The cloud computing market size is expected to cross $285 billion by 2025 end, with a growth rate of over 29% during the next five years, says a report by market research firm Valuates.
Last year, the cloud computing market stood at $36.7 billion.
An uptrend in automation, improved customer experience and increased price savings and investment returns across sectors will drive the growth, the Bengaluru-based research firm added in a statement. It studied market development across the United States, Europe and China.
Cloud computing technologies are witnessing increased adoption across industries and have become the information technology infrastructures that support the new digital enterprises.
The report also mentioned new market trends like the BYOD (bring-your-own-device) culture across modern offices to highlight benefits encompassing cloud computing offerings.
The North American region accounted for more than half of the world's cloud computing market share. On the other hand, the Asia Pacific region is expected to offer “significant growth possibilities” for cloud computing market, Valuates said.
“A few variables driving the implementation of cloud computing in this region (APAC) are the growing availability of skilled labour and the keen concentrate given by SMEs and big companies to enter and develop in this region,” it added.
The cloud computing market is highly competitive with both global and local companies fighting to establish their base. Current market leaders in cloud computing include the likes of Amazon Web Services and Microsoft Azure.
AWS is the top cloud infrastructure provider. The Seattle-headquartered company reported a 35% year-on-year revenue jump to $9 billion in its cloud business in its recently reported third-quarter results.
Microsoft’s Azure recently beat Amazon Web Services, IBM Cloud and Oracle Cloud in line for Pentagon’s $10 billion cloud computing contract at the United States Defense Department.
The Joint Enterprise Defense Infrastructure deal or JEDI will build an enterprise cloud infrastructure that will support the department’s business and mission operations, the department announced in a separate statement.