The global cloud computing market size is expected to reach $1,251.09 billion by 2028, registering a CAGR of 19.1% over the forecast period, according to a study conducted by Grand View Research.
This growth can be attributed to several factors, including digital transformation across various industries, a surge in internet penetration, and big data consumption in various verticals. Increasing adoption of 5G, IoT, and AI is expected to further support the growth of the market for cloud computing.
The IaaS segment is expected to register the highest CAGR over the forecast period owing to the increased adoption of multi-cloud due to benefits, such as scalability and fast data accessibility.
SMEs anticipated to emerge as the fastest-growing segment
Small & Medium Enterprises (SMEs) are anticipated to emerge as the fastest-growing segment from 2021 to 2028 due to high demand for cloud computing in SMEs owing to reduced costs of IT hardware and software, improved processing capacity and elasticity of storage, and greater mobility of access to data and service.
The hybrid deployment segment is anticipated to register the second-fastest CAGR from 2021 to 2028 owing to the growth of cloud and industrialized services and decrease in traditional Data Center Outsourcing (DCO).
Moreover, along with the flexibility to move workloads between private and public deployment depending on the computing needs, a hybrid deployment is expected to provide enterprises more data deployment options in the long run.
The manufacturing end-use segment is expected to register the highest growth rate over the forecast period. Owing to various functionalities, cloud computing aids manufacturers in utilizing multiple types of production systems, ranging from High-Performance Computing (HPC) and 3D printing to IoT and industrial robots.
Asia Pacific as the fastest-growing regional cloud computing market
Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period owing to the increasing focus of SMEs and large enterprises to enhance their digital initiatives.
The growth in the IT services industry in markets, such as India, China, and other South Asian regions, is also expected to propel the regional market growth over the forecast period.
The impact of COVID-19
The outbreak of the COVID-19 pandemic is likely to affect businesses drastically, stifling innovation, suppressing profitability, and drying up cash flow and financial reserves. IT and software development industries have also been facing challenges due to this unforeseen outbreak.
However, the impact on the software industry, including cloud computing, has been relatively low. With the growing adoption of the work-from-home model, due to the second wave of the pandemic, the customers spending in Infrastructure-as-a-Service (IaaS) and Desktop-as-a-Service (DaaS) segments increased significantly.
Organizations are adopting cloud computing services as they provide insights into partnering tactics, go-to-market approaches, investments, alliance & acquisition strategies, and best operational practices. Moreover, these services help measure, correlate, and analyze business activities and ensure that company operations are in line with the customer demands.
Key vendors focus on introducing new cloud solutions, services, and workloads and upgrading of capabilities of their current offerings to strengthen their foothold in the market. Furthermore, vendors also engage in mergers and acquisitions to strengthen their market position and enhance their cloud capabilities.