Cloud Computing Market Outlook, Trend, Share Analysis till 2028

Cloud Computing Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Service Model [Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS)], Deployment Model (Public Cloud and Private Cloud), Organization Size [Small & Medium-sized Enterprises (SMEs) and Large Enterprises], and Verticals (BFSI, IT and Telecom, Government and Public Sector, Retail and Consumer Goods, Manufacturing, Healthcare and Life Sciences, and Others)

Publication Month : Jun 2022

  • Report Code : TIPRE00012754
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 267
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The cloud computing market size is estimated to value at US$ 405,295.8 million in 2022 and reach US$ 1,465,818.2 million by 2028; it is expected to grow at a CAGR of 23.9% from 2022 to 2028.

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:

  • Flexibility:

    Organizations can use cloud computing to react quickly according to their requirements. Cloud computing diversifies workloads across an organization and allows employees to work from anywhere. When companies use Cloud Computing, they can easily hire a lower-cost workforce. The resources can also be scaled up and down depending on the company's needs. This allows SMEs to address the needs of their customers as quickly as possible.
  • Better Security:

    One of the most pressing issues businesses have is security. Despite online threats, regular infrastructural security is quite challenging to monitor and maintain, so cloud-based solutions are much safer than traditional solutions, especially for small-scale businesses. Large expenditures and specialization are required, which cannot be accommodated or possible for SMEs. Besides, SMEs are most prone to exposure to other security threats, such as hardware failures, power outages, and other human errors. As a result, cloud computing solutions easily overcome these security challenges because cloud computing companies have already invested time and effort in upholding security standards and operational practices.
  • Cost Cutting:

    Small businesses are constantly looking for ways to cut costs; as a result, Cloud Computing is the best investment for SMEs because it allows them to pay as they go. It assists SMEs in reducing expenses and promoting savings by requiring them to spend only on operational costs rather than capital expenditures and removing unnecessary costs.
  • Scalability:

    Scalability is another benefit of cloud computing and is critical in modern business models. Modern businesses are rapidly expanding, and various cloud computing resources allow for scalability due to factors, such as storage, features, and the number of users.

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.

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Cloud Computing Market: Strategic Insights

Market Size Value inUS$ 405,295.8 Million in 2022
Market Size Value byUS$ 1,465,818.2 Million by 2028
Growth rateCAGR of 23.9% from 2022 to 2028
Forecast Period2022-2028
Base Year2022
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Impact of COVID-19 Pandemic on Cloud Computing Market

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.

Lucrative Regions in Cloud Computing Market

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Market Insights– Cloud Computing Market

Service Model-Based Insights

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.

Deployment Model-Based Insights

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.

  • In 2022, Best Buy Co., Inc. chose Amazon Web Services, Inc. (AWS) as its preferred cloud provider for cloud infrastructure services and a key partner for developing cloud engineering expertise. This partnership will enable Best Buy to expand its use of cloud technologies across its retail operations and improve consumer experiences.
  • In 2022, IBM and SAP partnered to deliver technology and consulting expertise to help clients adopt a hybrid cloud strategy and migrate mission-critical workloads from SAP solutions to the cloud for regulated and non-regulated industries.
  • In 2021, Amazon Web Services, Inc. (AWS) launched four new initiatives to empower learners and make it even easier for anybody willing to learn to access free cloud computing skills training and open up new job opportunities in the cloud computing market.

Cloud Computing Market – Company Profiles

  • Amazon Web Services
  • Microsoft Corporation
  • SAP SE
  • IBM Corporation
  •, inc.
  • Google LLC
  • Oracle Corporation
  • Alibaba Group Holding Limited
  • Adobe
  • Workday, Inc.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Service Model, Deployment Model, Organization Size, and Vertical

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions

What is the estimated global market size for the Cloud Computing market in 2022?

The global Cloud Computing market was valued at US$ 405295.8 Mn in 2022.

What are the driving factors impacting the global Cloud Computing market?

The driving factors impacting the Cloud Computing market are
I. COVID-19 Outbreak Fuels Demand for Cloud-based Solutions
II. Cost optimization Drives Cloud Uptake

What are the future trends of the Cloud Computing market?

The Future trends impacting the Cloud Computing market are Acceptance of Cloud Solutions as Mainstream IT Deployment Option

Which are the key players holding the major market share of Cloud Computing market?

The key players holding the major market share of Cloud Computing are Amazon Web Services; Microsoft Corporation; IBM Corporation; Google LLC; Alibaba Group Holding Limited; SAP SE;, inc.; Oracle Corporation; Adobe; and Workday, Inc.

Which is the fastest growing regional market?

APAC is the fastest-growing regional market in the global Cloud Computing market in 2022.

Which countries are registering a high growth rate during the forecast period?

US, UK, India, South Africa, and Brazil are the countries are registering a high growth rate during the forecast period.

Which is the leading deployment model segment in the Cloud Computing market?

The public cloud segment led the Cloud Computing in 2022.

What will be the global market size for the Cloud Computing market by 2028?

The global Cloud Computing market size is projected to reach US$ 1465818.2 Mn by 2028.

What is the incremental growth of the Cloud Computing market during the forecast period?

The incremental growth of the Cloud Computing market during the forecast period is US$ 1060522.37 million with a CAGR of 23.9%

The List of Companies - Cloud Computing Market

  1. Amazon Web Services
  2. Microsoft Corporation
  3. SAP SE
  4. IBM Corporation
  5., inc.
  6. Google LLC
  7. Oracle Corporation
  8. Alibaba Group Holding Limited
  9. Adobe
  10. Workday, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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