Home Technology The cloud market is growing. What are the driving forces?

The cloud market is growing. What are the driving forces?

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The cloud market is growing.  What are the driving forces?

Emerging digital technologies are fueling the growth of the cloud market
(photo: CC0 Public Domain)

Dthe lobal public cloud services market will reach $597.3 billion in 2023, an increase of 21.7% over the previous year ($491 billion). Pcuckoo is on research company Gartner.

Emerging digital technologies such as generative artificial intelligence, Web3 and the metaverse are key drivers of cloud spending growth, analysts say. The highest growth rates (+30.9%) in spending are expected for IaaS solutions (infrastructure as a service). Business spending on PaaS (Platform as a Service) will increase by 24.1%.

“Currently, companies see clouds exclusively as a strategic platform for digital transformation, which requires providers to create more complex functions amid intensifying competition for digital services. In the current environment, hyperscale cloud service providers are driving the cloud computing agenda,” commented Gartner analyst Sid Nag.

According to the forecast, by 2026, about 75% of companies worldwide will use cloud services as the main platform for digital transformation of their business. Cloud solutions from Amazon Web Services, Microsoft and Google are most in demand.

Research firm Forrester expects the global market for public cloud services to grow more than 20% annually and reach $1 trillion by 2026, up from $446 billion in 2022.

Over the past 10 years, the volume of the market under consideration has grown by more than 30% per year, thanks to Amazon Web Services (AWS), Alibaba, Google Cloud and Microsoft Azure. According to analysts, the market-leading AWS platform is helping Amazon operate at a break-even point, while Google Cloud reports large operating losses every quarter.

Forrester expects cloud infrastructure services to form a $500 billion market by 2026, with the largest cloud providers vying for it.

According to IDC analysts, the volume of the global cloud market will grow by 16.9% annually. In their forecast, experts include costs directly for cloud services, related professional services (strategic planning, implementation assistance, technical support, etc.), as well as costs for hardware and software used in the cloud infrastructure.

The volume of the global market for cloud infrastructure services will grow by 23.7% annually and will reach $519 billion by 2027, research company ResearchAndMarkets predicts.

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