Global Distributed Cloud Market 2023-2030

Global Distributed Cloud Market 2023-2030

Global Distributed Cloud Market Size, Share & Trends Analysis Report by Application (Edge Computing, Content Delivery, and Internet of Things), by Service (Data Security, Data Storage, and Networking), and by End-Use (BFSI, Healthcare, It & Telecom, Government & Defense, and Others), Forecast Period (2023-2030)

The global distributed cloud market is anticipated to grow at a CAGR of 22.8% during the forecast period (2023-2030). A distributed cloud is a computing architecture that distributes cloud resources and services across multiple physical locations, while providing a unified management and control plane. This approach aims to address the limitations of traditional centralized cloud models, which often face challenges with data latency, regulatory compliance, and scalability.

In September 2023, Akamai Technologies announced seven upcoming new core compute regions across Europe, Asia, North America, and Latin America. The locations in Amsterdam, Netherlands, Jakarta, Indonesia, Los Angeles, California, Miami, Florida, Milan, Italy, Osaka, Japan, and São Paulo, Brazil, are the third installment of Akamai's rollout of new core compute regions since its acquisition of Linode last year, and represent a key step in Akamai's push to redefine how the cloud operates.

Segmental Outlook

Global distributed cloud market is segmented on the application, service, and end-user. Based on the application, the market is sub-segmented into edge computing, content delivery and internet of things. based on service, the market is sub-segmented into data security, data storage and networking. And based on the end-user, the market is sub-segmented into BFSI, healthcare, It & telecom, government & defense and others. Among the end-user, the BFSI sub-segment is anticipated to hold a considerable share of the market, owing to increasing pressure to comply with stringent laws and regulations related to customer data security and privacy in financial services and banking organizations. Distributed cloud can enhance security by isolating data and applications in specific locations and by providing multiple layers of security controls. Also, it allows organizations to store and process data within specific geographic regions or jurisdictions, complying with local regulations and data residency mandates.

The Data Storage Sub-Segment is Anticipated to Hold a Considerable Share of the Global Distributed Cloud Market

Among the service, the data storage sub-segment is expected to hold a considerable share of the global distributed cloud market. It helps in distribution of resources such as compute, storage, and networking are distributed across multiple locations, closer to the data sources and users. It improves data access and transfer, and it can also guarantee a larger bandwidth, effective disaster recovery, and data protection strategies at low costs. This segmental growth is attributed to several factor such as data resiliency, high availability, and security. Hence, the market players are focusing on increasing the size of data warehouse and expansion in new regions. For instance, In October 2022, Oracle Corporation launched several new distributed cloud offerings to meet the increasing demand for Oracle Cloud Infrastructure (OCI) and customers’ diverse needs. Oracle Corp plans to open new cloud regions in Serbia, Chicago, and Mexico. The OCI distributed cloud allows customers to use cloud services from anywhere with public, multi-cloud, hybrid, and dedicated options.

Regional Outlook

Global distributed Cloud 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), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, the Asia-Pacific region is anticipated to hold a prominent share of the market across the globe, owing to rising number of startups and large multinational companies are providing valuable ICT solutions in this region. for instance, in November 2021, Infosys Finacle, announced that Finacle Digital Banking Solution Suite is now available on IBM Cloud and Red Hat OpenShift for Financial Services. This collaboration allow the banks to expand the company’s transformation, become more agile and strengthen their expansion with a portfolio of on-demand services and products. It will also help banks achieve seamless ecosystem connectivity, provide customers with a world-class banking experience and enable them to meet the necessary compliance and security requirements.

The North America Region is Expected to Grow at a Significant CAGR in the Global Distributed Cloud Market

Among all regions, the North America regions is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to several factors such as, expansion of IoT devices and data, increased focus on security and compliance and increasing government initiatives and investments. These factors are driving the growth of the market in the region. hence, the market players are continuously working on strategic development such as, partnership, merger, acquisition, and product launch to stay competitive in the market.For instance, in February 2022, Integration Appliance, Inc. a provider of cloud-based software for the global professional and financial services industry based in the US, partnered with Microsoft Corp, a distributed cloud vendor, to accelerate the adoption of cloud technologies by investment banking, private capital, accounting, legal, and consulting firms. Integration Appliance, Inc. would deliver cloud-based solutions for connected firms and deal management using Microsoft Azure by partnering with Microsoft Corp.

Market Players Outlook

The major companies serving the distributed cloud market include Alibaba Group, Amazon Web Services, Inc., CloudSigma AG, DigitalOcean, Inc., F5, Inc., IBM Corp, Oracle Corp., Pivotal Inc, Rackspace Technology, Salesforce, Inc., Teradata Corp, VMware, Inc., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in September 2023, Ericsson announced an expansion of its partnership with Google Cloud focused on the development of an Ericsson Cloud RAN solution integrated with Google Distributed Cloud. This offers advanced automation, orchestration, and leverages AI/ML for Communication Service Providers. Google Distributed Cloud (GDC) is a suite of managed hardware and software solutions that extends Google Cloud's capabilities to the edge and data centers. Together, the Ericsson and Google Cloud teams have demonstrated successful implementation of Ericsson's vDU and vCU on GDC Edge. It is currently operational at Ericsson's Open Lab in Ottawa, Canada, with plans for further market development. This latest collaboration enables the creation of a highly automated and extensive distributed cloud infrastructure for radio access networks. Benefits include efficiency, reliability, high performance, and security software-centric RAN.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global distributed cloud market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.