July 21, 2024
cloud Services

Rising Demand for Hybrid Cloud Services to Boost the Growth of the Global Cloud Services Market

The global 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 on-demand access to shared computing resources such as networks, servers, data storage, applications, and services over the internet. It allows users and enterprises to use advanced IT infrastructure without requiring internal hardware or software system investments. Key cloud services include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Business Process as a Service (BPaaS) and Network as a Service (NaaS). Rising digital transformation across industries is creating substantial demand for cloud services.

Market key trends:
Growing adoption of hybrid cloud deployment model is a major trend in the cloud services market. Hybrid cloud model allows workloads and data to be shared between private and public clouds which provides flexibility and improved control to organizations. It allows enterprises to optimize workloads by placing them either on public cloud for non-critical functions or private cloud for sensitive data and operations. Increasing concerns around data security and regulatory compliances have boosted hybrid cloud adoption in recent years. Rising investments in cloud-based technologies by small and medium enterprises is another factor augmenting the demand.
Porter’s Analysis

Threat of new entrants: The cloud services market requires high initial investments and technological expertise which poses significant entry barriers to new players.

Bargaining power of buyers: Buyers have high bargaining power in this market due to availability of varied service providers and substitutes.

Bargaining power of suppliers: Since key suppliers in this market are big tech giants, they enjoy high bargaining power against buyers.

Threat of new substitutes: Emerging technologies like edge computing pose threat of substitution to cloud services.

Competitive rivalry: The competitive rivalry in this market is high due to presence of technology majors aggressively competing on service features and pricing.

Key Takeaways

The global Cloud Services Market is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing demand for scalable and affordable cloud infrastructure from businesses globally. The market size is expected to reach US$ 1.2 Trillion by 2030 from US$ 539.9 Bn in 2023.

Regional analysis: North America dominates the global cloud services market currently due to high technology adoption. However, Asia Pacific is expected to witness fastest growth over the forecast period led by China and India. Availability of skilled workforce and supportive government policies are driving uptake of cloud services in the region.

Key players:

Key players operating in the cloud services market include 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. These players are focusing on partnerships and acquisitions to expand their service capabilities and presence globally.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it