Cloud Services Market is Estimated To Witness High Growth Owing To Trends of Rising Adoption of Hybrid Cloud Solutions

 

Cloud Services Market

The Cloud Services Market is estimated to be valued at US$ 539.9 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Cloud services provide digital infrastructure needed for service delivery. It includes software, platform, and infrastructure as a service. These services allow scalable access to computing resources and applications via internet without initial capital investment in buying and maintaining hardware and software. It enables organizations to focus on core competencies rather than infrastructure.

Market key trends:
The cloud services market is mainly driven by increasing adoption of hybrid cloud solutions across organizations. Hybrid cloud combines the capabilities of private and public clouds by allowing workload placement into clouds based on factors like cost, scalability, and information security. It allows organizations to use public cloud for flexibility and private cloud for control and compliance. According to Flexera's State of the Cloud Report 2022, hybrid cloud adoption has increased to 69% in 2022 as compared to 61% in 2021. Many organizations are adopting hybrid clouds as it allows workload portability while maintaining control over sensitive data and applications. This rising adoption is expected to drive significant growth in the cloud services market during the forecast period.

Porter’s Analysis

Threat of new entrants: The cloud services market requires large investments in infrastructure and technical expertise. This poses significant entry barriers for new companies.

Bargaining power of buyers: Large enterprises have significant negotiating power due to their high spending potential. However, for SMEs the bargaining power remains relatively low.

Bargaining power of suppliers: Major cloud service providers like Amazon Web Services, Microsoft, Google Cloud etc. have established market dominance. This gives them substantial power over suppliers.

Threat of new substitutes: Emerging technologies like edge computing are potential substitutes but are yet to compete at scale with cloud services.

Competitive rivalry: The market is dominated by few large players resulting in high competition for market share.

SWOT Analysis

Strengths: Cloud services offer scale, agility, flexibility and cost savings. technological expertise of major players.

Weaknesses: Vendor lock-in issues, dependency on internet connectivity, compliance and regulatory challenges.

Opportunities: Growth in IoT, AR/VR, edge computing. Increased spending on cloud migration and digital transformation by businesses.

Threats: Cyber threats, data privacy laws may impact revenues. Resistance to change from hybrid/on-premise models.

Key Takeaways

The global cloud services market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing adoption of cloud-based applications and services across industries. By 2030, the cloud services market size is projected to reach US$ 1 trillion.

Regional analysis: North America dominates currently with a share of over 35% owing to rapid digitalization and presence of major players. Asia Pacific is expected to be the fastest growing region expanding at a CAGR of 15% due to growing cloud spending in countries like China and India.

Key players operating in the cloud services market are Alibaba Group Holding Limited, Amazon Web Services, Inc., Cisco Systems, Inc., Dell, Technologies Inc., Google Llc , Hewlett Packard Enterprise Development Lp, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, And Rackspace Hosting, Inc. The market is witnessing increasing investment in cloud capabilities by these companies to gain market share.

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