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Cloud Data Center Market size to surpass $70 Bn by 2032
- Published Date: March 27, 2023
Cloud Data Center Market size is estimated to exceed USD 70 billion by the end of 2032, according to a recent research report announced by Global Market Insights Inc.
Government efforts fostering the advancement of cloud computing technologies are anticipated to be the major driver of market growth. Cloud computing projects provide integrated management with automatic problem resolution, end-to-end security management, and budgeting according to actual data consumption. The governments of several countries, including India, are emphasizing the improvement of cloud computing infrastructure for e-governance practices, and are setting up initiatives to enhance skill sets to promote digitalization.
Direct access to cloud server & storage to boost infrastructure-as-a-service (IaaS) segment growth
By service, the infrastructure-as-a-service segment accounted for over 30% share of the cloud data center market in 2022. Several organizations are adopting IaaS as it provides direct access to the cloud server and storage with the freedom to expand computer resources as needed and address data traffic issues. Leading industry players are constantly focusing on implementing innovative capabilities and advancing IaaS technology, which is anticipated to accelerate segment expansion through 2032.
Growing adoption by new start-ups to reduce costs to stimulate public segment development
Based on deployment model, the public cloud data center market was worth more than USD 5 billion in 2022 and is expected to record lucrative expansion through 2032. Many SMBs and new start-ups with limited budgets are adopting public cloud data centers as they reduce the cost of setting up an on-premises personal infrastructure for data storage. Major cloud technology providers are also taking efforts to broaden their reach, thereby supporting segment growth.
Browse key industry insights spread across 260 pages with 314 market data tables and 31 figures & charts from the report “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”, in detail along with the table of contents:
Limited need for data backups and data privacy to fuel Small/medium enterprise segment share
The cloud data market from small/medium enterprise segment is estimated to grow at over 12% CAGR through 2032. Cloud data software facilitates the consolidation of data and the understanding of business requirements. It reduces the need for data backups and data privacy, as well as assists MSMEs in avoiding infrastructure expenditures. Additionally, cloud technologies enable automated upgrades, ensure application availability, and provide much-needed business continuity and resilience to small and medium-sized businesses and startups, allowing them to focus on their core business activities. Moreover, SMEs choose cloud for data storage since it decreases infrastructure and labor costs while also saving time.
Availability of fully redundant network connections to augment colocation segment revenue
As per end-user, the cloud data center market from colocation segment is expected to generate over USD 15 billion in revenue by 2032. Colocation entails a client transferring their servers and hardware into a data center and utilizing the facility's electricity, cooling, internet, and security systems. The fully redundant network connections in colocation data centers ensure that clients' mission-critical applications constantly function without interruption. Moreover, colocation enables businesses to scale their infrastructure to accommodate their expansion without having to incur capital costs. Hence, rising investment and innovations to enable cloud software applications for colocation are likely to support segment development from 2023 to 2032.
Automation of business operations to impel Europe industry trends
Europe cloud data center market size was worth more than USD 5 billion in 2022 and is projected to witness a robust growth rate between 2023 and 2032 owing to increasing efforts by European enterprises to automate business processes with real-time insights into market dynamics in response to market problems, such as supply chain disruption. In 2021, 41% of EU businesses utilized cloud computing for file storage and e-mail. In November 2022, AWS, the cloud computing giant, announced the establishment of a new cloud region and data centers in Spain with plans to invest $2.5 billion in the region. Such investments are estimated to propel the regional share.
Increasing investments in the development of data centers to define the market outlook
IBM Cloud, Microsoft Azure, Alibaba Cloud, Amazon Web Services, and Google Cloud Platform are among the major companies engaged in the cloud data center market. Industry participants are focused on implementing development strategies to fulfill expanding demand. Businesses have begun to invest in the development of new technologies and services to strengthen their market standing.