Cloud Computing Market by Service Model (IaaS, PaaS, SaaS), Deployment Model(Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, Vertical (BFSI, Telecommunications, Manufacturing, Retail & Consumer Goods) and Region - Global Forecast to 2028

Cloud Computing Market by Service Model (IaaS, PaaS, SaaS), Deployment Model(Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, Vertical (BFSI, Telecommunications, Manufacturing, Retail & Consumer Goods) and Region - Global Forecast to 2028

MarketsandMarkets forecasts the global cloud computing market size is expected to grow from USD 626.4 Billion in 2023 to USD 1,266.4 Billion by 2028 at a CAGR of 15.1% during the forecast period. Cloud computing enables businesses to access a wide range of services and tools, which can help them to innovate and adapt to new technologies. This flexibility allows companies to focus on their core competencies and outsource IT infrastructure and management responsibilities to cloud providers.

“Compute” sub-segment of IaaS segment to hold the largest market size during the forecast period.”

“Compute” in cloud computing refers to ideas and things associated with software computation. It is a general phrase that refers to the computing power, memory, networking, storage, and other resources necessary for any application to succeed computationally. For instance, graphics processing applications, such as 3-D rendering and video games, are compute-intensive apps, whereas CPUs, APUs, and GPUs are computing resources. A virtual machine (VM) is an independent computing environment that runs on top of physical bare metal hardware. In contrast, a bare metal compute instance offers dedicated physical server access for maximum performance and strong isolation. Virtualization software splits a physical (bare metal) server into numerous virtual servers to construct cloud servers. It offers advantages such as affordability, scalability, integration, and load balancing.

“BFSI” vertical to hold the largest market size during the forecast period.”

The BFSI sector rapidly embraces digitalization initiatives to meet rising customer expectations and sustain the highly competitive market. Cloud-based applications facilitate vendors to meet IT efficiency needs while saving on CAPEX and OPEX. As the banking sector needs to store and manage customers’ confidential information like credit card details, transaction details, and personal information, it is crucial to store this data securely. Cloud computing offers various benefits, such as meeting regulatory standards and enabling vendors to meet them more efficiently.

The increased adoption of cloud computing in the BFSI sector is due to factors like the rising online banking activity, which has prompted moneylenders to embrace digital transformation. Cloud computing helps firms decrease expenses, encourage innovation, strengthen client connections, and increase flexibility in the BFSI sector. It is an ideal solution for storing and managing confidential information, offering numerous benefits while ensuring regulatory compliance.

“Cloud Computing market in Asia Pacific to grow at the highest CAGR during the forecast period.”

The cloud computing market in Asia Pacific would grow at the highest rate among all the regions due to the increasing enterprise workloads. Cloud computing adoption is increasing across different industry categories in Asia Pacific. As a result, cloud providers such as Amazon Web Services, Google Cloud, and Microsoft Azure are expanding their presence in the Asia Pacific area. Amazon Web Services, for example, spent USD 6 billion in Malaysia in March 2023 to establish cloud data centres. Singapore's government is introducing innovative digital tools to improve financial planning efficiency and protect personal financial information. For example, the Smart Nation and Digital Government Group (SNDGG) and the Monetary Authority of Singapore (MAS) will launch the Singapore Financial Data Exchange (SGFinDex) in December 2020, a platform aimed to assist Singaporeans better organise their finances. It is the world's first public digital infrastructure to enable citizens with access to their financial information maintained across various government departments and financial organisations, using a national digital identity and a centrally managed online permission mechanism. SGFinDex was founded by Singapore's largest banks, government agencies, and the Singapore Exchange Group (SGX Group). Enterprises across the Asia Pacific have always been cautious about their investment plans and focus on affordable options. Various giant players, such as Microsoft, AWS, Google, and IBM, are expanding their cloud services rapidly in this region due to the availability of enormous customer potential and the growing economic outlook.

Moreover, Asia Pacific provides significant growth opportunities over the next five years. The rising demand for advanced solutions that are cloud-driven and cloud-supported has resulted in the increasing demand for cloud computing solutions in Asia Pacific, resulting in increasing investments and technological advancements across industries. The market in Asia Pacific is experiencing strong growth as Asia Pacific organizations are rapidly adopting cloud computing to meet the demands of their customers. The competition in this region is fragmented, and market vendors are looking to expand their presence there, which would result in infrastructure improvement and business-strategic benefits. Asia Pacific enterprises are less proficient than North American and European enterprises in information, security awareness, and technical expertise.

Further, our team conducted in-depth interviews with the Chief Executive Officers (CEOs), Chief Marketing Officers (CMO), Chief Operating Officers (COOs), Chief Technology Officers (CTOs), Vice Presidents (VPs), Managing Directors (MDs), domain heads, technology and innovation directors, and related key executives from various prominent companies and organizations operating in the cloud computing market.

 By Company – Tier 1–20%, Tier 2–34%, and Tier 3–46%

 By Designation – C-Level Executives–35%, Director Level–25%, and Others–40%

 By Region – North America–42%, Europe–25%, Asia Pacific–18%, RoW – 15%

The key players in the cloud computing market are AWS (US), Microsoft (US), IBM (US), Google (US), Alibaba Cloud (China), SAP (Germany), Salesforce (US), Oracle (US), Adobe (US), Workday (US), Fujitsu (Japan), VMware (US), Rackspace (US), DXC (US), Tencent Cloud (China), NEC (Japan), DigitalOcean (US), Joyent (US), Skytap (US), OVH (France), Navisite (US), CenturyLink (US), among others. The study includes an in-depth competitive analysis of these key players in the cloud computing market with their company profiles, recent developments, and key market strategies.

Research Coverage

The research study covered inputs, insights, trends, and happenings from secondary sources, primary sources, stakeholders’ interviews, and surveys. Secondary sources include information from databases and repositories such as D&B Hoovers, Bloomberg, Factiva, and CoinDesk. We fetched primary data from supply-side industry experts who hold the chair of Chief Executive Officer (CEO), Chief Technological Officer (CTO), Chief Operating Officer (COO), Vice-President (VP) of IT, and Managing Director (MD), among others. We also reached out to a few startups during our primary interviews. Additionally, we have taken information and statistical and historical data from a few government associations, public sources, webinar and seminar transcripts, journals, conferences, and events.

Reasons to buy this report:

The report will help the market leaders/new entrants with information on the closest approximations of the revenue numbers for the overall cloud computing market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities. The report incorporates a critical section comprising the company profiles in the market, in which it has exhaustively evaluated the vendors in terms of product portfolio offerings and business strategies followed; this will give a holistic view of the current standing of the key players in the market and the ongoing developments encompassing partnerships, agreements, collaborations, mergers and acquisitions, joint ventures, new product or service launches, and business expansions. This evaluation will help the buyers understand how the major vendors are achieving service differentiation, and buyers can understand the need gap analysis for the existing services and new services needed to cater to these newly developed solutions for this market. The report can help the buyers understand significant benefits as well as driving factors that are becoming key growth drivers of the development of buyers in these services.

The report provides insights on the following pointers.

Analysis of key drivers (rising demand for AI, personalized customer experience, need for disaster recovery and contingency plans), restraints (data security and privacy concern, lack of technical knowledge and expertise), opportunities (increase government initiatives, adoption of IoT and connected devices), and challenges (high complexity due to adoption of multi-cloud model, risk of vendor lock-in) influencing the growth of the cloud computing market

Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the cloud computing market

Market Development: Comprehensive information about lucrative markets – the report analyses the cloud computing market across varied regions.

Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the cloud computing market

Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players, like include AWS (US), Microsoft (US), IBM (US), Google (US), Alibaba Cloud (China), SAP (Germany), Salesforce (US), Oracle (US), Adobe (US), Workday (US), Fujitsu (Japan), VMware (US), Rackspace (US), DXC (US), Tencent Cloud (China), NEC (Japan), DigitalOcean (US), Joyent (US), Skytap (US), OVH (France), Navisite (US), CenturyLink (US), Infor (US), Sage (UK), Intuit (US), OpenText (Canada), Cisco (US), Box (US), Zoho (US), Citrix (US), Epicor (US), Upland Software (US), ServiceNow (US), IFS (Sweden), App Maisters (US), Zymr (US), JDV Technologies (India), Tudip Technologies (India), Visartech (US), Cloudflex (Nigeria), Cloudways (Malta), Vultr (US), and pCloud (Switzerland) in the cloud computing market. The report also helps stakeholders understand the competitive analysis of these market players.