web Services, Inc.
- Google LLC
- Alibaba Cloud
- VMware, Inc.
- Fujitsu
- Rackspace Inc.
Frequently Asked Question About This Report
Cloud Computing Market [UP549A-00-0620]
Cloud Computing Market was valued at USD 288 Billion in 2020.
The BFSI segment is anticipated to lead the market over the forecast period due to rising focus on digitalization, the leading banks and financial institutions have been increasingly opting for cloud-based software and solution to meet the customer expectations and sustain in the highly competitive market.
Amazon Web Services is the largest public cloud service provider in 2020
The workload in cloud computing market are Storage, Backup, and Disaster Recovery, Application Development and Testing, Database Management, Business Analytics, Integration and Orchestration, Enterprise Resource Management, and Collaboration and Content Management.
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Cloud Computing Market Size & Analysis Report by Service Model, By Organisation Size, By Workload, and By Industry Vertical and By Region – Global Opportunities & Forecast, 2021-2028
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