Public Cloud in BFSI Market Expected to Reach $189.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Public Cloud in BFSI Market," The public cloud in bfsi market was valued at $49 billion in 2021, and is estimated to reach $189.4 billion by 2031, growing at a CAGR of 14.6% from 2022 to 2031.

Cloud computing is a type of on-demand service that provides access to shared resources, applications, or storage over the Internet. It enables financial institutions to store and process data in remote servers instead of local systems. Cloud computing offers a number of benefits to banks and financial institutions, such as increased security, faster processing speeds, and lower costs. While the financial industry has been slow to adopt cloud technology due to concerns about giving up their legacy on-premises applications, regulatory compliance, and data privacy issues, this position is starting to change as more financial institutions realize how technology can help them meet their business objectives while satisfying customers’ needs at the same time.

Growth in digital transformational strategies across the BFSI sector and rise in penetration of internet & mobile devices across the world boost growth of the global public cloud in BFSI market size. In addition, increasing demand for AI and machine learning propels the growth of the market. However, regulatory complexities associated with data residency hampers the public cloud in BFSI market growth. On the contrary, increased adoption of the Internet of Things (IoT) is expected to offer remunerative opportunities for expansion of the public cloud in BFSI market during the forecast period.

Depending on the enterprise size, the large enterprise segment holds the largest share of the public cloud in BFSI market. This is attributed to rise in shift toward hybrid and multi-cloud solutions among large enterprises are expected to propel growth of the market. However, the SMEs segment is expected to grow at the highest rate during the forecast period, due to the implementation of public cloud in BFSI solutions offering increased transparency, control, inventory, and efficiency through which small & medium businesses are able to achieve their time and money savings goals.

Region-wise, the public cloud in BFSI industry was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to increase in cloud-enabled activities and growth in cloud marketplace trends in North America countries are expected to drive public cloud in BFSI market trends. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rise in usage of cloud-based services and growth in deployment of data centers mainly driving growth of the public cloud in BFSI market in Asia-Pacific.

Banking and financial enterprises have adopted to shift business focus toward digital transformation and this helps to enable to revisit operating model activities. With the high demand for cloud-based application development tools and data analytics increasing dramatically in the area, leading FSIs are striving to bring new technologies to the market and embracing hybrid cloud-based solutions to deliver a higher value proposition and services to financial customers. Moreover, cloud-based banking had also shown the considerable potential of speeding up the delivery of new goods and digital tools to clients. For instance, according to an Accenture survey in 2020, moving applications to the cloud reduced time to market by up to 50% among the company’s large banking clients. These factors are expected to drive market growth.

Key Findings of the Study

•    By component, the software segment accounted for the largest public cloud in BFSI market share in 2021.
•    Region-wise, North America generated highest revenue in 2021.
•    Depending on enterprise size, large enterprise generated the highest revenue in 2021.
The key players profiled in the public cloud in BFSI market analysis are Adobe, Alibaba Group Holding Limited, Amazon Web Services, Inc., Google LLC., IBM, Microsoft Corporation, Oracle, Salesforce.com, Inc., SAP SE and Workday, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.