GLOBAL CLOUD MIGRATION SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Global cloud migration service market size is estimated to be valued at US$ 6.84 Bn in 2023 and is expected to reach US$ 24.51 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 20% from 2023 to 2030. Cloud migration services help enterprises to move their data, applications, and other business elements from on-premise infrastructure to the cloud. The key benefits include reduced costs, faster deployment, scalability, and higher efficiency.

The market is driven by factors like increasing cloud adoption, need for agility and automation, and rising digitalization across industries. The market is segmented into component,, deployment, enterprise  size, end-use industry, and region. By deployment segment accounted for the largest share as it helps ensure seamless operations during and after migration.

Global Cloud Migration Service Market Regional Insights

• North America is expected to be the largest market for global cloud migration service market during the forecast period, accounting for over 40.5% of the market share in 2022. The market growth is due  to early adoption of cloud computing and presence of major tech companies in the region.
• The Europe market is expected to be the second-largest market, accounting for over 30.2% of the market share in 2022. The market growth is due to high focus on digital transformation among European enterprises.
• The Asia Pacific market is expected to be the fastest-growing market, with a CAGR of over 19.3% during the forecast period. The rapid market growth is due to rising adoption of cloud-based solutions in the Asia Pacific (APAC) countries.

Figure 1. Global Cloud Migration Service Market Share (%), By Region, 2023

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Analyst View of the Global Cloud Migration Service Market:

Global cloud migration services market is expected to witness significant growth over the forecast period driven by the increasing adoption of cloud technologies among organizations. More companies are moving their infrastructure and applications to the cloud to gain scalability, flexibility, and reduce costs. North America  dominates the market; however, fast adoption in Asia Pacific is expected to provide lucrative opportunities for market players in the region.

Global Cloud Migration Service Market Drivers:

• Cost reduction and operational efficiency: Enterprises are increasingly adopting cloud migration services to reduce their IT infrastructure and operations costs. Migrating to cloud can significantly bring down the costs that are associated with on-premise hardware maintenance, staffing, upgrades, and others. Cloud migration provides enterprises, the flexibility to pay only for the resources they use, thus leading to substantial cost savings. The scalability and automation capabilities of cloud platforms also minimize the operational costs.
• Business agility and faster deployment: Cloud migration services empower enterprises to rapidly deploy new applications and services to meet changing business requirements. Instead of lengthy hardware procurement and capital expenditure cycles, the immediate accessibility and on-demand nature of cloud resources facilitate accelerated time-to-market and enhance business agility. The DevOps automation and cloud-native capabilities further allow enterprises to achieve more rapid releases and updates.
• Enhanced productivity and acquisition: Cloud migration enhances enterprise productivity and collaboration by allowing employees to securely access data, apps, and other resources remotely from any device. This enables employees across different locations and departments to collaborate more effectively. The scalability of cloud also allows enterprises to quickly provision resources to support new projects, use cases or changing workloads. On May 20, 2021, Persistent Systems, a multinational technology services company acquire the Sureline Systems, a cloud migration and disaster recovery solutions provider.
• Disaster recovery and business continuity: Migrating workloads to the cloud gives enterprises access to built-in disaster recovery capabilities to restore operations quickly after disruptions. Cloud providers have multiple redundant data centers across regions to provide failover and high application availability. Cloud migration also minimizes reliance on on-premise infrastructure that is prone to natural disasters, power outages, and enabling continuity.

Global Cloud Migration Service Market Opportunities:

• Assist legacy system migrations: Many enterprises have legacy systems and workloads that are not cloud-ready. Cloud migration service providers have a major opportunity to enable and accelerate migrations of legacy systems to modern cloud platforms. This would allow enterprises to leverage the latest technologies while optimizing their existing IT investments.
• Expand presence in emerging markets: Emerging economies like India, Brazil, Indonesia, and others are witnessing rapid cloud adoption. Cloud migration service providers have significant opportunities to expand in these high-growth markets. Local partnerships, workforce training, and building multi-cloud expertise will be crucial.
• Leverage artificial intelligence (AI) for intelligent migrations: AI, Machine learning and automation can play a pivotal role in streamlining and scaling cloud migrations seamlessly and securely. Service providers can incorporate intelligent tools and technologies to analyze data, optimize costs, manage risks, and automate migrations. This creates an opportunity to deliver higher return on investment for enterprises.
• Develop industry-specific migration solutions: Developing customized migration strategies and managed services for specific industries like healthcare, Banking, financial services and insurance and public sector provides an opportunity for service differentiation. Consulting expertise for vertical-specific cloud regulatory compliance and security frameworks

Global Cloud Migration Service Market Trends:

• Multi-cloud and hybrid cloud adoption: Enterprises are increasingly adopting multi-cloud and hybrid cloud models to avoid vendor lock-in, optimize costs, and match workload requirements. Service providers are enhancing their capabilities to migrate and manage workloads across different public clouds and on-premise environments.
• Security-first migration approach: Robust security is a critical priority for enterprises during cloud migrations to avoid data breaches and threats. Service providers are taking a security-first approach spanning assessment, encryption, identity management, firewalls, and others. Zero-trust principles, micro segmentation and cloud security posture management are key focus areas.
• Cloud-native application development: Migrating legacy applications to cloud-native architectures allows enterprises to maximize cloud benefits like scalability and resilience. Service providers are modernizing migrated applications to cloud-native, micro services-based designs on containers and server less platforms. In May 2023, Google, a Technology company launched a new migration program for cloud customers, that is aimed at accelerate the speed.
• Cloud managed services for optimization: Enterprises are looking beyond just migration to optimize cloud environments for cost savings, security, and performance. This is driving demand for ongoing managed services like monitoring, automation, orchestration, and cloud infrastructure management after migration.

Global Cloud Migration Service Market Restraints:

• Data security, privacy and regulatory risks: Enterprises, especially in highly regulated industries, are apprehensive about data security, privacy, and compliance risks during cloud migration. Addressing these concerns through robust security controls, transparency, and risk mitigation is essential. To tackle this problem, it is required to understand and comply with relevant data protection regulations and industry standards with regularly assess and update compliance measures that are based on changing regulations.
• Complexity of migration process: The complexity of assessing compatibility, re-architecting applications, migrating data at scale and managing integrations across cloud and on-premise environments. Simplifying and automating migrations will be important in solving the complexity of the migration In the process of cloud migration, organizations employ meticulous planning, thorough analysis, and the application of industry best practices. To solve this problem the company can consider with less complex workloads to gain experience before tackling mission-critical applications.
• Dependence on in-house skills and resources: Many enterprises feel challenged by the lack of requisite cloud migration skills in-house. Developing training programs and partnerships to augment talent will be important for service providers to catalyze migrations. To solve this problem organizations can reduce their dependence on in-house skills and resources, creating a more resilient and adaptable team capable of successfully navigating the challenges of cloud migration

Recent Developments

Key Development

• In October 2022, Google Cloud, a cloud computing services, launched the  Dual Run, a cloud migration service built on technology which is developed by Santander bank, a Retail banking company.
• In April 2021, Cloudreach, the leading independent multi-cloud services company, launched the SMART Migration. This new service combines Cloudreach’s decade-long expertise in guiding enterprise cloud transformation with data-driven automation.

Key Strategic Innovation

• On March 24, 2023, Virtusa Corporation, a global provider of digital strategy, digital engineering, and information technology (IT) services and solutions, announced signed a strategic cloud migration partnership to support an construction company Aecon Group Inc.'s

Figure 2. Global Cloud Migration Service Market Share (%), By Deployment, 2023

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Top Companies in Global Cloud Migration Service Market

• IBM
• Microsoft
• Amazon Web Services, Inc.
• Google
• Cisco Systems, Inc.
• NTT DATA Group Corporation
• VMware, Inc.
• DXC Technology Company
• RACKSPACE TECHNOLOGY
• Informatica Inc.
• Accenture
• Williams-Sonoma, Inc.
• Zerto
• Virtustream and Intel Corporation
• RiverMeadow Software, Inc.
• OpenStack
• CloudEndure
• Cloudreach
• Apps Associates LLC
• Rigs IT

Definition: Cloud migration services refer to the professional assistance and support provided by specialized firms or consultants to help businesses transfer their IT infrastructure, applications, data, and other business elements from on-premises environments or existing cloud platforms to a new cloud environment. cloud migration services is to facilitate a seamless and efficient transition to the cloud, allowing organizations to leverage the benefits of cloud computing, such as scalability, flexibility, cost-efficiency, and enhanced collaboration.