Cloud Data Warehouse Market Size - By Offerings (DWaaS, Data Storage), By Organization Size (Large Enterprises, SMEs), By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Application, By Industry Vertical & Forecast, 2024 - 2032

Cloud Data Warehouse Market Size

Cloud Data Warehouse Market size was valued at USD 6.1 billion in 2023 and is estimated to register a CAGR of over 22.5% between 2024 and 2032. The increasing importance of business intelligence and analytics is driving growth in the market. Business intelligence solutions rely on a single store of clean, structured data. Traditional data warehouses can become siloed, unable to handle the ever-increasing volume and diversity of data from many sources.
 

Cloud data warehouses provide a single platform for collecting data from a variety of sources, such as databases, CRM systems, social media, and IoT devices. This single data lake enables BI tools to extract insights from an overall view of the organization’s data. Along with this, cloud data warehouses frequently provide self-service business intelligence capabilities. This enables executives, not just data analysts, to access and study data using user-friendly interfaces and visualization tools. This democratization of data encourages a data-driven culture within firms, allowing more individuals to rely on it to make educated decisions.
 

The growing adoption of cloud-based technologies has played a crucial role in driving the adoption of cloud data warehouse market. Traditional data warehouses require extensive IT infrastructure and skills to operate.  Cloud data warehouses, on the other hand, outsource these responsibilities to cloud service providers.  This allows an organization's IT staff to focus on key business tasks and strategic projects.
 

Furthermore, cloud data warehouses provide flexibility, allowing organizations to effortlessly scale their data storage and processing power up or down as required. This adaptability is critical for firms working in a changing environment. Along with this, cloud data warehouses may be accessed from anywhere with an internet connection. This allows geographically distributed teams to work together on data analysis and decision-making.
 

The complex cost structure of cloud data warehouses is a major challenge for the cloud data warehouses market, potentially slowing down its growth. Unlike traditional data warehouses, which need upfront charges, cloud data warehouses employ a pay-as-you-go pricing model. This can help firms scale costs, but it also makes it harder to correctly anticipate data warehouse charges. 
 

Factors such as data storage, computing resources used for queries, data egress costs (transferring data out of the cloud warehouse), and administrative needs can all have a substantial influence on the overall charge.  Businesses might face unexpectedly expensive cloud data warehousing expenses if they do not carefully monitor and optimize their costs.
 

Cloud Data Warehouse Market Trends

The rise of big data and IoT has fostered growth in the cloud data warehouse industry. Both big data and IoT contribute to a huge rise in the amount of data that businesses must store and manage. Big data refers to large datasets from a variety of sources, including social media, sensor data, and customer transactions. Similarly, IoT devices produce a steady stream of data, which may range from machine measurements in factories to data collected from wearables.
 

Traditional data warehouses frequently fail to accommodate the increasing number and variety of data. Additionally, cloud data warehouses are naturally scalable, allowing enterprises to simply modify storage space and processing power based on requirements.
 

For instance, in July 2023, IBM launched its next generation of Db2 Warehouse. Through this development, the company introduced cloud-native support for Db2 column-organized tables residing in cloud object storage. This advancement enhances query performance, reduces storage costs, and provides a cost-effective solution for always-on, mission-critical workloads. The integration of advanced caching techniques and compatibility with cloud object storage enables faster analytics, improved scalability, and enhanced data governance within the Db2 Warehouse platform.
 

Cloud Data Warehouse Market Analysis

Based on organization size, the market is divided into large enterprises and SMEs. The large enterprise segment is projected to hold around 65% of the cloud data warehouse market share by 2032. Large organizations frequently deal with huge volumes of data from many sources, such as consumer transactions, financial records, operational data, and marketing initiatives. Traditional data warehouses may encounter challenges in managing this level of data volume and complexity.
 

Cloud data warehouses provide the scale and flexibility required for storing and managing large datasets efficiently. Large companies rely significantly on data-driven insights to improve operations, discover market trends, and gain a competitive advantage. Cloud data warehouses interface with big data analytics tools and machine learning platforms, allowing for sophisticated analytics on large datasets.
 

Based on industry vertical, the cloud data warehouse market is categorized into healthcare, government, BFSI, IT & telecom, retail & consumer, manufacturing & automotive and others. The healthcare segment accounted for a market share of around 19% in 2023. The healthcare sector is experiencing tremendous expansion in data volume due to factors such as electronic health records (EHR) adoption, the proliferation of medical devices that generate patient data, the emergence of genomics and customized treatment, and the rising usage of wearables and telemedicine.
 

Traditional data warehouses are unable to cope with the ever-increasing data volume and complexity. Massive healthcare datasets may be effectively stored and managed via cloud data warehouses, which have intrinsic scalability. Furthermore, cloud data warehouses enable healthcare companies to use their data for a variety of objectives that might benefit patient care, including customized medicine, predictive analytics, and clinical research.
 

North America cloud data warehouse market recorded around 36% revenue share in 2023. North America is home to prominent cloud service providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These organizations provide powerful cloud data warehousing solutions that meet the demands of enterprises of any size. Furthermore, the existence of significant technological hubs in North America, such as Silicon Valley, encourages innovation and early adoption of cloud-based technologies, including cloud data warehouses.
 

Also, businesses in North America are often more open to cloud usage than other areas. This offers an ideal environment for cloud data warehouses, which provide greater scalability, flexibility, and cost-effectiveness as compared to traditional on-premises data warehouses. North America has stringent data privacy standards, such as GDPR and HIPAA. Cloud data warehouses may help firms comply with these rules by offering safe storage, access restrictions, and data encryption. This emphasis on data security is a significant driver of cloud data warehouse adoption in North America.
 

Cloud Data Warehouse Market Share

Snowflake Inc. and Amazon Web Services, Inc. hold over 20% of the market share in the cloud data warehouse industry. Companies in this industry employ several key strategies to enhance their market foothold. Snowflake Inc. endeavors to broaden its footprint in vertical sectors like finance, healthcare, retail, and manufacturing by providing specialized solutions, templates for specific use cases, and compliance certifications that align with the distinct requirements and regulations of each industry.
 

Amazon Web Services, Inc. has enabled hybrid and multi-cloud functionalities by providing smooth integration with on-premises data sources, hybrid cloud setups, and multi-cloud environments, allowing clients to utilize AWS data warehousing solutions alongside their current IT systems.
 

Cloud Data Warehouse Market Companies

Major companies operating in the cloud data warehouse industry are:

• Amazon Web Services, Inc.
• Cloudera, Inc.
• Google LLC
• International Business Machines Corporation
• Microsoft Corporation
• OpenText Vertica
• Oracle Corporation
• SAP SE
• Snowflake Inc.
• Teradata Corporation
   

Cloud Data Warehouse Industry News

• In February 2024, Tealium announced new AI capabilities, real-time personalization features, consent orchestration tools, and partnerships with cloud data warehouse providers. This strategic move by Tealium aims to enhance data collection, preparation, and activation for AI initiatives, ensuring that businesses have access to high-quality, consented, and enriched data in real time.
   
• In February 2024, Ushur elevated its Customer Experience Automation platform by selecting the Yellowbrick Cloud Data Warehouse to enhance its AI-powered CXA capabilities. This strategic partnership aims to leverage Yellowbrick's data warehouse for improved data analysis, scalability, and rapid analytics, enabling Ushur to deliver enhanced customer experiences and drive platform adoption.
   

The cloud data warehouse market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Offerings

• DWaaS
• Data storage

Market, By Organization Size

• Large enterprises
  • DWaaS
  • Data storage
• SMEs
  • DWaaS
  • Data storage

Market, By Deployment Model

• Public cloud
• Private cloud
• Hybrid cloud

Market, By Application

• Customer analytics
• Data modernization
• Business intelligence
•  Predictive analytics
• Others

Market, By Industry Vertical

• Healthcare
• Government
• BFSI
• IT & Telecom
• Retail & consumer
• Manufacturing & automotive
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA