In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for cloud services. The report tracks the global sales of cloud services in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the cloud industry in general, and cloud services in particular.
Many cloud platform vendors are offering these services to cater to changing requirement of end users in verticals such as education, BFSI, media & advertising, IT & telecom, and others. Therefore, the rise in adoption of migration services across verticals such as IT & telecom is the latest trend in the cloud services market. Globally, the cloud services market is expected to reach a valuation of 2.5 Bn by 2030, as per a new study by FMI.
Multiple devices per user is a major factor driving demand of cloud based services for accessing the data on multiple devices without the need of any physical data transfer. This however is only a benefit for users who have multiple devices to access data on. Therefore, as more devices such as Smart TVs, Smartphones and PCs gets adopted among consumers, demand for cloud services is increasing significantly.
Among services models available, the demand for software as a service (SaaS) is considerably high. Analyst has projected it exhibit 21.6% Y-o-Y growth in 2021. Study also states that the global cloud services market is expected to rise steadily at a CAGR of 20.4% during the forecast period of 2020 to 2030.
“Smart devices such as Smart TVs or Smart Watches have a limited internal storage and rely highly on the cloud for their functioning. Besides having low storage, these devices are also designed to work efficiently connected with other devices that the user owns. The growing demand for such cloud-dependent smart devices are creating new opportunities for the cloud services market.” says an analyst.
Key takeaways of cloud services market study:
- Cloud services market will exhibit impressive Y-o-Y growth at 19.9% CAGR in 2021. Study projects growth trends to remain positive through the forecast period
- Both U.S. and Canada will exhibit remarkable growth as markets for cloud services. Of these, the U.S. will register 64.9% of North America market in 2021
- Exhibiting 20.7% Y-o-Y growth in 2021, the U.K. will emerge as a key market in Europe
- Germany and France will remain attractive spots for cloud services market
- Japan and South Korea will exhibit demand for cloud services at an accelerated pace through the forecast period
Demand for cloud services increased under pandemic crisis
Under the pandemic crisis of COVID-19, the demand for cloud solutions and services has increased significantly, as most of the workforce started working from home/remote places. There is an influx in demand of cloud solution and services as organizations are adopting to remote work, entertainment, gaming, education and virtually everything else.
Many organizations have changed their priorities and by utilizing cloud automation, businesses are increasing their online presence by developing commerce websites on cloud platforms to decrease the impact of COVID-19 on operational efficiency and productivity. Owing to such factors pubic cloud services market revenue is estimated to increase by 1.6X during 2019-2021.
Shift of enterprises towards cloud based services
Increasing usage of cloud-based services for multiple workloads such as email services, data backups, CRM, ERP and collaboration services is expected to drive growth of the cloud platforms, over the forecast period. Cost of cloud-based services is comparatively cheaper as these do not require setting up of IT infrastructure. Therefore, many companies are shifting towards adoption of security solutions in order to secure their workloads on the cloud without risks of cyber threat.
Some of the leading companies operating in the cloud services market are Microsoft Corporation, IBM Corporation, Cisco System, Inc., AWS, Oracle Corporation, Dell Technologies, SAP, Google, Fujitsu Global, Rackspace Technology, Inc. and others. These companies are expected to focus on various expansion strategies to gain competitive advantage.
For instance, Google LLP acquired Cornerstone Technology, which is based in Netherlands and specializes in mitigating enterprise workloads, in February 2020. This acquisition helped Google LLP to expand its customer base across Europe. CT Bureau