Global Cloud Analytics Market 2024-2031

Global Cloud Analytics Market 2024-2031

Cloud Analytics Market Size, Share & Trends Analysis Report by Component (Solutions and Services), by Deployment (Public, Private, and Hybrid), by Application (Sales and Marketing, Customer Service, Accounting & Finance, Human Resources, and Others), and by Industry Vertical (BFSI, Retail & Consumer goods, Healthcare & Life sciences, IT & Telecommunication, Education, Automotive, Manufacturing, Transportation & Logistics, Government & Defense, and Other), Forecast Period (2024-2031)

Cloud analytics market is anticipated to grow at a significant CAGR of 16.1% during the forecast period (2024-2031). The market growth is attributed to increasing cloud-based analytics solutions that enable businesses to accelerate digital transformation projects, improve customer experiences, maximize operational efficiency, and strengthen network security protocols globally. According to the World Bank, in June 2022, cloud services advanced digital transformation for governments. Cloud services offer governments cost savings, capacity to rapidly scale, advanced cybersecurity features, and access to powerful analytical tools for processing big data.

Market Dynamics

Transformative Impact on Businesses

AI cloud analytics enables completely new business models and services in addition to improving existing ones. By processing massive volumes of sensor and environmental data in real-time, it can propel the development of connected vehicles and autonomous driving in the automobile industry. It can enhance client satisfaction and retention in the entertainment industry by personalizing content on streaming platforms. Numerous cloud analytics platforms provide real-time data processing and analysis tools, enabling companies to act quickly and decisively. Businesses will be able to obtain valuable insights more quickly and precisely than ever before owing to this synergy, which opens up previously unattainable possibilities in data processing, analysis, and interpretation.

Increasing Adoption of AI-Centric Cloud Platform

An artificial intelligence (AI) and machine learning (ML) focused cloud platform is a cloud computing environment that is specifically tailored and built to host, develop, and run AI and ML applications. From data preprocessing and model training to deployment and monitoring, these platforms offer the computational capacity, resources, and services required to support the full AI development lifecycle. For instance, in September 2023, Amdocs, a provider of software and services to communications and media companies announced the introduction of its Generative AI-powered cloud management platform. The solutions are designed to hyper-automate service development and operations and manage and streamline a service provider’s entire IT and business operations lifecycle.

Market Segmentation

Based on the component, the market is segmented into solutions and services.

Based on the deployment, the market is segmented into public, private, and hybrid.

Based on the application, the market is segmented into sales and marketing, customer service, accounting & finance, human resources, and others (research & development).

Based on the industry vertical, the market is segmented into BFSI, retail & consumer goods, healthcare & life sciences, IT & telecommunication, education, automotive, manufacturing, transportation & logistics, government & defense, and other (energy & utilities).

Solutions are Projected to Hold the Largest Segment

The solutions segment is expected to hold the largest share of the market. The primary factors supporting the growth include the growing number of organizations in need of cloud analytics solutions, including cloud BI tools, enterprise information management, governance, risk, and compliance, enterprise performance management, and analytics solutions. The latter helps organizations plan more effectively and efficiently in the areas of HR, finance, sales, and supply chain, gain better insights, and make easier financial decisions. For instance, in September 2021, Snowflake Inc., the data cloud company, announced the financial services data cloud, which unites Snowflake’s industry-tailored platform governance capabilities, Snowflake- and partner-delivered solutions, and industry-critical datasets, to help financial services organizations revolutionize data use to drive business growth and deliver better customer experiences.

BFSI Segment to Hold a Considerable Market Share

The BFSI segment is expected to hold a considerable share of the market. The factors supporting segment growth include businesses using cloud analytics to enhance user experience as a result of the increasing competition in the BFSI industry. Businesses are utilizing cloud analytics to improve client acquisition, engagement, and targeting. Among the cloud analytics solutions the BFSI sector is implementing to enhance user experience and achieve a competitive edge are sales, website, performance, and financial analytics. For instance, in February 2023, Oracle introduced Oracle Banking Cloud Services, a new suite of componentized, composable cloud-native services. The six new services provide banks with highly scalable corporate demand deposit account processing: enterprise-wide limits and collateral management, real-time ISO20022 global payment processing, API management, retail onboarding and originations, and new self-service digital experience capabilities

Regional Outlook

Global cloud analytics market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Growing Adoption of Cloud Analytics in Asia-Pacific

The regional growth is attributed to the rapid expansion of the e-commerce sector in countries like China, India, and Japan. Postal automation systems in the Asia Pacific area are also seeing a lot of growth potential owing to the growing demand from the BFSI sector.

According to the India Brand Equity Foundation (IBEF), in January 2024, the cloud computing scope in India has evolved from a facilitator to a catalyst that promotes creativity, adaptability, and corporate expansion. Cloud technology will account for 8.0% of India’s GDP by 2026.It has the potential to boost the country's GDP by $310.0-$380.0 billion by 2026, while also producing 14 million employments. A concentrated all-around effort can result in a continuous 25.0%-30.0% increase in cloud investment over the next five years (2022 onwards) to reach $18.5 billion, assisting India in realizing the full potential of the cloud market.

North America Holds Major Market Share

North America holds a significant share owing to numerous prominent cloud analytics companies and providers such as Google LLC, IBM Corp., Microsoft Corp., Oracle Corp., and Salesforce, Inc., in the region. The expansion of the market in the region is driven by the growing adoption of the latest technologies in postal services and the presence of significant players in the region. Moreover, growing labor prices and labor shortages are forcing enterprises to implement automation resulting in the market's growth. The demand for postal automation services is expanding in government, BFSI, and other industries fueling the industry growth in the region. Governments meet stringent security, digital sovereignty, and compliance requirements when developing, deploying, and operating their enterprise AI stack. The market players in the region offer software and Cloud AI infrastructure in a unified solution. For instance, in April 2024, Oracle US government cloud customers accelerate sovereign AI with NVIDIA AI enterprise. NVIDIA AI Enterprise on Oracle Cloud Infrastructure Supercluster enables government organizations to quickly build and deploy scalable and secure deep learning workloads.

The major companies serving the cloud analytics market include Amazon Web Services, Inc., Google LLC, IBM Corp., Microsoft Corp., and Salesforce, Inc. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.

Recent Developments

In February 2023, Akamai Technologies, Inc., the cloud company that powers and protects life online, introduced Akamai Connected Cloud, a massively distributed edge and cloud platform for cloud computing, security, and content delivery that keeps applications and experiences closer and threats farther away. The new strategic cloud computing services for developers to build, run, and secure highly performant workloads closer to wherever businesses and users connect online.

In June 2023, global integrated energy company OQ led the market to SAP’s first private cloud customer in Oman. Oman has reached a major milestone in its digital transformation with the announcement of the Sultanate’s first private cloud data center, launched by global technology company SAP SE in alignment with Oman’s Ministry of Transport, Communications, and Information Technology (MTCIT).