Allied Market Research recently published a report, titled, “Cloud Services Market by Offering (Solution and Services), Type (IaaS, PaaS, SaaS, and Others), Deployment Model (Public Cloud, Private Cloud, and Hybrid Cloud), Organization Size (Large Enterprises and Small and Medium Enterprises), Application (Asset Management, Customer Relationship Management (CRM), Enterprise Resource Management (ERM), Supply Chain Management (SCM), Project and Portfolio Management, Business Intelligence, and Others) Industry Vertical (BFSI, IT & Telecommunications, Retail, Government, Media & Entertainment, Healthcare, Manufacturing, Oil & Gas, Metals & Mining, Petrochemicals, Energy & Utilities, Pulp & Paper, Agriculture, And Others): Global Opportunity Analysis and Industry Forecast, 2021–2030”. As per the report, the global cloud service industry was pegged at $325.68 billion in 2019, and is expected to reach $1,620.59 billion by 2030, growing at a CAGR of 15.8% from 2021 to 2030.
Major determinants of the market growth
Rise in demand due to cost-effectiveness, surge in adoption of cloud in SMEs, and increase in demand due to Covid-19 outbreak have boosted the growth of the global cloud services market. However, concerns regarding data security and protection hinder the market growth. On the contrary, increase in cloud services adoption in emerging economies is expected to open lucrative opportunities for the market players in the coming years.
The Covid-19 outbreak has accelerated the demand for the cloud to support crucial digital solutions such as e-commerce and remote work.
Moreover, the demand for entertainment platforms such as online gaming and video streaming increased during the pandemic, which favored the demand for cloud services.
Since the global adoption of work from home culture, the demand for cloud services for security and data protection has increased.
The service segment to manifest the highest CAGR through 2030
By offering, the service segment is expected to register the highest CAGR of 21.9% during the forecast period, as it assures effective functioning of cloud-based platforms, solutions, and software. However, the solution segment held the lion’s share in 2019, accounting for more than 95% of the global cloud services market, due to benefits of cloud-based solutions to end-users and businesses such as increased capacity, scalability, functionality, and reduced maintenance cost.
The SaaS segment held the lion’s share
By type, the SaaS segment dominated the market in 2019, contributing to nearly two-fifths of the global cloud services market, due to presence of software as multitenancy which is crucial for cloud computing. However, the IaaS segment is expected to register the highest CAGR of 17.7% during the forecast period, as IaaS can be shared and the cost can be reduced.
North America to contribute the highest revenue by 2030
By region, the global cloud services market across North America held the largest share in 2019, accounting for nearly three-fifths of the market, due to high adoption of cloud computing services and emerging sector for cloud computing services in the region. However, the market across Asia-Pacific is projected to portray the highest CAGR of 18.8% during the forecast period, due to rapid adoption of cloud computing, rise in investments in infrastructure as a service, and intense competition in the region. PR Newswire