Cloud Computing Market worth USD 623.3 Billion by 2023

As per the global cloud market forecast, the global cloud computing market size is anticipated to reach $ 623.3 billion by 2023, rising from $ 272.0 in the year 2018. It means the growth has occurred at a CAGR of 18% between the periods. CAGR here refers to Compound Annual Growth Rate. As it is evident, the cloud computing market is hugely profitable for the service providers of most domains.

The Growing Acceptance of Cloud 

Several companies from different domains eagerly accepting cloud computing services are simply growing. Specifically, North America shows an incredible trend of growth in comparison to all other parts. Noteworthy growth is expected at the other key markets like Latin American nations, APAC, MEA, etc. There are various factors said to be responsible for such a significant boost in the market.

However, it’s the greater automation and swift service demands that have forced different sectors to adopt the technology. They have the pressure of dealing with greater customer satisfaction, as well as have to drag returns. Instead of manual methods, technologies like cloud computing is thus highly preferred. All these combined reasons have resulted in a significant boost in the cloud computing market.

Also Read: Top 10 Cloud Migration Best Practices

The Encouraging Scenario of Hybrid Cloud Segment

Through the deployment pattern, the hybrid cloud segment is expected to play a big part in the market growth of cloud computing. User-level has also significantly grown in this segment. The process of application migration over the cloud is among the foremost reasons behind the growth.

Variety of service-related challenges are forcing service providers to adopt a hybrid cloud. Specifically, healthcare domains, public sectors, customer support, etc., where one has to deal with direct customers, feel this need greatly. Cloud computing market has witnessed significant growth in security departments as well.   

It can be easily marked that the prominent cloud vendors are more eager towards establishing themselves in the cloud arena. Noteworthy here is to mention that IBM acquired Red Hat in October last year. This has indeed helped IBM have greater access to a larger customer base. Naturally, it helped it in having access to mega cloud portfolio of Red Hat. The emergence of big players of such has indeed enhanced cloud computing market globally.

Growth of laaS being Significant

When it comes about the growing cloud computing market, the growth of laaS is obvious to be noted. The growing demand for workload being channeled to the cloud is said to be the prime reason behind the growth of laaS. Key specs of laaS include the automated process of administrative jobs, virtualization of key platforms, connectivity of networks, etc.

The constantly transforming business scenario and growth of customer base inspire companies to shift their attention to the core of administration. Through laaS, enterprises can make the most of their IT set-up without having to pay for the development of physical set-up. It also provides greater flexibility, ease, and better connectivity for business operations.

All these contribute hugely towards the growth of the cloud computing market. Platform virtualization is one of the key features of laaS that makes it such productive. It thus has been greatly beneficial for the IT infrastructures. At the same time, the level of collaboration can be greatly enhanced as well through it.

Although AWS, Azure, and Google Cloud are the top three market players in the cloud market, a number of other cloud vendors has been evolved. Check out this comparison of the leading cloud service providers – DigitalOcean vs Linode vs Vultr.

Lowering Expenses and Investments

Expenses getting minimized and enhanced security are also among the prime reasons behind the growth of the global cloud computing market size. It can be noted that services provided through public execution models are mostly free. Otherwise, these are available at nominal subscription charges.

One of the prime benefits of public cloud is the simplicity it involves or the smooth deployment of the same. Amount of initial investment is also getting significantly low. There is no added pressure of handling infrastructure as well. All these aspects have indeed boosted the expansion of the global cloud computing market size.

Retail Sectors and Consumer Goods Segment to Grow at the Highest Pace

It’s not that the cloud computing market is inspiring in tech or high-end enterprise domain. Future trends in cloud computing indicate that retail and consumer goods segment is going to grow at a significant rate. These segments are expected to adopt more creative technicalities. Along with cloud computing, advanced analytic tools are speculated to be hugely used in the coming years.

Among the key aspects encouraging the adoption, the growing ability of purchasing is said to be the prime one. These sectors have started feeling the need to adopt new methods for retaining customers. Analyzing the future trends in cloud computing, retail sectors are speculated to be the major investors.

Small and Medium-scale Enterprises to be the Major Players

Small to medium level enterprises are the ones having their employee count limited less than 1000. Modern-day cloud computing trends make it evident that SMEs are going to be the prime adopters of it. Prime reason behind this is said to be the level of ease and productivity it promises. By 2024, a significantly higher number of SMEs are expected to adopt cloud computing.

Along with scalability, the flexible payment model is also one of the reasons behind the growing cloud computing trends in this sector. It has helped operational cost to a great extent as well. Moreover, the customized offerings also encourage greater adoption of cloud in small industry sectors. 

Also Check: AWS vs DigitalOcean – which one is a better cloud hosting?

The Promising Market of Asia Pacific and the Underneath Reasons behind the Same

North America is indeed one of the promising markets for cloud computing. But the cloud predictions up to even 2024 makes it clear that the Asia Pacific is going to be a huge market. Growth opportunities here are going to be massive. Specifically, the greater manpower resource is said to be the prime reason behind this.

Moreover, both SMEs and large companies are speculated to adopt cloud computing with equal enthusiasm. Global cloud predictions show encouraging investments in public cloud services segment in APAC. This is being said, keeping the growing digitization in mind.

Moreover, cloud computing market share is anticipated to grow at a significant rate for key players. Big names like IBM, SAP, Adobe, SalesForce, Google, Microsoft, etc. are going to enjoy a huge boost in shares. Most importantly, the growth in cloud computing market share will be eventually helpful for all domains. In short, the future of cloud computing is pretty promising across all sectors.