The global cloud computing market is expected to grow from $272 billion in 2018 to $624 billion by 2023 at a compound annual growth rate of 18%, a report from ResearchAndMarkets showed.
The report said that the increasing volume of data generation in websites and mobile apps, rising focus on delivering customer-centric applications for driving customer satisfaction, and growing need to control and reduce capital expenditure (capex) and operational expenditure (opex) are a few factors driving the growth of emerging technologies.
It also said that acceleration in adoption of emerging technologies, such as Big Data, artificial intelligence (AI), and machine learning (ML) is leading to the growth of the cloud computing market.
Other factors contributing to growth include data security, faster disaster recovery (DR), and compliance requirements.
Additionally, the report said that enterprises' need to mitigate risks, achieve scalability and flexibility to move and store data, reduce storage and infrastructure complexities, and increase business efficiency were also leading to the growth of the cloud computing market.
In April, National Association of Software and Services Companies (Nasscom) estimated that the size of the Indian cloud computing market will almost triple by 2022, growing at a compound annual growth rate of 30% to $7.1 billion.
Nasscom said in a statement that it estimated the size of the cloud market to be around $2.5 billion in 2018, dominated by infrastructure-as-a-service (cloud storage) and software-as-a-service segments.
According to Nasscom, cloud spending in India recorded a compound annual growth of 40.2% during 2016-2018. This was the second-fastest pace in the world, next only to China.
In 2018, cloud accounted for around 6% of the total information technology spending, Nasscom said.
The industry association attributed this growth to the growing presence of “hyper-scale” cloud providers in Big Data, analytics, AI and internet of things (IoT). Cloud has also emerged as an economic proposition for the Indian small and medium enterprises, large enterprises and government, Nasscom said.