European cloud computing market to surpass $140 billion by 2028
Global Market Insights added a report on the European cloud computing market which estimates the market valuation will cross $140 billion by 2028 due to the government support for promoting cloud adoption throughout Europe.
Growing usage of cloud computing among multiple organizations to ensure business continuity and adaptability to market changes for maintaining a competitive advantage over rival firms is likely to fuel the industry growth.
The increasing digitization trend observed in organizations with their shift toward cloud-based services is also boosting the European cloud computing market demand. The leading companies are focusing on emerging technologies, such as mobile cloud computing and edge computing, to develop innovative solutions and services for their customers.
The IaaS segment to grow steadily
The IaaS segment is anticipated to grow at a CAGR above 15% from 2021 to 2028. IaaS plays an important role for enterprise-level businesses due to high flexibility and scalability and is suited for fluctuating computing workloads.
Enterprises are increasingly shifting toward IaaS models due to the ease of use, quick computing times, and cost-efficiency. The Pay-As-You-Go (PAYG) feature eliminates the expenses of deploying in-house infrastructure, aiding in the growth of IaaS model.
The SMEs are expected to hold a market share of over 30% by 2028. The growth is attributed to the growing adoption of cloud technology by SMEs for improving business capabilities. The SMEs are emphasizing on securing their networks for safe data accessibility and migrating their core businesses to digital platforms to safeguard businesses.
Cloud computing benefits, such as remote computing, reduced costs, and availability of on-demand computing resources, are major factors behind the adoption of cloud computing by SMEs throughout Europe.
The private cloud is projected to witness an exponential growth over the forecast period. Multiple organizations are embracing the private cloud to gain high level of security and data privacy. Government agencies, BFSI enterprises, and organizations with critical data, such as military facilities and nuclear power stations, are adopting private cloud solutions for ensuring control over the data and safeguarding critical data. This is anticipated to create numerous opportunities for private cloud.
The retail segment is set to hold over 10% of the cloud computing market in Europe in 2020. The growth is attributed to the increasing demand for online shopping and dynamic shift in the purchasing patterns of consumers. The digital transformation amongst retailers is gaining traction and retailers are focusing on increasing their IT spending to detect fraudulent activities and safeguard their payment channels.
Italy to grow significantly in the European cloud computing market
Italy is projected to grow significantly in the European cloud computing market with over 15% CAGR over the forecast period. The growth is attributed to the increasing adoption of cloud computing solutions & services by SMEs and other business verticals. The presence of multinational companies and their hefty investments are anticipated to support the market growth. For instance, in May 2020, Microsoft invested $1.5 billion in Italian cloud computing services. This investment aimed to provide cloud services to SMEs and other business sectors.
Also, under a five-year strategic plan, the company will provide access to local cloud services and launch digital skilling, smart-working, and artificial intelligence (AI) programs for small and medium enterprises.
The companies operating in the market are focused on collaborating with government and public organizations to accelerate cloud adoption. For instance, in January 2021, CloudSigma was selected by Open Clouds for the Research Environments (OCRE) project. This project aims to accelerate cloud adoption in the European research community. This will also help the company to expand its presence across Europe and generate a new revenue stream.