Cloud Computing Market Size

Cloud Computing Market Analysis

The Cloud Computing Market size is estimated at USD 0.68 trillion in 2024, and is expected to reach USD 1.44 trillion by 2029, growing at a CAGR of 16.40% during the forecast period (2024-2029).

Enterprise routers are essential products that are utilized on a daily basis by any business or enterprise. The global demand for cloud computing is growing due to emerging technologies like big data, AI, and machine learning (ML). Also, increased focus on customer-centric applications to boost consumer satisfaction is one element impacting the rise of emerging technologies.

• Cloud-based infrastructure provides flexible, on-demand access to the resources underlying these new digital business solutions. The technology is beneficial for enterprise resource planning (ERP), online transaction processing (OLTP), and supply chain management (SCM) across sectors. In November 2022, Amazon Web Services Inc. launched a supply chain management application that would eliminate the requirement for businesses to utilize multiple systems and vendors to access critical network data. AWS Supply Chain is a machine learning-powered application that automatically combines and analyzes data across numerous supply chain systems, creating a “unified data lake.”
• Companies are transforming towards implementing hybrid cloud in their business environment. Agility is the hybrid cloud's main advantage. Companies are integrating public, private, and on-premises resources to acquire agility and competitive advantage. To that extent, in May 2023, IBM unveiled IBM Hybrid Cloud Mesh, a SaaS offering that is developed to facilitate enterprises to obtain management to their hybrid multi-cloud infrastructure. Driven by “Application-Centric Connectivity,” IBM Hybrid Cloud Mesh is arranged to automate the process, management, and observability of application connectivity in public and private clouds to facilitate modern enterprises to operate their infrastructure across hybrid multi-cloud and heterogeneous environments.
• The market is also witnessing several investments that significantly drive the adoption of cloud computing. For instance, in May 2023, Amazon's cloud computing unit, Amazon Web Services, revealed its intention to invest USD 12.7 billion in cloud infrastructure in India by 2030. The aim is to meet the country's increasing demand for cloud services. According to AWS, the investment is anticipated to support an average of 131,700 full-time equivalent jobs yearly in Indian businesses. AWS assesses that its overall contribution to India's gross domestic product from 2016 to 2022 surpassed approximately USD 4.6 billion.
• Organizations increasingly need solutions that enable employees to operate remotely safely and productively. To enable remote work for normal employees, contact center agents, and creative professionals, providers offer specialized solutions based on their clouds in a secure, timely, and affordable manner. However, cloud computing is a technology that provides platforms, software, and infrastructure on demand, making it prone to various kinds of data breaches. If customers are certain that security measures are in place, they will raise security concerns about outsourcing their data to public cloud services. Although cloud service providers work hard to protect their client's data, there have been several data breach events to cause problems for even the most well-known businesses. For instance, according to Verizon, in 2022, there were 1,829 reported cyber incidents in the financial industry worldwide.
• Further, macroeconomic trends have a significant impact on the cloud computing market. The rising inflationary pressure is likely to increase the costs of professional services for companies operating on cloud environment. For instance, according to OECD, the annual monthly inflation rate in the Organization for Economic Co-Operation and Development (OECD) increased steadily from February 2021 to October 2022, when the inflation rate reached 10.7% compared to the same month the previous year.