Cloud Computing Market

Unlocking the Cloud's Potential: Growth Drivers & Industry Leaders

According to MarketsandMarkets, the global cloud computing market will increase from USD 626.4 billion in 2023 to USD 1,266.4 billion by 2028, with a CAGR of 15.1% over the projected period. The proliferation of mobile devices, IoT, hybrid cloud, and multi-cloud strategies will drive the expansion of the cloud computing market.

The cloud computing market is experiencing tremendous growth, driven by several key factors:

  • Increasing Demand for Scalable Resources
  • Digital Transformation
  • Proliferation of Mobile Devices and IoT
  • Hybrid and Multi-Cloud Strategies
  • Focus on Security
  • Emerging Technologies
  • Low-code/No-code Development
  • Disaster Recovery and Backup

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The cloud computing market is experiencing tremendous growth, driven by several key factors:

Increasing Demand for Scalable Resources: Businesses require access to on-demand IT resources to adapt to changing needs. Cloud computing offers a scalable and cost-effective solution, eliminating the need for upfront investment in hardware and software.

Digital Transformation:  Companies are embracing digital transformation initiatives to improve efficiency, agility, and innovation. Cloud computing underpins these efforts by providing a platform for deploying new applications and data analytics.

Proliferation of Mobile Devices and IoT: The growing number of mobile devices and Internet of Things (IoT) devices generates massive amounts of data. Cloud computing provides the infrastructure and tools to store, process, and analyze this data effectively.
Hybrid and Multi-Cloud Strategies: Companies are shifting towards hybrid and multi-cloud deployments, utilizing a combination of public, private, and edge clouds. This approach offers greater flexibility, security, and control over data and applications.

Focus on Security: Cloud providers are constantly enhancing security features to address user concerns.  Encryption, access controls, and compliance certifications are attracting businesses that require robust data protection.

Emerging Technologies: Advancements in Artificial Intelligence (AI), Machine Learning (ML), and Big Data are fueling cloud growth. Cloud platforms offer the ideal environment for running these resource-intensive applications.

Low-code/No-code Development: User-friendly tools that allow businesses to build cloud applications without extensive coding knowledge are democratizing cloud development, making it accessible to a wider range of organizations.

Disaster Recovery and Backup: Cloud-based disaster recovery and backup solutions offer a reliable and cost-effective way to protect critical data and applications from downtime.

These factors, combined with the ongoing evolution of cloud technology, are propelling the cloud computing market towards a projected value of $1.2 trillion by 2028

Cloud Computing Share - Global Industry Landscape

The cloud computing industry is populated with several leading companies, each offering a range of products and services. Here are some of the prominent players along with their market share and key offerings:

  • VMware (US)
  • Rackspace (US)
  • DXC Technology (US)
  • Tencent Cloud (China)
  • NEC Corporation (Japan)

VMware (US):

Market Share: VMware is a dominant player in cloud computing virtualization software, but determining a specific market share gets complicated because they operate within a larger segment (cloud management software). Gartner puts the cloud management software market at $25.8 billion in 2023, with VMware being a major participant.

Key Offerings: VMware offers a comprehensive suite of cloud management and virtualization software products, including vSphere (flagship product for virtualization), NSX (network virtualization), vRealize Suite (cloud management platform) and Tanzu (application modernization platform).

Rackspace (US):

Market Share: Rackspace holds a smaller share of the overall cloud computing market compared to giants like AWS and Microsoft Azure. Estimates suggest they hold around 1-2% of the global Infrastructure-as-a-Service (IaaS) market.

Key Offerings: Rackspace primarily focuses on managed cloud services. They offer a variety of cloud solutions built on platforms like AWS, Microsoft Azure, and Google Cloud Platform, along with their own OpenStack-based private cloud offering. They manage the infrastructure and provide support for businesses using these cloud platforms.

DXC Technology (US):

Market Share: Similar to Rackspace, DXC Technology's market share in the overall cloud market is relatively small. However, they are a significant player in the hybrid cloud and enterprise IT services space.

Key Offerings: DXC offers a range of IT services, including cloud migration, cloud integration, application services, and security services. They specialize in helping businesses adopt hybrid cloud solutions, integrating on-premises infrastructure with public cloud environments.

Tencent Cloud (China):

Market Share: Tencent Cloud is a major player in the Chinese cloud computing market, holding a significant share (estimated around 15-20%). However, their global market share is smaller compared to US giants.

Key Offerings: Tencent Cloud provides a comprehensive suite of cloud computing services, including IaaS, PaaS, and SaaS solutions. They offer infrastructure resources like compute, storage, and networking, along with platform services for databases, analytics, and artificial intelligence. They also have a strong focus on cloud gaming solutions.

NEC Corporation (Japan):

Market Share: NEC is a prominent IT company in Japan, but their cloud market share is dwarfed by global players like AWS and Microsoft Azure. Estimates suggest they hold around 5% of the Japanese cloud market.

Key Offerings: NEC offers a variety of cloud computing solutions and services, including IaaS, PaaS, and managed services. They focus on secure and reliable cloud infrastructure solutions for enterprise customers, leveraging their expertise in IT and networking technologies.

Related Reports:

Cloud Computing Market by Service Model (IaaS, PaaS, SaaS), Deployment Model(Public Cloud, Private Cloud, Hybrid Cloud), Organization Size, Vertical (BFSI, Telecommunications, Manufacturing, Retail & Consumer Goods) and Region - Global Forecast to 2028

Cloud Computing Market Size,  Share & Growth Report
Report Code
TC 1228
RI Published ON
4/7/2024
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