Cloud Services Market by Service Type (Function as a Service, Infrastructure as a Service, Platform as a Service), Offering (Cloud Advertising Services, Cloud Management & Security Services, Community Cloud Services), Deployment Model, Application, End-Us

Cloud Services Market by Service Type (Function as a Service, Infrastructure as a Service, Platform as a Service), Offering (Cloud Advertising Services, Cloud Management & Security Services, Community Cloud Services), Deployment Model, Application, End-Use Industry - Global Forecast 2024-2030

The Cloud Services Market size was estimated at USD 656.25 billion in 2023 and expected to reach USD 810.01 billion in 2024, at a CAGR 23.69% to reach USD 2,907.49 billion by 2030.

Cloud services include an extensive range of offerings that enable businesses and individuals to store, manage, process, and access data through remote servers hosted on the Internet. These services provide scalable, on-demand resources for various applications across different industries. The increasing adoption of these services across diverse industry verticals, including manufacturing, retail & eCommerce, and healthcare, is propelling the demand for cloud services. Several organizations are migrating their local systems to these remote platforms as they provide secure access and scalability of resources. In addition, the increasing government initiatives for public cloud management and security services contribute to market growth. Additionally, it is crucial for organizations to carefully assess their needs and evaluate the available options based on cost, performance, security, compliance requirements, and existing infrastructure compatibility when deploying cloud services. Companies can fully capitalize on cloud services' potential advantages by choosing the appropriate service and deployment models tailored to their business objectives. However, the technical limitations of adopting cloud services in legacy systems are a limiting factor for the market. The increasing number of cyber-attack incidents across network infrastructure and the concerns associated with data privacy and security breaches pose challenges for market growth. Moreover, advancements in IaaS and PaaS focusing on AI and ML technologies and increasing adoption of cloud services in developing regions worldwide are expected to create lucrative opportunities for market growth worldwide.

Regional Insights

A notable shift toward hybrid cloud adoption in the fast-evolving cloud services landscape in South Africa signifies the industries' move to blend public and private cloud capabilities, offering flexibility, scalability, and enhanced security. This trend is pivotal for sectors dealing with sensitive information, ensuring the optimal equilibrium between control and agility. In addition, threats are rising and there is a heightened emphasis on bolstering cloud security through advanced encryption, rigorous security protocols, and adherence to international data protection laws to preserve data integrity and confidentiality. Small and medium enterprises (SMEs) in South Africa are harnessing cloud computing to drive operational efficiency and scalability, with cloud services enabling access to advanced technologies at a competitive cost. Additionally, cloud providers' integration of artificial intelligence (AI) and machine learning (ML) empowers businesses with data-driven insights, operational optimization, and tailored customer engagement. The proliferation of local and international cloud service providers enriches the spectrum of available services, fostering competitive pricing. As a result, a sustainable approach is being adopted through green cloud computing, utilizing renewable energy and enhancing energy efficiency in data centers, aligning with the global stride toward environmental responsibility.

In South Africa's Gauteng Province, the economic hub, there has been a notable surge in the adoption of cloud services, propelled by the presence of both global and local cloud service providers, including giants such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform and domestic players such as Afrihost and MTN Business. The strong financial and professional services sectors of the province have heightened the demand for Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) solutions, ensuring data compliance and sovereignty while improving connectivity. The Western Cape, particularly Cape Town, recognized for its vibrant tech ecosystem, has become a breeding ground for innovative SaaS products supported by local data centers such as Teraco Data Environments, fostering the adoption of hybrid and multi-cloud strategies with cloud-based analytics and IoT applications being widely used in its creative, tourism, and agriculture sectors. KwaZulu-Natal embraces cloud services for digital transformation with its diverse economic base, focusing on business agility, operational efficiency, and customer experience, backed by investments in connectivity, including undersea cable systems, and showing a keen interest in cloud-based ERP for industry optimization. The adoption of cloud services is rising in the Eastern Cape, particularly in the education and healthcare sectors. Additionally, it is driven by governmental efforts to enhance IT infrastructure in underserved areas, supporting distance learning, telehealth services, and IT skill development among the youth. Therefore, the region is gradually embracing cloud services, with the adoption rate catalyzed by digital transformation initiatives and the increasing availability of regional data centers by global and local cloud providers.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Cloud Services Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Expansion of 5G infrastructure and network services
    • Digital transformation in the public sector and focus on e-governance
    • Increasing adoption of cloud services by small & medium enterprises
    • Market Restraints
      • Technical limitations of adopting cloud services in legacy systems
      • Market Opportunities
        • Advancement to integrate AI/ML technologies in cloud service offerings
        • Investments in cloud data centers based on hybrid and multi-cloud strategies
        • Market Challenges
          • Concerns associated with data privacy and security breaches
          • Market Segmentation Analysis
            • Service Type: Event-driven applications and microservice architectures with innovative enhanced features and benefits
            • Offering: Innovative advancements in cloud management and security service offerings
            • Deployment Model: Ongoing efforts to improve the accessibility and cost-effectiveness of public cloud
            • Application: Ability of cloud services to provide a collaborative environment for hosting & development of web applications
            • End-Use Industry: Exploration of cloud services in the information technology sector to enhance agility and improve the customer experience
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Cloud Services Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Cloud Services Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • Google Launches First African Cloud Region in Johannesburg, South Africa
              
              Google inaugurated its inaugural cloud region on the continent, situated in Johannesburg, South Africa. This strategic expansion is part of Google's ongoing effort to enhance global internet connectivity and support Africa's burgeoning demand for cloud services. The Johannesburg cloud region is expected to serve as a critical hub, significantly reducing latency for local users by ensuring data is processed closer to its source. This move by Google underscores the company's commitment to fostering digital growth in Africa and positions it as a pivotal player in the continent's rapidly evolving digital landscape.
              
              Vodacom Partners with HP to Boost Cloud Services in South Africa
              
              Vodacom iBusiness, which specializes in cloud hosting and security services, announced a strategic partnership with Hewlett Packard Enterprise (HPE). This partnership brings the HPE GreenLake edge-to-cloud platform to its clientele in South Africa. This initiative promises to enhance customer experiences by seamlessly integrating capabilities from the edge to the cloud. Additionally, it aims to streamline workload migration processes by utilizing HPE Zerto, further emphasizing the partnership's commitment to delivering innovative, agile solutions tailored to the modern ICT landscape.
              
              Vodafone-Microsoft Partnership to Offer Gen AI, Cloud Services in Europe and Africa
              
              Vodafone and Microsoft Corp. partnered to transform the digital landscape for over 300 million consumers, businesses, and public sector entities throughout Europe and Africa. This partnership signifies a pivotal convergence of competencies, with Vodafone's robust network capabilities intertwining with Microsoft's prowess in cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). This union is poised to enable a new era of digital innovation and scalability, positioning both companies at the forefront of technological advances in their respective domains.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Cloud Services Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Cloud Services Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, Adobe Inc., Afribit, Africa Data Centres, Afrihost, Akamai Technologies, Inc., Alibaba Group Holding Limited, Altron Limited, Amazon Web Services, Inc., Blue Turtle Technologies, Braintree By Vox, Broadcom Inc., Business Connexion Ltd., Capgemini Services SAS, Cisco System, Inc., Cognizant Technology Solutions Corporation, Datacentrix Holdings (Pty) Ltd., Datasmart Technologies, Dell Technologies Inc., Deloitte Touche Tohmatsu Limited, Dimension Data by NTT Corporation, DREAMTEC Innovation (Pty) Ltd., EOH Holdings Limited, Fsp Hub by HubIT (Pty) Ltd., Fujitsu Limited, Google LLC by Alphabet Inc., Haefele Software Ltd., HCL Technologies Limited, Hewlett Packard Enterprise Company, Hooligan Development Pty Ltd, Hostafrica, Huawei Cloud Computing Technologies Co., Ltd., Illation (Pty) Ltd., International Business Machines Corporation, Kyndryl Inc., Matoto Group of Companies, Microsoft Corporation, NetApp, Inc., Nutanix, Inc., OpenText Corporation, Oracle Corporation, Rackzar Pty Ltd., ReportStar Technologies, Routed Hosting, Salesforce Inc., SAP SE, SEACOM, Ltd, ServiceNow, Inc., SITA SOC Ltd., Skywalk Innovations, Snowflake Inc., Solid Systems Info Technology CC, Synthesis Software Technologies (Pty) Ltd., Tarsus on Demand, Tencent Holdings Ltd., Turrito Networks (Pty) Ltd, Umbono Cloud Services (Pty) Ltd., Verizon Communications Inc., Web4Africa, and Xneelo Ltd..
            
            Market Segmentation & Coverage
            
            This research report categorizes the Cloud Services Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Service Type
              • Function as a Service
              • Infrastructure as a Service
              • Platform as a Service
              • Software as a Service
              • Offering
                • Cloud Advertising Services
                • Cloud Management & Security Services
                • Community Cloud Services
                • Deployment Model
                  • Hybrid Cloud
                  • Private Cloud
                  • Public Cloud
                  • Application
                    • Data Storage & Backup
                    • Database Management
                    • Disaster Recovery
                    • Hosting & Development of Web Applications
                    • Testing and Development
                    • End-Use Industry
                      • Aerospace & Defense
                      • Automotive & Transportation
                      • Banking, Financial Services & Insurance
                      • Building, Construction & Real Estate
                      • Consumer Goods & Retail
                      • Education
                      • Energy & Utilities
                      • Government & Public Sector
                      • Healthcare & Life Sciences
                      • Information Technology
                      • Manufacturing
                      • Media & Entertainment
                      • Telecommunication
                      • Travel & Hospitality
                      • Region
                        • Americas
                          • Argentina
                          • Brazil
                          • Canada
                          • Mexico
                          • United States
                            • California
                            • Florida
                            • Illinois
                            • New York
                            • Ohio
                            • Pennsylvania
                            • Texas
                            • Asia-Pacific
                              • Australia
                              • China
                              • India
                              • Indonesia
                              • Japan
                              • Malaysia
                              • Philippines
                              • Singapore
                              • South Korea
                              • Taiwan
                              • Thailand
                              • Vietnam
                              • Europe, Middle East & Africa
                                • Denmark
                                • Egypt
                                • Finland
                                • France
                                • Germany
                                • Israel
                                • Italy
                                • Netherlands
                                • Nigeria
                                • Norway
                                • Poland
                                • Qatar
                                • Russia
                                • Saudi Arabia
                                • South Africa
                                • Spain
                                • Sweden
                                • Switzerland
                                • Turkey
                                • United Arab Emirates
                                • United Kingdom
                                
                                
                                Please Note: PDF & Excel + Online Access - 1 Year