The cloud computing market size is expected to be valued at US$ 405,295.8 million in 2022 and reach US$ 1,465,818.2 million by 2028. The cloud computing market share is expected to grow at a CAGR of 23.9% from 2022 to 2028.
The demand for trustworthy and affordable cloud-based solutions and services has led to the emergence of various cloud-based service providers. These providers offer solutions that help organizations select the most cost-effective architecture that can deliver optimal performance. With the increasing popularity of multi-cloud environments, the market for third-party cost optimization is expected to grow during the forecast period. Third-party cost optimization services focus on providing high-quality analytics that maximize cost savings without compromising on performance, offering multi-cloud management consistency, and cloud provider independence. Optimization is crucial in the early stages of cloud migration projects. Therefore, early identification of cost-cutting opportunities, the use of operational data analysis tools, and the establishment of skills and processes can benefit third-party cloud solutions. The increasing competition and government investments in developing cost-effective cloud-based products have attracted many enterprises to adopt cloud computing, contributing to the growth of the cloud computing market.
Furthermore, cloud providers are strengthening their market positions by investing heavily in developing their product portfolio. Some of the recent developments in cloud-based products are as follows:
On February 21, 2022, NxtGen plans to invest US$ 172.81 million (Rs 1,300 crore) in India to establish new data centers.
The North America cloud computing market has experienced significant growth due to several factors, including favorable government policies, prominent cloud computing vendors, and strong internet infrastructure. Over the past few years, the demand for cloud computing has increased, which has had a positive impact on internet penetration rates. As a result, many foreign direct investments (FDIs) have been made in this region, contributing to the growth of the cloud computing market in North America.
Furthermore, due to increasing security concerns, numerous organizations have adopted cloud computing to ensure the security of their business operations and run their businesses smoothly and effectively. Although many enterprises are worried about the cost of maintaining and hosting on-premises cloud solutions, the growing competition and shift in various business models toward digital transformation have encouraged many to adopt cloud computing. Enterprises are now more concerned about staff expenses, electricity costs, and downtime issues, leading them to adopt cloud computing. With the continued adoption of the cloud, enterprises can reduce operational costs and enhance their customer experience. The pay-as-you-go cloud computing model, which enables businesses to expand the cloud for further usage, has made startups and SMEs the leading consumers of cloud computing solutions. The cloud's benefits, such as on-demand availability and low cost, are significantly attracting these consumers, resulting in lower infrastructure and storage costs and a higher return on investment.
The US offers numerous profitable opportunities due to its endorsement of Cross Border Privacy Rules (CBPR), which has enticed numerous investors to invest in Information Technology. This has led to many US-based companies maintaining a robust international market presence to expand their business. As a result, cloud service providers are collaborating, resulting in a formidable presence in the global market. For example, in September 2021, Salesforce launched Health Cloud 2.0, a connected platform that allows the company to provide improved safety to its employees and customers through various modules like Contact Tracing and Dreampass.
Moreover, Amazon HealthLake was introduced in December 2020 as a new product from Amazon Web Services, targeted towards healthcare and life sciences customers. The service helps organizations gather, categorize, organize, and structure data from different sources and uses machine learning capabilities to derive insights from it. Additionally, the Trans-Pacific Partnership (TPP) involving 12 countries, including the US, and the contribution of US-based cloud tech companies in implementing several multi-national agreements are likely to create new business prospects for cloud computing in North America. It is worth noting that over 90% of Canadians have internet access.
The analysis of the cloud computing market is based on various factors such as service model, deployment model, organization size, industry vertical, and geography. With respect to the service model, the cloud computing market is categorized into three segments: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). In terms of the deployment model, the cloud computing market is divided into public cloud and private cloud. Considering the organization size, the cloud computing market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. By industry vertical, the cloud computing market is sub-categorized into BFSI, IT & telecommunications, government & public sector, retail & consumer goods, manufacturing, healthcare & life sciences, and others. Geographically, the cloud computing market is segmented into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
The global cloud computing market size has been determined by utilizing primary and secondary research methods. Initially, comprehensive secondary research has been carried out through internal and external sources to gather qualitative and quantitative information about the market. This procedure also aims to obtain a summary and forecast for the growth of the cloud computing market in relation to all its segments. Furthermore, several primary interviews have been conducted with industry experts and commentators to validate the data and acquire more analytical insights into the subject matter. These participants include business development managers, VPs, market intelligence managers, national sales managers, as well as external consultants, such as valuation experts, key opinion leaders, and research analysts, who specialize in the cloud computing market.
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