Cloud Computing Market Research Report and Outlook by 2028

The cloud computing sector is projected to reach a valuation of approximately US$ 405,295.8 million in 2022, with expectations to soar to US$ 1,465,818.2 million by 2028. This growth translates to a compound annual growth rate (CAGR) of 23.9% from 2022 through 2028.

The rising need for reliable and cost-effective cloud solutions has spurred the growth of numerous cloud service providers. These providers deliver solutions that assist organizations in identifying the most economical architecture capable of achieving optimal performance. As multi-cloud environments gain traction, the market for third-party cost optimization services is anticipated to expand during the forecast period. These services emphasize high-quality analytics aimed at maximizing cost savings while maintaining performance, ensuring consistency in multi-cloud management, and promoting independence from specific cloud providers. Optimization plays a vital role in the initial phases of cloud migration projects. Thus, early detection of cost-saving opportunities, the application of operational data analysis tools, and the development of necessary skills and processes can significantly enhance third-party cloud solutions. The intensifying competition and government investments in creating affordable cloud products have encouraged many businesses to embrace cloud computing, further propelling the growth of the cloud computing market.

Additionally, cloud providers are fortifying their market positions by making substantial investments in expanding their product offerings. Recent advancements in cloud products include:

On February 21, 2022, NxtGen announced plans to invest US$ 172.81 million (Rs 1,300 crore) in India to set up new data centers.

In November 2021, the startup Digiboxx secured US$ 1.5 million in pre-series A funding aimed at enhancing its file storage and cloud sharing services. The company intends to utilize these funds to broaden its cloud product range.

In July 2021, Wipro revealed its intention to invest US$ 1 billion in cloud capabilities over the next three years, which includes acquisitions and partnerships. Wipro also introduced its "Wipro FullStride Cloud Services" initiative.

The North American cloud computing market has witnessed remarkable growth due to several factors, including supportive government policies, the presence of leading cloud vendors, and robust internet infrastructure. In recent years, the demand for cloud computing has surged, positively influencing internet penetration rates. Consequently, this has attracted significant foreign direct investments (FDIs) in the region, further enhancing the growth of the cloud computing market in North America.

Moreover, in response to escalating security concerns, many organizations have turned to cloud computing to safeguard their operations and ensure smooth business continuity. While some enterprises express apprehension regarding the costs associated with maintaining and hosting on-premises cloud solutions, the increasing competition and the shift towards digital transformation have motivated many to adopt cloud computing. Organizations are now more focused on managing staff costs, energy expenses, and minimizing downtime, which has led to a greater inclination towards cloud solutions. By embracing cloud technology, businesses can lower operational costs and improve customer experiences. The pay-as-you-go model of cloud computing, which allows businesses to scale their cloud usage as needed, has made startups and small to medium-sized enterprises (SMEs) the primary consumers of cloud solutions. The advantages of cloud computing, such as on-demand availability and affordability, are particularly appealing to these businesses, resulting in reduced infrastructure and storage expenses and improved return on investment.

The United States presents numerous lucrative opportunities due to its support for Cross Border Privacy Rules (CBPR), attracting a multitude of investors to the Information Technology sector. This has enabled many US-based companies to maintain a strong international market presence for business expansion. Consequently, cloud service providers are forming collaborations, establishing a formidable presence in the global market. For instance, in September 2021, Salesforce launched Health Cloud 2.0, a connected platform designed to enhance safety for employees and customers through various modules, including Contact Tracing and Dreampass.

Additionally, Amazon Web Services introduced Amazon HealthLake in December 2020, targeting healthcare and life sciences clients. This service assists organizations in collecting, categorizing, organizing, and structuring data from diverse sources, utilizing machine learning to extract insights. Furthermore, the Trans-Pacific Partnership (TPP), which includes 12 countries, such as the US, along with the contributions of US-based cloud technology firms in executing various multinational agreements, is likely to open new avenues for cloud computing in North America. Notably, over 90% of Canadians have access to the internet.

The analysis of the cloud computing market is based on several factors, including service model, deployment model, organization size, industry vertical, and geographical location. Regarding service models, the cloud computing market is divided into three categories: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). In terms of deployment models, the market is classified into public and private clouds. When considering organization size, the market is segmented into small and medium-sized enterprises (SMEs) and large enterprises. By industry vertical, the cloud computing market is further categorized into BFSI, IT & telecommunications, government & public sector, retail & consumer goods, manufacturing, healthcare & life sciences, and others. Geographically, the market is divided into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

The global cloud computing market size has been determined through a combination of primary and secondary research methodologies. Initially, extensive secondary research was conducted using both internal and external sources to gather qualitative and quantitative data about the market. This process also aims to provide a summary and forecast for the growth of the cloud computing market across all its segments. Additionally, numerous primary interviews have been held with industry experts and commentators to validate the data and gain deeper analytical insights into the subject. Participants in these interviews include business development managers, VPs, market intelligence managers, national sales managers, and external consultants, such as valuation experts, key opinion leaders, and research analysts specializing in the cloud computing sector.