The cloud applications market is evaluated at US$69.727 billion for the year 2019 and is projected to grow at a CAGR of 17.25% to reach the market size of US$212.419 billion by the year 2026.
A cloud system is a software system that combines cloud and local components. Cloud application software services are being used with mobile apps or web browsers, while data processing services are being used using a combination of cloud computing solutions and local devices. Cloud apps are in charge of the logic, output formatting, and data needed to operate a local device in the browser. It handles some processing services and makes a request to the cloud server for further data and processing via the application programming interface (API). Enterprises are adopting cloud-based apps to simplify their business operations, which is fueling market development.
The global market is expanding due to a growing knowledge of the benefits of cloud applications. The market's growth is fueled by the flexibility and scalability of cloud applications, as well as the customization provided by various cloud service providers. Demand for safely and securely backed up remotely work is also propelling the industry forward. However, a lack of technical competence stifles business expansion. Furthermore, the global cloud application market is projected to benefit from the growing usage of sophisticated technologies in cloud applications across numerous business verticals.
GLOBAL CLOUD APPLICATIONS MARKET, US$ billion, 2019 to 2026
Source: Knowledge Sourcing Intelligence Analysis
Favorable structural properties to aid market expansion.
Market growth is being fueled by factors such as the growing use of sophisticated technologies, reduced maintenance costs, and corporate expansion. The rapid development of the cloud application industry is mostly due to the increased use of mobile apps. The ease of applications for accessing data, making financial transactions, extracting important information, sharing information in real-time, and improving flexibility and productivity is propelling the market forward.
Rising adoption by small and medium enterprises to drive market growth.
The rising use of the application in small and medium businesses, as well as large data management, are the key drivers of this sector. Small and medium enterprise sectors are underserved and provide development possibilities for industry participants due to cheap infrastructure costs and other technological advantages. Over the projected period, demand for cloud-based apps is likely to rise due to greater data mobility and ease of access. It provides advantages such as data integration and data access from a single location. Because big data is kept on a server, it is simple to handle.
Expanding acceptance in the BFSI sector to augment market demand.
To satisfy growing consumer expectations and stay competitive, the Banking, Financial Services, and Insurance (BFSI) industry is rapidly implementing digitalization efforts. Vendors provide a variety of cloud services to assist banks to adopt operational models for boosting revenue production, gaining customer insights, rapidly and effectively delivering market-relevant goods, and monetizing corporate data assets. Customers' sensitive information, such as credit card numbers, transaction numbers, and personal information, must be stored and managed by the banking industry. This information must be properly maintained, as losing it might result in customer loss and a decrease in brand value in the marketplace. As a result, cloud apps are becoming more popular.
Increased adoption for Supply Chain Management to contribute to market size.
The use of Cloud Supply Chain Management (SCM) by SMEs and big businesses has risen as a cost-effective way to manage and supervise supply chain activities, as well as to improve and ensure efficient operations. Cloud SCM systems give businesses real-time access to their data, allowing for faster decision-making and improved business operations. Because various cloud providers use similar techniques for accessing, storing, and retrieving cloud data, cloud SCM eliminates geographical boundaries. As a result, businesses may access data and receive updates on SCM activities from anywhere, on any device. The ability to see data in real-time makes the supply chain more dynamic, safe, and engaging.
Data security concerns restrain the market growth.
Because of the risk of hacking, data theft is a major worry. Over the projection period, data privacy concerns may impede industry expansion. App technology advancements are likely to provide a huge opportunity. Customer experience, transaction security for banking apps, and data optimization are all expected to improve as a result of the advancement. Cloud-based applications can be used to automate business processes. Enterprise logistics can be tracked, and inventories can be readily managed, thanks to automation.
Due to the rising demand for cloud applications, the global cloud applications market is expected to develop significantly, since numerous companies have adopted a work-from-home culture during the pandemic time. Since the introduction of lockdown in many countries, there has been a substantial increase in the adoption rate of cloud computing services. Cloud service providers, on the other hand, are having a tough time meeting the increased demand for cloud services. NxtGen, the leading cloud technology and data center provider in India with established Enterprise Cloud Services (ECS) operations, introduced its new public cloud computing platform SpeedCloud in April 2021 intending to make opensource technology adoption easier and more secure in the nation.
Global Cloud Applications Market share, by geography
Source: Knowledge Sourcing Intelligence Analysis
Because of rising IT enterprise IT budgets, North America is expected to be a significant geographical sector during the next seven years. Large corporations utilize cloud applications to save money on IT infrastructure and provide staff more freedom in accessing data. Due to the economic crisis and delayed recovery, the European market's growth rate is anticipated to decrease. Because of the presence of fast-developing economies such as India and China, Asia-Pacific is the fastest-growing market. The economies of India, China, and Japan are all developing rapidly, and cloud technology is becoming more popular in these countries.
|Market size value in 2019||US$69.727 billion|
|Market size value in 2026||US$212.419 billion|
|Growth Rate||CAGR of 17.25% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Business Size, Industry Vertical, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Cisco, Microsoft Corporation, Amazon Web Services, IBM, Oracle, Salesforce.com Inc., Adobe, SAP SE, Workday Inc., Odoo|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global cloud applications market?
A1. Cloud Applications Market was valued at US$69.727 billion in the year 2019.
Q2. What will be the cloud applications market size by 2026?
A2. The global cloud applications market is projected to reach a market size of US$212.419 billion by 2026.
Q3. What are the growth prospects for the cloud applications market?
A3. The cloud applications market is projected to grow at a CAGR of 17.25% over the forecast period.
Q4. What factors are anticipated to drive the cloud applications market growth?
A4. The rising use of the application in small and medium businesses, as well as large data management, are the key drivers of the cloud applications market.
Q5. Which region holds the maximum market share of the cloud applications market?
A5. North America is expected to hold a significant share of the cloud applications market.
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