Cloud Computing Market Set to Reach US$1,266.4 Billion by 2028

AI and ML will propel the cloud computing market, which is expected to reach US$1,266.4 billion by 2028

The provision of computer services via the internet, including servers, storage, databases, networking, software, analytics, and intelligence, is known as cloud computing. Users can access and use these services without having to pay for and maintain physical infrastructure thanks to cloud computing. Additional advantages of cloud computing include scalability, dependability, security, and cost-effectiveness. 

The global cloud computing market is anticipated to develop at a compound annual growth rate (CAGR) of 15.1% from USD 626.4 billion in 2023 to USD 1,266.4 billion by 2028, according to a research analysis by MarketsandMarkets.

The market for cloud computing is expanding due to several factors, including the rising demand for cloud services across various verticals and industries, the COVID-19 pandemic's acceleration of cloud spending, the growing adoption of emerging technologies like edge computing, 5G, big data, artificial intelligence (AI), and machine learning (ML), and the growing need for digital transformation. This article will examine some of the major developments and prospects in the cloud computing market, as well as how they will affect the direction of the sector going forward.

The Cloud Computing Market's Trends:

1. The emergence of hybrid clouds

A hybrid cloud is an on-premises infrastructure, private cloud, and public cloud combined into one cloud computing model. With a hybrid cloud, customers may benefit from the greatest features of both public and private clouds, including cost-effectiveness, scalability, and flexibility, all while retaining control, security, and performance from on-premises infrastructure and private clouds.

2. The expansion of cloud-native apps:

Applications that are created, developed, and implemented utilizing cloud computing concepts and tools, like serverless architecture, microservices, containers, and DevOps, are referred to as cloud-native applications. Users may fully benefit from the cloud's features, like agility, scalability, resilience, and portability, with cloud-native apps.

3. The implementation of edge computing:

A distributed computing paradigm known as "edge computing" moves processing and data storage closer to the places where they are required, such as near users, sensors, or other devices. Edge computing improves data processing security, privacy, and dependability while lowering transmission latency, bandwidth, and costs.

Top Companies in the Cloud Computing Industry

Amazon Web Services (AWS): AWS provides a vast array of cloud services, including networking, analytics, machine learning, computing, storage, databases, internet of things, security, and more.

Microsoft Azure: A wide range of cloud services, including computing, networking, analytics, machine learning, storage, databases, internet of things, security, and more, are provided by Azure.

Google Cloud: A wide range of cloud services, including computing, networking, analytics, machine learning, storage, databases, internet of things, security, and more, are provided by Google Cloud.

Alibaba Cloud: Numerous cloud services, including computing, storage, database management, networking, analytics, machine learning, the internet of things, security, and more, are provided by Alibaba Cloud.

IBM Cloud: Cloud computing, storage, databases, networking, analytics, machine learning, the Internet of things, security, and other services are all provided by IBM Cloud.

Challenges in The Cloud Computing Industry:

Data security and privacy: Working with cloud settings raises several security concerns because users are responsible for their data and because some cloud providers cannot guarantee 100% data privacy.

Cost management and containment: Managing expenses can be difficult when utilizing cloud services because users are only charged for the resources they use and may run into unforeseen or hidden expenses. Some of the things that can drive up cloud costs are performance problems, underuse, overprovisioning, and wasted resources.

Estimated Future Market Size of Cloud Computing

Cloud computing is predicted to reach a size of US$1,266.4 billion by 2028, at a compound annual growth rate (CAGR) of 15.1%, from US$626.4 billion in 2023. This information comes from MarketsandMarkets. The following is the annual anticipated market size:

2024: US$760.9 billion

2025: US$925.8 billion

2026: US$1,125.6 billion

2027: US$1,240.9 billion

2028: US$1,266.4 billion