PUBLISHER: Roots Analysis | PRODUCT CODE: 1721384
PUBLISHER: Roots Analysis | PRODUCT CODE: 1721384
As per Roots Analysis, the global cloud computing market size is estimated to grow from USD 766 billion in the current year to USD 3,500 billion by 2035, at a CAGR of 14.623% during the forecast period, till 2035.
The opportunity for cloud computing market has been distributed across the following segments:
Type of Deployment Model
Type of Service Model
Type of Solution
Type of Industry Vertical
Type of Service Providers
Area of Application
End User
Type of Pricing Model
Type of Technology
Company Size
Business Model
Geographical Regions
The cloud computing industry is a rapidly evolving field that transforms traditional IT frameworks by incorporating state-of-the-art technologies. This industry plays a crucial role in improving operations, efficiency, and financial performance for various business sectors. It includes a broad array of cloud offerings, such as infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), all designed to enhance effectiveness and scalability while ensuring data protection and accessibility.
The growing need for adaptable and economical IT solutions has prompted a transition from conventional on-site systems to cloud-based services, boosting efficiency and reducing operational expenses. This transition reduces the necessity for substantial physical hardware and upkeep, enabling companies to adjust their operations flexibly. Additionally, the rising demand for data-driven insights and high-quality digital services encourages organizations to embrace cloud computing solutions, which aid in maintaining operational consistency and compliance with regulations.
Various firms are investing into the cloud computing sector, creating numerous opportunities; for example, in October 2023, Microsoft revealed a A$5 billion investment in computing capacity and capability to aid Australia in harnessing the AI era. However, the escalating costs of cloud services and potential security risks present challenges, especially for small and medium-sized enterprises (SMEs).Despite these obstacles, the market is experiencing remarkable growth due to opportunities for innovation and the emergence of advanced technologies, including Artificial General Intelligence (AGI) and the Internet of Things (IoT).
These advancements provide further opportunities for predictive analytics, improved security measures, and better decision-making abilities, suggesting that the global cloud computing market would grow at a healthy pace during the forecast period.
Based on the type of deployment model, the global cloud computing market is segmented into public cloud, private cloud, and hybrid cloud deployment models. According to our estimates, currently, public cloud segment captures the majority share of the market. Businesses can take advantage of lower infrastructure expenses and the capability to swiftly adjust resources according to demand, making it appealing for organizations of all sizes.
Moreover, the widespread usage of software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) offerings further accelerates the expansion of the public cloud sector. However, hybrid cloud segment is anticipated to grow at a higher CAGR during the forecast period.
Based on the type of service model, the cloud computing market is segmented into service (IaaS), platform as a service (PaaS), and software as a service (SaaS). According to our estimates, currently, software as a service (SaaS) segment captures the majority share of the market. This can be attributed to its widespread use across different sectors, offering cost-effectiveness, scalability, and easy access. Organizations prefer SaaS for its easy deployment and limited requirement for IT infrastructure, making it suitable for applications such as CRM, ERP, and collaborative tools.
Based on the type of solution, the cloud computing market is segmented into cloud backup, cloud migration, cloud orchestration, cloud security, cloud storage, and disaster recovery. According to our estimates, currently, cloud storage segment captures the majority share of the market. This can be attributed to the rapid increase in data and the demand for scalable, economical storage options.
Both businesses and individuals are increasingly turning to cloud storage for its ease of access, versatility, and capacity to manage large data volumes without substantial infrastructure costs. Moreover, cloud storage services play a pivotal role in enabling other cloud solutions, assisting with backup, disaster recovery, and migration tasks.
Based on the type of industry vertical, the cloud computing market is segmented into industry verticals, including BFSI (Banking, Financial Services, and Insurance), education, government, healthcare, IT & telecommunications, manufacturing, media & entertainment, retail, and others. According to our estimates, currently, IT & telecommunications segment captures the majority share of the market further, this segment is anticipated to grow at a higher CAGR in the future.
This can be attributed its critical requirement for adaptable and scalable infrastructure capable of handling large amounts of data processing, storage, and intricate applications. The early adoption of cloud technologies in this sector to enhance operational efficiency, lower costs, and improve service delivery reinforces its top status.
Based on type of service providers, the cloud computing market is segmented into global cloud providers and regional cloud providers. According to our estimates, currently, global cloud segment captures the majority share of the market. Major players like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud hold a leading position in this sector. Their dominance stems from their vast infrastructure, wide-ranging service offerings, and capacity to cater to a global clientele. Their substantial investments in data centers, cutting-edge technology, and customer support enhance reliability, scalability, and performance, making them the top choice for businesses in need of strong and flexible cloud solutions.
Based on area of application, the cloud computing market is segmented into business process management, data management and analytics, infrastructure management, security and compliance, and others. According to our estimates, currently, Data management and analytics segment captures the majority share of the market. This can be attributed to the increasing demand for actionable insights from large data sets. This is followed by the market share captured by security and compliance segment, owing to the need for strong data protection and adherence to regulations.
Based on end user, the cloud computing market is segmented into enterprises, government organizations, individual users, and others. According to our estimates, currently, enterprise segment captures the majority share of the market. This can be attributed to their demand for scalable solutions that boost productivity, collaboration, and data management. Government entities come in next, motivated by the need for secure, compliant, and effective infrastructure. This is followed by the market share captured by government organizations segment.
Based on type of pricing model, the cloud computing market is segmented into pay-as-you-go and subscription-based models. According to our estimates, currently, pay-as-you-go model captures the majority share of the market. This can be attributed to its flexibility and cost efficiency, enabling businesses to pay solely for the resources they utilize, which is particularly appealing for variable workloads.
Based on type of technology, the cloud computing market is segmented into artificial intelligence, containerization, edge computing, machine learning integration, serverless computing, and virtualization. According to our estimates, currently, artificial intelligent segment captures the majority share of the market. This can be attributed to its capacity to enhance decision-making and automate processes across diverse industries, leading to a notable demand for cloud-based AI solutions.
Based on the company, the cloud computing market is segmented into large size companies and small and mid-size companies. According to our estimates, currently, large companies captures the majority share of the market. This can be attributed to necessary resources and capabilities to invest significantly in research and development, manufacturing infrastructure, and marketing, allowing them to offer cloud computing services at a lower cost per unit in comparison to smaller rivals. Moreover, there are cost-effective and high-quality cloud computing options available for medium and small enterprises.
Based on the business model, the cloud computing market is segmented into B2B, B2C and B2B2C. According to our estimates, currently, B2B segment captures the majority share of the market. This can be attributed to the growing use of cloud computing technology across various industries, including aerospace, manufacturing, healthcare, finance, and more. Additionally, the B2C model is predicted to experience significant growth at a robust CAGR during this forecast period as cloud computing technologies become increasingly user-friendly, and consumers are adopting these solutions for personalized applications, smartphone integration, and enhanced user experiences.
Based on the geographical regions, the cloud computing market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and Rest of the World. According to our estimates, currently, North America captures the majority share of the market. This can be attributed to the presence of major technology companies that have created a strong ecosystem for innovation and development. This region is marked by significant advancements in cloud technologies, including artificial intelligence, machine learning, and big data analytics, which fuel demand for cloud services across diverse sectors. Moreover, considerable investments from both governmental and private entities in digital infrastructure and security enhance the cloud computing environment.
The report on the cloud computing market features insights on various sections, including:
3.2. Market Assessment Framework
4.2.2. Currency Coverage