Industry: IT and Telecommunication
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP34660
The cloud computing market was estimated at US$534.5 Bn in 2024 and is expected to be valued at US$1,370.7 Bn by 2031. The market is anticipated to achieve a growing, robust CAGR of 14.4% from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$534.5 Bn |
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Projected Market Value (2031F) |
US$1,370.7 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
14.4% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
13.2% |
Cloud Computing Market has emerged as a transformative technology that offers numerous benefits to businesses across industries. It enables faster and more efficient operations, streamlines technology adoption, and enhances customer experiences.
The market revenue was valued at US$534.5 Bn in 2024 and is projected to grow at a compound annual growth rate (CAGR) of over 14.4% from 2024 to 2031. The market is driven by various factors, such as increasing adoption, technological advancements, and the need for scalable and cost-effective solutions.
One of the most popular market trends is adoption of hybrid and multi-cloud strategies among organizations, combining public and private cloud services from multiple providers. This approach allows businesses to leverage the strengths of different cloud platforms and optimize their IT infrastructure.
Cloud computing has gained traction across industries, including IT and telecom, BFSI, retail and consumer goods, manufacturing, healthcare, and media and entertainment.
The integration with AI and ML technologies enables businesses to leverage data-driven insights and automation. This is pushing the market forward. The market is expected to reach US$1,370.7 Bn by 2031.
With the growing environmental impact of data centers, there is a rising emphasis on sustainable practices in industry.
Further, cloud providers are exploring energy-efficient solutions, renewable energy sources, and carbon-neutral initiatives to reduce their carbon footprint, which is fueling market growth.
According to cloud computing market reports, the market size was estimated at US$534.5 Bn in 2024. This expansion is fueled by a confluence of factors, such as the realization of the transformative power of cloud computing by large enterprises.
The market has experienced the fastest growth in the retail and consumer goods and healthcare and life sciences industries, driven by the increasing adoption of technologies like AI, ML, big data, edge computing, and 5G.
The market shares are expected to continue its growth trajectory. It is projected to reach a value of US$1,370.7 Bn by 2031, demonstrating a significant increase.
The market will continue to see advancements in infrastructure, product and service offerings, and vertical-specific solutions.
Cloud-based services, including Infrastructure as a Service (IaaS), Desktop as a Service (DaaS), and Platform as a Service (PaaS), are expected to experience the greatest growth in spending.
Increasing Adoption of Digital Transformation
The growing need for organizations to undergo digital transformation is a major driver for the market. As businesses strive to modernize their operations, improve efficiency, and enhance customer experiences, it provides the necessary infrastructure, scalability, and agility.
The adoption of cloud-based solutions enables organizations to streamline processes, leverage data-driven insights, and embrace emerging technologies, such as AI and IoT, driving the demand for cloud services.
Rising Demand for Cost-Effective and Scalable Solutions
Cloud computing offers cost-effective solutions, eliminating the need for heavy upfront investments in hardware and infrastructure. Businesses can leverage cloud services on a pay-as-you-go model, allowing them to scale resources as needed, reducing operational costs.
The scalability and flexibility of cloud computing enable organizations to quickly adapt to changing business needs, supporting rapid growth and providing a competitive edge in the market.
Advancements in AI and Machine Learning
The integration of cloud computing with AI and machine learning technologies is a significant growth driver in the market. Cloud platforms provide the necessary computational power and storage capabilities to process large volumes of data and train complex machine-learning models.
The adoption of AI and ML applications across industries, such as predictive analytics, natural language processing, and image recognition, is driving the demand for cloud services. The convergence of cloud computing and AI empowers businesses to unlock valuable insights and drive innovation.
Security Concerns
Security is a critical factor that can hinder the adoption of cloud computing. Organizations may have concerns about the security of their data when it is stored and processed in the cloud.
The fear of potential data breaches and unauthorized access can deter businesses from fully embracing cloud solutions. Cloud service providers are aware of these concerns and are continuously investing in robust security measures to address them.
However, addressing security concerns and building trust among potential users remains a challenge for the cloud computing market.
Legacy Systems Integration
Many organizations have existing legacy systems and applications that are not easily compatible with cloud environments. Integrating these legacy systems with cloud-based solutions can be complex and time-consuming.
The need for seamless integration and data migration can pose challenges, especially for large enterprises with complex IT infrastructures.
Organizations may hesitate to adopt cloud computing if it requires significant modifications to their existing systems or if the integration process is perceived as disruptive to their operations.
Internet of Things (IoT) Integration
The integration of cloud computing with IoT presents a significant opportunity for the market. IoT devices generate vast amounts of data that need to be collected, processed, and analyzed.
Cloud computing provides the necessary infrastructure and scalability to handle this data effectively. As IoT continues to expand, there will be a growing need for cloud-based solutions to store, analyze, and derive insights from IoT-generated data.
The combination of IoT and cloud computing enables businesses to leverage real-time analytics, improve operational efficiency, and drive innovation.
Edge Computing Advancements
Edge computing, which involves processing data closer to the source rather than relying solely on centralized cloud servers, is another area of opportunity for the cloud computing market demand.
Edge computing addresses the need for real-time data processing, reduced latency, and improved performance for applications such as IoT, AI, and autonomous vehicles.
By bringing computing resources closer to the edge of the network, edge computing complements cloud computing and enables faster decision-making and enhanced user experiences.
The integration of edge computing with cloud services offers a powerful and efficient framework for data processing and analysis.
SaaS to be the Primary Market Segment by Services
Based on service, in 2023, the SaaS segment dominated the market, accounting for about 54% of the revenue share. SaaS applications offer easy deployment and usage, making them appealing to businesses of all sizes.
With on-demand access and subscription-based pricing, SaaS provides cost-effective solutions.
Regular updates and new features ensure customers have the latest functionalities. These factors contribute to the growth of the SaaS segment.
Private Cloud Reigns Supreme in the Deployment Segment
Based on deployment, the private Cloud Computing Market segment held the largest revenue share in 2023, offering advantages such as control, customization, and predictable performance.
Private clouds allow businesses to tailor their infrastructure to meet specific security and compliance requirements.
However, they require significant upfront investment and ongoing maintenance. To address these challenges, managed private cloud services are gaining popularity. This is further fueling market expansion.
Resource Management to Dominate the Workload Category
Based on workload, in 2023, the resource management segment dominated the market, driving the largest revenue share.
As businesses adopt hybrid and multi-cloud strategies, managing resources across different providers and on-premise infrastructure becomes increasingly complex.
Resource management tools automate tasks like provisioning and scaling, optimizing resource allocation for improved efficiency and cost savings.
Large Enterprises Rule in Terms of Adoption
Based on enterprise size, in 2023, the large enterprise segment held the largest revenue share in the market. Cloud computing empowers large businesses to automate tasks, leading to faster completion times, improved efficiency, and significant cost savings.
Additionally, cloud-based solutions offer flexibility by eliminating the need for on-premise infrastructure and associated maintenance. Large enterprises can easily scale their cloud resources to meet fluctuating demands and foster enhanced teamwork among geographically dispersed teams.
BFSI Remains the Top End-Use Sector
Based on end use, in 2023, the BFSI segment held the largest revenue share in the market. Cloud technology offers significant cost savings by reducing the need for expensive on-premise infrastructure and IT staff.
Financial institutions leverage the cloud's scalability to handle data processing and transactions, launch new products faster, and unlock valuable insights from customer data.
North America Provides the Largest Fertile Ground for Cloud Computing Market Sales
North America accounted for approximately 40% of the global market in 2023, establishing its dominance in the industry. This region remains a key force in the market due to the presence of major technology hubs and a mature IT infrastructure.
The widespread adoption of cloud solutions across various industries, coupled with strong government initiatives promoting digital transformation, continues to fuel further growth.
The US, as the economic leader of North America, holds the largest market share in the regional market, driven by the presence of leading cloud service providers and fostering innovation.
Asia Pacific Maintains a Key Position
The Asia Pacific cloud computing industry is projected to grow at a rapid CAGR of 24.0% from 2024 to 2030. This growth is driven by factors such as rapid economic development, increasing internet penetration, and a tech-savvy population.
The region offers immense market potential for cloud service providers. India's market is anticipated to grow at a CAGR of 26.7% due to a young population, increasing internet penetration, and government initiatives promoting digitalization.
China's cloud computing industry, the second largest globally, is expected to grow at a CAGR of 24.0%. Government initiatives promoting cloud adoption and a domestic market with a high demand for digital services contribute to this growth.
Europe Promises a Spectrum of Opportunities
The cloud computing sector in Europe is poised for significant growth, with a projected CAGR of 20.8% from 2024 to 2030. This growth is driven by increasing digitalization efforts and growing awareness of the benefits of cloud-based solutions.
The European Union's focus on data privacy regulations also shapes the market, with a rising demand for secure and compliant cloud services. Within Europe, the UK cloud computing market is expected to grow at a CAGR of 19.7%, driven by cloud adoption across sectors and government initiatives.
Similarly, the market in Germany is projected to grow at a CAGR of 22.3%, fueled by Industry 4.0 initiatives and the need for secure cloud solutions for data-intensive manufacturing processes.
July 2024
Oracle certified Palantir's Foundry Platform and Artificial Intelligence Platform (AIP) on Oracle Cloud Infrastructure (OCI), making them available across all of Oracle's distributed cloud deployment options. This partnership enables businesses and governments to accelerate their AI initiatives while meeting regulatory, performance, and security needs.
Oracle's distributed cloud, AI infrastructure, and sovereign AI capabilities, combined with Palantir's AI and decision acceleration platforms, provide efficiency, performance, and security benefits.
June 2024
At YourStory's tech summit, DevSparks, Ola Krutrim held a workshop discussing the importance of the Indian cloud ecosystem and the role of Artificial Intelligence in boosting cloud penetration.
The workshop focused on the importance of the cloud community, which consists of developers and the ecosystem. Ola Krutrim aims to develop the cloud ecosystem in India by building a vibrant startup ecosystem consisting of millions of developers. The company prioritizes simplicity over complex solutions and democratizes the cloud by making it affordable.
The market is actively seeking growth opportunities through the acquisition of established market players and fostering innovation. This trend is further enhanced by the emergence of startups with unique offerings, creating a dynamic and competitive market landscape.
To stay ahead of evolving trends, companies are investing heavily to expand production capabilities and enhance technological features. Their goal is to develop innovative functionalities and seamlessly integrate technologies into this dynamic sector, ensuring successful market introduction and widespread adoption.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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By Deployment
By Service
By Enterprise Size
By End Use
By Workload
By Regions
To know more about delivery timeline for this report Contact Sales
The market is predicted to rise from US$534.5 Bn in 2024 to US$1,370.7 Bn by 2031.
Increasing digital transformation, rising demand for cost-effective and scalable solutions and advancements in AI and machine learning are propelling market growth.
Adobe Inc., Alibaba Group Holding Limited, Google LLC, and International Business Machines Corporation are some examples of key industry players.
Competition from alternative devices and price sensitivity in the market are restraining market expansion.
Expansion of market in several domains and personalized services and customization are the major factors creating opportunities in the
