Global Cloud Industry Outlook 2024

Cloud Industry Outlook - Worldwide

The global Cloud Market size was reasonably estimated at $626.4 billion in 2023. Throughout the projection period, the cloud industry is anticipated to increase 16.2% year-over-year in between 2023-2024 to reach around $727.9 billion in 2024.

Gen AI’s integration with the cloud, industry cloud adoption, cloud-native technology, intense competition among cloud vendors, and multi/hybrid cloud – are some trends that spearhead an uptick in cloud market growth. Global IT spending on devices, data center systems, enterprise software, IT services, and communications services is projected to total $5.1 trillion in 2024 (8% growth from 2023). The buzz around gen AI supports this trend. In 2024, both the software & IT services segment are poised for significant boost – predominantly fueled by cloud spending.

2023:

• CSPs embrace the Gen AI wave – Gen AI is crucial for continual cloud growth. AWS, Microsoft, and Google—Explore fresh possibilities for future gen-AI expansion.
• Finance Firms Soar into Digital Frontier – Major banks migrated workloads from legacy systems to the cloud to tailor CX & address security/scalability issues. The financial realm signaled a persistent commitment to the cloud; for instance, Mitsubishi UFJ Financial Group chose AWS to leverage generative AI capabilities for elevated customer service.
• Growth in Emerging Economies – Middle Eastern and Asia Pacific countries are quick adopters of cloud services. Google Cloud launched a cloud region in Dammam (KSA) and Qatar to support its Vision 2030 goal.

2024:

• Gen AI’s Success will be Driven by Cloud – In 2024, the synergy between cloud computing & AI/gen AI will strengthen further. Cloud providers will continue to enhance their capabilities for scaling AI applications.
• Continued Investments in Developing Countries – Google Cloud is set to collaborate with the Government of Kuwait. AWS intends to allocate $12.7 billion for cloud enhancement in India.
• Industry Cloud Usage Across Business Spheres – Most North American and European organizations have already started adopting industry cloud, and we will see increasing implementation by next year.

TOP GROWTH OPPORTUNITIES:

• Banks and software companies will focus more on cloud transformation initiatives. Cloud-based digital banking is expected to witness continued growth.
• Manufacturers will continue to spend on cloud migration projects to reduce costs.
• Growing concern about cyberattacks pushes cloud database spending.
• Use cases such as Cloud ERP, ECM, LMS, and HCM will witness higher spending growth.

We have analyzed the key trends in our Global Cloud Industry Outlook 2024 project that can help cloud professionals and business leaders prepare investments for the coming year.