The global cloud computing market size is expected to reach USD 765.6 billion by 2027, expanding at a CAGR of 14.9%, according to a new study conducted by Grand View Research, Inc. Increasing adoption of cloud-first strategies by organizations to optimize their business models and drive revenue growth is expected to drive the market. In addition, cost effectiveness, boost in functional capabilities, and substantial increase in number of small and medium enterprises are other key factors driving the growth. Moreover, technologies such as artificial intelligence, machine learning will complement cloud services to boost the organizational growth across industries.
The critical factor anticipated to foster the market growth is the infusion of big data. Incapability of the traditional data warehouses to manage and analyze the volume, velocity, variety, and veracity of big data will be addressed by cloud computing technology. Moreover, economies of scale offered by the platform will allow privacy and security to be managed more efficiently. Besides, in the age of Bring Your Own Device (BYOD) culture adopted by IT companies, cloud technology will help people to access data anytime, anywhere and make companies more connected and global. The Coronavirus (COVID19) outbreak and the subsequent measures to contain it forced organizations to work remotely leading to higher adoption of cloud technology by enterprises.
At present, cloud services have been utilized across various industries and most of the organizations are relying on IT resources to conduct their day to day work. These services initially needs considerable capital investment and regular maintenance. Government organizations are also adopting cloud services for storage, disaster recovery, risk compliance management, and identity access management applications. In October 2019, amidst corporate hostility, Microsoft Corporation was awarded the U.S Department of Defensecloud computing contract, Joint Enterprise Defense Infrastructure (JEDI) worth USD 10 billion.
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Cloud computing market report highlights:
- Infrastructure as a Service (IaaS) segment is predicted to expand at the highest CAGR over the forecast period owing to increased adoption of multi-cloud, scalability, and fast data accessibility. Companies like Amazon.com Inc.; Microsoft Corporation; Alibaba Group Holding Ltd.; Google LLP.; and IBM Corporation are some of the key IaaS vendors in the market
- Application development and testing is likely to be the fastest growing segment over the forecast period owing to the efficient and scalable development of applications on cloud platform. Moreover, compared to traditional development methods, app development time is likely to reduce by 31%, and quality assurance costs by 34%
- Hybrid deployment is anticipated to be the fastest growing segment owing to growth of cloud and industrialized services and decrease in traditional Data Center Outsourcing (DCO). Moreover, flexibility to move workloads between private and public deployment as per the computing needs, hybrid segment will provide enterprises greater flexibility and more data deployment options in the long run
- Small and medium enterprise segment is anticipated to be the fastest growing segment owing to reduced costs for IT hardware and software, improved processing capacity and elasticity of storage, and improved access to data and service. The growth of adoption of cloud technology among SMEs in developing regions is likely to boost the market growth over the forecast period
- The manufacturing end-use segment is expected to expand at the highest CAGR over the forecast period. Owing to various functionalities, cloud computing aids manufacturers to utilize multiple types of production system ranging from High Performance Computing (HPC) and 3D printing to IoT and industrial robots
- Asia Pacific is expected to emerge as the fastest-growing region owing to the increasing focus of SMEs and large enterprise to enhance their digital initiatives. Growth in IT services industry in the markets such as India, China, and other South Asian countries will also propel the market growth