PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1599841
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1599841
Global multi-cloud management market is projected to witness a CAGR of 28.20% during the forecast period 2024-2031, growing from USD 8.24 billion in 2023 to USD 60.10 billion in 2031.
The increasing adoption of cloud services significantly drives the multi-cloud management market. According to the Cloud Security Alliance, 98% of the world's organizations have adopted cloud services, including SaaS applications and fully cloud-native networks. As companies choose to have multiple cloud environments to be quicker and more cost-effective, their requirement for effective multi-cloud management solutions increases. These solutions enable organizations to manage different cloud platforms without any hassle. Hence, they enable good productivity and security aspects. In addition, the increasing requirement for compliance with regulatory standards and data protection laws further led to the growth of this market. Therefore, since many organizations are becoming aware of the benefits of adopting multi-cloud strategies, the multi-cloud management market is expected to grow in the given forecast period.
For example, in June 2024, Nutanix, Inc. released its sixth annual Financial Services Enterprise Cloud Index report, highlighting that financial services expect a threefold increase in hybrid multi-cloud adoption within three years. Key drivers include data security, ransomware protection, AI strategies, and cost reduction.
Cost-Effectiveness of Multi-Cloud Strategies Drive Growth in Multi-Cloud Management Market
Multi-cloud management is primarily driven by the cost-effectiveness associated with multi-cloud strategies. With an inclination towards infrastructures built on the cloud, organizations are facing challenges in managing costs successfully and efficiently. According to Flexera Software LLC, about 70% of companies run over the cloud budget every month. Therefore, by using multiple cloud providers, organizations can select the cheapest services for their requirements to optimize their cloud usage and cost structure. There is always flexibility and scalability in a multi-cloud environment, which allows businesses to scale their resources for respective demands along with cost management. This strategic approach avoids vendor lock-in and the bargaining power of negotiations and further improves service choices. The demand for multi-cloud management solutions would grow further in the market, with businesses looking forward to making a maximum return on their cloud investment.
For example, in March 2023, Flexera Software LLC launched Flexera One FinOps, an industry-first platform that integrates cloud migration, IT asset management, and cost optimization, enabling enterprises to manage cloud spending and hybrid IT estates better and more efficiently.
Technological Advancements Fuel the Multi-Cloud Management Market
Technological advancement is driving the multi-cloud management market. Integration with artificial intelligence and machine learning can enable predictive analytics and the automatic flow of complex tasks to achieve more valuable insights for cost optimization. Furthermore, there is a surge in the inclusion of edge computing, thereby making multi-cloud management tools include edge resources with seamless management from the core to the cloud and edge environment. Essentially, FinOps practices will be important as tools with more advanced capabilities in terms of cost optimization, and financial governance is truly making the overall budget management process better. The principles of zero trust are deployed to help address security concerns, and distributed systems are enhanced. Increasing focus on Kubernetes-centric management helps the proliferation of the use of container orchestration. It enables effective management of applications and infrastructure across multi-cloud setups. Altogether, these trends are driving the expansion of the multi-cloud management market.
For instance, in April 2024, International Business Machines (IBM) Corporation announced its acquisition of HashiCorp, Inc. for USD 6.4 billion, enhancing its hybrid cloud platform with advanced lifecycle management products to address AI-driven infrastructure complexity and drive innovation.
Government Initiatives Acts as a Catalyst
Government initiatives play a pivotal role in the growth of multi-cloud management markets. Cloud technology adoption is promoted thereby and accordingly helps support business investment in multi-cloud models. Policies such as the United States Federal Cloud Computing Strategy, for instance, and the European Union Cloud Initiative promote the government sector to move to the cloud and spur the need for efficient multi-cloud management tools. Additionally, the government's support for cloud security and interoperability is building confidence among businesses to adopt multi-cloud models.
For example, in June 2024, the United States and G7 countries emphasized sustainable infrastructure investments through the Partnership for Global Infrastructure and Investment, aiming to mobilize USD 200 billion by 2027 for projects, including cloud infrastructure in emerging markets.
Healthcare Sector Gains Traction in the Multi-Cloud Management Market
The healthcare sector is witnessing a rapid growth of multi-cloud management, where companies are moving from traditional infrastructure models for IT to hybrid multi-cloud models. However, the healthcare sector lags behind every other industry by comparison. However, the multi-cloud management market's growth is expected to grow from 53% to 74% over the next three years, aligning with the global trend toward multi-cloud IT environments. This adoption allows healthcare organizations to utilize private and public clouds in a more secure, more compliant with regulatory measures, and patient-centric manner. The hybrid multi-cloud model is flexible based on the resource's fast scalability up or down, keeping the cost base under control and improving collaborative effort among healthcare teams. Advanced health solutions and data analytics are in increasing demand, making this sector's multi-cloud management market highly growing.
North America Dominates Multi-Cloud Management Market Share
North America is the leading region mainly because many organizations headquartered in the region are still adopting multi-cloud management solutions to maximize their efficiency of operations further and avoid lock-in. The ongoing integration of high-speed connectivity like 5G worldwide also strengthens the lucrative opportunity of cloud services to various vertical industries. Multi-cloud management is largely adopted in the IT, healthcare, and BFSI sectors. Optimized operation and regulatory requirements will further drive the multi-cloud management market. Technological development, together with enterprise demand and regulatory requirements, has positioned North America at the forefront of the multi-cloud management market and continues to drive innovation and competitive advantage.
For instance, in November 2024, VMware, Inc. announced new offerings enhancing multi-cloud capabilities and integrating artificial intelligence to empower enterprises in their digital transformation and cloud smart strategies for generative AI adoption.
Future Market Scenario (2024-2031F)
Multi-cloud management platforms increasingly depend on AI and ML for predictive analytics and automation.
Multi-cloud management tools will integrate more edge resources for seamless control as the area of edge computing expands across core and edge environments.
Zero-trust security will be adopted as the default mechanism in all multi-clouds where it would be possible to defend the data of distributed systems.
FinOps practices will shift real-time cost management and better financial governance through superior tooling.
Key Players Landscape and Outlook
Multi-cloud management is a highly competitive market, with significant players offering various solutions to meet diverse industry needs. Leading vendors are focused on refining cloud operations, enhancing security, and cost management in cloud computing. As more enterprises adopt hybrid cloud strategies, these competitive vendors are expected to increase their investment in advanced technologies, such as AI, machine learning, and automation, to sustain their competitive edge.
Further enhancement to the multi-cloud management market comes from the alliance of edge computing with Kubernetes-based management solutions. Growth in this market is anticipated to continue as adoption increases across various sectors, such as health, finance, and IT, driven by the rising trend of cloud computing. Ongoing innovation, security enhancements, and compliance with regulatory practices are expected to continue contributing to the upcoming forecasted period.
In June 2024, Cisco Systems, Inc. and Splunk Inc. integrated their observability solutions, providing enterprises unified visibility across on-premises, hybrid, and multi-cloud environments, enhancing real-time analytics, performance, and security for multi-cloud management.
In May 2024, Nutanix, Inc. and Dell Technologies, Inc. announced a collaboration to offer joint hybrid multi-cloud solutions, combining Nutanix software with Dell's server and storage offerings to enhance IT operations and flexibility.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.