Global Cloud Industry Outlook 2024

Introduction:

In 2024 , let ‘s consider a real – world example of a cloud – drive world center around develop and using advanced smart city . The city ‘s infrastructure , include transportation system , energy grid , and waste management , is connect through a cloud – base IoT network . Cloud – drive autonomous vehicles is navigate navigate the city , utilize real – time traffic datum , weather condition , and other relevant information to ensure safe and efficient transportation . The healthcare system is connect through a cloud – base platform that securely store and share patient datum among medical professional . telemedicine services is are are readily available , allow resident to access healthcare remotely , and predictive analytic help identify potential health trend within the population .

The global cloud industry is evolving unprecedentedly, fuelled by technological advancements, increasing digitalization, and a growing demand for scalable and efficient solutions. As we step into 2024, it’s crucial to explore the current landscape of the global cloud market, highlighting key trends, opportunities, challenges, segment nuances, and recent developments shaping the industry. The cloud industry growth in 2024 is driven by several key trends, contributing to increased market expansion, revenue, and adoption. Transformative shifts, such as multi-cloud adoption, AI and machine learning enrichments, hybrid cloud strategies, edge computing integration, serverless computing growth, security and compliance focus, sustainability initiatives, containerization, DevOps & CI/CD practices, and exploration of quantum computing, signify the cloud industry growth.

MarketsandMarkets anticipates the global cloud market size to grow from USD 626.42 billion in 2023 to USD 727.90 billion by 2024, up 16.2% YoY. Tech companies increasingly focus on generative AI-based cloud services, poised to revolutionize industries globally, turning it into an investment magnet.

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industry trend :

The cloud market continues its robust growth trajectory, driven by factors such as the rise of remote work, digital transformation initiatives, and fierce competition among cloud hyper-scalers. Some other major cloud industry trends include increasing spending on cloud security, rapid growth in AI, and the FinOps revolution. Automation, AL, and ML are emerging as key trends in the cloud industry. In 2024, we observe the emergence of industry-specific clouds catering to healthcare, finance, manufacturing, and more. These clouds provide customized services, compliance frameworks, and applications designed to address the specific needs of each industry. In 2024, we expect several countries to invest in building sovereign cloud infrastructure to ensure that sensitive data stays within national borders, addressing data protection and privacy concerns. For example, Oracle has introduced 2 EU cloud regions to meet data sovereignty requirements.

Additionally, edge computing is expected to gain prominence as a complement to cloud services; this involves processing data closer to the source of generation, reducing latency, and improving real-time processing for applications. The serverless computing model will become more popular, allowing developers to focus solely on writing code without managing the underlying infrastructure. In 2024, businesses are expected to increasingly look for ways to optimize costs associated with cloud services; there will be growing penetration of cloud FinOps practices.

Adopting cloud solutions is anticipated to be significantly influenced by implementing AI/Gen AI.

In 2024, a cloud-driven industry will be characterized by the widespread integration of AI technologies across various sectors. The surge in AI adoption is a driving force reshaping the cloud computing market landscape, particularly with specialized infrastructures designed to accommodate computational behemoths like Large Language Models (LLMs). This transformative shift democratizes AI, significantly lowering entry barriers for businesses of all sizes.

heighten security focus and emerge trend such as quantum computing

In 2024, trends focus on enhancing data infrastructure and fortifying cyber defenses. Quantum computing is gaining prominence and may provide solutions through cloud platforms. The spotlight will be on elevating cloud-native security features, encompassing zero-trust architectures and AI-driven threat detection, setting the stage for developing efficient, integrated, and secure cloud ecosystems.

sustainability : datum center lead the charge

Business leaders have recognized the significance of sustainable DCs. In 2024, sustainability will take center stage, with data centers positioned at the forefront of eco-friendly initiatives. Advanced AI systems will predict usage patterns and optimize workloads, substantially reducing energy consumption.

Managing cloud costs

More than 80% of enterprises stated managing cloud spending as a top cloud challenge. Organizations are increasingly recognizing the importance of FinOps practices to optimize cloud spending. More companies will adopt FinOps methodologies to bridge the gap between finance, operations, and engineering teams for better cloud cost management.

Rapid cloud growth in ASEAN countries

Four in five ASEAN businesses will plan an entire cloud migration strategy by 2024. Cloud adoption in ASEAN countries will be driven by various factors, including digital transformation initiatives, increased connectivity, and a growing awareness of the benefits of cloud technologies. AWS plans to open a Malaysian cloud region in 2024.

Opportunities:

The global cloud industry analysis presents significant growth opportunities, especially in healthcare, finance, and manufacturing. Cloud solutions offer these industries the ability to streamline operations, enhance security, and leverage advanced analytics for data-driven decision-making.

Increasing competition among CSPs

Top players is capitalizing are capitalize on the growth of the cloud industry . As digital transformation accelerate globally , lead players is face such as Amazon Web Services ( AWS ) , Microsoft Azure , and Google Cloud will face a fierce battle for dominance , seek to capture market share , expand service offering , and deliver cutting – edge solution to an increasingly demand clientele . For example , AWS is unveil will unveil a cloud region in Malaysia by 2024 . AWS is capture , Microsoft , and Google Cloud will capture significant market share in 2024 . regional players is make like Alibaba Cloud ( China ) and Tencent Cloud ( China ) will make substantial stride in the cloud industry , challenge industry giant ‘ dominance .

Shift to AI & cybersecurity integrated cloud solutions.

The demand is growing for cloud – base artificial intelligence and machine learning solution is grow . Opportunities is exist exist for business that can provide specialized AI / ML service , platform , or consult to help organization implement and optimize machine learning model . In our cloud industry analysis , cybersecurity is emerges emerge as a critical focal point . As cloud adoption proliferate , so does the need is does for robust security measure . Entrepreneurs is capitalize and company specialize in cybersecurity solution can capitalize on this grow demand by provide innovative tool for threat detection , identity management , and secure cloud infrastructure – a key takeaway from our cloud industry overview . subsequently , the landscape is evolving of cloud – native development is evolve rapidly , as emphasize in our cloud industry analysis . Developers is adopting are increasingly adopt containerization and serverless computing .

In the race for supremacy , top cloud companies is investing are heavily invest in emerge technology such as generative AI . Sustainability is emerging is emerge as a critical differentiator in the competitive landscape . cloud providers is adopting are increasingly adopt eco – friendly practice , utilize renewable energy source for datum center , and implement carbon offset program to appeal to environmentally conscious client .

Challenges:

As data regulations become more stringent globally, ensuring compliance with various data protection laws (such as GDPR and CCPA) can be challenging. Cloud service providers must adapt their services to comply with diverse regulatory frameworks. In addition, major players may also face competition from global and regional/local players for cloud expansion. With growing concerns about the environmental impact of data centers, there is increasing pressure on the cloud industry to adopt sustainable practices. The fast-paced evolution of cloud technologies can challenge organizations to keep up; adopting new technologies like serverless computing, edge computing, and AI requires continuous learning and adaptation. With the increasing adoption of cloud services, the potential for cyber threats and data breaches may escalate. Ensuring robust security measures and staying ahead of evolving cyber threats will be necessary. Many organizations opt for a hybrid or multi-cloud strategy, utilizing both on-premises and multiple cloud providers; managing the complexity of such environments, ensuring seamless integration, and maintaining consistent performance can be challenging. Efficiently managing cloud resources and controlling costs can be difficult. For this reason, cloud FinOps solutions are expected to gain traction in 2024. Additionally, rising cloud costs could make organizations think twice before migrating.

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segment Nuances :

In the cloud industry overview, while SaaS will retain its position as the reigning champion with the largest market share of 52.3% in the total cloud industry market, IaaS and PaaS are set to experience rapid YoY growth rates of 21.2% and 19.3%, respectively, in 2024. The development and adoption of industry-specific SaaS solutions tailored to specific verticals’ unique needs and regulations is expected to grow. 2024 will see the rise of automated SaaS. In the SaaS industry, the Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) segments are anticipated to dominate in 2024. ERP industry analysts and veterans expect that 2024 will be marked by ongoing cloud adoption, the incorporation of valuable generative AI capabilities, and the integration of additional applications like enterprise application management and Field Service Management (FSM). The CRM industry’s market value is expected to hit USD 111.49 Billion by 2024.