According to a recent report published by Allied Market Research, titled, “Cloud Services Market byService Type, Cloud Type, Enterprise Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” the cloud services market size was valued at $264.80 billion in 2019, and is projected to reach $927.51 billion by 2027, growing at a CAGR of 16.4% from 2020 to 2027.
The cloud storage is a practice of storing data on shared remote servers that are hosted through the internet instead of the conventional local servers or personal computers. In a cloud environment, all the devices that are in the network through a secure gateway can access the servers. The global cloud services market is still at an evolving stage and it has a good growth potential due to several driving factors. The key driver for the market is that it provides cost benefits when it is compared to conventional physical storage as it is estimated that cloud services would save 35% of the annual operations cost.
Functional capabilities and access from any place at any-time also drive the cloud services market growth due to flexibility provided in the business processes. The increase in number of small and medium enterprises is also pushing the market growth as these enterprises continuously seek cost benefits, which can be efficiently provided by the cloud services.
Cloud services provide elevated business performance due to various benefits such as agile deployment, secure & storage management, low total cost ownership, utility-based sharing models, and high-level computing.
However, there are some factors that limit the growth of the market; data security being the most significant one due to threat of data breaches and misusage by the third party. Data location and administration is another restraint as they can be easily breached and misused due to the different non governed locations. Insecure interfaces and APIs also limit the cloud services market growth as the organizations are naive about the location of these interfaces.
Furthermore, the developing economies are expected to adopt cloud technology due to cost benefits that offer growth opportunities for the market. Another opportunity that market players can tap into is the need for ERP as software solution, which can be used in the health care sector to keep a track on patient records.
The cloud services market trends are segmented on the basis of infrastructure as a service (IaaS), software as a service (SaaS), platform as a service (PaaS), business process as a service (BPaaS), cloud advertisement services, and cloud management & security services. Cloud services allow companies to easily promote their products and services on the internet due to which cloud advertising service has the highest market share. The cloud management and security servicesare expected to grow with the highest CAGR during the forecast period due to high data security concerns among all organizations using cloud services.
The cloud services market has a cloud type segment, which includes public, private, hybrid, and community cloud. The public cloud market had the highest revenue share as it is the most accepted cloud type due to the easy access and low costs. The private cloud is expected to grow at the highest CAGR as private organizations are deploying the cloud services for asset building.
Key Findings Of The Study
- By service type, the IaaS segment dominated the cloud services market. However, the SaaS segment is expected to exhibit significant growth during the forecast period in the cloud services industry.
- By cloud type, the hybrid cloud segment dominated the cloud services market share in 2019. However, the public cloud segment is expected to exhibit significant growth during the forecast period.
- By enterprise size, the large enterprises segment dominated the cloud services market in 2019. However, the small and medium enterprises segment is expected to exhibit significant growth during the forecast period
- Depending on industry vertical, the BFSI sector generated the highest revenue in 2019. However, the healthcare sector is expected to witness a considerable growth in the near future.
- Region wise, Asia-Pacificis expected to witness significant growth in terms of CAGR in the coming years.
Some of the key market players profiled in the cloud services market analysis include Alibaba Cloud, Amazon Web Services, Inc., Cisco System, Inc., Dell Technologies Inc. , Google LLC , Hewlett Packard Enterprise Development LP , International Business Machine (IBM) Corporation, Microsoft Corporation, Oracle Corporation, and Rackspace Hosting, Inc.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 big data initiatives across the globe, major players have collaborated their product portfolio to provide differentiated and innovative products. This study includes marketanalysis, trends, and future estimations to determine the imminent investment pockets.