Cloud Data Center Market Size to Reach $70 Bn by 2032
As per the report by Global Market Insights Inc. “Worldwide cloud data center market was valued at over USD 20 billion in 2022 and will surpass a revenue collection of USD 70 billion by 2032 with an annual growth rate of 10% from 2023 to 2032.”
The growth of e-commerce and online services is expected to drive significant growth in the Cloud Data Centre Market until 2032. The rise in online shopping has presented numerous growth prospects for e-commerce platforms. Leading online retailers like Amazon, Alibaba, and Flipkart have adopted hybrid data cloud centers to oversee sales, save customer data, and monitor other business operations. This adoption is expected to fuel the expansion of the market.
The cloud data center market is categorized based on service, deployment model, organization size, end-user, and region.
Infrastructure-as-a-Service (IaaS) segment is expected to exhibit growth until 2032, based on its service. The segment’s growth can be attributed to the increasing preference for IaaS, which provides users with more flexibility to build computing resources as needed and resolves data traffic issues. Moreover, IaaS allows users to access cloud servers and storage directly through any mobile device, further contributing to the segment’s growth.
In terms of deployment model, the private cloud data center segment is expected to gain traction in the coming years, as it enables a single user to access data from anywhere, at any time. Private cloud data centers are also preferred by the BFSI industry due to their high-end security and on-premises data center storage.
Small- and medium-sized enterprises (SMEs) are anticipated to drive significant demand for cloud data centers based on organization size. SMEs are increasingly adopting cloud data software to manage data in one location and meet business requirements. Additionally, storing data on the cloud helps to reduce infrastructure and labor costs while saving time.
The colocation segment is expected to experience noticeable growth by 2032 based on end-users. Colocation involves customers transferring servers and hardware into a data center with internet connection, power, cooling, and security systems. Moreover, increased investment and innovation to support cloud software applications in the colocation segment is driving market growth.
In terms of region, the Asia Pacific cloud data center market is projected to exhibit a CAGR of over 30% from 2023 to 2032. Advancements in AI and IoT in various countries such as India, China, and Japan are expected to have a positive impact on the industry outlook. The cloud market in Japan is growing due to the ongoing system migration from on-premises to cloud-based systems and increased demand for cloud-oriented systems.