SaaS emerges as preferred cloud services model

VALLEY COTTAGE, N.Y.—The global cloud services market is expected to surpass $470 billion in 2021, growing  steadily at a CAGR of 20 percent during the forecast period of 2020 to 2030, according to a new study by research and consulting firm Future Market Insights.

Surging adoption across diverse industries to accommodate digitization will remain one of the chief growth enablers, with the demand for software as a service (SaaS) models considerably high, showing a 22 percent year-over-year growth rate in 2021, the study found.

Key Takeaways of Cloud Services Market study:

• Cloud services market will exhibit impressive Y-o-Y growth at 19.9 percent CAGR in 2021. Study projects growth trends to remain positive through the forecast period.
• Both U.S. and Canada will exhibit remarkable growth as markets for cloud services. Of these, the U.S. will register 64.9 percent of North America market in 2021.
• Exhibiting 20.7 percent Y-o-Y growth in 2021, the U.K. will emerge as a key market in Europe.
• Germany and France will remain attractive spots for cloud services market.
• Japan and South Korea will exhibit demand for cloud services at an accelerated pace through the forecast period.

During COVID-19, the study found that the demand for cloud solutions and services has increased significantly, as organizations have transitioned to a more remote workforce.

“Many organizations 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 COVID-19 on operational efficiency and productivity,” analysts said, noting, “pubic cloud services market revenue is estimated to increase by 1.6X during 2019-2021.”

The study also noted a shift toward more use of cloud on the enterprise level: “Increasing usage of cloud-based services for multiple workloads such as email services, data backups, CRM, ERP and collaboration services is expected to drive growth of the cloud platforms, over the forecast period.

“Because the cost of cloud-based services is comparatively cheaper as these do not require setting up of IT infrastructure. Therefore, many companies are shifting towards adoption of security solutions in order to secure their workloads on the cloud without risks of cyber threat.”

For the full Cloud Services Market report, click here.