Community Cloud Market Expected to Reach $82.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Community Cloud Market," The community cloud market was valued at $4.7 billion in 2022, and is estimated to reach $82.9 billion by 2032, growing at a CAGR of 33.6% from 2023 to 2032.

A community cloud is a type of cloud infrastructure that enables companies to share data, resources, and services based on usual operational and legal standards. It is run and managed by local residents and independent contractors. As compared to a public cloud, community cloud is more affordable, adaptable, scalable, reliable, and secure. Also, it guarantees interoperability, enabling enterprises to alter attributes in accordance with their needs. Community cloud supports the usage of various devices and helps businesses communicate with their staff remotely. Moreover, community cloud operations provide off-site backup at regular intervals with zero downtime. It offers faster workflow management and eliminates  the requirement for additional human resources to run the system. In addition, it helps safeguard sensitive and important data against unforeseen events. As a result, community cloud is widely used in a variety of sectors globally, including gaming, banking, financial services, insurance, government, healthcare, and government.

The use of cloud technology has significantly increased across various corporate sectors as a result of cloud computing's rise in popularity over the past several years. Industries manage and rely on huge amount of data for outstanding performance and services. In addition, a number of governments globally are making significant investments in the application of these technologies. For example, the Australian Taxation Office (ATO) and the General Service Administration (GSA), are agencies and government organizations that have already started to invest in and use community cloud technology. Therefore, the adoption of community cloud technologies is expected to increase in upcoming years. Community cloud technologies are constructed using cloud computing technology.

Additionally, rise in demand for infrastructure with high performance and low latency, increase in need to reduce the number of servers and increase green computing, and rise in demand for security, compliance, and data redundancy, primarily drive the growth of the community cloud market. However, governance and trust issues hamper the market growth to some extent. Moreover, rise in collaboration and information exchange between corporations is expected to provide lucrative opportunities for the community cloud market forecast. 

On the basis of component, the hardware segment dominated the community cloud market size in 2022 and is expected to maintain its dominance in the upcoming years, owing to particular needs of community cloud environments, such as storage systems, high-performance servers, and networking hardware, which propels the market growth significantly. However, the software segment is expected to witness the highest growth, owing enable smooth integration, interoperability, and data sharing among various community cloud participants as more businesses and organizations use community cloud solutions.

Region-wise, North America dominated the community cloud market share in 2022, owing to significant emphasis on technological improvements, an established IT infrastructure, and a high level of digitization. In addition, advantages of cloud computing, such as cost reductions, scalability, and flexibility, have been acknowledged by businesses in the region. However, Asia-Pacific is expected to be the fastest growing in 2022, owing to rise in demand for scalable and affordable IT solutions. Moreover, the use of community cloud services has increased dramatically in a number of industries, including manufacturing, healthcare, retail, and government.

The community cloud market has been significantly impacted by the COVID-19 pandemic, due to rise in digitalization around the world. The need for scalable and secure cloud solutions grew as companies and organizations were compelled to move towards remote work and digital operations. Community clouds, which concentrate on particular sectors or industries, gained even more importance as businesses looked for specialized solutions to address their particular demands during this crisis. In addition, the pandemic highlighted the significance of data security and compliance, particularly in sectors such as healthcare and banking. Community clouds provide organizations handling sensitive data with a managed and secure environment that satisfies industry-specific standards and gives organizations peace of mind. During the outbreak, organizations relied more on digital platforms for communication and data exchange, which boosted the need for community clouds as they aimed to protect the privacy and integrity of their data. Furthermore, community clouds made it easier for businesses within a specific community to collaborate and share resources. Community clouds offered a centralized platform for businesses to collaborate, exchange apps, and access common resources as remote work became the new standard. The pandemic's disruption decreased as a result of seamless communication and teamwork. Community clouds around this period were very beneficial to sectors such as education and government that largely relied on collaboration and information sharing.

Key Findings of the Study

• By component, the hardware segment led the community cloud market in terms of revenue in 2022.
• By application, the cloud-based storage led the community cloud market in terms of revenue in 2022.
• By end user, the education is anticipated the fastest growth for community cloud market.
• By region, North America generated the highest revenue for community cloud market analysis in 2022.

The key players profiled in the community cloud industry analysis are Google LLC, IBM Corporation, Microsoft Corporation, Cisco Systems, Inc., DXC Technology Company, Amazon Web Services, Inc., Broadcom, Atos Se, Akamai Technologies, and VMware, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the community cloud industry.