The global cloud services market is expected to garner £1.17 trillion by 2030, a 398% increase over its 2019 value of £235 billion.
This is accoring to a report by Allied Market Research (AMR), which predicts a combined annual growth rate (CAGR) of 15.8% from 2021 to 2030.
One key takeaway from the report is that cost effectiveness is the most important factor driving the global cloud market. AMR claims that deployment of cloud services can cut more than 35% of company’s annual operating costs.
Other major contributing factors to the market’s growth include the surge in cloud adoption by SMEs and the increase in demand due to the COVID-19 outbreak necessitating improvements to remote work.
On the other hand, concerns regarding data security and protection continue to hinder market growth. Having said this, increases in cloud service adoption in emerging economies is expected to open lucrative opportunities for market players in the coming years.
By offering, Allied Market Research expects the service segment to register the highest CAGR of 21.9% during the forecast period, as it assures effective functioning of cloud-based platforms, solutions and software.
In terms of type, the SaaS segment dominated the market in 2019, contributing to nearly two-fifths of the global cloud services market, due to presence of software as multitenancy which is crucial for cloud computing.
However, the IaaS segment is expected to register the highest CAGR of 17.7% during the forecast period, as IaaS can be shared and the cost can be reduced.
Finally, by region, the cloud services market across North America held the largest share in 2019, accounting for nearly three-fifths of the global market. This is thought to be due to high adoption of cloud computing services and emerging sector for cloud computing services in the region.
However, the market across Asia-Pacific is projected to portray the highest CAGR of 18.8% during the forecast period, due to rapid adoption of cloud computing, rise in investments in infrastructure as a service and intense competition in the region.