Globally, cloud services market accounted $374,770 million in 2020 and registering a growth at a CAGR of 15.8% during the forecast period 2021-2027. 'Cloud Computing' describes a model or network that allows multiple devices or servers to simultaneously access a program or application. Cloud computing is a shift from traditional computing, offering newer and faster methods to provide computing functionality, infrastructure functions, and application layers.
Industry Dynamics of Cloud Service Market
- Due to the threat of third-party misuse of data and data breaches, some factors restrict the market growth.
- Data administration and location pose another risk because they can easily be breached and misused on account of their different non-governed locations.
- APIs and insecure interfaces limit the growth of the market because organizations do not know where these interfaces lie.
- Because of its cost benefits, cloud technology is expected to be adopted in the developing world, offering market growth opportunities.
- Health care providers can use ERP as a software solution to keep track of patients' records as it is a rising need in the market.
Regional Outlook of Cloud Service Market
Growing cloud service market demand is mainly driven by North America. Cloud computing services have been adopted early in the region. Furthermore, this region is embracing cloud computing services in every sector. IT companies have already adopted this technology. In the North American area, the healthcare industry is experiencing an increase in cloud computing services. Both non-clinical and clinical data are recorded and kept using cloud computing services. China's growth rate is expected to be highest during the forecast period, followed by Asia-Pacific. A new association has been set up in Asia to help accelerate the adoption of cloud computing services known as the Asia Cloud Computing Association (ACCA). Cloud service providers, government agencies, and consumers are some of its members. As part of its infrastructure as a service strategy, China is expected to invest billions. Furthermore, Asia-Pacific boasts a very competitive environment.
Aim of the Report
Market analysts have distinguished the cloud services market into six segments and regional category. Based on offerings, types, deployment models, enterprise size, applications, industry verticals, and regions, the market is sub-segmented as:
Segmentation based on Offering
Segmentation based on Type
Segmentation based on Deployment Model
- Public cloud
- Private cloud
- Hybrid cloud
Segmentation based on Enterprise size
- Small Enterprises
- Medium Enterprises
- Large Enterprises
Segmentation based on Application
- Customer relationship management (CRM)
- Enterprise resource management (ERM)
- Supply chain management (SCM)
- Project and portfolio management
- Asset management
- Business intelligence
Segmentation based on Industry Vertical
- Metals & mining
- IT & telecommunications
- retail, government
- Media & entertainment,
- Oil & gas
- Energy & utilities
- Pulp & paper
Segmentation based on Region
- North America
COVID-19 Impact on Cloud Services Market
By 2027, the cloud services market is growing at a pace of 15.8% CAGR, from $374,770 million in 2020. Pre-COVID-19 forecasts for the cloud services market look more optimistic than those projected for 2027. Since the COVID-19 outbreak, the cloud services market has been greatly boosted due to accelerating demand for the cloud for various digital services, including e-commerce, remote work, and entertainment platforms, including online gaming and video streaming.
Key Market Competitors
- Alibaba Cloud
- Hewlett Packard Enterprise Development LP
- International Business Machine (IBM) Corporation
- Microsoft Corporation
- Oracle Corporation
- Amazon Web Services, Inc.
- Cisco System, Inc.
- Dell Technologies Inc.
- Google LLC
- Rackspace Hosting, Inc.