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Cloud Data Center Market - By Service (Infrastructure-as-a-Service, Platform-as-a-Service, Software-as-a-Service), By Deployment Model (Public, Private, Hybrid), By End-Use (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom) & Forecast 2023-2032
- Report ID: GMI5491
- Published Date: Mar 2023
- Report Format: PDF
Cloud Data Center Market Size
Cloud Data Center Market size was valued at more than USD 20 billion in 2022 and is estimated to grow at over 10% CAGR from 2022 to 2032 attributed to rapid digitalization across various industries.
The accelerating use of cloud services owing to the emergence of technology as a core element has transformed the way organizations operate. Several industry participants are migrating data to the cloud to simplify data monitoring, optimize processes, meet consumer compliance demand, and expand a company's digital presence, which is contributing to cloud data center market growth. Furthermore, in addition to the ongoing efforts for data localization at the legislative level and increasing e-commerce and digital payments, along with extensive Big Data implementation and AI penetration, is anticipated to raise the demand for cloud data centers between 2023 and 2032.
| Report Attribute | Details |
|---|---|
| Base Year: | 2022 |
| Cloud Data Center Market Size in 2022: | USD 20 billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 10% |
| 2032 Value Projection: | USD 70 billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 260 |
| Tables, Charts & Figures: | 344 |
| Segments covered: | Service, Deployment Model, Organization Size, End-Use, and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Cloud Data Center Market Trends
Cloud complexity is the outcome of the fast acceleration of cloud migration and net-new development without considering the operational complexities. When applications are moved to the cloud, the databases, legacy servers, and other platforms remain in the same form, thereby impeding cloud data center market development, since numerous organizations have halted their digital transformation. Complicated cloud architecture has hindered corporate operations, resulting in decreased revenue production and operational inefficiencies. Another major contributor to this problem is a shortage of skills. However, efforts are being made to minimize system complexity from databases, platforms, operating systems, containers, high-performance computing, and specialized systems by employing advanced tools to manage and monitor such systems.
Cloud Data Center Market Analysis
By service, the cloud data center market share from software-as-a-service (SaaS) segment is estimated to witness over 10% CAGR through 2032 owing to the elimination of hardware costs and time needed for configuring resources. Technology firms are developing solutions that run business networks using highly flexible, fully automated, and scalable software models, thereby boosting business agility and monetizing network services. Furthermore, ongoing innovation and advancement in cloud computing technologies are expected to impel the adoption of SaaS.
By end-use, the cloud data center market from BFSI segment accounted for more than USD 5 billion in revenue in 2022. Cloud services enable BFSI firms to leverage a continuously available and efficient network of a wide range of servers located across the globe, allowing any software to operate on all machines for simple access. Banks and financial institutions that have a large quantity of data at multiple locations benefit from this feature as it enables them to provide cutting-edge services to their consumers and improve their efficiency. This helps lower capital expenses associated with maintaining complicated on-site IT facilities, which is foreseen to support segment development through 2032.
Cloud data center market from the hybrid deployment model segment is anticipated to record lucrative growth at over 15% between 2023 and 2032. Many small and medium-sized businesses choose hybrid data centers as more clients recognize the potential of a hybrid cloud business model for their digital transformation. In addition, technology companies are adding new features to hybrid cloud systems, which is expected to fuel segment expansion. Hewlett Packard Enterprise, a global edge-to-cloud organization, has introduced new analytics, application, and developer services for its HPE GreenLake edge-to-cloud platform, allowing enterprises to execute a data-first modernization approach.
In terms of organization size, the large enterprise segment is expected to hold over 40% share of the cloud data center market by 2032. Large enterprises need to manage a large amount of data while also keeping track of numerous business activities. Businesses may benefit from improved functionality, productivity, capacity, scalability, less maintenance, and lower costs. Moreover, numerous large businesses are investing in private data centers to manage network servers, storage, and operating servers in one location. Consequently, the escalating use of multi-cloud management systems and services is anticipated to augment segment revenues by 2032.
North America cloud data center market valuation is foreseen to exceed USD 30 billion by 2032 driven by the massive investment in development of data centers across the region. The federal government has expedited its shift to cloud data centers in recent years, with the goal of improving performance, reducing redundancies, lowering costs, and reducing energy use. Moreover, favorable government policies and initiatives to promote the use of cloud technologies are expected to impel the regional revenue from 2023 to 2032. To cite an instance, Cloud Smart, a modern revamp of the federal government's long-standing Cloud First Policy, provides complete policy guidance on cloud adoption and implementation, including security, procurement, and workforce skills.
Cloud Data Center Market Share
Some of the major companies operating in the cloud data center market are :
- Microsoft Azure
- Amazon Web Services
- Alibaba Cloud
- IBM Cloud
- Google Cloud Platform.
These companies mainly emphasize the development of innovative technologies, the launch of new products, and the execution of growth initiatives through collaborations and expansion strategies to retain their market position.
Impact of COVID-19 Pandemic
The establishment of an entirely novel business climate in the aftermath of COVID-19 is projected to encourage the growth of cloud service businesses and digitalization as enterprises across several sectors remodel their digital infrastructure to accommodate new methods of working. Demand for data centers has increased as technology for working remotely played an important part in keeping businesses operational during a lockdown. During the lockdown period, new understanding among organizations about work-from-home (WFH) and data accessibility resulted in increased inquiries for space and services at data centers, which is likely to continue in the post-pandemic scenario.
Global Cloud Data Center Market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments: Click here to Buy Section of this Report
By Service Model
- Infrastructure-as-a-service model (IaaS)
- Platform-as-a-service model (PaaS)
- Software-as-a-service model (SaaS)
By Deployment Model
- Public
- Private
- Hybrid
By Organization Size
- Small/Medium Enterprises
- Large Enterprises
By End-use
- BFSI
- Colocation
- Energy
- Government
- Healthcare
- Manufacturing
- IT & Telecom
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Spain
- Poland
- Benelux
- Asia Pacific
- China
- India
- Japan
- Singapore
- Australia
- South Korea
- South America
- Brazil
- Argentina
- Chile
- Colombia
- MEA
- UAE
- Saudi Arabia
- South Africa
Frequently Asked Questions (FAQ) :
Cloud Data Center Market Scope
