Publication Month: Jun 2022 | Report Code: TIPRE00012754 | No. of Pages: 267 | Category: Technology, Media and Telecommunications | Status: Published
The costs of data hosting on-premises, both in terms of implementation and maintenance, are a concern for businesses. Moreover, electricity costs, employee expenses, and downtime issues are other concerns for enterprises. For better productivity, startups and SMEs are shifting their business models to online and cloud.
Furthermore, the current competitive environment and global economic conditions have accelerated the uptake of a cost-effective business model. The shift of businesses toward digital transformation, enhanced customer experience, and reduced enterprise cost positively impacted cloud computing market growth. For instance, the pay-as-you-go model allows companies to pay for cloud services only when they use them, resulting in lower costs.
Cloud computing has numerous advantages, including eliminating costs associated with installing, constructing, and managing business operations, which are fundamental difficulties encountered by SMEs. Cloud computing also allows quick access to all technological benefits. The primary reasons that small businesses are adopting cloud computing in their organizations are as follows:
The cloud computing market is analyzed on the basis of service model, deployment model, organization size, industry vertical, and geography. Based on service model, the market is segmented into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Based on deployment model, the market is bifurcated into public cloud and private cloud. Based on organization size, the market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. Based on industry vertical, the market is segmented into BFSI, IT & telecommunications, government & public sector, retail & consumer goods, manufacturing, healthcare & life sciences, and others. By geography, the market is divided into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
|Market Size Value in||US$ 405,295.8 Million in 2022|
|Market Size Value by||US$ 1,465,818.2 Million by 2028|
|Growth rate||CAGR of 23.9% from 2022 to 2028|
|No. of Pages||267|
|No. of Tables||191|
|No. of Charts & Figures||112|
|Historical data available||Yes|
|Segments covered||Service Model, Deployment Model, Organization Size, and Vertical|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
The spread of SARS-CoV-2 (COVID-19) delayed economic development globally. The lockdown imposed by the governments slowed the business operation of many Information & Communications Technologies (ICTs). In 2021, the uplifting of lockdown and vaccination drives created a favorable environment for the cloud computing market to grow.
Furthermore, key ICT players, such as Microsoft, IBM, Amazon Web Services, and VMware, focus on digital technologies to mitigate the adverse effects of the COVID-19 crisis in 2020. Many businesses have adopted new business models to protect their employees, such as the work-from-home model. This has boosted the demand for collaboration-based solutions, including Software-as-a-Service (SaaS). The increasing growth in the e-commerce industry is further driving the cloud computing market growth.
The COVID-19 pandemic adversely affected Europe's various industrial sectors. The governments across the region took drastic measures to ensure citizens' safety and health. Various government agencies across the EU made significant investments in cloud computing initiatives, thereby boosting the region's adoption of cloud-based services. In November 2020, the UK government signed a three-year contract with Amazon Web Services to increase cloud uptake across government organizations. It provides training and conducts workshops for businesses in the early stages of cloud deployment under this contract.
Furthermore, the flexibility and agility of the cloud solutions, and the ease of provisioning and scaling new resources led many enterprises to adopt the product, thus contributing to the Europe cloud computing market.
By geography, the cloud computing market is divided into five regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South America.
The cloud computing market analysis by service model, the cloud computing market is segmented into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a service (SaaS). The SaaS segment accounted for the highest cloud computing market share in 2021. A software distribution model in which a cloud service provider hosts services is known as Software as a Service (SaaS). These services are accessible to end users over the Internet. Therefore, end users do not need to install any software on their devices to utilize them. A SaaS provider offers various business services to help a company get started. ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), billing, and sales are examples of SaaS business services. SaaS document management is a software program provided by a third party (SaaS providers) for creating, managing, and tracking electronic documents. SaaS services are provided on a one-to-many basis, which implies that several users share a single application instance. The robust features of the SaaS model contribute to the cloud computing market growth during the forecast period.
The cloud computing market analysis by deployment model, the cloud computing market is segmented into public cloud and private cloud. The public cloud segment is expected to account for a significant cloud computing market share during the forecast period. The public cloud is an IT architecture in which on-demand computing resources and infrastructure are managed by a third party and used by several enterprises over the public Internet. Public cloud service providers may provide cloud-based services, such as Infrastructure as a service (IaaS), platform as a service (PaaS), and Software as a service (SaaS), to users for a monthly or pay-per-use subscription, eliminating the need for users to host these services on-site in their own data center.
The public cloud makes computer resources available for purchase to anybody. Several users often share a public cloud. The expense of maintaining IT equipment is also passed on to the cloud service provider when using public cloud-based services. This results in the cloud computing market.
Players operating in the cloud computing market are mainly focused on developing advanced and efficient products.