by Cloud services provide on-demand network access to a shared pool of configurable computing resources like networks, servers, storage, applications, and services. These services aid companies with scalability, efficiency, and cost benefits associated with outsourcing IT infrastructure needs. Enterprises can leverage cloud platforms to deploy apps, store files, perform data analytics, and more, thus reducing upfront capital expenses and operational costs. With pay-per-use pricing models, companies only pay for the resources consumed, eliminating fixed costs for maintaining physical servers and data centers.
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 13.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Hybrid cloud is gaining increased traction among enterprises. Hybrid cloud enables workloads and data to seamlessly flow between private and public clouds, providing benefits of both. Organizations can leverage flexibility, speed, and scalability of public clouds while storing sensitive data on private infrastructure. Hybrid cloud also aids businesses in managing compliance and security policies based on data type. Further, hybrid cloud architecture facilitates governance and data protection while supporting critical business applications. As organizations seek optimum utilization of cloud environments, hybrid cloud adoption is expected to surge over the coming years.
Porter’s Analysis
Threat of new entrants: The Global Cloud Services Market Size has moderate threat of new entrants due to high capital requirements and established brand loyalty of existing players.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of several vendors providing similar cloud services. However, switching costs are relatively low.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of several component suppliers and procurement of generic components.
Threat of new substitutes: Threat of substitutes is low as there are no direct substitutes for cloud services.
Competitive rivalry: The cloud services market experiences high competitive rivalry due to presence of established players and regional fragmentation.
Key Takeaways
The global cloud services market is expected to witness high growth. The market is estimated to reach a value of US$ 539.9 Bn in 2023 and expected to surpass US$ 1 trillion by 2030, expanding at a CAGR of 13%. North America dominated the market in 2022 backed by high technology adoption across industries in the US and Canada. Asia Pacific is expected to be the fastest growing market due to rapid digitalization and increased investments by key players in developing nations.
Regional analysis
North America accounted for the largest share of the global cloud services market in 2022. The growth in this region can be attributed to strong economic conditions and increasing technology adoption across enterprises. The US dominated the North America cloud services market owing to presence of major providers and increased spending on digital transformation by organizations.
Key players
Key players operating in the cloud services market are J.P. Morgan Treasury Services, Bank of America Merrill Lynch, Citibank, Wells Fargo, and HSBC Global Banking and Markets. The market is moderately concentrated in nature with top players accounting for major market share. Market players are focusing on partnerships, product innovation and expansion strategies to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
