Cloud Computing Market Set to Reach $1,235.4 Billion by 2028, Driven by AI and OTT Platforms, but Cybersecurity Threats Loom
The global cloud computing market is poised for substantial growth in the coming years, reaching a projected value of $1,235.4 billion by 2028. This exponential growth can be attributed to the rising trend of Artificial Intelligence (AI), as well as the surge in Over-The-Top (OTT) platforms and applications.
Cloud computing has experienced a significant expansion due to the increasing popularity of cutting-edge technologies like AI and machine learning. These innovations have been quickly adopted within the cloud computing industry, propelling its growth. Factors such as the growing importance of customer satisfaction, the need for cost control, and the demand for capital expenditure control have also contributed to this growth.
The increasing demand for various OTT platforms, including Prime Video, Netflix, and Hotstar, along with the widespread adoption of online communication tools like MS Teams, Zoom, Zoho, and Skype, has been instrumental in driving the cloud computing market forward. Additionally, businesses compelled by rapid digitization have felt the need to upgrade and modernize their infrastructural landscape to increase cost-effectiveness and adaptability. Furthermore, growing investments in reliable telecom and IT infrastructure construction are expected to further fuel the expansion of the cloud computing market.
However, amidst this rapid growth, the threat of cyberattacks has become a pressing concern. As digital technologies are increasingly adopted, cybersecurity and data privacy have emerged as significant challenges for market participants and consumers of cloud computing services. Cyberattacks have caused substantial financial and non-financial damages to businesses and customers alike. To combat these threats, service providers must bear the cost of maintaining higher security measures. Moreover, the initial capital costs associated with cloud-based services have discouraged many small and medium-sized businesses from utilizing them.
The manufacturing industry is expected to be a major beneficiary of cloud services, owing to the advantages they offer, such as real-time visibility and seamless data management. By integrating technologies like big data, machine learning, AI, the Internet of Things (IoT), and data analytics, cloud service models greatly benefit the manufacturing sector. The increased use of cloud services in data storage, supply chain management, and asset organization is anticipated to drive the growth of this segment during the forecast period.
Another sector reaping the benefits of cloud computing is the Banking, Financial Services, and Insurance (BFSI) segment. Cloud computing has enabled cost management, flexibility, accelerated innovation, and enhanced customer interaction in this sector. The expansion of the BFSI segment has led to an increased use of cloud services for storing and managing consumer-related data. With digital wallets, payment gateways, online money transfers, and unified user experiences becoming crucial to the BFSI sector, the cloud computing market is poised for further growth.
In terms of regional market share, North America is expected to hold the highest position. The region is an early adopter of cutting-edge technologies like AI, Virtual Reality (VR)/Augmented Reality (AR), machine learning, big data analytics, and IoT. The growing focus on adopting advanced digital technologies among North American enterprises to improve operations and reduce costs has resulted in increased uptake of cloud computing services. IT powerhouses such as IBM, Oracle, Google, and Apple have significantly contributed to the expansion of the cloud computing industry in North America. The manufacturing, healthcare, and other key sectors in the region have quickly embraced cloud computing technologies, further driving the demand for these services. Additionally, the availability of ICT services and favorable government initiatives have supported the growth of the cloud computing market in North America.
In conclusion, the global cloud computing market is set to reach new heights, fueled by the growing prominence of AI, the surge in OTT platforms and applications, and the need for advanced data management solutions. However, cybersecurity threats pose a significant challenge that must be addressed to ensure the continued success and adoption of cloud computing services. As the market expands across various sectors, such as manufacturing and BFSI, it is essential for businesses to embrace the benefits offered by cloud services and invest in robust security measures to safeguard sensitive data. With North America leading the way in cloud computing adoption, the region is poised for continued growth in this rapidly evolving market.
