Introduction:
In 2024, let's consider a real-world example of a cloud-driven world centered around developing and using advanced smart cities. The city's infrastructure, including transportation systems, energy grids, and waste management, is connected through a cloud-based IoT network. Cloud-driven autonomous vehicles navigate the city, utilizing real-time traffic data, weather conditions, and other relevant information to ensure safe and efficient transportation. The healthcare system is connected through a cloud-based platform that securely stores and shares patient data among medical professionals. Telemedicine services are readily available, allowing residents to access healthcare remotely, and predictive analytics help identify potential health trends within the population.
The global cloud industry is evolving unprecedentedly, fuelled by technological advancements, increasing digitalization, and a growing demand for scalable and efficient solutions. As we step into 2024, it's crucial to explore the current landscape of the global cloud market, highlighting key trends, opportunities, challenges, segment nuances, and recent developments shaping the industry. The cloud industry growth in 2024 is driven by several key trends, contributing to increased market expansion, revenue, and adoption. Transformative shifts, such as multi-cloud adoption, AI and machine learning enrichments, hybrid cloud strategies, edge computing integration, serverless computing growth, security and compliance focus, sustainability initiatives, containerization, DevOps & CI/CD practices, and exploration of quantum computing, signify the cloud industry growth.
MarketsandMarkets anticipates the global cloud market size to grow from USD 626.42 billion in 2023 to USD 727.90 billion by 2024, up 16.2% YoY. Tech companies increasingly focus on generative AI-based cloud services, poised to revolutionize industries globally, turning it into an investment magnet.
Industry Trends:
The cloud market continues its robust growth trajectory, driven by factors such as the rise of remote work, digital transformation initiatives, and fierce competition among cloud hyper-scalers. Some other major cloud industry trends include increasing spending on cloud security, rapid growth in AI, and the FinOps revolution. Automation, AL, and ML are emerging as key trends in the cloud industry. In 2024, we observe the emergence of industry-specific clouds catering to healthcare, finance, manufacturing, and more. These clouds provide customized services, compliance frameworks, and applications designed to address the specific needs of each industry. In 2024, we expect several countries to invest in building sovereign cloud infrastructure to ensure that sensitive data stays within national borders, addressing data protection and privacy concerns. For example, Oracle has introduced 2 EU cloud regions to meet data sovereignty requirements.
Additionally, edge computing is expected to gain prominence as a complement to cloud services; this involves processing data closer to the source of generation, reducing latency, and improving real-time processing for applications. The serverless computing model will become more popular, allowing developers to focus solely on writing code without managing the underlying infrastructure. In 2024, businesses are expected to increasingly look for ways to optimize costs associated with cloud services; there will be growing penetration of cloud FinOps practices.
Adopting cloud solutions is anticipated to be significantly influenced by implementing AI/Gen AI.
In 2024, a cloud-driven industry will be characterized by the widespread integration of AI technologies across various sectors. The surge in AI adoption is a driving force reshaping the cloud computing market landscape, particularly with specialized infrastructures designed to accommodate computational behemoths like Large Language Models (LLMs). This transformative shift democratizes AI, significantly lowering entry barriers for businesses of all sizes.
Heightened security focus and emerging trends such as quantum computing
In 2024, trends focus on enhancing data infrastructure and fortifying cyber defenses. Quantum computing is gaining prominence and may provide solutions through cloud platforms. The spotlight will be on elevating cloud-native security features, encompassing zero-trust architectures and AI-driven threat detection, setting the stage for developing efficient, integrated, and secure cloud ecosystems.
Sustainability: Data centers leading the charge
Business leaders have recognized the significance of sustainable DCs. In 2024, sustainability will take center stage, with data centers positioned at the forefront of eco-friendly initiatives. Advanced AI systems will predict usage patterns and optimize workloads, substantially reducing energy consumption.
Managing cloud costs
More than 80% of enterprises stated managing cloud spending as a top cloud challenge. Organizations are increasingly recognizing the importance of FinOps practices to optimize cloud spending. More companies will adopt FinOps methodologies to bridge the gap between finance, operations, and engineering teams for better cloud cost management.
Rapid cloud growth in ASEAN countries
Four in five ASEAN businesses will plan an entire cloud migration strategy by 2024. Cloud adoption in ASEAN countries will be driven by various factors, including digital transformation initiatives, increased connectivity, and a growing awareness of the benefits of cloud technologies. AWS plans to open a Malaysian cloud region in 2024.
Opportunities:
The global cloud industry analysis presents significant growth opportunities, especially in healthcare, finance, and manufacturing. Cloud solutions offer these industries the ability to streamline operations, enhance security, and leverage advanced analytics for data-driven decision-making.
Increasing competition among CSPs
Top players are capitalizing on the growth of the cloud industry. As digital transformation accelerates globally, leading players such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud will face a fierce battle for dominance, seeking to capture market share, expand service offerings, and deliver cutting-edge solutions to an increasingly demanding clientele. For example, AWS will unveil a cloud region in Malaysia by 2024. AWS, Microsoft, and Google Cloud will capture significant market shares in 2024. Regional players like Alibaba Cloud (China) and Tencent Cloud (China) will make substantial strides in the cloud industry, challenging industry giants' dominance.
Shift to AI & cybersecurity integrated cloud solutions.
The demand for cloud-based artificial intelligence and machine learning solutions is growing. Opportunities exist for businesses that can provide specialized AI/ML services, platforms, or consulting to help organizations implement and optimize machine learning models. In our cloud industry analysis, cybersecurity emerges as a critical focal point. As cloud adoption proliferates, so does the need for robust security measures. Entrepreneurs and companies specializing in cybersecurity solutions can capitalize on this growing demand by providing innovative tools for threat detection, identity management, and secure cloud infrastructure – a key takeaway from our cloud industry overview. Subsequently, the landscape of cloud-native development is evolving rapidly, as emphasized in our cloud industry analysis. Developers are increasingly adopting containerization and serverless computing.
In the race for supremacy, top cloud companies are heavily investing in emerging technologies such as generative AI. Sustainability is emerging as a critical differentiator in the competitive landscape. Cloud providers are increasingly adopting eco-friendly practices, utilizing renewable energy sources for data centers, and implementing carbon offset programs to appeal to environmentally conscious clients.
Challenges:
As data regulations become more stringent globally, ensuring compliance with various data protection laws (such as GDPR and CCPA) can be challenging. Cloud service providers must adapt their services to comply with diverse regulatory frameworks. In addition, major players may also face competition from global and regional/local players for cloud expansion. With growing concerns about the environmental impact of data centers, there is increasing pressure on the cloud industry to adopt sustainable practices. The fast-paced evolution of cloud technologies can challenge organizations to keep up; adopting new technologies like serverless computing, edge computing, and AI requires continuous learning and adaptation. With the increasing adoption of cloud services, the potential for cyber threats and data breaches may escalate. Ensuring robust security measures and staying ahead of evolving cyber threats will be necessary. Many organizations opt for a hybrid or multi-cloud strategy, utilizing both on-premises and multiple cloud providers; managing the complexity of such environments, ensuring seamless integration, and maintaining consistent performance can be challenging. Efficiently managing cloud resources and controlling costs can be difficult. For this reason, cloud FinOps solutions are expected to gain traction in 2024. Additionally, rising cloud costs could make organizations think twice before migrating.
Get More Info : https://www.marketsandmarkets.com/blog/ICT/Global-Cloud-Industry-Outlook-2024
Segment Nuances:
In the cloud industry overview, while SaaS will retain its position as the reigning champion with the largest market share of 52.3% in the total cloud industry market, IaaS and PaaS are set to experience rapid YoY growth rates of 21.2% and 19.3%, respectively, in 2024. The development and adoption of industry-specific SaaS solutions tailored to specific verticals' unique needs and regulations is expected to grow. 2024 will see the rise of automated SaaS. In the SaaS industry, the Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) segments are anticipated to dominate in 2024. ERP industry analysts and veterans expect that 2024 will be marked by ongoing cloud adoption, the incorporation of valuable generative AI capabilities, and the integration of additional applications like enterprise application management and Field Service Management (FSM). The CRM industry's market value is expected to hit USD 111.49 Billion by 2024.
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America's best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America's best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines - TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the 'GIVE Growth' principle, we work with several Forbes Global 2000 B2B companies - helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA: +1-888-600-6441
Email: sales@marketsandmarkets.com