Global Cloud Market to Reach Nearly USD 800 Billion by 2028: Survey
It goes without saying that the pandemic has accelerated cloud adoption. With Fortune 500 companies heralding their cloud success stories, many SMBs have followed suit. And, indeed, the cloud has helped many enterprises to weather the pandemic-related downturn.
Catalyzed by the crisis, the cloud computing market is forecast to continue this streak globally in the post-pandemic era.
According to the “Cloud Computing Market, 2021-2028” report by Fortune Business Insights, the global cloud market is projected to reach USD 791.48 billion by 2028, up 300% from USD 250.04 billion in 2021.
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The demand for cloud computing solutions is projected to propel at a CAGR of 17.9% during the forecast period 2021-2028.
As per the report, the remote working culture has resulted in the proliferation of demand for SaaS-based collaboration solutions. This has created opportunities for cloud vendors to expand their service portfolio by launching innovative solutions.
For instance, tech giant Microsoft recently launched “Hospital Emergency Response,” an Azure cloud solution specific to healthcare. The Azure-based solution enabled the CDC and other healthcare institutions to develop COVID-19 calculation tools.
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Likewise, the CDC adopted Oracle Cloud to manage the vaccination drive in the US. On the same lines, Google Cloud recently doled out Vertex AI, an ML-based platform to enable enterprises to maintain and deploy AI models.
Such active and timely initiatives are likely to accelerate the demand for cloud-based solutions in the future.
Integration of Emerging Technologies with Cloud to Drive Market
The increasing adoption of emerging technologies such as artificial intelligence (AI), machine learning (ML), and big data are considered to be the key driving factors for the cloud market. These technologies empower enterprises to monitor, analyze, and visualize unprocessed data.
Integrating these technologies with the existing cloud helps glean valuable data insights. The integration also improves decision-making, axes operations costs, and enhances productivity. Thus, merging emerging technologies with the cloud is expected to provide the impetus for the market.
Hybrid Cloud to Exhibit Maximum Growth Rate
Based on type, the cloud computing market is bifurcated into private cloud, public cloud, and hybrid cloud. Among the three clouds, the hybrid cloud is forecast to witness a maximum growth rate during the period. The growth is mainly attributed to the rapid adoption of cloud solutions among SMEs.
Likewise, the imperative need for secure, scalable, and cost-efficient cloud solutions among large enterprises will likely boost private cloud growth. However, the public cloud is the one to lead the market in terms of revenue share during the forecast period.
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SaaS to Propel the Cloud Market
Based on service, the cloud market is categorized into Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Among them, SaaS is expected to hold a significant share in the cloud market.
The dominance is due to its simple deployment, cost-effectiveness, and low maintenance. Meanwhile, the IaaS is posed to propel at the highest growth rate during the forecast period. The growth is attributed to the increasing demand for hybrid cloud.
North America to Dominate the Cloud Market
Regionally, North America is considered to be the most lucrative marketplace for the cloud. The region alone accounted for a market share of USD 78.28 billion in 2020. The presence of key players such as AWS, IBM, Apple, and Google, is expected to fuel the regional market growth. Meanwhile, the Asia Pacific region is likely to exhibit exceptional growth during the aforementioned period.