Private Cloud Services Market Outlook: 2023
Global private cloud services market was valued at $3,703 million in 2016, and is estimated to reach $14,111 million by 2023, growing at a CAGR of 21.1% from 2017 to 2023. Private cloud services, such as SaaS, PaaS, and IaaS, are offered by prominent cloud service providers, such as Cisco Systems, Inc., Dell Inc., HP Inc., IBM Corporation, Microsoft Corporation, and others, to host, manage, and maintain all types of cloud services in private deployment model. Private cloud services provide easy access to server, network, and storage for all user types including large and small & medium enterprises. The global private cloud services market is expected to witness significant growth rate, due to the rise in ICT expenditure by the government of various developed and the developing regions, including North America, Europe, and Asia-Pacific.
Asia-Pacific is expected to register the highest CAGR in the near future. Global participants in the market have realized the importance of improving the overall private cloud services to ensure low-cost and secured networking, servers, virtual data centers, storage solution, and easy accessibility of virtual computing from any device and location. The Asia-Pacific region, which includes countries such as China, Singapore, Japan, and Australia, offer lucrative opportunities for market players. Moreover, increase in demand for mobility across enterprises is a key driver of the market in LAMEA.
The global private cloud services market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Growth in enterprise mobility and security concerns over cloud deployment have contributed to the market growth in North America and Europe. However, LAMEA is expected to account less market share in the global private cloud services market as compared to other regions, due to slow ICT spending and slow adoption of private cloud services. Furthermore, the Middle East and Africa are expected to gain traction, but the growth is expected to be stable during the forecast period.
Private Cloud Services Market Segmentation
The global private cloud services market is segmented based on service, user type, industry vertical, and geography. On the basis of service, it is classified into SaaS, PaaS, and IaaS. On the basis of user type, it is bifurcated into SMEs and large enterprises. On the basis of industry vertical, it is divided into banking, financial services, and insurance (BFSI); IT & telecom; government & education; healthcare; retail; manufacturing; media & entertainment; energy & utilities; and others.
The key players profiled in the report are Cisco Systems, Inc., Dell Inc., HP Inc., IBM Corporation, Microsoft Corporation, Oracle Corporation, Rackspace Hosting, Inc., Red Hat, Inc., Salesforce.com, Inc., and VMware, Inc. The report discusses the key strategies adopted by the companies along with the detailed analysis of the current trends, upcoming opportunities, and restraints in the global market along with detailed information about their impacts.
Top Impacting Factors
Demand for Low-cost and Secured IT operations
Enterprises across the globe have focused on creating a mobile workforce, wherein employees can access data from distant places through internet. Thus, virtual sets of IT components, such as servers, storage, networks, and others are expected to be in high demand in the near future.
Increase in Cloud Adoption Across Several Industry Verticals
Several industry verticals, such as banking, financial services, and insurance (BFSI); retail; healthcare; manufacturing; telecommunication & IT; media & entertainment; and others, have adopted cloud services.
Increase in Inclination Towards Private Cloud for Better Data Security
Secured data networks, increase in application development, and platform-based cloud services have fueled the private cloud services market growth.
Lack of IT Infrastructure in the Underdeveloped Nations
The countries in Latin America, the Middle East, and Africa have not yet adopted technologically advanced hubs with rich IT infrastructure and digital content, which in turn is expected to hinder the global private cloud services market growth in the near future.
Rise in Adoption of Cloud Among SMEs
The adoption of cloud has increased among SMEs, owing to advantages such as enhanced uptime, reliability, enriched IT service, increased flexibility of data access, and professional services.
- In-depth analyses of the global private cloud services market and its dynamics are provided to understand the market scenario.
- Quantitative analysis of the current trends and future estimations from 2017 to 2023 is provided to assist strategists and stakeholders to capitalize on the prevailing opportunities in the private cloud services market.
- Porters five forces analysis examines the competitive structure of the private cloud services market, and provides a clear understanding of the factors that influence the market entry and expansion.
- A detailed analysis of the geographical segments enables the identification of profitable segments for market players.
- Comprehensive analyses of the trends, sub segments, and key revenue pockets are provided in the report.
Private Cloud Services Market Report Highlights
By User Type
By Industry Vertical
Key Market Players
RACKSPACE HOSTING, INC., RED HAT, IN, MICROSOFT CORPORATION, SALESFORCE.COM, INC., DELL INC., ORACLE CORPORATION, VMWARE, INC., HP INC., CISCO SYSTEMS, INC., IBM CORPORATION
global private cloud services market is expected to reach $14,111 million by 2023, owing to high demand for low-cost IT infrastructure, increase in cloud adoption across several industries, and growth in concerns about data security and protection over cloud. The global market is expected to witness high growth rate during the forecast period, owing to surge in alliances and collaborations among various key vendors and users, especially in the developing countries. However, high cost of deploying private cloud is expected to hinder the private cloud services market growth.
Private cloud services provide several cloud solutions such as software integration, virtual IT infrastructure set up, professional services, managed hosting, and others. The primary delivery models in private cloud services are Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). Private cloud computing has emerged as a top trend across several industry verticals, including banking and financial sector, public sectors, healthcare, retail, and others, in the recent years, owing to security reasons.
In 2016, the Software-as-a-Service (SaaS) segment was the highest contributor to the global market, in terms of revenue, followed by the Infrastructure-as-a-Service (IaaS). Furthermore, the Platform-as-a-Service (PaaS) is anticipated to witness the highest growth rate, owing to increase in application development and platform-based cloud services.
The IT & telecom segment contributed the highest revenue share for the private cloud services market in 2016; however, the banking, financial services, and insurance (BFSI) segment is anticipated to witness significant growth in the near future, owing to secure and reliable data access through virtual data centers and servers, to ensure effective networking and computing operations. The private cloud services market in government & education segment is anticipated to grow at the second fastest rate during the forecast period.
Key market players have adopted various strategies, such as new product launch, business expansion, acquisition, and strategic alliances, to create more awareness about private cloud services and increase adoption across various verticals in the global private cloud services market.