The Cloud-enabling Technology market was valued at USD 28.68 billion in 2020 and is expected to reach USD 46.17 billion by 2026, at a CAGR of 8.26% over the forecast period 2021 - 2026. The growing scope of IoT and Big Data analytics necessitate better automation for the efficient functioning of business operations. Hence, the cloud-enabling technology plays a crucial role in proper functioning.
- The new and advanced cloud technology services allow thousands of customers to use related resources by helping companies to decrease their expenses. Cloud enables technology to adjust quickly to the changing landscape and presents the new changes needed. These factors help the organizations to focus on their core competency, which in turn, result in their overall growth. Therefore, this factor acts as a positive outlook on the cloud-enabling technology market.
- Further, the private cloud deployment model is an on-demand configurable supply of shared computing devices allocated within a public cloud environment for providing a sound level of privacy between different organizations that are using the resources. This factor is fueling the gorwth of the cloud-enabling technology market.
- However, on the other hand, security concerns over securing data are hindering the growth of this segment. This factor is expected to be a restraint for this market during the forecasted period.
Key Market Trends
Cloud Data Centre to Offer Potential Growth
- Cloud data centers are at the center of modern software technology and serve a critical role in the expanding capabilities for enterprises. The shift from office-based work to working on the move is creating a huge demand for cloud-based data center than the traditional data center.
- Further, businesses thrive on data. They require information about their customers and habits, their performance, their sales and promotions, the current market they compete in and much more. Through advanced IT services and solutions, the companies now rely on data center services and cloud computing to support and optimize business applications. In retail, specifically, they generally serve the purpose of handling the flow of data.
- With the benefits provided by the data centers, such as scalability, they can instantly handle the changes in web-traffic and the needs of the business. With proper configuration, this can happen quickly with little to no interruptions faced by the customers. For instance, when Amazon kicked off its Prime Day event, the shoppers purchased more than 100 million products from the site. The data centers make such traffic upticks possible by facilitating smooth transactions for the customers.
- The above factors contribute to the growth of the cloud data centers in different organizations.
North America to Lead the Market
- Cloud computing business is projected to witness a healthy expansion in the near future, in terms of adoption and revenue. The increasing investment by the organization in IT infrastructure and cloud services, as well as the promotion of Cross Border Privacy Rules (CBPR) by the United States, are expected to expand the opportunities for the US market.
- Further, the higher internet penetration in this region is also likely to accord in the expansion of cloud-based services market in the region, which in return, is expected to create a market for the cloud-enabling technologies. About 93% of the population in Canada have access to the internet. Owing to the strict data policies, the Canadian government is storing data in-country and are forcing the international and the US companies to establish their operations and data centers in Canada.
- Moreover, the presence of leading vendors of cloud computing in North America as well as the growing adoption of personal cloud services by these companies across the world are the factors supporting the augmentation of the North American cloud computing market.
- The growth of cloud computing in North America is expected to supplement the growth of cloud-enabling technologies market. Hence, North America is expected to dominate the market.
The cloud-enabling technologies market is highly fragmented and competitive, owing to the presence of several international players. With the increasing number of technological advancements and innovations, mergers and acquisitions, and strategic partnership, the market competition is expected to intensify. Some of the key players are IBM Corporation, Tata Consultancy Services Limited, Fujitsu Ltd, etc., among others.
- June 2018 - IBM and CA Technologies partnered for product innovation in the cloud and DevOps landscape. With this partnership, it will help the clients to develop, test, and monitor applications in the mainframe.
- February 2018 - Cisco and Google collaborated to extend their cloud computing capabilities over the hybrid cloud collaboration. Cisco has further added that the ability to run applications will help preserve the existing infrastructure while extending the cloud services.
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