Distributed Cloud Market Expected to Reach $17 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Distributed Cloud Market," The distributed cloud market size was valued at $2.3 billion in 2021, and is estimated to reach $17 billion by 2031, growing at a CAGR of 22.4% from 2022 to 2031.

A distributed cloud is a cloud computing technology application that connects data and applications delivered from different geographic locations. It is a cloud where processing, storage, and networking is located in micro clouds separate from the centralized cloud. As a distributed cloud system, the distributed cloud is closer to the end user. Organizations can reduce latency, network congestion, and the risk of data loss using a distributed cloud approach. In addition, distributed clouds employ multiple clouds that are used to ensure compliance and performance requirements and facilitate edge computing while being centrally managed by public cloud providers. The expansion of the market is attributed to increase in popularity of cloud computing in various business sectors.

Increasing use of mobile technology, increasing requirements for minimum data retrieval, increasing use of digitization, increasing workload and data processing, and better data retrieval are the major drivers of market growth. Additionally, the ability of public cloud services to migrate to better distributed cloud computing with high security is also fueling market growth. However, security concerns may hinder market expansion.

By Application, the edge computing segment dominated growth of the distributed cloud market share in 2021, and is expected to maintain its dominance in the upcoming years as edge computing helps in lower usage of bandwidth. However, intelligent transportation segment is expected to witness growth at the highest rate during the forecast period as distributed cloud technology is used in autonomous driving technology for better customer experience.

By organization size, the large enterprises segment dominated the global market in 2021, and is expected to continue this trend during the forecast period as distributed cloud computing technology offers numerous benefits for big enterprises, boosting growth of the cloud services market. For instance, distributed cloud helps big enterprises from concerns associated with the technical aspects of processing their huge data and enables the staff of big enterprises to work with more flexible schedules as they can work remotely or from their homes. Conversely, the small- & medium-sized enterprises segment is expected to grow at the highest CAGR during the forecast period, owing to surge in adoption of cloud-based services, as it provides cost-effective and efficient solution for SMEs.

The COVID-19 outbreak has considerably boosted growth of the distributed cloud market forecast due to accelerating demand for the cloud to support several crucial digital solutions in verticals such as BFSI and manufacturing and remote work, as well as entertainment platforms such as video streaming. Moreover, IT leaders of multiple organizations think it is very important to have a consistent operational experience between the edge and public and private clouds. But the data shows there are tremendous obstacles preventing that, mostly around establishing secure and reliable connections between providers, trying to navigate different support and consulting processes, and having to work with various platform services and this issue can be addressed with the help of distributed cloud systems. Hence, the COVID-19 have surely created huge opportunities for the distributed cloud Industry.

KEY FINDINGS OF THE STUDY

• By type, the public-resource computing segment accounted for the largest share in distributed cloud market in 2021.
• By enterprise size, large enterprises segment generated highest revenue in 2021.
• By region, North America generated highest revenue in 2021.
• By vertical, the IT & telecom segment generated the highest revenue in 2021.

The key players that operate in the Distributed Cloud market analysis are are Alibaba Cloud, Amazon Web Services Inc., Axway, CloudSigma AG, Databricks, DigitalOcean, LLC, Google, IBM, Liquid Web, LLC, MassiveGRID Inc., Microsoft Corporation, Oracle Corporation, Rackspace Technology, Salesforces Inc., SAP SE, Verizon, and VMware Inc.  These players have adopted various strategies to increase their market penetration and strengthen their position in the Distributed Cloud industry.