Cloud computing market expected to reach US$1,266.4 billion by 2028
Cloud computing refers to the delivery of computer services over the internet, such as servers, storage, databases, networking, software, analytics, and intelligence. It is owing to cloud computing that users can gain access to these services without having to pay for or maintain physical infrastructure. Scalability, reliability, security, and cost-effectiveness are further benefits of cloud computing.
According to MarketsandMarkets, the worldwide cloud computing market is expected to increase at a compound yearly growth rate (CAGR) of 15.1% from USD 626.4 billion in 2023 to USD 1,266.4 billion by 2028.
The cloud computing market is growing as a result of several factors, including rising demand for cloud services across multiple verticals and industries, the COVID-19 pandemic’s acceleration of cloud spending, the growing adoption of emerging technologies such as edge computing, 5G, big data, artificial intelligence (AI), and machine learning (ML), and the increasing demand for digital transformation.
Cloud Computing Market Trends
The rise of hybrid clouds
A hybrid cloud is a cloud computing paradigm that combines on-premises facilities private cloud, and public cloud. Customers may benefit from the best aspects of both public and private clouds, such as cost-effectiveness, scalability, and flexibility, while keeping oversight, security, and performance from on-premises infrastructure and private clouds, using a hybrid cloud.
The growth of cloud-native apps
Cloud-native apps are those that are conceived, developed, and deployed using cloud computing principles and techniques such as serverless architecture, microservices, containers, and DevOps. Cloud-native apps enable users to fully utilize cloud benefits such as agility, scalability, resilience, and mobility.
Putting edge computing into practice
“Edge computing” is a distributed computing paradigm that brings processing and data storage closer to the locations where they are needed, like close to users, sensors, or other devices. Edge computing reduces transmission latency, bandwidth, and costs while enhancing data processing security, privacy, and dependability.
Top Companies in the Cloud Computing Industry
Amazon Web Services: Cloud services such as networking, analytics, machine learning, computing, storage, databases, internet of things, security, and more are offered by Amazon Web Services (AWS).
Microsoft Azure: Azure offers a vast array of cloud services, encompassing storage, databases, internet of things, machine learning, networking, computation, analytics, and security, among others.
Google Cloud: Google Cloud offers a vast array of cloud services, such as networking, computing, machine learning, data analytics, storage, databases, internet of things, security, and more.
Alibaba Cloud: Alibaba Cloud offers a wide range of cloud services, including computing, networking, analytics, machine learning, storage, database management, computing, machine learning, the internet of things, privacy, and more.
IBM Cloud: IBM Cloud offers a range of services including cloud computing, networking, analytics, machine learning, storage, databases, Internet of things, and security.
Challenges in the Industry
Data security and privacy
As users are in charge of their data and because certain cloud providers are unable to ensure 100% data privacy, working with cloud settings presents a number of security risks whilst at the same time being a threat to breach of data confidentiality.
Cost containment and management
Since cloud customers are only billed for the resources they use, it can be challenging to keep costs under control. Unexpected or hidden costs can also arise. A few factors that can increase cloud expenses are poor performance, underuse, and a resource waste.
Conclusion
At a cumulative annual growth rate (CAGR) of 15.1%, cloud computing is expected to rise from US$626.4 billion in 2023 to US$1,266.4 billion by 2028. The source of this data is MarketsandMarkets. The estimated annual market size is as follows:
US$760.9 billion in 2024
US$925.8 billion in 2025
$1,125.6 billion US in 2026
US$1,240.9 billion in 2027
US$1,266.4 billion in 2028
