by Cloud services enable remote access to computing resources and services over the internet, allowing users and businesses access their digital infrastructure or platforms from anywhere, on any device. Cloud services provide several benefits such as economies of scale, simplified access to resources, and greater scalability. The services eliminate the expenses related to hardware, software, local data storage, patch management, backup, and maintenance of on-premise systems. Companies use cloud platforms to manage applications and services that are critical to their business.
The global Cloud Services Market is estimated to be valued at US$ 621.97 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Companies are migrating more applications and workloads to cloud platforms to reduce costs and gain agility. Key trends in the cloud services market include hybrid multi-cloud deployments, Everything-as-a-Service (XaaS) model, edge computing powered by IoT, and machine learning capabilities. As businesses demand greater flexibility, security, and optimal usage of resources, hybrid cloud which combines private and public cloud is becoming popular. Additionally, the availability of cloud platforms and resources on pay-per-use model is driving demand for services based on XaaS model such as serverless computing, data-as-a-service, and more. Edge computing complements cloud infrastructure by enabling real-time analysis of IoT data closest to the source before transmission to cloud. The integration of machine learning and AI in cloud adds new capabilities to drive automation and insights.
Porter’s Analysis
Threat of new entrants: The cloud services market requires significant investments in services infrastructure and security capabilities. This poses barriers for new companies to enter the market.
Bargaining power of buyers: Buyers may have higher bargaining power as cloud service providers offer similar services. Buyers can negotiate for better pricing and customized services.
Bargaining power of suppliers: Existing cloud service providers have established relationships with technology suppliers. This enables providers to negotiate better pricing and supply terms with minimal threat from forward integration by suppliers.
Threat of new substitutes: There is a moderate threat of new substitutes as edge and hybrid cloud computing continue to emerge as alternatives to public cloud services.
Competitive rivalry: The cloud services market is highly competitive due to the presence of technology giants. Companies focus on price, security enhancements, and value-added services to gain market share.
Key Takeaways
The Global Cloud Services Market Size is expected to witness high growth. The global Cloud Services Market is estimated to be valued at US$ 621.97 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024 to 2031.
Regional analysis: North America dominates the cloud services market currently with the US being the largest contributor. Europe holds a significant market share due to high cloud adoption across UK, Germany, and Nordic countries for cutting costs and enhancing business agility. Asia Pacific is anticipated to provide lucrative opportunities with China and India emerging as high potential countries. Government support for digitalization initiatives will further aid the cloud services market growth in APAC.
Key players: Key players operating in the cloud services market are The Toro Company, Kubota Corporation, Honda Motor Co., Husqvarna AB, Briggs & Stratton, Deere & Company, MTD Products, AriensCo, Stihl, Emak S.p.A., AL-KO, Makita Corporation, Robert Bosch, Stanley Black & Decker, Techtronic Industries, Yamabiko Corporation, American Honda Motor Co., Generac Power Systems, Lawn-Boy Inc., AL-KO Gardentech. Companies are focusing on developing industry-specific cloud solutions, forming strategic alliances, and enhancing cloud security capabilities to gain custoamers.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
