The cloud services market includes cloud-based technologies and services for storing data, running applications and delivering various content. It enables IT infrastructure with high scalability and reliability at low costs. Cloud platforms provide Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) models for various business requirements. With growing digitization, cloud services are widely adopted across various industry verticals like BFSI, IT & telecom, government, healthcare, retail and education for storing sensitive data, running critical applications and delivering content efficiently.
The global cloud services market is estimated to be valued at US$ 621.97 billion in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Advancements in internet connectivity coupled with availability of high speed internet has enabled seamless adoption of cloud platforms. Availability of customized cloud offerings as per business requirements is encouraging SMEs to leverage cloud platforms. Furthermore, the outbreak of COVID-19 pandemic has accelerated the digital transformation of businesses which has further boosted the adoption of cloud services for remote working and connectivity. However, concerns around data security, privacy and regulatory compliances pose challenges for the market. Market players are focusing on strategic partnerships and collaborations to expand their presence and offer innovative cloud solutions.
Segment Analysis
The global cloud services market is dominated by the infrastructure as a service (IaaS) segment. Cloud infrastructure allows organizations to benefit from high performance computing along with reduced IT budget spending. Major companies are leveraging IaaS solutions for storage, networking, and virtual computing capabilities. The platform as a service (PaaS) segment is also growing rapidly as it provides built-in platforms and solutions for developers to build and deliver apps through the internet. Industries such as BFSI, IT and telecom adopt PaaS solutions for agile software development cycles.
PEST Analysis
Political: Data localization laws and privacy regulations pose some challenges for cloud adoption across countries. However, governments are also supporting digital transformation initiatives utilizing cloud services.
Economic: Low upfront costs and pay-per-use models have boosted cloud investments. However, inflationary pressures and supply chain issues impact infrastructure deployment plans.
Social: Younger demographics and digital natives widely use cloud-based apps and services. This drives the need for cloud-hosted social media platforms, edtech and collaboration tools.
Technological: Emerging technologies like edge computing, serverless computing and quantum computing offer new opportunities for cloud providers. Hybrid multi-cloud architectures are becoming mainstream to meet business-critical workload demands.
Key Takeaways
The Global Cloud Services Market Size is expected to witness high growth over the forecast period owing to rapid digitalization of enterprises post-pandemic. The global cloud services market is estimated to be valued at US$ 621.97 billion in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031.
Regional analysis
The Asia Pacific region dominates the cloud services market and is expected to grow at over 15% CAGR during the forecast period. This can be attributed to wide acceptance of cloud technologies across verticals in countries such as China, India and Japan. Rapid expansion of hyperscalers and investments to develop local data centers are further propelling the APAC cloud market.
Key players
Key players operating in the cloud services market are The Toro Company, Kubota Corporation, Honda Motor Co., Husqvarna AB, Briggs & Stratton, Deere & Company, MTD Products, AriensCo, Stihl, Emak S.p.A., AL-KO, Makita Corporation, Robert Bosch, Stanley Black & Decker, Techtronic Industries, Yamabiko Corporation, American Honda Motor Co., Generac Power Systems, Lawn-Boy Inc., AL-KO Gardentech. Major providers are focusing on acquisitions and partnerships to expand service portfolios and geographical presence.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it