Cloud Services Brokerage Market By Service Type (Aggregation (Multi-Cloud, Data Integration, Automation & Orchestration), Intermediation (Security, Performance & Usage), Arbitrage (Marketplace, Service Catalog, Enablement)) - Global Forecast to 2029
[257 Pages Report] The Cloud Services Brokerage (CSB) market is expected to grow from USD 11.4 billion in 2024 to USD 26.2 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 18.0% during the forecast period. The CSB market dynamics have recently evolved from a traditional model of cloud service aggregators to sophisticated providers due to improved technology and rising demand for efficiency, flexibility, and interoperability.
Initially, CSBs were used to create a middle tier between the users and the providers. Nevertheless, introducing multi-cloud and hybrid cloud systems has significantly changed this field. Such changes call for more sophisticated approaches to handling cloud services and integrating, managing, and optimizing diverse cloud services.
Besides, the numerous data and applications flowing across and within the different platforms have created a high demand for full-fledged CSB solutions due to the relatively complex environment of such sophisticated ecosystems. Forces fueling this growth include the continuing trend toward telecom, BFSI, and IT services sectors’ digitalization, the demand for improved compliance and governance, and the emergence of new forms of software designed to work on the Internet. The COVID-19 epidemic quickly fostered the shift toward the cloud as companies sought solutions that would enable them to accommodate more workers without interruptions.
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CSB Market Dynamics
Driver: Growing adoption of multiple cloud solutions
The increased use of multiple cloud solutions propels the CSB market since managing multiple cloud systems is difficult. As more and more enterprises embark on the use of clouds, CSBs assist in the organization and utilization of a variety of cloud services optimally. According to Forbes, Turing.com and CloudZero figures revealed that by 2024, the majority, approximately 94% of firms worldwide, are expected to be using cloud technology. Cloud services brokers are helpful in this regard since they help organizations manage this complexity by offering integrated services to get the best of the available cloud services. It is used as an intermediary providing solutions to connect the different channels of clouds and manage costs and multi-cloud operations. These trends indicate the need to improve brokerage services to stop vendors from locking their clients in a way that disrupts business operations and disaster recovery because of the shift toward hybrid or multi-cloud solutions. CSBs offer functional solutions, such as management platforms, analytics, and advisory services, to work effectively in complicated settings. The requirement to address and control processes of that sort would likely stimulate development within the CSB market since anything improved on their platform would, in turn, necessitate change. Against this backdrop, CSBs are critical enablers of simplified cloud management and relevant solutions for strategic business-cloud management.
Restraint: Security and data privacy concerns
The risks of hacking, data breaches, illegal access, and data loss increase as companies shift their operations from the traditional environment to the cloud. Since their information is susceptible, many organizations are still afraid of using cloud services because they are insecure about the contents of their information online; this, therefore, calls for cloud brokers to have stringent policies that ensure customers' confidential details are safe from hackers or any other unauthorized person. The brokers should ensure encryption and secure authentication mechanisms that safeguard the confidentiality of the transferred documents so that any attempt for sabotage fails.
Moreover, it will further be complicated by-laws that include compliance with GDPR or CCPA; in these cases, brokers have to verify whether they are acting according to the legal requirements and residency policies regarding how the information is dealt with on their behalf for other countries. Besides, data sovereignty concerns introduce legal challenges where data may be subject to the hosting country's laws. This complicates the fact that different security measures are adopted by cloud service providers, thus begging questions on the reliability of the vendors and security concerns around the service. It is the quick actions that are taken during a security event that significantly reduce the extent of damage caused by such an event. For all these reasons, cloud brokers have to, at all costs, focus on developing solid measures for data protection and compliance mechanisms that deal effectively with security and privacy concerns.
Opportunity: Need for multi-cloud management
Multi-cloud solutions have numerous advantages and could be developed in the global market for cloud services brokerage. The more an organization moves to a multi-cloud strategy, the harder it gets for them to manage such diverse settings. Instead, the burden will fuel the need for CSBs engaging in multi-cloud, which must have a single plane of sight, consistent automation, optimization, and security. Also, through such intermediaries as CSBs, cloud governance can be optimized, leading to the optimization of consumption play and the enhancement of control over costs. For that reason, the position of CSBs would remain highly central to businesses in optimizing their cloud investments and achieving operational excellence to meet the emerging multi-cloud management demands effectively.
Challenge: Integration of modern cloud solutions with legacy systems
Many legacy systems cannot integrate with the new cloud, and the latter makes them costly to upgrade and may pose security issues. They may also present performance issues because they were not designed with cloud architecture in mind, and their staff may be inexperienced in state-of-the-art cloud solutions and platforms. In addition, its antecedents, vendor lock-in, and regulatory compliance are a source of more problems regarding integration. That is why organizations must design specific integration scenarios and, if possible, upgrade the outdated platforms.
Cloud Services Brokerage Market Ecosystem
Based on verticals, manufacturing segment to account for second-largest market share during forecast period
The manufacturing sector increasingly relies on CSB solutions to drive operational efficiency and innovation. CSB platforms offer manufacturers the ability to integrate and manage disparate cloud-based services; combining different types of cloud-based service models enables manufacturers to reduce complexity across functions, such as supply chain management, production scheduling, and quality control, on a single platform. This consolidation improves visibility, coordination, and efficiency across organizational production units. In addition to this type of integration, CSB solutions enable the integration of data analytics and IoT, an essential requirement for new manufacturing capabilities. Combining cloud-based analytics tools with IoT enables organizations to monitor equipment performance in real time and analyze production data, enabling organizations to conduct predictive maintenance and imbue their operations with optimized performance standards. These conditions reduce downtime and drive productivity. By utilizing cloud technologies, manufacturers can experiment with innovation through new technologies while adapting to changing product demand and maintaining control of compliance concerning costs and complexity.
Based on cloud service models, IaaS to hold second-largest market share during forecast period
The Infrastructure as a Service (IaaS) cloud service model in the CSB market is poised to grow at the second-largest CAGR during the forecast period. IaaS enables businesses to rent virtualized computing resources, such as servers, storage, and networking, over the Internet on a pay-as-you-go basis. IaaS enables organizations to quickly scale their IT infrastructure according to changing business needs, lowering or eliminating capital expenditures, and simplifying physical servers and hardware management. Rising demand for cloud-based solutions, representing a lower total cost of ownership and scalability and reproducibility of business solutions compared to physical solutions, will drive demand for IaaS. In addition, CSBs provide oversight for IaaS offered by multiple cloud solution providers, simplifying the management of IaaS and enhancing cost management, security, and compliance with regulations and policies. The growing acceptance of hybrid cloud strategies and multi-cloud solutions and the ever-increasing demand for scalable infrastructure to support cloud-native applications enable IaaS to continue multiplying.
Based on regions, North America to account for largest market share during forecast period
The North American CSB market is expected to dominate the global market with maximum share because almost every company is now grafting multi-cloud environments for flexibility, less risk, and minimum cost for business operations. CSBs are mediators that provide cloud governance, compliance solutions, service coordination, monitoring and enforcement, and vendor management. Among leading cloud providers, AWS, Microsoft Azure, and Google Cloud are increasingly locking horns in this area in new consultancy deal arrangements to complement the service delivery capacity and geographical scope. New technologies, such as automation in the cloud and AI for management, enhance work within CSBs. Nevertheless, issues like the need to employ well-trained personnel and data privacy kept reducing the Americas' CSB market as North America enjoys a superior IT platform and constant development of new cloud services. The levels of investment that the US government has made in cloud computing for operations of the public sector and the focus that the region has put on digital transformation also help fuel the growth of the CSB market, thus leaving North America a strong player during the forecast period.
Key Market Players
The CSB market is dominated by a few globally established players, such as Accenture (Dublin), IBM (US), Broadcom (US), Arrow Electronics (US), Fujitsu (Japan), DXC Technology (US),Wipro (India), Eviden (France), AWS (US), Infosys (India), NTT Data (Japan), TCS (India), Tech Mahindra (India), BMC Software (US), Flexera (US), Jamcracker (US), Cloudmore (Sweden), Eshgro (Netherland), OpenText (Canada), Incontinuum (Netherland), Compunnel (US), Shivaami (India), Bittitan (US), Capegemini (France), Oracle (US), Cignex (US), ActivePlatform (Belarus), CloudFX (Singapore), CloudBolt (US), CloudSME (US), AppDirect (US), Morpheus Data (US), Interworks. Cloud (UK), Racknap (India), Spot (US), and CloudBroker (Switzerland). Cloud computing's quick growth and more complex multi-cloud setups expand the CSB market. There is a growing adoption of hybrid and multi-cloud strategies to increase the company's agility and reduce expenses, necessitating complex brokerage services. Some trends, such as better cloud management, optimized tools, and improved security and compliance, are needed to help work through various clouds. Providers focus on the smooth transition from one cloud to another, bettering SLA, and providing mechanisms to take care of costs. Cloud brokers continue to build the latest technologies, including AI in analytics and decision-making, to remain relevant. They are expanding their offerings to offer superior, more durable cloud infrastructures and cater to emerging enterprise requirements.
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Scope of the Report
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Report Metrics |
Details |
Market Size Available For Years |
2019–2029 |
Base Year Considered |
2023 |
Forecast Period |
2024–2029 |
Forecast Units |
Value (USD Million/Billion) |
Segments Covered |
Service Type, Cloud Service Model, Organization Size, and Vertical |
Regions Covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies Covered |
Accenture (Dublin), IBM (US), Broadcom (US), Arrow Electronics (US), Fujitsu (Japan), DXC Technology (US), Wipro (India), Eviden (France), AWS (US), Infosys (India), NTT Data (Japan), TCS (India), Tech Mahindra (India), BMC Software (US), Flexera (US), Jamcracker (US), Cloudmore (Sweden), Eshgro (Netherland), OpenText (Canada), Incontinuum (Netherland), Compunnel (US), Shivaami (India), Bittitan (US), Capegemini (France), Oracle (US), Cignex (US), ActivePlatform (Belarus), CloudFX (Singapore), CloudBolt (US), CloudSME (US), AppDirect (US), Morpheus Data (US), Interworks.cloud (UK), Racknap (India), Spot (US) and CloudBroker (Switzerland) |
This research report categorizes the cloud services brokerage market to forecast revenue and analyze trends in each of the following submarkets:
By Service Type:
-
Aggregation
- Multi-cloud Management
- Data Integration
- Automation & Orchestration
- Service Intermediation
- Security Management
- Performance & Usage Reporting
- Service Arbitrage
- Service Catalog Management
- Marketplace Integration
- Enablement Services
By Cloud Service Model:
- PaaS (Platform as a Service)
- IaaS (Infrastructure as a Service)
- SaaS (Software as a Service)
By Organization Size:
- Large Enterprises
- Medium Enterprises
- Small Enterprises
By Vertical:
- BFSI
- Telecommunications
- IT & ITES
- Government & Public Sector
- Retail & Consumer Goods
- Manufacturing
- Energy & Utilities
- Media & Entertainment
- Healthcare & Life Science
- Other Verticals
By Region:
-
North America
- United States
- Canada
-
Europe
- United Kingdom
- Germany
- France
- Italy
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
-
Middle East & Africa
- GCC
- South Africa
- Rest of the Middle East & Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In December 2023, Wipro strengthened its partnership with RSA by offering cloud migration services that would make it easier to move its data to a cloud repository and improve its IT infrastructure for three years. This agreement will help RSA strengthen its IT systems, explicitly concerning cloud computing, automation installed in compliance with regulatory requirements, security measures implemented, and growth potential.
- In December 2023, Google Cloud and Accenture announced the opening of a Center of Excellence for generative AI. The center would be to speed up the adoption and application of AI in industries. Google offered complex AI models and integration technologies, while Accenture provided customization services, improving efficiency and driving business transformation.
- In October 2023, IBM acquired Equine Global, an Indonesian ERP and cloud consulting firm, to boost its consulting services and hybrid cloud in the region. This acquisition added Equine Global's ERP knowledge and critical partnerships with SAP, Oracle, and AWS to the company.
Frequently Asked Questions (FAQ):
What is a cloud services brokerage?
CSB involves third-party intermediaries between service providers and organizations that help an organization discover, manage, and integrate many cloud services from different providers. A CSB decreases the challenge of approaching several clouds by providing an intermediary function to the organization concerning the management of vendors, the billing consortium, security, and compliance. CSBs integrate access, personalize, and optimize existing cloud services, enabling an organization to use cloud resources while controlling the associated costs and performance utilization.
Which country was the early adopter of CSB solutions?
The US was at the initial stage of adopting CSB solutions.
Which are the key vendors exploring CSB solutions?
The major vendors offering cloud brokerage services include Accenture (Dublin), IBM (US), Broadcom (US), Arrow Electronics (US), Fujitsu (Japan), DXC Technology (US), Wipro (India), Eviden (France), AWS (US), and Infosys (India).
What is the total CAGR recorded for the CSB market from 2024 to 2029?
The CSB market will record a CAGR of 18.0% from 2024 to 2029.
What is the projected value of the CSB market?
The CSB market will grow from USD 11.4 billion in 2024 to USD 26.2 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 18.0% during the forecast period.
What are the significant trends in the CSB market?
Significant trends in the CSB market include integrating advanced technologies, such as AI and analytics, to manage multiple cloud services. There is a growing focus on security and compliance to address rising concerns about data breaches and regulatory requirements. The continuous evolution toward hybrid and multi-cloud strategies further stimulates demand for CSBs to provide seamless interoperability and a single pane of glass in their management tools. This growth in edge computing also affects CSBs, which evolve to provide decentralized data processing and real-time analytics. .
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This research study used extensive secondary sources, directories, and databases, such as D&B Hoovers, Bloomberg Businessweek, and Factiva, to identify and collect information for a technical, market-oriented, and commercial study of the global cloud services brokerage market. Additionally, a few other market-related reports and analyses published by various industry associations and consortiums, such as the National Security Agency (NSA) and SC Magazine, were considered while doing the extensive secondary research. The primary sources were mainly the industry experts from the core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, and technologists from companies and organizations related to all segments of this industry’s value chain. In-depth interviews were conducted with primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess prospects. The market has been estimated by analyzing various driving factors, such as improving organizational compliance requirements, enhancing operational efficiency, and requiring simplified workflows to eliminate bottlenecks.
Secondary Research
The market size of companies offering cloud services brokerage was arrived at based on the secondary data available through paid and unpaid sources, as well as by analyzing the product portfolios of major companies in the ecosystem and rating the companies based on their product capabilities and business strategies.
Various sources were used in the secondary research process to identify and collect information for the study. These sources included annual reports, press releases, investor presentations of companies, product data sheets, white papers, journals, certified publications, articles from recognized authors, government websites, directories, and databases.
Secondary research was mainly used to obtain essential information about the industry’s supply chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market- and technology-oriented perspectives, all of which were further validated by primary sources.
Primary Research
In the primary research process, various sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the cloud services brokerage market.
Primary interviews have been conducted to gather key insights on market statistics, the latest trends, disrupting the market, new use cases implemented, data regarding revenue collected from products and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand the various technology trends, segmentation types, industry trends, and regions. Demand-side stakeholders, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Security Officers (CSOs), and the installation teams of governments/end users using cloud services brokerage and digital initiatives project teams, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current use of services, which would affect the overall cloud services brokerage market.
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Market Size Estimation
We used top-down and bottom-up approaches to estimate and forecast the cloud services brokerage and other dependent submarkets. We deployed a bottom-up procedure to arrive at the overall market size using the revenues and offerings of key companies in the market. With data triangulation methods and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. We used the overall market size in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segments.
We used top-down and bottom-up approaches to estimate and validate the cloud services brokerage market and other dependent subsegments.
The research methodology used to estimate the market size included the following details:
- We identified key players in the market through secondary research. We then determined their revenue contributions in the respective countries through primary and secondary research.
- This procedure included studying top market players' annual and financial reports and extensive interviews for key insights from industry leaders, such as Chief Executive Officers (CEOs), VPs, directors, and marketing executives.
- All percentage splits and breakups were determined using secondary sources and verified through primary sources.
All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added with detailed inputs and analysis from MarketsandMarkets.
Cloud services brokerage market: Top-down and Bottom-up approaches
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Data Triangulation
After arriving at the overall market size, the market was split into several segments and subsegments using the market size estimation processes explained above. Where applicable, data triangulation and market breakup procedures were employed to complete the overall market engineering process and determine each market segment's and subsegment's exact statistics. The data was triangulated by studying several factors and trends from the cloud services brokerage market's demand and supply sides.
Market Definition
Cloud Services Brokerage involves third-party intermediaries between service providers and organizations that help an organization discover, manage, and integrate many cloud services from different providers. A CSB decreases the challenge of approaching several clouds by providing an intermediary function to the organization concerning the management of vendors, the billing consortium, security, and compliance. CSBs integrate access, personalize, and optimize existing cloud services, allowing an organization to use cloud resources while controlling the associated costs and performance utilization.
Key Stakeholders
- Technology service providers
- CSPs
- Colocation providers
- Government organizations
- Networking companies
- Consultants/consultancies/advisory firms
- Support and maintenance service providers
- Telecom service providers
- Information Technology (IT) infrastructure providers
- System Integrators (SIs)
- Regional associations
- Independent Software Vendors (ISVs)
- Value-added resellers and distributors
Report Objectives
- To define, describe, and forecast the global Cloud Services Brokerage market based on service type, cloud service model, organization size, vertical, and region.
- To forecast the market size of the five major regional segments: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To strategically analyze the market subsegments concerning individual growth trends, prospects, and contributions to the total market
- To provide detailed information related to the significant factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze macro and micro markets concerning growth trends, prospects, and their contributions to the overall market
- To analyze industry trends, patents and innovations, and pricing data related to the Cloud Services Brokerage market.
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players.
- To profile key players in the market and comprehensively analyze their market share/ranking and core competencies.
- To track and analyze competitive developments, such as mergers & acquisitions, product developments, and partnerships & collaborations in the market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations per the company's specific needs. The following customization options are available for the report:
Product Analysis
- The product matrix provides a detailed comparison of each company's portfolio.
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern & African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Cloud Services Brokerage Market