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2023

Cloud Computing Services Market

Cloud Computing Services Market Size, Share, Competitive Landscape and Trend Analysis Report by Type, by Enterprise Size, by End-Use : Global Opportunity Analysis and Industry Forecast, 2023-2032

IC : Information, Infrastructure & Network Security

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Author's: Shrawanty Yadav | Onkar Sumant
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Cloud Computing Services Market Statistics: 2032

The global cloud computing services market was valued at $398.9 billion in 2022, and is projected to reach $2 trillion by 2032, growing at a CAGR of 18.1% from 2023 to 2032.

Factors such as rising demand of cloud computing services to enhance business operation and the growing usage of mobile devices are driving the growth of global market. In addition, surge in technological advancements and increasing investments by top players, which in turn is expected to create numerous opportunities for the cloud computing services market forecast. For instance, May 2023, IBM Corporation launched the IBM Hybrid Cloud Mesh, a SaaS offering, which is designed to enable enterprises to bring management to their hybrid multi-cloud infrastructure. IBM Hybrid Cloud Mesh unlocks the potential of hybrid and multi-cloud application deployment by creating a simple, secured, scalable, and seamless on-ramp for applications and services across heterogeneous environments.

However, data privacy and security concerns and costs and budget constraints hamper the growth of the market. Furthermore, rise in demand of cloud services in developing region and growth in serverless computing and function-as-a-service (FaaS), creates lucrative opportunities for cloud computing services during the forecast period. Moreover, increasing digitalization and work from policy (WFH), are expected to enhnace the cloud computing services market trends in the coming years.

Cloud Computing Services Market

Cloud computing services is a computing model of providing IT resources, such as application, infrastructure, and platform in the form of service by using internet. Cloud Computing provides infrastructure for computing and processing of all types of data resources and adopted to deal with large amounts of data. This Internet based current technology has brought flexibility, capacity, and power of processing. In addition, this technology has recognized service-oriented idea and has formed a new system in the computing world with its influence and benefits. The capabilities of cloud computing services have been able to move IT industry one step forward.

Furthermore, currently, huge, and prominent companies have migrated towards cloud and have relocated their processing and storage to it, where, users can choose public, private, or hybrid storage offerings, depending on security needs and other considerations, which will be beneficial for the market growth.

Segment Review

The cloud computing services market is segmented into type, enterprise size, end-use and region. The report provides information on various types including infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS). In addition, it is categorized by different enterprise size such as large enterprises and small & medium-sized enterprises. The details of the end-use namely BFSI, IT & telecommunication, retail and consumer goods, healthcare, government & public sector and others are also provided in the report. In addition, it analyzes the current market trends across different regions such as North America, Europe, Asia-Pacific, and LAMEA.

Cloud Computing Services Market by Enterprise Size

Based on enterprise size, the global cloud computing services market share was dominated by the large enterprises in 2022 and is expected to maintain its dominance in the upcoming years. This is due to the rise in demand of digital solution and cloud technology in large enterprises to enhance business operation. However, the small and medium-sized enterprises segment is expected to witness the highest growth in the coming years, as cloud computing services help to reduce the time and costs in the initial phase of deployment.

Cloud Computing Services Market by Region

By region, North America dominated the market share in 2022 for the cloud computing services market. Many prominent cloud services provider companies reside in North America such as Google LLC, IBM Corporation, and others. These players are adopting various growth strategies such as new product launches, partnerships, collaboration, and product developments to establish their foothold. For instance, in March 2023, NVIDIA Corporation launched the NVIDIA DGX™ Cloud, an AI supercomputing service that provide companies immediate access to the infrastructure and software needed to train advanced models for generative AI and other groundbreaking applications.

However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. This is attributed to an increase in penetration of digitalization and higher adoption of cloud-based services that propel the cloud computing services market growth in this region.

COVID-19 Impact Analysis

The COVID-19 pandemic had a profound impact on cloud computing services, reshaping the way businesses, government agencies, and individuals approached technology and digital infrastructure. This is due to the sudden shift to remote work, online learning, and the increased demand for e-commerce, cloud services experienced a surge in usage and adoption. Organizations rapidly scaled up their cloud infrastructure to accommodate this demand, accelerating their digital transformation initiatives. Cloud computing's flexibility and scalability became essential for ensuring business continuity and adapting to new challenges.

The pandemic also emphasized the importance of cloud security, with cloud providers enhancing their offerings to protect against cyber threats and data breaches. Additionally, the cloud played a crucial role in supporting healthcare systems and COVID-19 research efforts, facilitating data analysis, collaborative research, and the development of vaccines and treatments. In essence, the COVID-19 pandemic acted as a catalyst for the widespread adoption and evolution of cloud computing services, proving their resilience and adaptability in times of disruption.

Top Impacting Factors    

Increasing availability of cloud-based services:

Opting for cloud-computing service provide economic savings such as cost cutting and reduction in capital expenditures. With the use of cloud computing services, the cost incurred in the investment of physical IT resources is reduced and hence, the capital expenditure is minimized. Proper deployments of cloud computing services, a reliable resource for cutting overall operating expense. According to a survey conducted by Booz Allen Hamilton, describes that deployment of cloud computing services saves up to 50 to 60% of the total cost of ownership. Another survey conducted by the CIO magazine determines the belief of the company executives regarding the deployment of cloud computing services with respect to cost cutting.

According to the survey 88% of the respondents pointed towards the cost-cutting benefits. With the introduction of cloud-computing services the performances of the businesses in many sectors have tremendously increased over the years. The following factors contribute in elevating business performance. Moreover, cloud computing services provide an excellent return on investment, which automatically increases business agility. According to a survey conducted by FCW (The business federal technology) 44% of the companies believe that they get quick return on investment by using cloud-computing services.

Competition Analysis

The market players operating in the cloud computing services market are Microsoft Corporation, Google, LLC, VMware, Inc., IBM Corporation, Alibaba Cloud, Oracle Corporation, SAP SE, Salesforce, Inc., Atos Corporation and Amazon Web Services, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the cloud computing services industry globally.

Recent Product Launch in the Market

In October 2023, Microsoft Corporation enhanced its cloud computing services designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

In October 2021, VMware, Inc. launched new advancements for VMware cloud, the industry's first and only multi-cloud computing infrastructure that enables customers to move their enterprise apps to the cloud in nearly half the time and less than half the cost.

Recent Partnership in the Market

In November 2022, Homegrown information technology (IT) services provider, Wipro Ltd., partnered with US-based cloud computing service provider, VMware. Through this partnership they will offer cloud computing and remote work platform, which will allow enterprises to provide their security standards and other services to a distributed workforce.

Key Benefits for Stakeholders

  • The study provides an in-depth cloud computing services market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the cloud computing services market size is provided in the report.
  • The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the cloud computing services industry.
  • The quantitative analysis of the global cloud computing services market for the period 2022–2032 is provided to determine the cloud computing services market potential.

Cloud Computing Services Market Report Highlights

Aspects Details
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Market Size By 2032

USD 2 trillion

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Growth Rate

CAGR of 18.1%

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Forecast period

2022 - 2032

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Report Pages

268

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By Type
  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (SaaS)
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By Enterprise Size
  • Large Enterprises
  • Small and Medium-sized Enterprises
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By End-Use
  • BFSI
  • IT and Telecommunication
  • Retail and Consumer Goods
  • Healthcare
  • Government and Public Sector
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Europe)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Salesforce, Inc., Alibaba Cloud, Atos Corporation, Microsoft Corporation, Oracle Corporation, SAP SE, Amazon Web Services, Inc., IBM Corporation, VMware,Inc., Google, LLC

Analyst Review

The cloud computing services market is going through enormous transformation and growth. As customer demand and expectations are evolving with rapid pace of digitalization, legacy infrastructures are making it difficult to accommodate these customer needs. This has compelled industries to adopt emerging technological change in its operating environment. Cloud has evolved to be the dominant technology in the race of technological changes. Hence, the increase in adoption of cloud-based services is expected to grow the global market at an exponentially high rate in the coming years.

Moreover, next-generation digital business is leveraging cloud capabilities and preparing for a future of integrated solutions. These include vendor selection, migration tactics, process optimization, cloud security, multi-cloud environments, hybrid & digital infrastructures, data center outsourcing strategies, cloud optimization, cloud computing, PaaS, IaaS, SaaS, and others. Furthermore, extreme agility and accessibility capabilities of a cloud dominate the cloud computing services market. Furthermore, major cloud providers around the globe experienced year-over-year revenue growth due to the COVID-19 outbreak. The pandemic-driven restrictions accelerated demand for cloud computing services to support crucial digital solutions such as remote work and e-commerce, as well as entertainment platforms such as online gaming and video streaming. Such factors are expected to provide lucrative opportunities for the market growth during the forecast period.

Author Name(s) : Shrawanty Yadav | Onkar Sumant
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Frequently Asked Questions?

The North America is the largest market for the Cloud Computing Services.

Factors such as rising demand of cloud computing services to enhance business operation and the growing usage of mobile devices are driving the growth of global market.

Cloud Computing Services Market is expected to Reach $2,044.59 Billion, by 2032.

The key growth strategies for Cloud Computing Services include product portfolio expansion, acquisition, partnership, merger, and others.

The market players operating in the cloud computing services market are Microsoft Corporation, Google, LLC, VMware, Inc., IBM Corporation, Alibaba Cloud, Oracle Corporation, SAP SE, Salesforce, Inc., Atos Corporation, and Amazon Web Services, Inc.

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Cloud Computing Services Market

Global Opportunity Analysis and Industry Forecast, 2023-2032