Cloud Computing Market - Forecast, 2023-2030 (2024)

The Cloud Computing Market size is estimated to reach $1,933 billion by 2030, growing at a CAGR of 17.3% during the forecast period 2023-2030. Technological advancements, such as the Internet of Things (IoT) and artificial intelligence (AI) are driving demand for cloud computing. These technologies generate large amounts of data that need to be stored and processed, which can be done more efficiently and cost-effectively using cloud-based solutions.

The Cloud computing market is a rapidly growing industry that enables individuals and organizations to access and store data, applications and other resources on remote servers through the internet. There are several different types of cloud computing services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Cloud-based information systems, which rely on cloud computing, are becoming increasingly popular as they allow organizations to access and use data and applications. In addition, the cloud computing market growth is expected to rise as many organizations are willing to adopt cloud-based information systems and edge computing in the forecast period.

COVID-19 / Ukraine Crisis - Impact Analysis:

• The COVID-19 pandemic had a significant impact on the Cloud Computing market. The sudden shift to remote work and the need for remote access to data and applications drove an increase in demand for cloud-based solutions. Many organizations that were not already using cloud computing had to quickly adopt it in order to enable remote work and ensure business continuity.
• The Russia-Ukraine war has created a critical geopolitical turning point for Europe and the world that would affect global ICT demand in the coming years. According to a report, after a public security breach, the stocks of cloud service companies only witness a small and temporary dip.

Key Takeaways:

The Dominance of the North America Region

Geographically, North America held the largest share with 35.90% of the overall market in 2022. There are more mobile devices than ever before. More businesses are embracing cloud computing. Big data analytics are growing in popularity and cybersecurity is becoming a higher priority in the North American region. North America was able to control the global IaaS market, thanks to the extensive IT infrastructure that was already in place and the consequent rise in demand for Infrastructure as a Service (IaaS), leading to the Cloud Computing market opportunities.

Software as a Service (SaaS) Segment Holding Largest Market Share

According to the Cloud Computing market forecast, based on Component Type, the Software as a Service (SaaS) Segment held the largest cloud computing market share with 57.8% of the market in 2022. It is estimated to grow at the fastest CAGR of 16.7% during the forecast period of 2023–2030. It is estimated that there is a rapid rise in the number of enterprises shifting toward the cloud. More than 70% of companies are shifting a majority of their application to the Software as a Service (SaaS) platform. Such factors generate further Cloud Computing market growth opportunities during the forecast period.

High Growth Among Manufacturing

Based on End-user, the manufacturing segment is estimated to grow the fastest during the forecast period 2023-2030. Manufacturing is expected to be the most opportunistic segment during the forecast period. Manufacturers in the Asia-Pacific region embrace public and private clouds at a rate of 49%. Public cloud adoption stands at 66%, while private cloud adoption is at 68%. Approximately 50% of those surveyed use a mix of public and private clouds for their IT resources, according to a corporate cloud study. The rising adoption of cloud services in the manufacturing sector for storing information, supply chain handling and planning enterprise resources is expected to boost the growth of this segment during the forecast period.

Integration of AI and ML-Powered Cloud to Drive the Market

AI and ML-powered cloud applications assist in automating routine activities within IT infrastructure, increasing productivity and enhancing the performance and efficiency of organizations. Meanwhile, companies such as Google, Microsoft and Salesforce are integrating AI as an intelligence layer across their entire tech stack. According to Pega, Consumers use more AI than they realize. While only 33% think they use AI-enabled technology, 77% actually use an AI-powered service or device.

Increased Attention to Customer Satisfaction

The growing need to reduce operating expenses and the requirement to keep capital expenditures to a minimum are two important reasons that are significantly boosting the growth of the global cloud computing industry during the forecast period 2023-2030. In 2021, 57% of businesses were using AI and ML-powered cloud technology to improve customer satisfaction.

Security Concerns to Hamper Market Growth

According to Cloud Computing Market analysis, one of the main challenges for the cloud computing market is the issue of security. Many organizations are concerned about the security of their data when it is stored in the cloud. There have been instances of data breaches and cyber-attacks on cloud servers, which has caused some companies to be hesitant to adopt cloud computing. According to Check Point's 2022 Cloud Security Report, 27% of organizations have experienced a security incident in their public cloud infrastructure in the last year.