The global Cloud Computing Market size is to grow from $626.4 billion in 2023 to $1,266.4 billion by 2028 at a CAGR of 15.1% during the forecast period, according to a new report that has spotted Nigerian tech company, Cloudflex, among the key industry drivers.
Nigerian tech company, Cloudflex Computing Services Limited is among global players leading the integration of edge computing, the expansion of AI and machine learning services, the growth of hybrid and multi-cloud methods, and the investigation of quantum computing, which are all anticipated developments in the Cloud Computing Market, according to the report by Markets and Markets.
Anticipations encompass heightened security protocols, cloud solutions tailored to individual industries, and a heightened emphasis on sustainability, 5G integration, and ongoing innovations to sustain competitiveness, according to authors of the report.
Cloud providers, according to the forecast, can achieve economies of scale by pooling computing resources and distributing costs across many users; this allows organisations to access computing power and storage without significant upfront investments in infrastructure.
The Cloud Computing Market is expanding, and vendors are adopting a strategic focus to attract customers. Cloud services can be accessed from anywhere with an internet connection, promoting remote work and collaboration. This accessibility enhances productivity and facilitates global business operations. Cloud providers typically have multiple data centres across different geographic locations. This redundancy enhances reliability, ensuring services remain available during hardware failures or disasters. These services are increasing the demand for the Cloud Computing Market.
The SaaS segment holds the largest market size
Salesforce, Microsoft, Adobe, Google, and IBM are some of the leading companies in the SaaS market. Although the SaaS market has reached a level of maturity and its growth rate is not as rapid as that of IaaS and PaaS, the SaaS market is significantly more extensive and is anticipated to maintain this position until 2023, according to the study.
MnM predicts substantial growth across all SaaS segments and geographic regions. Many businesses were increasingly adopting SaaS solutions, ranging from customer relationship management (CRM) and enterprise resource planning (ERP) to communication and collaboration tools. AI and machine learning are increasingly integrated into SaaS applications to provide advanced analytics, automation, and predictive capabilities. This trend aims to enhance the functionality and intelligence of cloud-based solutions.
Retail & Consumer Goods vertical to record the highest CAGR
The retail & consumer goods vertical has become one of the most dynamic and fast-paced sectors in adopting cutting-edge technologies.
Leading companies in this space include Walmart, Ocado, Tesco, Shapeways, Zara, and Richline Group. In recent years, cloud computing has emerged as a game-changing technology that significantly benefits the industry.
For instance, beacons installed in retail stores for facial recognition generate a vast amount of data, which can be processed and analysed closer to the source using cloud computing rather than sending it to centralised storage, which could be costly and time-consuming; this helps companies identify new revenue sources quickly.
The adoption of cloud computing is due to factors such as the rising purchasing power of customers, the need to meet their expectations, and the retention and acquisition of new customers.
Online retailing and cloud technologies have disrupted the retail and consumer goods industry, leading to the adoption of cloud computing mainly for storage, backup, and security services.
Cloud computing can significantly help enhance stores’ brand value and lifespan by identifying out-of-stock situations and pricing issues. Retailers and consumer goods companies are also using edge computing to leverage new technologies like IoT and AI for gathering insights into consumer purchase preferences and patterns, thereby improving their business’s overall efficiency.
For example, Walmart uses edge computing to leverage IoT data generated from sensors at the store level and backhaul it to Microsoft Azure Cloud for a unified view of customers across the US.
North America holds the largest market size
North America is estimated to account for the largest market share in the global Cloud Computing Market in 2023, and this trend will continue during the forecast period.
Due to several factors, the report says, including numerous businesses with advanced IT infrastructure and the accessibility of technical skills, North America is the market with the most established cloud computing adoption.
Factors, such as organisations shifting toward cloud services and the increasing adoption of digital business strategies, are expected to drive the adoption of cloud computing offerings in North America. The region will encourage market growth as large enterprises and SMEs focus on developing innovative cloud computing integrated with technological advancements, such as IoT and predictive maintenance.
North America also witnessed the early adoption of cloud and mobility technologies and has an advanced IT infrastructure, which reduces operational expenditure through various technological advancements across verticals. North America is the most significant contributor in terms of revenue compared to the other regions.
The Cloud Computing Market in North America will grow steadily during the forecast period as enterprises adopt advanced application development technologies at various levels as a part of their strategy to sustain themselves in the competitive market.
Top Key Companies in Cloud Computing Market
The prominent players across all service types profiled in the Cloud Computing Market’s study include AWS (US), Microsoft (US), IBM (US), Google (US), Alibaba Cloud (China), SAP (Germany), Salesforce (US), Oracle (US), Adobe (US), Workday (US), Fujitsu (Japan), VMware (US), Rackspace (US), DXC (US), Tencent Cloud (China), NEC (Japan), DigitalOcean (US), Joyent (US), Skytap (US), OVH (France), Navisite (US), CenturyLink (US), Infor (US), Sage (UK), Intuit (US), OpenText (Canada), Cisco (US), Box (US), Zoho (US), Citrix (US), Epicor (US), Upland Software (US), ServiceNow (US), IFS (Sweden), App Maisters (US), Zymr (US), JDV Technologies (India), Tudip Technologies (India), Visartech (US), Cloudflex (Nigeria), Cloudways (Malta), Vultr (US), and pCloud (Switzerland).
- In January 2023, the Apsara Developer Community, a new centre developed to help worldwide developers through an increased offering of different developer tools and services, was unveiled by Alibaba Cloud. It aspires to foster the continued expansion of the developer community while facilitating the advancement of the digital economy across markets.
- In October 2023, BT and Google Cloud launched a new relationship centred on a more substantial commitment to cybersecurity innovation. BT would become a managed services delivery partner for Google’s Autonomic Security Operations (ASO) product based on Google Chronicle as part of the partnership.
- In June 2023, IBM acquired Agyla SAS. To extend IBM Consulting’s localised cloud expertise for French clients, IBM bought Agyla SAS, a leading cloud professional services provider in France. The acquisition will broaden IBM’s hybrid multi-cloud services portfolio and enhance the company’s hybrid cloud and AI ambitions in the region.
Cloud Computing: The Market Advantages
The requirement for an initial capital investment in physical infrastructure is eliminated by cloud computing. Pay-as-you-go models allow organisations to save money by only paying for the computing resources they really utilise.
Businesses may scale up or down in response to demand thanks to the scalability offered by cloud services. This flexibility comes in very handy when managing erratic workloads and allowing for corporate expansion.
Apps and data may be accessed from any location with an internet connection thanks to cloud computing. By doing this, it is possible to collaborate remotely and access resources without being restricted to a particular place.
Storage, networking, and processing power are all efficiently utilised thanks to cloud providers’ management and optimisation of infrastructure resources. Results include better performance overall and resource management.
Rapid resource provisioning and deployment made possible by cloud services enables companies to react swiftly to shifting customer demands and market conditions. Maintaining competitiveness requires this kind of agility.
Cloud providers take care of maintenance, security patches, and software updates, freeing businesses from having to manage these duties themselves. This guarantees that services and applications are using the most recent versions.
Planning for business continuity and catastrophe recovery is made possible by cloud computing. In the event of a disaster or system failure, enterprises may be guaranteed to promptly retrieve data and applications thanks to data backups and redundancy solutions.