Finance Cloud Market Outlook - 2030
The global finance cloud market was valued at $23.67 billion in 2020, and is projected to reach $90.11 billion by 2030, growing at a CAGR of 12.4% from 2021 to 2030. Cloud is a network where programs run and can be accessed by many devices or servers at a time. It is a modern and a suite of powerful software options to manage the company’s finances. Moreover, it uses different finance management tools to prepare budgets, send out invoices, account all the expenses, approve purchase requests, and handle payments. The finance cloud software helps companies to keep real-time track of expenses, assets, sales, and purchases.
Rise in need for operational efficiency & transparency in business processes and surge in demand for cloud among financial companies act as the key driving forces of the global finance cloud market. In addition, the demand for cloud solutions among small & medium-sized enterprises continue to rise, as they offer various functional benefits such as eliminations of having regular upgrades, cost cutting, and business flexibility. These factors, as a result, notably contribute toward the growth of the global market. However, concerns associated with data security & protection and higher investment & maintenance costs are some of the factors that limit the finance cloud market growth.
On the contrary, developing economies offer significant opportunities for finance cloud companies to expand & develop their offerings, especially among the emerging economies such as India, Singapore, Australia, China, and South Korea. In addition, these countries are on the verge of development and lack in financial resources, therefore, need cost-efficient solutions is expected to offer remunerative opportunities for the expansion of the market. Moreover, banks, financial institutions, and other financing firms are rapidly switching toward digitalized business operations, thus, adoption & implementation of cloud has increased tremendously, which is anticipated to open new avenues for the market in the coming years.
The report focuses on growth prospects, restraints, and trends of the finance cloud market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the finance cloud market.
By Component
Services segment will grow at a highest CAGR of 16.1% during 2021 - 2030
Segment Review
The finance cloud market is segmented into component, enterprise size, deployment model, application, and region. By component, the market is bifurcated into solution and service. The solutions segment is further segmented into financial forecasting, financial reporting & analysis, security, governance, risk & compliance, and others. Based on Enterprise Size, the market is divided into large enterprises and small & medium enterprises (SMEs). Depending on deployment model, it is segregated into public cloud, private cloud, and hybrid cloud. The applications covered in the study include revenue management, business intelligence, asset management, customer relationship management, enterprise resource planning, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Deployment Model
Public Segment holds a dominant position throughout the forecast period.
Competitive Analysis
The report analyses top finance cloud companies operating in the market such as Amazon Web Services, Inc., Acumatica, Inc., ARYAKA NETWORKS,INC., Cisco Systems, Inc., International Business Machines Corporation, Microsoft, Oracle, SAP SE, Unit4, and Sage Group plc. These players have adopted various strategies to increase their market penetration and strengthen their position in the finance cloud industry.
By Region
Asia-Pacific would exhibit the highest CAGR of 17.5% during 2021-2030
COVID-19 Impact Analysis
The COVID-19 pandemic had a positive impact on the finance cloud industry. The financial sector has drastically changed its existing business model, modernizing the existing product lines and adjusting business performance with a more cost-effective and efficient. The adoption of cloud among banks & other financial companies has increased tremendously to keep internal operations running smoothly in the post-pandemic scenarios. Therefore, demand for finance cloud has increased significantly during the global health crisis.
Top Impacting Factors
Rise in Need For Operational Efficiency & Transparency in Business Processes
Traditionally, most of the businesses invest time and effort in communicating business information and making decisions. Organizations aiming at becoming successful continuously seek for systems that will help them serve their clients and increase their profit margin. Presently, cloud solutions have become strategic platforms, providing a solid foundation and information backbone for financial companies. Several financial institutions are using a hybrid mix of public and private cloud for handling back-office functions and core business processes such as payments and credit risk management. Companies are adopting cloud solutions to improve efficiency and ensure a better information integration. Financial companies need to access all relevant information quickly to take a necessary business action, owing to increased competition and rapid changes in business environment. Cloud solutions therefore enhance efficiency and transparency in business operations, which, as a result is significantly fueling the market growth.
Higher Investment & Maintenance Costs
The initial investment to acquire and implement cloud system is substantial. The global software vendors such as Microsoft, SAP, Oracle, and IBM Corp. charge high cost for their solutions. In addition, these software vendors charge high fees for maintenance and support function. The total annual cost of maintaining and updating the cloud system includes internal cost (user training, salaries for IT, and project management), external costs (IT vendors and contractors), and maintenance & support fee paid annually to cloud vendors.
Moreover, software providers charge higher prices, which limits the adoption of cloud solutions, as financial companies are not ready to spend more on cloud. Furthermore, several financial companies are not showing willingness for upgrade and renewals due to high cost of these services, which significantly hampers the growth of the market.
Rise in Cloud Adoption in Developing Regions
The developing economies such as India, China, Brazil, and African economies exhibit high potential for the growth of the cloud computing services market. For instance, ITRS Group Ltd., which provides monitoring and analytics software, projected that by 2022, 86% of the financial services industry in Asia-Pacific are expected to adopt public cloud. These countries are on the verge of development and lack in financial resources, therefore, need cost-efficient solutions, thereby boosting the demand for cloud technology saving their IT expenditures. The struggle among financial companies in developing countries to gain a competitive edge is acting as a potential growth opportunity for the finance cloud market.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global finance cloud market share along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the global finance cloud market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the finance cloud market.
- An extensive analysis of the key segments of the industry helps to understand the finance cloud market trends.
- The quantitative analysis of the global finance cloud market forecast from 2021 to 2030 is provided to determine the market potential.
Key Market Segments
By Component
- Solution
- Financial Forecasting
- Financial Reporting & Analysis
- Security
- Governance, Risk & Compliance
- Policy Management
- Compliance Management
- Audit Management
- Incident & Risk Management
- Others
- Others
- Service
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises (SMEs)
By Deployment Model
- Public Cloud
- Private Cloud
- Hybrid Cloud
By Application
- Revenue Management
- Business Intelligence
- Asset Management
- Customer Relationship Management
- Enterprise Resource Planning
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Amazon Web Services, Inc.
- Acumatica, Inc.
- ARYAKA NETWORKS, INC.
- Cisco Systems, Inc.
- International Business Machines Corporation
- Microsoft
- Oracle
- SAP SE
- Unit4
- Sage Group plc
Finance Cloud Market Report Highlights
| Aspects | Details |
 By Component |
|
 By Enterprise Size |
|
 By Deployment Model |
|
 By Application |
|
 By Region |
|
 Key Market Players | INTERNATIONAL BUSINESS MACHINES CORPORATION, MICROSOFT, ORACLE, ACUMATICA, INC., SAGE GROUP PLC., SAP SE, UNIT4, AMAZON WEB SERVICES, INC., CISCO SYSTEMS, INC., ARYAKA NETWORKS,INC. |
Analyst Review
Several banks and companies in the financial sector are modernizing and improving their existing business operations. These firms are aiming at enhancing data management, improving storage capacity, and increasing computing power in the business model. With becoming a dynamic and ever-changing industry, the financial sector is increasingly adopting public cloud & hybrid cloud to easily mitigates risk, maintaining security, and minimizing chances of cyberattacks.
Moreover, during the COVID-19 health crisis, finance cloud market has experienced significant growth. As financial institutions continue hybrid working in the post-pandemic scenarios, adoption of cloud increased for emphasizing digital transformation, migrating data, and navigating extensive security & regulatory demands in the market.
The finance cloud market is fragmented with the presence of regional vendors such as Amazon Web Services, Inc., Oracle, and Sage Group Plc. Some of the key players profiled in the finance cloud market report include Acumatica, Inc., ARYAKA NETWORKS,INC., Cisco Systems, Inc., International Business Machines Corporation, Microsoft, SAP SE, and Unit4. Major players operating in this market have witnessed significant adoption of strategies that include business expansion and partnership to reduce supply and demand gap. With increase in awareness & demand for finance cloud across the globe, major players are collaborating their product portfolio to provide differentiated and innovative products.
The Finance Cloud Market is estimated to grow at a CAGR of 12.4% from 2021 to 2030.
The Finance Cloud Market is projected to reach $90.11 billion by 2030.
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Factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers drives the growth of the Finance Cloud market
The key players profiled in the report include Amazon Web Services, Inc., Acumatica, Inc., ARYAKA NETWORKS,INC., Cisco Systems, Inc., International Business Machines Corporation, Microsoft, Oracle, SAP SE, Unit4, and Sage Group plc, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Finance Cloud Market is segmented on the basis of component, enterprise size, deployment model, application, and region.
The key growth strategies of Finance Cloud market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Public Segment holds a dominant position throughout the forecast period.
Services segment will grow at a highest CAGR of 16.1% during 2021 - 2030
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