Cloud Computing Market size in Europe to hit $140 Bn by 2028
Published Date: June 7, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Europe Cloud Computing Market size is estimated to surpass USD 140 billion by 2028, according to a new research report by Global Market Insights, Inc.
Growing number of cloud data centers in the region is likely to drive the cloud computing industry growth. Key cloud vendors, such as Google, IBM, Oracle, and Microsoft, have invested heftily in setting up cloud data centers across Europe, targeting enterprises with high performance and low latency cloud solutions. For instance, Google has set up several cloud data centers in Europe including the UK, Finland, and Germany, and in September 2019, it announced an investment of USD 3.3 billion for establishing new data centers across the region.
The rising demand for cloud development environment is supporting the PaaS market revenue
The PaaS segment in the Europe cloud computing market is set to cross a revenue of over USD 15 billion by 2028 driven by the growing demand for cloud development environment across various organizations. Enterprises are leveraging high-quality development tools offered by PaaS for cost-effective app development. The increasing use of mobile apps by businesses in Europe will fuel the adoption of PaaS model for efficient and quick app designing, allowing scalability and cost efficiency. PaaS service providers are focusing on product development and strategic partnerships to effectively capture the potential market.
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Browse key industry insights spread across 282 pages with 272 market data tables and 37 figures & charts from the report, “Europe Cloud Computing Market Size By Service Type (Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS)), By Organization Type (Large Enterprises, SMEs), By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Application (IT & Telecom, BFSI, Government and Public Sector, Healthcare, Retail, Manufacturing, Education), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2028” in detail along with the table of contents:
Large enterprises dominated the adoption of cloud computing technology in 2020
Large enterprises accounted for around 65% of the Europe cloud computing market share in 2020 propelled by the increasing acceptance of virtualization technology across large enterprises. High spending on cloud computing by large enterprises for accelerating delivery of IT services is boosting the market growth. Cloud computing in large enterprises has also been driven by the growing demands for replacing legacy, on-premise infrastructure. The emergence of hybrid cloud, which offers enhanced data security with high scalability, has driven large enterprises toward cloud models.
Public cloud deployment model to capture significant market share
The public cloud deployment held the market share of over 50% in 2020 due to its cost benefits. Enterprises procuring such services do not need to invest in infrastructure and equipment compared to private cloud model. Additionally, the multi-tenancy features of public cloud offer economies of scale with a large number of users sharing the computing resources. This makes public cloud significantly cheaper than on-premise solutions and private clouds. Public cloud offers higher flexibility as enterprises pay only for the computing resources that are being used.
Advent of Industry 4.0 is supporting the cloud computing market outlook
The manufacturing segment is poised to grow at the highest rate during 2021 to 2028. The advent of Industry 4.0. in Europe is supporting the rapid usage of cloud computing services across the manufacturing sector. The increasing adoption of public cloud by manufacturing enterprises for managing their core applications, such as ERP and resource management systems, is augmenting the market revenue. Enterprises are moving to the public cloud for outsourcing their back-office functions including settlements, regulatory compliance, and accounting to focus on core functionalities.
Growing investment in cloud data centers is fueling cloud computing market in Nordic region
Nordics is anticipated to register growth rate at above 20% through 2028 owing to widespread digitization, strong digital skills, and the increasing adoption of digital public services in the region. The increasing investment in cloud data center by private market players is fostering the cloud adoption.
Focus on strategic acquisition of innovative market players by key players to augment the market share
Companies are focusing on strategic acquisition to enhance their cloud computing strategies. For instance, in April 2021, Microsoft acquired Nuance for an all-cash transaction of over USD 19.7 billion. This acquisition helped the company to accelerate its cloud strategy across the healthcare sector.
Some of the key Europe cloud computing market players are Alibaba Group Holding Limited, Amazon Web Services, Inc., CenturyLink, CloudSigma Holding AG, DigitalOcean, LLC, Fujitsu, Google LLC, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft Corporation, Nordcloud, NTT Communications Corporation, Oracle Corporation, OVH, Rackspace, Inc., Salesforce.com, Inc., SAP SE, Tencent Holdings Limited, UpCloud, and VMware, Inc.