Hybrid Cloud in BFSI Market

Hybrid Cloud in BFSI Market Outlook-2030 

The global hybrid cloud in BFSI market size was valued at $7.98 billion in 2020, and is projected to reach $36.15 billion by 2030, registering a CAGR of 14.2% from 2021 to 2030. 

The COVID pandemic has been highly beneficial to the Hybrid cloud in BFSI industry, owing to a substantial shift of banks, fintech and NBFCs toward the use of online and cloud platforms and increase in demand for online banking model during the forecast period, which has resulted in many small and medium level enterprises to turn toward PaaS, IaaS and SaaS solutions to help scale-up their cloud presence.

A hybrid cloud is an integrated cloud service that combines private and public clouds to execute different purposes inside the same organization. The importance of hybrid cloud is increasing for dynamic and highly changeable workloads. It offers several benefits such as cost effectiveness, scalability, flexibility, and high data security due to which organizations are shifting toward hybrid cloud which propels the hybrid cloud in BFSI market growth. Furthermore, the rise in preference toward hybrid cloud and the growth in digital disruptions positively impacts the growth of the market. 

Furthermore, technological advances such as the integration of edge computing, the internet of things (IoT), and artificial intelligence drive the growth of the market across the globe. However, factors such as network complications and increase in security concerns limit hybrid cloud in BFSI market growth. High adoption of hybrid cloud services among the small and medium organizations provides remunerative opportunities for the hybrid cloud in BFSI market expansion during the forecast period.

On the basis of component, the solution segment is expected to gather a large share during the forecast period owing to managing the massive volume of data being generated for meaningful insights and better-informed decisions. Moreover, companies majorly focus on creating novel opportunities for growth and revenue generation, thereby increasing the preference for hybrid cloud across the BFSI industry. However, the service segment is expected to witness growth at the highest rate during the forecast period, owing to the surge in acceptance of hybrid cloud services and increase in interest in this technology.

Region wise, the hybrid cloud in BFSI market share was dominated by North America in 2020 and is expected to witness the highest growth rate during the forecast period due to the rise in competition between cloud-based service providers in North America. Furthermore, key players are providing more security for data, by ensuring quick access and greater outreach that drives the growth of the hybrid cloud in BFSI market in this region. However, Asia-Pacific is expected to experience significant growth during the forecast period, due to rise in usage of cloud-based services and growth in deployment of data centers by financial institutes.

The report focuses on growth prospects, restraints, and trends of the hybrid cloud in BFSI market analysis. The study provides Porter’s five forces analysis to understand 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 hybrid cloud in BFSI market share.

Segment review

The hybrid cloud in BFSI market share is segmented into component, type, enterprise size, end user, and region. On the basis of component, the market is segregated into solution and services. On the basis of type, it is categorized into infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS). By enterprise size, it is fragmented into large enterprises and SMEs. On basis of end users, the market is segregated into banking, NBFCs and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the hybrid cloud in BFSI market are Alibaba Group Holding Limited, Amazon Web Services, Inc., Google LLC, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.Com, Inc., SAP SE, and VMware, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the hybrid cloud in BFSI industry.

COVID-19 Impact Analysis

The hybrid cloud in BFSI market has experienced significant growth during the outbreak of the COVID-19 pandemic, due to increase in demand for more computing power among banks and fintech. This is attributed to the implementation of lockdown by governments in the majority of the countries and shut down of the business across the globe which led to the growth of digital banking among the users. Moreover, most banks and financial institutes have experienced an increase in usage of hybrid cloud owing to increase in the digital transformation among the banks & fintech. Furthermore, the COVID-19 pandemic has increased the need for hybrid cloud among banks and financial institutes as it provides stronger risk mitigation, lowers cost, and provides better cyber security systems. 

Top impacting factors

Shifting Preference Towards Hybrid Cloud

Hybrid cloud platform is gaining popularity because it not only provides flexibility, scalability, and multi-cloud space, but it also offers security assurance to organizations. Furthermore, the transition to hybrid cloud makes the integrity of data and services a top issue for organizations hence, it is critical to find the proper combination of on-premise and numerous as-a-service solutions, to confirm data is always available and coordinated across multiple platforms. 

Furthermore, according to a survey, IT leaders spend 56% of the time on maintenance and operational issues and 24% spend on technological advancements. Also, they spend 20% of the time working with business leaders on digital transformation initiatives, which is both time and cost consuming hence driving the preference of organizations towards the hybrid cloud. Moreover, rise in complexity of enterprise IT challenges and growth in data, hybrid cloud is becoming an ideal alternative for organizations. Furthermore, the increase in popularity of the Internet of Things (IoT) and Big Data presents data administration challenges for the IT department of any organization. Due to this, the hybrid cloud model can turn out to be a valuable asset in addressing the desire for continuous data access, high information storage, enhanced bandwidth, and better data calculation capacities.

Technological Advances Such as the Integration of Edge Computing, Internet of Things (IoT), and Artificial Intelligence

End users are constantly seeking personalized financial services, owing to the increase in use of chatbots among banks and increase in competition among the banks for maximum market share. Various banks are investing and implementing sophisticated technologies such as edge computing, AI, and others to appropriately utilizing hybrid cloud solutions. Furthermore, banks can answer questions over consumer data security more directly with edge computing processes since it analyzes data close to the source and avoids the need to transfer data to the public cloud. Moreover, integrating AI and edge computing with hybrid cloud solutions helps banks to monitor customer behavior and better understand their customers’ requirements and areas for improvement. Furthermore, emergence of edge computing in finance now extends to IoT devices such as mobile applications which are increasingly utilized to access mobile banking services, fueling the growth of hybrid cloud among the financial institutes. Furthermore, 5G and edge computing together with hybrid cloud is allowing BFSI firms for processing large volumes of data, especially over the next few years. This is attributed to 5G technology which provides a speed that is ten times faster. These are the major factors that drive the growth of the hybrid cloud in BFSI market.

Key Benefits For Stakeholders     

• The study provides an in-depth analysis of the global hybrid cloud in BFSI market forecast along with the current trends and future estimations to explain the imminent investment pockets.
• Information about key drivers, restraints, & opportunities and their impact analysis on the global hybrid cloud in BFSI market is provided in the report.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
• The quantitative analysis of the hybrid cloud in BFSI market from 2021 to 2030 is provided to determine the market potential.

 Hybrid Cloud in BFSI Market Report Highlights