Global cloud services market is expected to reach $555 bn, by 2020
04 Jul 2014
According to the new report by Allied Market Research, titled Global Cloud Services Market (Services, Type, End User and Geography) - Global Analysis, Industry Growth, Trends, Size, Share, Opportunities and Forecast, 2013-2020,
The global cloud services market is expected to grow at a CAGR of 17.6 per cent from 2014 to 2020, reaching a market size of $555 billion in 2020.
In 2014, the overall cloud services market revenue will reach $209.9 billion, led by public cloud services. The community cloud services segment is gaining momentum and is expected to garner revenue of $1 billion this year, thanks to its adoption in healthcare segment.
The cloud computing market surged during the recent economic slowdown, as over 35 per cent of IT costs can be saved with the adoption of the technology.
Since then cloud services segment has expanded as cash-strapped companies wanted cost-effective solutions with minimum to zero investment and reduced IT resources.
Although, cost and functional benefits such as scalability and multi-tenancy still driving much of the growth of the cloud services market, an evolution of value-creating solutions has become the current growth driver of the market.
The cloud, from an exploratory option, has now grown to become an important element of organizations' overall IT portfolio. However, data security issues have kept away a large section of sensitive potential end users from opting for cloud services.
Strong growth is anticipated within the varied segments of cloud services market such as infrastructure as a service (IaaS), software as a service (SaaS), platform as a service (PaaS), business process as a service (BPaaS), cloud advertisement services, and cloud management and security services.
According to the report, cloud advertising services will be the largest segment followed BPaaS with about 47 per cent and 28 per cent market share respectively in 2013. Cloud management and security services will be the fastest growing segment at a CAGR of 28.4 per cent during the forecast period.
On the basis of cloud type the market is categorized as public cloud, private cloud, hybrid cloud and community cloud. Public cloud hold prominent share of the market through 2020 and is expected grow at a CAGR of 16.4 per cent during the forecast period.
The reduction of the total cost of ownership on deployment of cloud services acts as the major driver for the adoption of public clouds. The market attracts numerous new entrants due to liberal government regulations. Private cloud will have fastest growth during the analysis period whereas hybrid and community cloud services will gain gradual momentum with steady adoption within specialized end use segments.
Based on end users, cloud services market can be segmented into government utilities, private organizations, healthcare, academics and education and supply chain management.
Private organisations lead the end user market due to the rapidly growing IT sector, which is contributing largely to the revenue streams of the private organizations segment. The segment is expected to grow at a CAGR of 24.1 per cent during the forecast period and it is anticipated to register revenue of $86.8 billion by 2020. Cloud services promote sector-specific services, which are customized for specific end users. One such example is the implementation of ERP in the healthcare sector.
Varied market dynamics has been observed within the geographic market segments for cloud services. North America region being the early adopter of these services holds the highest market share throughout the analysis period.
The fastest growing market is the Asia Pacific which is growing with a CAGR of 23.5 per cent during the forecast period while representing a smaller market. Economic benefits from cloud services acts as the key driving factors in developing countries of Asia Pacific.
