Cloud Computing Market Size, Share, Growth Analysis, By Service(Software As A Service ), By Deployment Mode, By Enterprise Size, By End-use(IT &ITES ), By Region - Industry Forecast 2024-2031

Cloud Computing Market size was valued at USD 626.4 Billion in 2022 and is poised to grow from USD 720.99 billion in 2023 to USD 2220.9 billion by 2031, growing at a CAGR of 15.1% during the forecast period (2024-2031).

Cloud computing revolutionizes data processing, storage, and management by shifting these functions to cloud-based networks constructed over the internet rather than relying solely on local servers or personal computers. This paradigm shift to shared virtual space ensures a secure storage environment accessible simultaneously by all devices connected to the network. The explosive growth of cloud computing can be attributed to several factors, including the digitization of businesses, the widespread adoption of internet and mobile devices globally, and the increasing utilization of big data. As industries undergo transformation, their ability to access and leverage cloud platforms alongside digital business solutions becomes paramount. Moreover, the convergence of emerging technologies such as the Internet of Things (IoT), edge computing, 5G connectivity, and real-time analytics with AI and ML further elevates the significance of cloud computing across all sectors. For example, in December 2023, Bitdeer and Nvidia announced a groundbreaking cloud computing service combining Bitdeer's expertise in AI and ML with Nvidia's capabilities, marking a significant advancement in cloud computing services innovation. The ongoing evolution of the cloud computing market is driven by the growing adoption of cloud-based systems among small and medium-sized enterprises (SMEs). Another pivotal factor is the adoption of cloud computing delivery models by governments in many developing countries to enhance technological expertise and boost productivity in the public sector. For instance, in June 2023, the Ministry of Economy (MoE) collaborated with Amazon Web Services, Inc., to launch the AWS Connected Community Initiative. This initiative, part of dedicated SMEs digitization efforts, aims to support SMEs in thriving and competing internationally. Fujitsu introduces a novel concept called "Fujitsu CaaS" (Computing as a Service), enabling clients to access cloud resources. Among the flagship services offered within CaaS is "Fujitsu Cloud Service HPC," which leverages Fugaku, the world's fastest supercomputer, to provide high-performance computing capabilities.

Top-down and bottom-up approaches were used to estimate and validate the size of the Cloud Computing market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Cloud Computing Market Segmental Analysis

Cloud Computing Market is segmented by service, deployment mode, organization size, end use, and region. Based on service, the market can be segmented into Software as a service (customer relationship management, enterprise resource management, human capital management, content management, collaboration and productivity suites, supply chain management, other SaaS service models), Platform as a service (application development and platform, application testing and quality, analytics and reporting, integration and orchestration, data management), Infrastructure as a service (Primary Storage, Disaster Recovery and Backup, Archiving, Compute), and Others. Based on deployment mode, the market is segmented into Private Cloud, Public Cloud, and Hybrid Cloud. Based on Enterprise Size, the market can be segmented into Large Enterprises, and Small & Medium Enterprises. Based on End User, the market is segmented into IT &ITES (DevOps, big data and analytics, IT security and compliance, others), Telecommunications (network function virtualization, software defined networking, edge computing, others), Retail & Consumer Goods (e-commerce and online marketplaces, customer relationship management, point of sale systems others), Manufacturing (supply chain management, product lifecycle management, others), Energy & Utilities (smart grid management energy, monitoring and management, renewable energy and forecasting, other energy and utility services), Healthcare (electronic health records, remote patient monitoring, genomic sequencing and bioinformatics, others), Media & Entertainment (Content storage and distribution, media streaming, content production and post production), Government & Public Sector (government infrastructure migration, digital government and E government services, open data and transparency, other government and public sector services), and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Cloud Computing Market

Amidst a pressing need for business expansion and staying ahead in the market, companies are increasingly investing in cloud services to ensure seamless access to relevant data and streamline operations. Cloud computing services play a pivotal role in enhancing business functionalities by offering unrestricted access to information from any device, irrespective of time or location. As businesses strive to adapt to evolving customer preferences, the demand for cloud computing services intensifies, coinciding with improvements in availability and reliability. Notably, cloud spending surged by 37%, reaching USD 29 billion in the first quarter of 2020, underscoring the growing necessity for larger, secure, reliable, and cost-effective off-premises resources to meet escalating demand.

Restraints in the Cloud Computing Market

Organizations require staff proficient in technical skills to efficiently implement, oversee, analyze, and protect cloud solutions. There is a notable scarcity of technical proficiency among IT professionals, particularly in the realm of cloud computing. This deficit in expertise hampers companies from fully leveraging the benefits provided by cloud technology and emerging innovations, potentially resulting in a loss of market share and revenue. Challenges in sourcing suitable candidates include the need for rapid hiring processes, the high salaries demanded by experienced cloud professionals, and the challenge of finding individuals who align with the organizational culture.

Market Trends of the Cloud Computing Market

Large enterprises are incorporating multi-cloud solutions into their operations to manage their workforce across different cloud-based platforms. Moreover, as cloud-driven applications like Gmail, Facebook, and Dropbox become more robust and flexible, there is a growing demand for rapid processing in real-time scenarios. However, integrating disparate cloud infrastructures often lacks efficiency due to fragmented coordination. Consequently, businesses are transitioning to omni-cloud solutions to leverage numerous benefits, including optimized data utilization, enhanced decision-making capabilities, real-time scalability, and improved data availability. Entrepreneurs and small to medium-sized enterprises (SMEs) have witnessed significant growth in recent years. There is a notable increase in the demand for cloud computing services due to associated benefits such as cost savings and enhanced business flexibility, particularly beneficial for startup ventures. The expansion of these SMEs has led to a greater reliance on cloud computing services. According to Microsoft Corporation, SMEs contribute approximately 76% to the GDP of all nations, with 79% of business owners believing that technology can improve their job satisfaction. A substantial portion of SMB IT firms is leveraging advanced cloud computing technology to expand their operations and establish a presence across various geographical locations.