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Cloud Computing Market Size, Share & Trends Analysis Report By Service
(SaaS, PaaS, IaaS), By Workload, By Deployment, By Enterprise Size, By End Pricing & Purchase
Options
Use, By Region, And Segment Forecasts, 2020 - 2027

Published Date: Apr, 2020 Base Year for Estimate: Report ID: GVR-4-68038-210-  Proceed to Buy
2019 5
Format: Electronic (PDF) Historical Data: 2016 - Number of Pages: 109 (/checkout/select-
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Report Overview
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The global cloud computing market size was valued at USD 266.0 billion in 2019 and is expected to
expand at a Compound Annual Growth Rate (CAGR) of 14.9% from 2020 to 2027. Factors such as Avail customized purchase
growing digital transformation among industries, rising penetration of internet and mobile devices options to meet your exact
across the world, and increase in consumption of big data are the primary drivers fostering the research needs:
market growth. The development of next-generation industrial solutions will be cloud enhanced and
require a cloud platform to showcase their digital business capabilities. Rise in adoption of Internet of Buy sections of this

Things (/industry-analysis/iot-market) (IoT), edge computing (/industry-analysis/edge-computing- report

market), 5G, use of real-time analytics enabled by Artificial Intelligence (/industry-analysis/artificial- Buy country level
intelligence-ai-market) (AI) and Machine Learning (/industry-analysis/machine-learning-market) (ML) is reports
likely to boost the utility of this computing technology among organizations.
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Cloud computing services cover a large number of functions, from the basics of storage, processing, Custom research
service
and networking power through artificial intelligence and Natural Language Processing (NLP) as well as
Design an exclusive
standard office applications. It is estimated that by 2022, more computing power will be offered and
study to serve your
deployed by Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) service vendors than
research needs.
by enterprise data centers. The industrial data suggest that deployment of these services is able to
increase enterprise savings up to 35% of their annual operating costs. Moreover, other factors include Quality assurance
functional capabilities that will help boost the business performances of the organizations. A testimonial for
service in the form of
As per the World Economic Forum, the fourth industrial revolution will be characterized by a fusion of
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technologies such as artificial intelligence, internet of things, and cloud computing. AI and cloud
computing will complement each other along with IoT to improve technology and catalyze growth.
Organizations across various verticals are proactively integrating cloud computing with these evolving
technologies. For instance, in March 2019, Stelco Holdings Inc., a Canada-based steel company,
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partnered with Canvas Analytics Inc., to utilize the latter’s AI-enabled industrial IoT cloud platform to
san-francisco/business-
transform the former’s operational data into actionable insights with the help of the real-time analytics
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solutions. Similarly, in the healthcare industry, Nuance Communications Inc.’s., cloud-hosted
consultants/grand-view-
PowerScribe One platform uses AI to aid in diagnostics and decision support for radiologists.
research-in-san-
An important aspect of the market is the growing adoption by large enterprises as well as Small and francisco-ca-525933)
Medium Enterprises (SMEs). With the growing demand for on-demand and need-based services, this
computing has helped SMEs to compete in much larger business space. Moreover, the pay per
subscription-based model offered by the service providers has provided SMEs the flexibility to grow to
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their full potential. Despite some market barriers such as security concerns and legacy systems, the
market is anticipated to maintain a high growth pace in coming years. Information security
Your personal and
Data security and privacy remains a primary concern among organizations wherein storage, use of
confidential information
information, and transmission must be digitally protected. Surveys suggest that about 60% of the
is safe and secure.
business-sensitive information on hard drives is held insecurely. Data encryption, authorization
management, access control, cloud integration, communication security, monitoring and auditing, and
business continuity services are some of the important security services offered by the services
vendors. For instance, vendors such as Google LLP, Microsoft Corporation, and Amazon.com Inc.
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provide 99.9% uptime, which relieves organizations from the burden of creating and maintaining
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recovery facilities and backup infrastructure.

Report Coverage & Deliverables

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you understand:

 Competitive benchmarking

 Historical data & forecasts

 Company revenue shares

 Regional opportunities

 Latest trends & dynamics Click on image to enlarge

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COVID19 Impact Insights

The recent outbreak of COVID-19 (Coronavirus), a pandemic declared by the World Health
Organization, has gravely impacted the economies worldwide. Major cities across the globe have been
lockdown with operations of industries being temporarily suspended, and national governments being
put in crisis mode. Thereupon, the employees across various industries especially dependent on IT
services, have to work remotely to keep the businesses moving.

IT resources enabled by cloud computing technology will enhance the access to data services and
improve the connectivity between people and businesses on a global scale. Various media
companies, financial establishments, educational institutions, and global enterprises will be able to
operate and run applications for their customers and users on variety of mobile devices. In the wake
of COVID-19 calamity, the work environments that can be operated remotely in technology-driven
companies is likely to be benefitted by the cloud technology for a long period of time. This is also
subsequently expected to favorably impact the market growth.

Service Insights

Software as a Service (SaaS) segment dominated the cloud computing market with a share of over
54% in 2019 owing to its flexible costs, easy maintenance, and deployment. The industry estimates
suggest that there is a rise in the number of companies moving towards cloud with 73% of
enterprises moving almost all of their applications to SaaS platform. In addition, the IT industry
survey suggests that by 2022, around 60% of the enterprises will utilize an external service provider’s
cloud-managed service offering, which is twice the percentage of organizations from 2018. The IaaS
and PaaS type segments have witnessed a steady demand owing to the adoption these services by
numerous industry verticals across the world.

The growth of SaaS products will witness strong growth in the coming years as their Total Cost of
Ownership (TCO) will equal to that of the on-premise deployment models. In 2018 alone, around 169
SaaS-based acquisitions took place with mean acquisition price standing at USD 1.3 billion. Qualtrics
International Inc. by SAP SE (USD 8 billion) and GitHub Inc. by Microsoft Corporation (USD 7.5 billion)
were the major acquisitions, recently witnessed in the industry. More mergers and acquisitions, the
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Workload Insights
The market is segmented on the basis of workload into application development and testing, data
storage and backup, resource management, orchestration services, and others. The resource
management segment accounted for the largest market share in 2019, owing to the benefits such as
simplicity and low cost of ownership due to the multi-tenancy model over various cloud solutions.
Increasing data-intensive workloads, infrastructure advancements to support large-scale execution of
workflows, and development of hybrid cloud will increase the utility of resource management segment.
Moreover, research and scientific establishments, and government institutions will be benefitted most
by the utilization of cloud for resource management applications.

Application development and testing is likely to be the fastest-growing segment owing to the ongoing
migration of applications over the cloud in various industry verticals and worldwide penetration of
internet and mobile devices. In 2017, the Apple App store offered around 2 million different apps for
download while Google Play offered approximately 2.2 million apps. The applications on cloud are
being developed at an exponential rate across a range of verticals including entertainment, personal
fitness, and education. Moreover, driven by customer demand for multi-dimensional testing of
applications across various platforms enabled by cloud, DevOps, and Testing as a Service (TaaS), the
app development and the testing segment is likely to gain traction in the coming years.

Enterprise Size Insights

Based on enterprise size, the market is bifurcated into large enterprises and SMEs. Large enterprises
accounted for the major market share in 2019 owing to lower operating costs, better collaboration,
increased flexibility, and improved time to market. Enterprises till now were using cloud for developing
applications and hosting infrastructure, however, they are now utilizing cloud to modernize core
business applications and processes. As per the estimates made by Cisco Systems Inc., more than
94% of the workloads will be processed through cloud data centers by 2021.

However, SMEs is estimated to be the fastest-growing segment during the forecast period owing to
the flexible pricing models offered by CSPs, boost in employee productivity, and improvement in
collaboration and innovation. The IT industry survey reports that by the end of 2018, 88% of the
SMEs have been using at least one cloud service and is likely to increase rapidly in the coming years.
The SMEs are widely using the technology for marketing, financial management, project management,
and building customer relationships, among others. However, the top priorities for the enterprises
adopting cloud are managing and optimizing cloud costs, setting policies for cloud use, and deciding
the choice of cloud to run particular applications.

End-Use Insights
The market is segmented on the basis of end-use into BFSI, IT and telecom, manufacturing, retail and
consumer goods, media and entertainment, and government and public sector, among others. BFSI
sector accounted for the largest market share in 2019 owing to the adoption of cloud services for
storage and management of customer data. Factors such as interoperability, secure storage, and
24×7 uptime, among others have helped BFSI sector to focus more on the customer-centric business
model and digitalization of trade and wealth. Furthermore, services such as payment gateways, online
fund transfer, digital wallets, and unified customer experience will play a significant role in the BFSI
industry, facilitating the overall shift to cloud deployment.

Manufacturing industry is estimated to be the prime adopter of the cloud services owing to benefits
such as seamless data management and real-time visibility offered by this technology. Moreover, the
manufacturing sector uses these computing services for managing services, planning enterprise
resources, handling supply chain management, and storing information related to enterprise
manufacturing. In addition, this computing technology will play a major role in enabling and
democratizing new manufacturing production systems such as generative design, 3D printing, and
IIoT. Moreover, the industries report that digital services such as cloud computing provides around
25% of the total inputs to manufacture a finished product.

Deployment Insights
Public, private, and hybrid are the types of deployment methods used by industry players. Public
deployment accounted for the major market share in 2019 and is predicted to maintain its dominance
over the coming period. The scalability and flexibility of cloud technology, security aspects, and control
over the data center are some of the prime factors that will boost the utility of technology. As per the
tech industry experts, around 60% of workloads are run on a hosted cloud service as of 2019.

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Hybrid deployment with an integrated environment including public and private models will present a
significant growth rate in the coming years. Hybrid model has been emerging as the most preferred
implementation model among industries that will drive the progression of the cloud industry. The
industry insights reveal that around 77% of the global enterprise infrastructure decision-makers who
are planning, upgrading, or implementing cloud technology prefer hybrid environment. Moreover, the
combination of edge computing and hybrid cloud computing will add value proposition to organizations
wherein, hybrid platform will aggregate the relevant data and edge computing will support processing
and real-time analytics seamlessly.

Regional Insights
North America dominated the market with a share of 49% in 2019 owing to early adoption of cloud
computing solutions. Presence of numerous vendors in the region such as Microsoft Corporation;
Oracle Corporation; Amazon.com Inc.; and IBM Corporation coupled with the higher propensity to
adopt new technologies is expected to help these regions strengthen their market positions. The
European market follows North America owing to high adoption of cloud computing in countries such
as Sweden, Denmark, France, Germany, and Finland. The European countries have become a hub for
technology development, particularly in the financial sector, which attracts billions of dollars in
investment across the globe.

Asia Pacific region is likely to be the fastest-growing region in the market over the forecast period. The
rapid growth of China and India coupled with emergence of regional players such as Alibaba Group
has had a positive impact in the regional market growth in recent years. Moreover, to meet data
sovereignty needs of the governments, hyper-scale cloud providers such as Azure, Amazon Web
Services (AWS), and Google LLP are establishing their data centers in markets such as Indonesia and
Thailand. Moreover, the formation of the Asia Cloud Computing Association, a forum based in the
APAC region with the collaboration of Cisco Systems, EMC Corporation, Microsoft, Alcatel-Lucent,
NetApp, Rackspace, REACH, Telenor, Nokia Siemens Networks, Verizon, and PLDT/Smart is likely to
boost the regional market growth.

Cloud Computing Market Share Insights

Adobe Inc.; Alibaba Group Holding Limited; Amazon.com Inc.; Google LLC; IBM Corporation; Microsoft
Corporation; Oracle Corporation; Salesforce.com Inc.; SAP SE; and Workday, Inc.; are some of the
prominent players present in the market. Partnerships, strategic mergers and acquisitions are
anticipated to be the most effective way for industry players to gain quick access in emerging markets
and enhance technological capabilities. Also, product differentiation and up-gradation is expected to
pave the way for the development of companies in the market. Moreover, the rising startup culture
and transport analytics startups such as Databricks; Uptake Technologies Inc.; Rubrik; D2iQ, Inc.;
Vlocity Inc.; Confluent Inc.; Stratoscale; and SecurityScorecard will pose potential competition in the
market.

In February 2020, Google LLP acquired Cornerstone Technology, a Netherlands-based company

specialized in migrating enterprises’ workloads from mainframes to the public cloud. The acquisition
is expected to help Google LLP to enhance its solutions and increase its customer base across the
European region. In October 2018, IBM acquired the world’s leading open-source cloud software
provider Red Hat. With the acquisition of Red Hat, IBM is now able to expand its cloud computing
offerings to a broader range of clients.

Report Scope

Attributes Details

Base year for estimation 2019

Actual estimates/Historical data 2016 - 2018

Forecast period 2020 - 2027

Revenue in USD Billion and CAGR from

Market representation 
2020 to 2027

North America, Europe, Asia Pacific, Latin This site uses cookies to improve
Regional scope
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 U.S., Canada, U.K., Germany, China, India,
Country scope
Japan, Brazil, Mexico

Revenue forecast, company share,

Report coverage competitive landscape, growth factors,
and trends

If you need specific information, which is

15% free customization scope (equivalent not currently within the scope of the
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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis
of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this
study, Grand View Research has segmented the global cloud computing market report on the basis of
service, workload, deployment, enterprise size, end-use, and region:

Service Outlook (Revenue, USD Billion, 2016 - 2027)

Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

Workload Outlook (Revenue, USD Billion, 2016 - 2027)

Application Development & Testing

Data Storage & Backup

Resource Management

Orchestration Services

Others

Deployment Outlook (Revenue, USD Billion, 2016 - 2027)

Public

Private

Hybrid

Enterprise Size Outlook (Revenue, USD Billion, 2016 - 2027)

Large Enterprise

Small & Medium Enterprise

End-Use Outlook (Revenue, USD Billion, 2016 - 2027)

BFSI

IT & Telecom

Retail & Consumer Goods

Manufacturing

Energy & Utilities

Healthcare

Media & Entertainment

Government & Public Sector

Others

Regional Outlook (Revenue, USD Billion, 2016 - 2027)

North America

The U.S.

Canada

Europe

The U.K.

Germany

Asia Pacific

China

India

Japan

Latin America

Brazil

Mexico

MEA

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