Cloud technology is one of the most widely used technologies in the world now. The growth of cloud computing remained resilient last year amidst the demanding business environment for various technology companies. However, this hasn’t stopped businesses operating at diverse scales from adopting this technology in different forms. Moreover, its impact is not limited to the business side but has also reached consumers. Whether it is emails, cloud-based document storage, web hosting, and even application hosting, cloud computing has touched almost every aspect of our lives.
For businesses still dubious about planning for growth based on the cloud, knowing the cloud computing market growth statistics may help make informed decisions. Keeping the speculations and results from various reliable surveys/reports, we have compiled this guide to the cloud computing market size.
Market Size: Previous, Current, and Expected
In 2021, the cloud computing market was valued at US$405.65 billion on a global scale (Source). Before that period, the market exhibited 13.8% growth in 2020, when the pandemic occurred. Since then, it hasn’t looked back. In 2022, the global cloud computing market was valued at US$483.98 billion and was expected to grow significantly at 14.1% CAGR during the forecast period 2023-2030.
While there are several drivers of cloud computing market growth, some primary ones include benefits to improve business performance via the cloud, government initiatives, and hybrid work models, including fully-remote work environments.
So let’s dive deeper into this aspect of cloud computing.
Growth Drivers of Cloud Computing Market
- The high rate of digitization has pushed organizations across the globe to modernize their tech stack or infrastructure to benefit from business agility and higher cost efficiency. With cloud adoption, they can support critical business operations more efficiently, shift workloads to the cloud, collaborate more often than usual, and avoid network latency.
- Cloud computing has enabled unprecedented possibilities for businesses to create delightful customer experiences for changing consumer behavior.
- The technology has also improved collaboration between SMEs, agencies, regulators, and government bodies.
- The availability of multiple cloud models – IaaS, PaaS, and SaaS, has made it open to diverse businesses.
Interesting Read: All About IaaS
Challenges Related to Cloud Computing Market
- Data privacy and security are some of the main concerns related to the cloud for organizations. They expect the cloud-based data and applications to be protected digitally. This requires the cloud solution providers to invest in access control, data encryption, communication security, and more.
- Ensuring maximum server uptime, which can be 99.999%, is another challenge. This can be backed by selecting the right data center tier for integration and hosting of cloud servers.
- Although the rate of cloud computing market growth is substantial, certain businesses still resort to traditional ways to host data and applications. Here, building awareness about the benefits of cloud technology is crucial for a further rise in cloud adoption.
Insights Related to Cloud Services
In terms of services, the cloud industry includes IaaS, PaaS, and SaaS models, in which the SaaS model has the maximum share in terms of revenue (53.95%). This segment is expected to grow further in the coming years as it provides scalable, flexible solutions for businesses.
Insights Related to Cloud Deployment
- The private cloud deployment constituted the majority of the share (45.90%) of overall revenue in 2022.
- The hybrid cloud deployment segment is expected to develop further over the next few years with improved business operations, cost optimization, and more.
Insights Related to Business Segments
- The BFSI sector accounted for the maximum share of the overall revenue in 2022, owing to the surge in online banking activity, lower costs, and better innovation. BFSI businesses have also benefited from the cloud in terms of enhanced work flexibility and client relationships.
- The manufacturing sector is expected to become the leading user of cloud technology in terms of Enterprise Resource Planning (ERP) and supply chain management.
Regional Insights on Cloud Computing Market
- North America accounted for the most significant share of the overall revenue in this industry in 2022. It can be because the U.S. business ecosystem has been an early adopter of technologies and prioritized digital transformation.
- Asia Pacific region is expected to register fast cloud adoption during 2023-30. This is backed by the economic growth in India and China, followed by the rise in demand for cloud computing.
For more information, continue reading Verito’s Knowledge Base.