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Sandeep Kolakotla, Technology Lead Analyst at GlobalData, comments: "While COVID-19-fueled transformations seen among enterprises, including en masse adoption of remote work, automation of key business processes, and the use of digital channels for customer interactions, have bolstered enterprise cloud investments over the last two years, the post pandemic optimism over enterprise IT spending will be a key factor for sustained growth in the cloud computing market over the forecast period."

According to GlobalData’s recent ICT Decision Makers Survey, a majority 81% of the respondents have confirmed that there has been an increase in their overall enterprise ICT budgets for the year 2023 compared to previous year. When particularly asked about cloud computing, about 76% of respondents confirmed that there has been an increase in their enterprise cloud computing budget for 2023 over previous year, which presents a favorable growth outlook for cloud computing market.

With enterprises expected to accelerate their IT modernization efforts, cloud computing market will stand to gain big time, as moving to cloud enables organizations to achieve greater scalability, agility, resilience, and ability to leverage DevOps practices for infrastructure and software development.

The growing IoT use cases, accelerated by 5G networks will also lend traction to the enterprise cloud computing market over the forecast period. This is because cloud computing not only provides a platform for storing, processing, and managing the IoT data but also enables IoT devices, connected factories, and data to be accessed, monitored, and managed remotely.

Increasing use of artificial intelligence to analyze huge volumes of data to generate meaningful insights makes for another strong business case for enterprise investments on cloud infrastructure, which can provide scalable storage and computing capability to crunch large amounts of data and AI algorithms.

Charlotte Dunlap, Research Director at GlobalData, adds: "Among cloud computing service segments, public cloud services (SaaS, PaaS and IaaS) account for more than 60% of the total addressable market over the forecast period, with SaaS being the largest category overall. PaaS, on the other hand, will be the fastest growing cloud service category over the forecast period.

A key factor driving rapid growth in PaaS segment is the strong enterprise preference for cloud-native application development platforms given their inherent cost advantage and improved application development/deployment/management capabilities. Application modernization projects underway, spurred by Kubernetes, will also underpin PaaS market growth over the forecast period."

While the large enterprise (1,001+ employees) segment will account for the largest share of the total revenue opportunity for cloud computing globally, revenue from the micro, small & medium size enterprise (MSME) segment (1-1000 employees) will increase at a faster CAGR of 18.1% over the forecast period.

*The Decision Makers Survey 2023 was conducted by GlobalData in H12023 and includes responses from 2,428 respondents across the globe. The survey is conducted annually.