Cloud Computing Services Market Expected to Reach $2044.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cloud Computing Services Market," The cloud computing services market was valued at $398.85 billion in 2022, and is estimated to reach $2044.6 billion by 2032, growing at a CAGR of 18.1% from 2023 to 2032.

Cloud computing services provide elevated business performance due to various benefits such as agile deployment, secure & storage management, low total cost ownership, utility-based sharing models and high-level computing. However, there are some factors that are limiting the growth of the market such as data security being the most significant one due to threat of data breaches and misusage by the third party.  In addition, data location and administration, and insecure interfaces & APIs also hampering the growth of the market, as it can be easily breached and misused due to the different non governed locations.

Furthermore, the developing economies are expected to adopt the cloud technology due to cost benefits which offers lucrative opportunities for the cloud computing services market forecast. In addition, increasing investment by government authorities and top vendor for cloud-based services are also expected to create numerous opportunities for the market growth during the forecast period.

On the basis of end-use, the global cloud computing services market size was dominated by the BFSI sector in 2022 and is expected to maintain its dominance in the upcoming years. owing to advances in technologies enabling cloud computing services to transform several industries globally. An increase in the adoption of digital solutions & services in the BFSI sector has led to the development of completely advanced programs that adhere to the maintenance of payment systems. In addition, the growing integration of cloud computing services in the banking and finance sector enables numerous benefits including retail banking, corporate banking, investment banking, fund management, and treasury.

However, the healthcare sector is expected to witness the highest growth during the forecast period. This is due to the increase in use of digital technologies by healthcare organizations driving cloud computing services in the industry. Cloud adoption helps healthcare companies to address issues such as securities, regulations, financial factors, and standards which are in the path of the digital transformation process.

By region, North America dominated the market share in 2022 for the cloud computing services industry. The increasing investment in advanced technologies such as cloud computing, IoT, AI, ML, and business analytics solution to improve businesses and customer experience are anticipated to propel the growth of the cloud computing services market.

Furthermore, as many prominent cloud services provider companies reside in North America such as Google LLC and IBM Corporation are further expected to boost the growth of the market in the upcoming years. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. This is due to the increase in penetration of digitalization and higher adoption of advanced technology which are expected to provide lucrative growth opportunities for the market in this region.

The COVID-19 outbreak presented a unique opportunity for the cloud computing services industry. As organizations rapidly transitioned to remote work and digital operations to ensure business continuity, the demand for cloud services surged. This created a lucrative opportunity for cloud providers to offer solutions that met the immediate needs of businesses, educational institutions, and government agencies. The ability to quickly scale up infrastructure, access remote collaboration tools, and secure data in the cloud became paramount.

Moreover, the pandemic accelerated digital transformation efforts, encouraging organizations to adopt cloud services for their long-term benefits, such as improved agility, cost-effectiveness, and scalability. Cloud providers, in response, introduced specialized solutions to cater to the specific challenges posed by the outbreak, including enhanced security features and services. As a result, the covid-19 pandemic not only underscored the significance of cloud computing services in times of crisis but also served as a catalyst for long-term growth and innovation in the cloud services in the sector.

Key Findings of the Study

• By type, the software as a service (SaaS) segment accounted for the largest cloud computing services market share in 2022.
• Based on enterprise size, the large enterprise segment accounted for the largest cloud computing services market share in 2022.
• Depending on end-use, the BFSI sector accounted for the largest cloud computing services market share in 2022.
• Region wise, North America generated the highest revenue in 2022.

The key players that operate in the Cloud computing services market analysis are Microsoft Corporation, Google, LLC, VMware, Inc., IBM Corporation, Alibaba Cloud, Oracle Corporation, SAP SE, Salesforce, Inc., Atos Corporation and Amazon Web Services, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the cloud computing services industry.