AI and OTT platforms drive cloud computing market growth to new heights

The global cloud computing market is poised for rapid growth, with projections indicating a remarkable compound annual growth rate (CAGR) of 16.32% to reach an astounding $1,235.408 billion by 2028.

AI and OTT platforms fueling the cloud computing market growth

This exponential growth can be attributed to the escalating popularity of cutting-edge technologies, particularly artificial intelligence (AI) and machine learning, seamlessly integrated into cloud computing. The swift adoption of cloud services has been driven by the surging demand for Over-the-Top (OTT) platforms such as Prime Video, Netflix, Hotstar, and others, along with the widespread usage of online communication tools such as MS Teams, Zoom, Zoho, and Skype.

Moreover, companies worldwide have been compelled to enhance their infrastructural landscape to remain cost-effective and adaptable amidst rapid digitization. Consequently, increased investments in reliable telecom and IT infrastructure are anticipated to fuel the expansion of the cloud computing market during the forecast period.

Growing concerns over cybersecurity threats

As digital technologies become increasingly prevalent, the threat of cyberattacks has soared, prompting market participants and consumers to prioritize cybersecurity and data privacy. The need to maintain higher security standards incurs significant costs for service providers. Furthermore, small and medium-sized businesses face initial capital hurdles, discouraging them from adopting cloud-based services.

Manufacturing sector seizes the greatest opportunity

According to Research and Markets report, the manufacturing industry is poised to majorly benefit from cloud services, driven by real-time visibility and seamless data management. The convergence of technologies such as big data, machine learning, AI, the Internet of Things (IoT), and analytics has revolutionized the sector’s operations. Expectations for the manufacturing industry to use cloud services for data storage, supply chain management, and asset organization are projected to propel this segment’s growth throughout the forecast period.

BFSI segment embracing cloud computing

The Banking, Financial Services, and Insurance (BFSI) sector is reaping the benefits of cloud computing in terms of cost management, flexibility, accelerated innovation, and enhanced customer interaction. With the expanding BFSI segment relying on cloud services for consumer data storage and management, the market is set to witness significant growth. Digital wallets, payment gateways, online money transfers, and unified user experiences are expected to drive this sector’s demand for cloud computing services.

North America dominates the cloud computing market

North America has emerged as a frontrunner in adopting cutting-edge technology, including AI, virtual reality/augmented reality (VR/AR), machine learning, big data analytics, and IoT. The region’s emphasis on digital technology adoption for operational enhancement and cost reduction has propelled the adoption of cloud computing services. Powerhouses like IBM, Oracle, Google, and Apple have played a vital role in driving the cloud computing business in North America. The rapid adoption of cloud services across industries such as manufacturing and healthcare has significantly contributed to the region’s market dominance. Additionally, the easy availability of ICT services and favorable government initiatives have further spurred the expansion of the cloud computing market in North America.

The projected growth of the cloud computing market is set to revolutionize industries across the globe, presenting numerous opportunities for businesses to scale, innovate, and cater to evolving customer demands.

WRITTEN BY

Team Eela

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