The future of cloud services industry looks optimistic as more and more businesses continue to transit towards cloud computing to improve efficiency and reduce costs. According to Coherent Market Insights, demand for global cloud services is projected to grow at a CAGR of 12.2% during the forecast period, with total industry valuation reaching US$ 1207.5 billion by 2030.
Alibaba Group Holding Limited, Amazon Web Services, Inc., Microsoft Corporation, Cisco Systems, Inc., Google Llc, and Oracle are some of the dominant forces in the industry. These players compete on various fronts, including performance, pricing, reliability, security, and the range of services offered.
Top companies are constantly introducing novel cloud-based services across different regions to boost their revenues. They are also reducing cloud service costs as well as employing tactics like partnerships, collaborations, mergers, and acquisitions to strengthen their presence.
Recent Developments
In September 2024, Oracle collaborated with AWS, Microsoft Azure, and Google Cloud to help customers simplify cloud migration, multi-cloud deployment, and management. Through this collaboration, Oracle will give customers the flexibility to use multi clouds.
Oracle also announced the release of Oracle Database@AWS. This new offering is intended to allow customers to access Oracle Exadata Database Service within AWS and Oracle Autonomous Database on dedicated infrastructure.
In September 2022, NVIDIA introduced the company’s first software and infrastructure-as-a-service solution, NVIDIA Omniverse Cloud. It is a complete suite of cloud services for developers, artists, and enterprise teams to publish, design, operate, and experience metaverse applications anywhere.
Factors Impacting Cloud Services Industry Growth
The global cloud service industry is poised to experience strong growth during the assessment period. This is attributable to factors like growing popularity of cloud services, especially among small and medium-sized enterprises, favorable government support, and rising need for cost-effective and scalable computing solutions.
Today, majority of small and medium-sized enterprises (SMEs) are increasingly opting for cloud solutions to enhance efficiency, reduce costs, and improve scalability. This, in turn, is creating a high demand for cloud-based services, and the trend will likely persist through 2030.
Cloud services offer scalability and flexibility, allowing companies to easily scale up or down resources based on their demand. Similarly, their advantages like high efficiency and cost savings are making them popular among businesses.
Governments across the world are also launching policies and initiatives to facilitate digital transformation. For instance, new incentives are being given for adopting cloud technologies, creating a conducive environment for industry expansion.
“Increasing usage of cloud services across diverse industries, especially BFSI, rising popularity of serverless computing, and transition towards hybrid and multi-cloud strategies are expected to boost growth of the global cloud services industry during the forthcoming period,” says a lead analyst at Coherent Market Insights.
Regional Insights
Currently, North America dominates the global cloud services industry owing to high adoption of cloud computing services in sectors like BFSI, education, IT, and healthcare. Similarly, strong presence of leading providers of cloud services and supportive government policies contribute to revenue growth in the region.
