COVID-19 Impact on Cloud Computing Market

COVID-19 Impact on Cloud Computing Market by Service Type (Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS)), Vertical and Region - Global Forecast to 2021

Report Code: TC 7598 Apr, 2020, by marketsandmarkets.com

[63 Pages Report] The global impact of COVID-19 on cloud market size is expected to grow from USD 233 billion in 2019 to USD 295 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 12.5% during the forecast period. Major factors driving the growth of the market include enterprises’ need to support remote workforce to induce investment in IT infrastructure for hyperscalers, cloud service providers (CSPs), internet service providers (ISPs), and managed hosting providers, rise in demand for cloud-based business continuity tools and services and suitability of public cloud environment best suited for the current unprecedented scenario.

COVID-19 Impact on Cloud Computing Market

The retail segment to show the highest growth rate during the forecast period within the global cloud industry

The consumer goods & retail segment is estimated to grow at the highest CAGR in the cloud market during the forecast period, followed by the IT & ITeS segment. Retailers are upgrading their IT infrastructure to take advantage of the unified and collaborated workforce to increase overall productivity. Additionally, the majority of the retailers are moving their focus on commerce websites as the online shopping has gained traction during the pandemic as the majority of the population is isolated at home amidst pandemic

The healthcare segment to record higher investment and growth in 2020 within the global cloud market

The healthcare systems need scalable and secured cloud infrastructure to manage and maintain patient information with high speed and flexibility. During the COVID-19 pandemic, there is a high need for technologies such as cloud computing for the analysis of patients’ data. As the number of electronic health records is increasing, healthcare providers are expanding the use of scalable and highly secure storage cloud solutions to cater to a large number of cases.

Private doctors and healthcare institutions are providing online consulting amidst country lockdowns. The need for mobile ambulatory services has increased due to the virus outbreak. These facilities and services need cloud-based communication and collaboration platforms to improve operational efficiency and employee productivity. Healthcare providers are developing cloud-based applications to gain clinical insights on COVID-19 and estimate resource requirements, such as ICU beds and ventilators.

Thus, increased data analytics and clinical insight requirements, and high spending on cloud-based application development and ERP solutions amidst the COVID-19 pandemic are creating revenue opportunities for cloud service providers.

Software as a service (SaaS) solution segment to hold the largest size of the cloud market during the forecast period

Based on the technology, the software as a service (SaaS) solution segment of the market is projected to hold a larger market size during the forecast period. With the rise in the cases of COVID-19, cloud software solutions are facing substantial hit. There are a lot of verticals of cloud, such as manufacturing, consumer goods, and retail, etc. where all the operations are put on hold. But organizations have changed their priorities, such as organizations are utilizing cloud automation and increasing their online presence by developing commerce websites on cloud platforms to decrease the impact of COVID-19 on productivity and operational efficiency. Such use cases are evolved in this COVID-19 pandemic.

Some new use cases have been generated along with application areas where the demand for cloud software solutions has witnessed a considerable increase. The growth of SaaS software solutions will be judiciously impacted by verticals, such as transportation, logistics, and manufacturing. Since the adoption of the cloud is less compared to other verticals, the disruption due to COVID-19 will have a moderate impact. It will reduce the software solution's growth to a smaller extent.

COVID-19 Impact on Cloud Computing Market

APAC cloud market to record the highest growth rate during the forecast period

While technology spending in Asia Pacific has increased over a period, however the setback due to recent COVID-19 pandemic is imminent. Cloud technology adoption is expected to increase in sectors where’ work from home’ initiative can help in sustaining enterprise business functions. Those sectors include IT & ITeS, telecommunication, BFSI, Government.

Other sectors such as healthcare & life sciences, travel, hospitality retail, manufacturing, etc. are expected to increase spending on public cloud services in the next 2-3 years. According to a statement by a leading CSP in the region, the expenditure on public cloud data center hardware and software grew by 7%. In comparison, the spending on traditional data centers and private cloud fell by 1%.

Key Market Players

The market is highly fragmented and equally distributed between global CSP’s Microsoft, Google, Amazon, IBM, and Chinese cloud vendors – Alibaba, Tencent & Baidu. Players have adopted various growth strategies, such as partnerships and new service launches, to expand their presence further in the impact of COVID-19 on the cloud market and broaden their customer base.

Key market players profiled in this report include AWS (US), Microsoft (US), Google (US), Alibaba (China), SAP (Germany), IBM (US), Oracle (US), VMware (US), Rackspace (US), Salesforce (US), Adobe (US), Verizon (US), CenturyLink (US), Fujitsu (Japan), NTT Communications (Japan), Cisco (US), Dell (US), Equinix (US), HPE (US), Inspur (China), Cyrusone (US), Digital Relty (US), Lenovo (Hong Kong), Tencent (China), SAP (US), Cloudbees (US), Servicenow (US), Mendix (US),  Engine Yard (US), ADP (US), Workday (US), Ringcentral (US), Mitel (Canada), 8x8 (US), Slack (US), Zoom (US), Docusign (US), Citrix (US), Okta (US), Nextiva (US), Intermedia (US), CrowdStrike (US), Carbonite (US), Cyberark (US), Infosys (India), Accenture (Ireland), Capgemini (France), TCS (India), AT&T (US), T-Mobile (US), Vodafone (United Kingdom).

AMAZON WEB SERVICES (AWS) (US) is one of the top players in the cloud market. The company provides cloud computing services to enterprises and SMEs across the globe. Recently, AWS launched AWS Diagnostic Development Initiative (DDI) to accelerate COVID-19 research, diagnostics, and testing. Additionally, the company has made COVID-19 data sets freely available to its customers for performing research. AWS has focused on reliable, scalable, and compute power, which can be delivered, along with industry-leading services such as analytics and machine learning, to its customers.

Scope of the report:

Report Metric

Details

Market size available for years

2019-2021

Base year considered

2019

Forecast period

2020–2021

Forecast units

USD Billion

Segments covered

Technology (SaaS, IaaS, and PaaS), verticals (Banking  financial services and insurance, healthcare and life sciences, IT and ITeS, retail and consumer goods, telecom, energy and utilities, government & public sector, and manufacturing)

Geographies covered

North America, APAC, Europe, MEA, and Latin America

Companies covered

AWS (US), Microsoft (US), Google (US), Alibaba (China), SAP (Germany), IBM (US), Oracle (US), VMware (US), Rackspace (US), Salesforce (US), Adobe (US), Verizon (US), CenturyLink (US), Fujitsu (Japan), NTT Communications (Japan), Cisco (US), Dell (US), Equinix (US), HPE (US), Inspur (China), Cyrusone (US), Digital Relty (US), Lenovo (Hong Kong), Tencent (China), SAP (US), Cloudbees (US), Servicenow (US), Mendix (US),  Engine Yard (US), ADP (US), Workday (US), Ringcentral (US), Mitel (Canada), 8x8 (US), Slack (US), Zoom (US), Docusign (US), Citrix (US), Okta (US), Nextiva (US), Intermedia (US), CrowdStrike (US), Carbonite (US), Cyberark (US), Infosys (India), Accenture (Ireland), Capgemini (France), TCS (India), AT&T (US), T-Mobile (US), Vodafone (United Kingdom).

The research report categorizes the Impact of COVID-19 on the cloud market based on the component, verticals, and region.

By Technology

  • SaaS
  • IaaS
  • PaaS

By Vertical

  • Banking  financial services and insurance
  • Healthcare and life sciences
  • IT and ITeS
  • Retail and consumer goods,
  • Telecom
  • Energy and utilities
  • Government and public sector
  • Manufacturing

By region:

  • North America
  • Europe
  • APAC
  • MEA
  • Latin America

Recent Developments

  • In March 2020, HPE offers a powerful Virtual Desktop Infrastructure (VDI) product with flexible financing terms and new pre-configured solutions for remote working. The company offers industries and academic organizations software and applications to help researchers to combat the pandemic
  • In March 2020, Alibaba has launched a series of cloud-native anti-coronavirus solutions. Alibaba Cloud provide free communication to medical workers by hosting DingTalk's International Medical Expert Communication Platform. Additionally, the company has launched the CT Image Analytics technology to identify the characteristics of coronavirus pneumonia in CT scans
  • In March 2020, Google launched a Rapid Response Virtual Agent program that can quickly launch Contact Center AI agents for handling conversations with online chat or over the phone to aid in COVID-19 response.

Key questions addressed by the report

  • What are the growth opportunities in the impact of COVID-19 on the Cloud market?
  • What is the competitive landscape scenario in the impact of COVID-19 on the Cloud market?
  • Which regulations are expected to have an impact on the impact of COVID-19 on the Cloud market?
  • How has the impact of COVID-19 on Cloud solutions and services evolved from traditional technologies?
  • What are the dynamics of the impact of COVID-19 on the Cloud market?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

TABLE OF CONTENTS

1 INTRODUCTION (Page No. - 9)
    1.1 COVID-19 HEALTH ASSESSMENT
    1.2 COVID-19 ECONOMIC ASSESSMENT
           1.2.1 COVID-19 ECONOMIC IMPACT—SCENARIO ASSESSMENT

2 RESEARCH METHODOLOGY (Page No. - 15)
    2.1 RESEARCH SCOPE
           2.1.1 MARKET DEFINITION
           2.1.2 INCLUSION AND EXCLUSION
    2.2 RESEARCH METHODOLOGY
           2.2.1 PRIMARY BREAKUP
    2.3 STAKEHOLDERS

3 EXECUTIVE SUMMARY (Page No. - 18)

4 COVID-19-DRIVEN MARKET DYNAMICS (Page No. - 19)
    4.1 DRIVERS AND OPPORTUNITIES
    4.2 RESTRAINTS AND CHALLENGES
    4.3 CUMULATIVE GROWTH ANALYSIS

5 BUSINESS IMPLICATIONS OF COVID-19 ON CLOUD COMPUTING MARKET (Page No. - 23)
    5.1 INTRODUCTION
    5.2 IMPACT ON TECHNOLOGY SEGMENTS (PESSIMISTIC, AS-IS, AND OPTIMISTIC SCENARIOS)
           5.2.1 SOFTWARE AS A SERVICE FORECAST (2020–2021)
                    5.2.1.1 Forecast 2020-2021 (optimistic/as-is/pessimistic)
                    5.2.1.2 MNM View
           5.2.2 INFRASTRUCTURE AS A SERVICE FORECAST (2020–2021)
                    5.2.2.1 Forecast 2020-2021 (optimistic/as-is/pessimistic)
                    5.2.2.2 MNM View
           5.2.3 PLATFORM AS A SERVICE FORECAST (2020–2021)
                    5.2.3.1 Forecast 2020-2021 (optimistic/as-is/pessimistic)
                    5.2.3.2 MNM View

6 COVID-19 IMPACT ON MAJOR VERTICALS WITH USE CASES AND HOW CLIENTS ARE RESPONDING TO CURRENT SITUATION (Page No. - 28)
    6.1 INTRODUCTION
           6.1.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.1.2 USE CASES
           6.1.3 MNM VIEW
    6.2 HEALTHCARE AND LIFE SCIENCES
           6.2.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.2.2 USE CASES
           6.2.3 MNM VIEW
    6.3 IT AND ITES
           6.3.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.3.2 USE CASES
           6.3.3 MNM VIEW
    6.4 RETAIL AND CONSUMER GOODS
           6.4.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.4.2 USE CASES
           6.4.3 MNM VIEW
    6.5 TELECOM
           6.5.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.5.2 USE CASES
           6.5.3 MNM VIEW
    6.6 ENERGY AND UTILITIES
           6.6.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.6.2 USE CASES
           6.6.3 MNM VIEW
    6.7 GOVERNMENT AND PUBLIC SECTOR
           6.7.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.7.2 USE CASES
           6.7.3 MNM VIEW
    6.8 MANUFACTURING
           6.8.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
           6.8.2 USE CASES
           6.8.3 MNM VIEW

7 COVID-19 IMPACT ON REGIONS (Page No. - 40)
    7.1 INTRODUCTION
    7.2 NORTH AMERICA
           7.2.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
    7.3 EUROPE
           7.3.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
    7.4 ASIA PACIFIC
           7.4.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
    7.5 MIDDLE EAST AND AFRICA
           7.5.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)
    7.6 LATIN AMERICA
           7.6.1 FORECAST 2020-2021 (OPTIMISTIC/AS-IS/PESSIMISTIC)

8 COVID-19-FOCUSED PROFILES OF KEY VENDORS (Page No. - 46)
    8.1 INTRODUCTION
    8.2 ECOSYSTEM
    8.3 CONNECTIVITY PROVIDERS / ORIGINAL EQUIPMENT MANUFACTURERS
    8.4 CLOUD SERVICE PROVIDERS
    8.5 CONSULTANTS/ MANAGED SERVICE PROVIDERS

9 APPENDIX (Page No. - 61)
    9.1 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
    9.2 AUTHOR DETAILS


LIST OF TABLES (9 TABLES)

TABLE 1 COVID-19 IMPACT: CLOUD COMPUTING MARKET (2020-2021)
TABLE 2 BANKING FINANCIAL SERVICES, AND INSURANCE: COVID-19 USE CASES
TABLE 3 HEALTHCARE AND LIFE SCIENCES: COVID-19 USE CASES
TABLE 4 IT AND ITES: COVID-19 USE CASES
TABLE 5 RETAIL AND CONSUMER GOODS: COVID-19 USE CASES
TABLE 6 TELECOM: COVID-19 USE CASES
TABLE 7 ENERGY AND UTILITIES: COVID-19 USE CASES
TABLE 8 GOVERNMENT AND PUBLIC SECTOR: COVID-19 USE CASES
TABLE 9 MANUFACTURING: COVID-19 USE CASES


LIST OF FIGURES (24 FIGURES)

FIGURE 1 COVID-19: THE GLOBAL PROPAGATION
FIGURE 2 COVID-19 PROPAGATION: SELECT COUNTRIES
FIGURE 3 COUNTRIES BEGIN WITH SIMILAR TRAJECTORIES BUT CURVES DEVIATE BASED ON MEASURES TAKEN
FIGURE 4 REVISED GDP FORECASTS FOR SELECT G20 COUNTRIES IN 2020
FIGURE 5 CRITERIA IMPACTING THE GLOBAL ECONOMY
FIGURE 6 SCENARIOS IN TERMS OF RECOVERY OF THE GLOBAL ECONOMY
FIGURE 7 BREAK UP OF PRIMARY PROFILES
FIGURE 8 COVID-19 IMPACT: CLOUD COMPUTING MARKET (2020-2021)
FIGURE 9 SOFTWARE AS A SERVICE MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 10 INFRASTRUCTURE AS A SERVICE MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 11 PLATFORM AS A SERVICE MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 12 BANKING, FINANCIAL SERVICES, AND INSURANCE: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 13 HEALTHCARE AND LIFE SCIENCES: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 14 IT AND ITES: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 15 RETAIL AND CONSUMER GOODS: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 16 TELECOM: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 17 ENERGY AND UTILITIES: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 18 GOVERNMENT AND PUBLIC SECTOR: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 19 MANUFACTURING: CLOUD MARKET, 2020-2021 (USD BILLION)
FIGURE 20 NORTH AMERICA: CLOUD MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 21 EUROPE: CLOUD MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 22 ASIA PACIFIC: CLOUD MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 23 MIDDLE EAST AND AFRICA: CLOUD MARKET GROWTH RATE, 2020-2021 (USD BILLION)
FIGURE 24 LATIN AMERICA: CLOUD MARKET GROWTH RATE. 2020-2021 (USD BILLION)

The study involved four major steps in estimating the current market size for the impact of COVID-19 on the cloud  market. Exhaustive secondary research was done to collect information on the market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakup and data triangulation methods were used to estimate the market size of segments and subsegments.

Secondary Research

In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, and Dun & Bradstreet, have been referred to, to identify and collect information for the study. The secondary sources included annual reports, press releases, and investor presentations of companies; white papers, technology journals, and certified publications and articles from recognized authors, directories, and databases.

Primary Research

The Impact of COVID-19 on the cloud market comprises several stakeholders, such as industry participants, subject matter experts (SMEs), C-level executives of key companies, and consultants from various key companies and organizations operating in the cloud market. The extensive primary research was conducted to gather information, and verify and validate the critical numbers arrived at. Primary research was conducted further to identify the segmentation types; industry trends; key players; the competitive landscape of different market players; and key market dynamics, such as drivers, restraints, opportunities, challenges, industry trends, and key strategies. Following is the breakup of the primary respondents:

COVID-19 Impact on Cloud Computing Market

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

Both top-down and bottom-up approaches were used to estimate and validate the overall size of the market. These methods were used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:

  • Key players in the industry and markets have been identified through extensive secondary research.
  • The impact of COVID 19 on cloud market expenditure across regions, along with the geographic split in various segments, have been considered to arrive at the overall market size.
  • All percentage shares, splits, and breakups have been determined using secondary sources and verified through primary sources.

Data Triangulation

After arriving at the overall market size, using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakup procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand side and supply side in the Impact of COVID 19 on the cloud market.

Report Objectives:

  • To define, describe, and forecast the Impact of COVID 19 on the Cloud market by technology (SaaS, IaaS, and PaaS), verticals, and region
  • To provide detailed information about the major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the cloud market growth
  • To analyze opportunities in the market and provide details about the competitive landscape for stakeholders and market leaders
  • To forecast the market size of the segments with respect to five main regions, namely, North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America
  • To profile the key players and comprehensively analyze their market rankings and core competencies1
  • To analyze competitive developments, such as partnerships, new product launches, and mergers and acquisitions, in the Impact of COVID 19 on the Cloud market

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the cloud market report:

Geographic Analysis

  • Further breakup of additional countries in the APAC market
  • Further breakup of additional countries in the MEA market
  • Further breakup of additional countries in the European market

Company Information

  • Detailed analysis and profiling of additional market players (up to 5)
Report Code
TC 7598
Published ON
Apr, 2020
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