News
Cloud computing market revenue to exceed US$250bn in APAC by 2023
November 2019 by GlobalData
Cloud computing continues to be the catalyst for growth of IT vendors globally. Being one of the most scalable and best supporting technologies, the cloud computing market revenue in the Asia-Pacific (APAC) region is expected to reach US$256bn during the outlook period 2018-2023, says GlobalData, a leading data and analytics company.
According to GlobalData’s Market Opportunity Forecasts Model, the APAC cloud computing market is set to grow at a compound annual growth rate (CAGR) of 19.0% during 2018-2023, accounting for nearly 30% of the overall market, behind only North America, which is estimated to have a market share of 33%.
Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “Cloud computing continues to fuel the growth of enterprises, supporting a wide range of use-cases such as adoption of emerging technologies, enhanced automation and agility capabilities, enhanced digital customer experience, IT infrastructure services scalability and accessibility requirements; and enhanced data accessibility and process capabilities.”
China and Japan, the two largest countries in terms of cloud computing revenue opportunity, together are expected to account for 60% of the overall growth in the region while Australia and New Zealand too will witness high growth rates during the review period.
Sunil explains: “Increased adoption of cloud services by small and medium-sized enterprises will act as a catalyst for growth in Japan while favorable government policies along with future cloud outlay plan by enterprises, especially start-ups, enterprises and government agencies, will be the key growth drivers in China.”
Manufacturing, information technology, retail banking, construction and energy will be the five largest industry verticals in terms of cloud computing revenue, accounting for 42% of the overall market in 2023.
Public and private cloud will be the largest segments in 2023, with the former accounting for two-thirds of the overall revenue. However, there are issues related to security concerns and real-time requirements for data processing (resulting in latencies at applications requiring central processing), which might hinder the public cloud adoption.
On the other hand, lower investment requirements for hardware and pay-as-you-go (PAYG) deployment model adoption is expected to drive the private cloud adoption.
Sunil concludes: “Though IT governance and cybersecurity concerns might be major hindrances in cloud adoption, the overall sentiment amongst enterprises still remains positive considering the cost-effectiveness and scalability benefits provided by it.”
