A new research has revealed that the cloud services market is expected to exceed $470 billion in 2021, highlighting growth at a compound annual growth rate of 21.6%.
The new report from ESOMAR attributed the sharp rise in demand to the continued push towards digitalisation, across a number of key industry verticals.
Government, healthcare and education institutions are rapidly adopting cloud-based email services such as email-as-a-service on large scale. These institutions provide email solutions to their staffs in order to do their daily operational tasks.
The report also found that the surge in demand for smart consumer goods was a contributing factor in the proliferation of cloud-based services.
“Smart devices such as Smart TVs or Smart Watches have limited internal storage and rely highly on the cloud for their functioning. Besides having low storage, these devices are also designed to work efficiently connected with other devices that the user owns.
“The growing demand for such cloud-dependent smart devices are creating new opportunities for the cloud services market,” said an ESOMAR analyst.
Among services models available, the demand for software as a service (SaaS) is considerably high.
The analyst has projected it exhibit 21.6% Y-o-Y growth in 2021. The study also states that the global cloud services market is expected to rise steadily at a CAGR of 20.4% during the forecast period of 2020 to 2030.
The report found that as employers around the world pivot towards offering remote working solutions to their workforces, an influx in demand for cloud solution and services will materialise.
“Many organisations have changed their priorities and by utilizing cloud automation, businesses are increasing their online presence by developing commerce websites on cloud platforms to decrease the impact of the pandemic on operational efficiency and productivity. Owing to such factors public cloud services market revenue is estimated to increase by 1.6X during 2019-2021,” the ESOMAR analyst said.
