Global Cloud FinOps Market Size, Share & Trends Analysis Report By Offering, By Service Model, By Deployment Model, By Vertical, By Organization Size (Large Enterprises and SMEs), By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Cloud FinOps Market Size, Share & Trends Analysis Report By Offering, By Service Model, By Deployment Model, By Vertical, By Organization Size (Large Enterprises and SMEs), By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Cloud FinOps Market size is expected to reach $27 billion by 2031, rising at a market growth of 11.1% CAGR during the forecast period.

The European region's strong cloud adoption and regulatory pressures like GDPR have led organizations to prioritize efficient cloud financial management. Many European businesses, particularly in finance, manufacturing, and retail sectors, have embraced FinOps to ensure compliance with data protection laws while optimizing their cloud expenditures. Thus, the Europe region would acquire nearly 30% of the total market share by 2031.

The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in April, 2024, Oracle Corporation teamed up with Palantir, a data integration, advanced analytics, and AI-driven decision-making platform to deliver advanced secure cloud and AI solutions for businesses and governments. Integrating Oracle's cloud infrastructure with Palantir's AI platforms, the collaboration aims to enhance data value, efficiency, and compliance, empowering organizations to excel in any industry or setting. Moreover, in April, 2024, Broadcom Inc., parent company of VMware, Inc. teamed up with Google Cloud focusing on optimizing Broadcom's VMware workloads for Google Cloud, collaborating on go-to-market strategies, adding more Broadcom products to Google Cloud Marketplace, and integrating Google Cloud's general AI capabilities. The collaboration aims to enhance the user experience for advanced IT infrastructure.

Market Growth Factors

The global adoption of cloud services continues to rise at an unprecedented pace, significantly influencing the demand for FinOps solutions. The demand for FinOps solutions has increased substantially as organizations endeavor to optimize their cloud spending and guarantee that they are utilizing cloud resources cost-effectively. Hence, the rapid rise in cloud adoption across industries drives the demand for FinOps solutions as businesses strive to optimize their cloud spending, ensure efficient resource utilization, and maintain financial control in an increasingly complex digital landscape.

Leading cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) now offer vast services, from basic storage and computing power to advanced artificial intelligence, machine learning, and data analytics capabilities. FinOps also plays a critical role in helping businesses negotiate more favorable pricing agreements with cloud providers. With the growing diversity of services, organizations often have leverage when negotiating contracts for large-scale cloud usage. Thus, as cloud services become more sophisticated and pricing models more complex, organizations increasingly turn to FinOps to manage these challenges.

Market Restraining Factors

Data security and privacy concerns are a key challenge in adopting these FinOps solutions, particularly as organizations increasingly move their financial operations to the cloud. The apprehension regarding FinOps adoption is even more pronounced in industries that are highly regulated, such as healthcare and finance. Hence, data security and privacy concerns remain a significant challenge for FinOps adoption.

Offering Outlook

Based on offering, the market is bifurcated into solutions and services. The services segment procured 37% revenue share in the market in 2023. Many organizations lack the internal skills and knowledge required to effectively execute FinOps strategies, leading to a rising demand for external consulting, training, and managed services.

Service Model Outlook

By services type, the market is divided into professional services and managed services. The managed services segment garnered 32% revenue share in the market in 2023. Managed services cater to organizations looking to outsource the ongoing management and optimization of their cloud finances.

Deployment Model Outlook

On the basis of deployment model, the market is divided into hybrid cloud, private cloud, and public cloud. The public cloud segment witnessed 23% revenue share in the market in 2023. Public cloud infrastructure is a popular choice for organizations interested in promptly deploying applications and services due to its high scalability and flexibility.

Vertical Outlook

By vertical, the market is segmented into IT & ITeS, BFSI, retail & consumer goods, healthcare & life sciences, manufacturing, media & entertainment, telecommunications, government & public sector, and others. The BFSI segment garnered 18% revenue share in the market in 2023. This sector has seen a surge in cloud adoption as financial institutions digitalize their services and processes. With strict regulatory requirements and the need for secure, efficient cloud operations, BFSI organizations have turned to FinOps solutions to monitor and optimize cloud expenses while ensuring compliance and maintaining operational continuity in a highly regulated environment.

Organization Size Outlook

Based on organization size, the market is bifurcated into large enterprises and SMEs. The SMEs segment witnessed a 29% revenue share in the market in 2023. SMEs have increasingly adopted cloud technologies to enable digital transformation and enhance their agility and competitiveness.

Application Outlook

On the basis of application, the market is segmented into cost management & optimization, budgeting & forecasting, cost allocation & chargeback, workload management & optimization, reporting & analytics, and others. The budgeting & forecasting segment procured 22% revenue share in the market in 2023. Organizations increasingly rely on FinOps solutions to accurately predict future cloud expenditures and align their budgets with broader business goals.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 37% revenue share in the market in 2023. The North America market is driven by the region's advanced adoption of cloud technologies and the presence of numerous tech giants and cloud service providers.

Recent Strategies Deployed in the Market

• >Jun-2024: Apptio, an IBM company, unveiled new FinOps innovations at IBM's Think 24 and FinOps X conferences. These enhancements, including an integrated IBM FinOps offering and improved third-party cloud cost management, strengthen the IBM Cloudability portfolio, empowering FinOps practitioners to optimize cloud investments and ensure optimal cloud performance.
• Apr-2024: Oracle Corporation teamed up with Palantir, a data integration, advanced analytics, and AI-driven decision-making platform to deliver advanced secure cloud and AI solutions for businesses and governments. Integrating Oracle's cloud infrastructure with Palantir's AI platforms, the collaboration aims to enhance data value, efficiency, and compliance, empowering organizations to excel in any industry or setting.
• Apr-2024: Broadcom Inc., parent company of VMware, Inc. teamed up with Google Cloud focusing on optimizing Broadcom's VMware workloads for Google Cloud, collaborating on go-to-market strategies, adding more Broadcom products to Google Cloud Marketplace, and integrating Google Cloud's general AI capabilities. The collaboration aims to enhance the user experience for advanced IT infrastructure.
• Feb-2024: Flexera Software LLC announced the acquisition of Snow Software, a Software Asset Management (SAM), IT Asset Management (ITAM), and cloud management solutions provider enhancing customers' insights into their hybrid IT environments. This merger combines Flexera's expertise with Snow's technology data, offering superior value and outcomes. The acquisition boosts capabilities in hybrid IT asset management and FinOps, creating new opportunities for both customers and partners.
• Dec-2023: Hitachi Digital Services, LLC, a subsidiary of Hitachi, Ltd., unveiled the Hitachi Unified Compute Platform (UCP) for GKE Enterprise in partnership with Google Cloud. This integrated hybrid solution supports generative AI, empowering organizations to leverage hybrid cloud environments and maximize data-driven opportunities in the digital age.

List of Key Companies Profiled

• >Microsoft Corporation
• IBM Corporation
• Google LLC
• Oracle Corporation
• Hitachi Digital Services, LLC (Hitachi Ltd.)
• VMware, Inc. (Broadcom Inc.)
• ServiceNow, Inc.
• Datadog, Inc.
• Lumen Technologies, Inc.
• Flexera Software LLC
• Amazon Web Services, Inc. (Amazon.com, Inc.)

Global Cloud FinOps Market Report Segmentation

By Offering

• >Solutions
• Native Solutions
• Third-party Solutions
• Services
• Professional Services
• Managed Services

By Service Model

• >SaaS
• IaaS
• PaaS

By Deployment Model

• >Hybrid Cloud
• Private Cloud
• Public Cloud

By Vertical

• >IT & ITeS
• BFSI
• Retail & Consumer Goods
• Healthcare & Life Sciences
• Manufacturing
• Media & Entertainment
• Telecommunications
• Government & Public Sector
• Others

By Organization Size

• >Large Enterprises
• SMEs

By Application

• >Cost Management & Optimization
• Budgeting & Forecasting
• Cost Allocation & Chargeback
• Workload Management & Optimization
• Reporting & Analytics & Others

By Geography

• >North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA