Understanding the Cloud Computing Market Share 2022: Complete Analysis and Projections
Cloud computing has become a buzzword in the IT industry for the last few years. This technology has transformed the way IT infrastructure operates by making it more efficient and cost-effective. Cloud computing refers to a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.
The cloud computing market is expected to reach $623.3 billion by 2023, growing at a CAGR of 18% from 2018 to 2023. This growth can be attributed to several factors, including an increase in the number of cloud-based applications, the rise in demand for big data analytics, and the adoption of IoT devices. Let’s dive deeper into understanding the cloud computing market share in 2022.
What is Cloud Computing Market Share?
Cloud computing market share refers to the percentage of the total cloud services market that a particular cloud service provider holds. In simple terms, it reflects the market dominance of a particular cloud service provider. Market share is calculated by dividing the revenue of a particular cloud service provider by the total revenue generated by all the cloud service providers in the market.
Current Market Landscape of Top Cloud Service Providers
Amazon Web Services (AWS) is currently the largest cloud computing service provider, with a market share of over 30%. Microsoft Azure is second with a market share of nearly 20%, followed by Google Cloud with a market share of 9%.
Other significant cloud service providers in the market include Alibaba Cloud, IBM Cloud, Oracle Cloud, and Salesforce. These cloud service providers hold a combined market share of approximately 22%.
Let’s analyze the projections for the year 2022 for the top cloud service providers.
Projections for Cloud Computing Market Share in 2022
According to projections, AWS is expected to maintain its dominance in the market, with a market share of 32.2%. Microsoft Azure is projected to increase its market share to 19.4%. Google Cloud is also expected to witness a rise in its market share to 9.6%.
The other notable players in the market are expected to maintain their market share with small fluctuations. Alibaba Cloud is projected to maintain its market share of 4.6%, IBM cloud’s market share is expected to drop slightly to 3.4%, Oracle Cloud’s market share is projected to maintain its current position at 2.2%, and Salesforce is projected to increase its market share to 4.3%.
Factors Driving the Cloud Computing Market Share
Several factors are driving the growth of the cloud computing market. The primary factor is the increase in the number of cloud-based applications. More and more businesses are adopting cloud services to leverage the benefits of scalable computing resources that can be provisioned on-demand based on their business needs.
The second factor driving the growth of the market is big data analytics. The amount of data generated in today’s world is enormous, and managing and processing this data requires robust computing resources. Cloud computing provides on-demand computing resources that can be scaled up or down depending on the business need.
Lastly, the adoption of IoT devices is also driving the growth of the cloud computing market. IoT devices generate significant amounts of data that need to be processed and analyzed in real-time. Cloud computing provides an ideal platform for processing this data, which is critical for businesses to make data-driven decisions.
Key Takeaways
The cloud computing market is expected to witness significant growth in the coming years, with a projected market value of $623.3 billion by 2023. AWS, Microsoft Azure, and Google Cloud are the top cloud service providers with the largest market share. The adoption of cloud services is driven by an increase in cloud-based applications, the need for big data analytics, and the adoption of IoT devices.
As an IT professional, it is important to stay updated with the latest trends in the market to make informed business decisions. Understanding the cloud computing market share is crucial in making decisions that can impact the business positively.
