The cloud services market is expected to exceed $4.4 trillion by 2033 as growing demand for cloud-based solutions among SMBs drives cloud service adoption.
The cloud services market is expected to be worth $564.4 billion by 2022, according to a new report by Future Market Insights. Growing from $678.8 billion in 2023 to $4.4 trillion in 2033, the market will grow at a CAGR of 20.5%.
The cloud services market, which had a market value of US$3.7 trillion in 2017, is expected to grow at a CAGR of around 19.6% between 2017 and 2022, reflecting the increasing adoption of IoT technology by consumers attributable to the manufacturing industry. transport and other sectors of the economy.
Demand for cloud services is expected to increase due to their utility-based sharing models, flexible deployment, secure data management, low total cost of ownership, and advanced computing. The cloud services market is expected to grow as they enable businesses to thrive by enabling businesses to leverage AI capabilities and the adoption of cutting-edge technologies such as artificial intelligence and machine learning.
Cloud services enable the effective and faster implementation of corporate activities in changing market environments. Additionally, adoption of cloud services is increasing as it has created numerous opportunities for developing highly engaging customer experiences. In addition, cloud computing has changed the behavior of people and businesses, many different industries are now able to overcome technological limitations.
Increasing internet penetration, increasing cloud adoption by SMBs, technological advances, emphasis on reducing infrastructure costs, government efforts and a low interest rate environment all contributed to unprecedented growth. This expansion has been hampered by capital intensity and regulatory constraints.
Cloud services help organizations increase operational effectiveness and reduce costs, but the data stored there is still vulnerable to cyberattacks. The amount of data generated by the digital transformation in companies is increasing and with it the number of cyber attacks. Enterprise data is becoming more vulnerable to cyberattacks such as cloud malware injection attacks, account or service hijacking, Specter, Meltdown and man-in-the-cloud attacks that pose a risk of business shutdown and financial loss. However, cyber attacks are affecting business operations, which limits cloud services market growth.
Key findings include:
U.S. cloud services revenue grew more than 17% year over year to $435 million in 2019. Through 2030, the U.S. market is expected to grow at a CAGR of approximately 17.5%.
· The French cloud services market is expected to reach a valuation of 467M by the end of 2030 by registering a CAGR of 22.0%.
· It is estimated that the UK will register an additional $73.7 million opportunity during the forecast period.
· Brazil’s cloud services market is estimated to grow at a CAGR of 18.5% during the forecast period.
· Increased adoption of IoT technology by manufacturing, transportation services and other industries.
· The IaaS sector dominated the cloud services industry in terms of service type.
In the cloud services market, the SaaS category is expected to rise at a considerable rate during the forecast period.
· In 2019, the hybrid cloud category dominated the cloud services market share. The public cloud segment, on the other hand, is forecast to develop significantly in the forecast period.
In terms of company size, large companies led the cloud services market in 2019. On the other hand, the segment of small and medium-sized enterprises is expected to develop significantly during the forecast period.
· Among East Asian countries, Japan has the largest public cloud market and is forecast to grow at a CAGR of 23% during the projected period. The fastest growing markets in Japan are IaaS and PaaS.
· The cloud services market in Brazil is expected to grow at a CAGR of 18.5% over the projected period. All Brazilian industries have increased their use of cloud services.
Through partnerships and other forms of collaboration with other major technology players, the companies are focused on expanding their product lines and intellectual property. In-house development retains technical control over the creation of new goods and designs. The company invests a significant percentage of its resources in improving and developing its technology, creating new products, updating existing products and strengthening its technological competence in all of its business areas.
In June 2020, Wipro Ltd., a global IT consulting and business process services company, announced its collaboration with IBM Corporation to help Wipro customers embark on a seamless and secure hybrid cloud journey.
The IBM Cloud Park for Automation and Amazon GuardDut are two examples of AI-based cloud services used to provide pre-built processes for AI-powered automation and threat detection.
Salesforce, the industry-leading customer relationship management platform, launched Einstein in 2020. This technology enables the collection of customer data and facilitates the tracking and personalization of customer relationships.