The cloud computing market value is set to grow by $287.03 billion from 2020 to 2025, as per the latest report by Technavio.
The adoption of SaaS helps enterprises in eliminating expenses and complexities associated with managing hardware and software required to run applications. Moreover, SaaS also enables easy access to IoT, data analytics, and AI platforms, which aids businesses in making business decisions. As a result, there will be a high demand for SaaS solutions. The growth of the SaaS market segment is expected to be significant during the forecast period.
- Market growth 2020-2025: $287.03 billion
- YoY growth (%): 20.37%
- Performing market contribution: North America at 40%
- Key consumer countries: US, Germany, China, Japan, and UK
Regional cloud computing market analysis
40% of the market’s growth will originate from North America during the forecast period. The US is one of the key markets for cloud computing in North America. Market growth in this region will be slower than the growth of the market in other regions.
The rising adoption of cloud solutions from various end-user industries will facilitate the cloud computing market growth in North America over the forecast period.
Key market drivers
Increased inclination towards cloud computing for cost-cutting
SMEs have started opting for public solutions to scale up or scale down the hardware and resources. Apart from CAPEX reduction, cloud computing solutions can facilitate faster storage, processing, and communication lines. Clouds also enable the deployment of applications without the need for provisioning hosting capabilities.
Cloud services provide security, facilitate optimum use of resources, and provide the reliability of a normal dedicated server and cloud resources. The above-mentioned factors are increasing revenue generation for vendors, contributing to the growth of the cloud computing market size. The increased inclination toward cloud computing for cost-cutting is one of the significant factors driving the market growth.