Global Cloud Service Market, By Offering (Implementation and Integration Services, Migration Services, Management Services, Support and Maintenance Services, Training and Consulting Services, and Others), Service Type (SaaS, PaaS, IaaS, and Others), Cloud Type (Public Cloud, Hybrid Cloud, and Private Cloud), Organization Size (Large Enterprises, Medium Enterprises, and Small Enterprises), Application (Data Storage and Backup, Web Hosting and Development, Big Data Analytics, Content Delivery Networks (CDNs), Online Gaming and Streaming, Video Conferencing and Collaboration Tools, Internet of Things (IoT), Artificial Intelligents and Machine Learning, Virtual Desktop Infrastructure (VDI), Disaster Recovery and Business Continuity, Scientific Research and Simulations, and Others), End Users (IT and Telecom, Retail, BFSI, Manufacturing, Healthcare, Automotive, Media and Entertainment, Transportations and Logistics, Government and Defense, Education, Energy and Utility, and Others) - Industry Trends and Forecast to 2031.
Cloud Service Market Analysis and Insights
Cloud services provide on-demand access to computing resources such as servers, storage, databases, networking, software, and analytics over the internet, without the need for direct management by the user. These services offer scalability, flexibility, and cost-efficiency, allowing businesses and individuals to quickly deploy applications and services globally with minimal upfront investment. Cloud computing models include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), catering to a wide range of needs from basic storage to complex data analytics and machine learning. The adoption of cloud services has transformed IT operations, enabling organizations to innovate faster, streamline operations, and focus resources on core business activities.
Data Bridge Market Research analyzes that the global cloud service market is expected to reach a value of USD 1567.62 billion by 2031 from USD 594.83 billion in 2023, growing with a CAGR of 13.2% during the forecast period.
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016 – 2021)
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Quantitative Units
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Revenue in USD Billion
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Segments Covered
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Offering (Implementation and Integration Services, Migration Services, Management Services, Support and Maintenance Services, Training and Consulting Services, and Others), Service Type (SaaS, PaaS, IaaS, and Others), Cloud Type (Public Cloud, Hybrid Cloud, and Private Cloud), Organization Size (Large Enterprises, Medium Enterprises, and Small Enterprises), Application (Data Storage and Backup, Web Hosting and Development, Big Data Analytics, Content Delivery Networks (CDNs), Online Gaming and Streaming, Video Conferencing and Collaboration Tools, Internet of Things (IoT), Artificial Intelligents and Machine Learning, Virtual Desktop Infrastructure (VDI), Disaster Recovery and Business Continuity, Scientific Research and Simulations, and Others), End Users (IT and Telecom, Retail, BFSI, Manufacturing, Healthcare, Automotive, Media and Entertainment, Transportations and Logistics, Government and Defense, Education, Energy and Utility, and Others)
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Countries Covered
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U.K., Germany, France, Italy, Spain, Russia, Netherlands, Switzerland, Sweden, Belgium, Denmark, Poland, Norway, Turkey, Finland, Rest of Europe, U.S., Canada, Mexico, China, Japan, India, South Korea, Australia & New Zealand, Singapore, Malaysia, Thailand, Indonesia, Philippines, Taiwan, Vietnam, Rest of Asia-Pacific, Saudi Arabia, South Africa, U.A.E., Israel, Egypt, Qatar, Oman, Kuwait, Bahrain, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America
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Market Players Covered
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IBM Corporation, Microsoft, Amazon Web Services, Inc, Google LLC, HP Development Company, L.P., Alibaba Group Holding Limited, SAP SE, Oracle, Dell Inc., Broadcom, Kyndryl Inc., Adobe, Cloud4C, Commvault, Black Box, RACKSPACE TECHNOLOGY, Wolfram, Cloudian Inc., Canadian Cloud Hosting, and IDrive Inc among others
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Market Definition
The global cloud services market encompasses a wide range of services including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), delivered over the internet by cloud providers. It caters to diverse industries by offering scalable computing resources, storage solutions, and advanced analytics capabilities, facilitating digital transformation and operational efficiency. This market is driven by the increasing adoption of cloud technologies across businesses of all sizes, growing reliance on data-driven decision making, and the need for cost-effective, flexible IT solutions. Major players in the market include Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, and IBM Cloud, which collectively fuel innovation and competition.
Global Cloud Service Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Increasing Demand for Remote Accessibility of Data
The increasing demand for remote accessibility of data has led to a surge in the adoption of cloud services. These services allow businesses and individuals to access their data and applications from anywhere in the world, using any device with an internet connection. This flexibility supports remote work, enables real-time collaboration, and ensures that critical information is always available, enhancing productivity and operational efficiency while reducing the need for on-premises infrastructure.
- Increasing Concern Regarding Data Security and Privacy
Data privacy and security are the primary concerns of organizations, wherein use, storage and transmission of data or information must be digitally protected. According to surveys, around 60% of business-sensitive data or information on hard drives is held insecurely. Authorization management, access control, data encryption, cloud integration, monitoring &auditing, communication security, and business continuity services are some of the significant security services provided by the vendors. For instance, vendors such as Microsoft Corporation, Google LLP and Amazon.com Inc. provide 99.9% uptime, which releases organizations from the burden of maintaining and creating recovery facilities and backup infrastructure.
Restraint
- Setting Up and Maintaining Storage Requires High Initial Investment
Setting up a data center demands a substantial financial outlay, encompassing the costs of land acquisition, construction, and the installation of advanced IT and cooling equipment. These facilities must be equipped with high-performance servers, storage systems, robust networking infrastructure, and sophisticated security measures. Additionally, ensuring energy efficiency and reliability requires the deployment of Uninterruptible Power supplies (UPS), generators, and advanced cooling systems. The capital expenditure (CAPEX) for such an endeavor can run into millions of dollars, making it a formidable barrier to entry for many businesses.
Opportunity
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Rise in Edge Computing
Edge computing involves processing data closer to the source of data generation, rather than relying solely on centralized cloud data centers. This paradigm shift is essential for applications requiring immediate data processing, such as autonomous vehicles, smart cities, IoT devices, and augmented reality. By minimizing the distance data must travel, edge computing significantly reduces latency and bandwidth usage, enhancing the performance and efficiency of critical applications.
Challenge
- Shortage of Skilled Force in Cloud Management
The shortage of skilled workforce in data center management has several negative effects on the efficiency and effectiveness of data center operations. Firstly, without adequate skilled personnel, data centers may struggle to maintain optimal performance levels, leading to increased downtime and potential disruptions in service delivery. Secondly, the lack of skilled workforce hampers innovation and the implementation of advanced technologies within data centers, limiting their ability to adapt to changing market demands and technological advancements. Moreover, inadequate staffing can compromise cybersecurity measures, potentially exposing sensitive data to security breaches and threats.
Recent Developments
- In February 2024, Hewlett Packard Enterprise Development LP and Ericsson announced a collaboration to integrate Ericsson's Wallet Platform with HPE GreenLake, aiming to transform financial services. This partnership, unveiled at Mobile World Congress 2024 in Barcelona, seeks to provide enterprises with cloud-like agility, scalability, and services. The initiative is geared towards unlocking new revenue streams, modernizing financial services, and enhancing market positions for both companies, expanding their reach to banks, fintechs, and other enterprises
- In January 2024, Cisco Systems, Inc. and Hitachi Vantara unveiled the Hitachi EverFlex with Cisco Powered Hybrid Cloud, a new suite of managed services aimed at simplifying hybrid cloud adoption for enterprises. Launched to tackle challenges like cost efficiency and operational flexibility, this collaboration integrates Hitachi Vantara's storage and infrastructure expertise with Cisco's networking capabilities
Global Cloud Service Market Scope
The global cloud service market is categorized into six notable segments based on offering, service type, cloud type, organization size, application, and end users.
Offering
- Implementation and Integration Services
- Migration Services
- Management Services
- Support and maintenance services
- Training and Consulting Services
- Others
On the basis of offering, the market is segmented into implementation and integration services, migration services, management services, support and maintenance services, training and consulting services, and others.
Service Type
- SaaS
- PaaS
- IaaS
- Others
On the basis of service type, the market is segmented into SaaS, PaaS, IaaS, and others.
Cloud Type
- Public Cloud
- Hybrid Cloud
- Private Cloud
On the basis of cloud type, the market is segmented into public cloud, hybrid cloud, and private cloud.
Organization Size
- Large Enterprises
- Medium Enterprises
- Small Enterprises
On the basis of organization size, the market is segmented into large enterprises, medium enterprises, and small enterprises.
Application
- Data Storage and Backup
- Web Hosting and Development
- Big Data Analytics
- Content Delivery Networks (CDNs)
- Online Gaming and Streaming
- Video Conferencing and Collaboration Tools
- Internet of Things (IoT)
- Artificial Intelligents and Machine Learning
- Virtual Desktop Infrastructure (VDI)
- Disaster Recovery and Business Continuity
- Scientific Research and Simulations
- Others
On the basis of application, the market is segmented into data storage and backup, web hosting and development, big data analytics, Content Delivery Networks (CDNs), online gaming and streaming, video conferencing and collaboration tools, Internet of Things (IoT), artificial intelligents and machine learning, Virtual Desktop Infrastructure (VDI), disaster recovery and business continuity, scientific research and simulations, and others.
End Users
- IT and Telecom
- Retail
- BFSI
- Manufacturing
- Healthcare
- Automotive
- Media and Entertainment
- Transportations and Logistics
- Government and Defense
- Education
- Energy and Utility
- Others
On the basis of end users, the market is segmented into IT and telecom, retail, BFSI, manufacturing, healthcare, automotive, media and entertainment, transportations and logistics, government and defense, education energy and utility, and others.
Global Cloud Service Market Regional Analysis/Insights
The global cloud service market is categorized into six notable segments based on offering, service type, cloud type, organization size, application, and end users.
The countries covered in the global cloud service market are U.K., Germany, France, Italy, Spain, Russia, Netherlands, Switzerland, Sweden, Belgium, Denmark, Poland, Norway, Turkey, Finland, Rest of Europe, U.S., Canada, Mexico, China, Japan, India, South Korea, Australia & New Zealand, Singapore, Malaysia, Thailand, Indonesia, Philippines, Taiwan, Vietnam, Rest of Asia-Pacific, Saudi Arabia, South Africa, U.A.E., Israel, Egypt, Qatar, Oman, Kuwait, Bahrain, Rest of Middle East and Africa, Brazil, Argentina, and rest of South America.
North America region is expected to dominate in this market due to growing prevalence of chronic diseases and conditions. U.S. is expected to dominate in North America because increasing focus on personalized devices for users. China is expected to dominate in Asia-Pacific because growing expansion of telehealth application. U.K. is expected to dominate in Europe due to its technological advancement across the country.
The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points such as new sales, replacement sales, country demographics, regulatory acts, and import-export tariffs are some of the major pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and global brands, and the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Cloud Service Market Share Analysis
The global cloud service market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the market.
Some of the major players operating in the market are IBM Corporation, Microsoft, Amazon Web Services, Inc, Google LLC, HP Development Company, L.P., Alibaba Group Holding Limited, SAP SE, Oracle, Dell Inc., Broadcom, Kyndryl Inc., Adobe, Cloud4C, Commvault, Black Box, RACKSPACE TECHNOLOGY, Wolfram, Cloudian Inc., Canadian Cloud Hosting, and IDrive Inc among others.
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