Cloud Professional Services Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, UK, Canada, Germany - Size and Forecast 2024-2028

Cloud Professional Services Market Size 2024-2028

The cloud professional services market size is forecast to increase by USD 35.4 billion at a CAGR of 19.64% between 2023 and 2028.

• The market is experiencing significant growth, driven by the digital transformation of various industries. This trend is propelling the adoption of cloud services, including private cloud solutions, to support businesses in their digital journeys. With the increasing use of the Internet of Things (IoT), Data analytics, Artificial Intelligence (AI), and Machine Learning in various Industry Verticals, the need for advanced services in cloud environments is escalating. However, security concerns remain a major challenge for organizations considering cloud migration. As companies increasingly rely on cloud services to store and process sensitive data, ensuring strong security measures is crucial. The market analysis also highlights the importance of addressing these concerns through advanced security solutions and compliance with industry standards. Overall, the market is poised for continued expansion, with a focus on delivering secure and effective cloud solutions to meet the evolving needs of businesses.

What will be the Size of the Market During the Forecast Period?

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• In today's digital landscape, businesses are increasingly turning to specialized cloud services to meet their evolving needs. Cloud computing, with its scalability and advanced features, has become a cornerstone of digitalization. The convergence of cloud services, Internet of Things (IoT), data analytics, artificial intelligence (AI), and machine learning is revolutionizing various industries. The healthcare sector, for instance, is leveraging cloud services to manage electronic health records and facilitate telemedicine. Remote patient monitoring, big data analytics, and telehealth are transforming the way healthcare is delivered, making it more accessible and efficient. The cloud's ability to securely store and process large volumes of data is crucial in this context.

• Multi-cloud security is another critical aspect of cloud services. With the increasing adoption of cloud services, ensuring security across multiple platforms is a business necessity. Collaborations between cloud providers and security firms are on the rise to address this challenge. Advanced services, such as AI and machine learning, are adding value to cloud offerings. These technologies enable businesses to gain insights from their data, optimize processes, and make informed decisions. The cloud's ability to support advanced services is a significant factor driving its adoption. In the business world, the cloud's scalability and flexibility are essential. Companies are adopting a cloud-first vision to digitize their processes and stay competitive. Strategic collaborations between cloud providers and ecosystem partners are helping to expand the range of offerings and create new opportunities. The future of cloud services lies in their ability to meet business needs in an ever-changing digital landscape.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Deployment
  • Public cloud
  • Private cloud
• End-user
  • Large enterprises
  • Small and medium-sized enterprises (SMEs)
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
  • Middle East and Africa
  • South America

By Deployment Insights

• The public cloud segment is estimated to witness significant growth during the forecast period.

Public cloud professional services refer to offerings provided by cloud service providers and consulting firms, enabling organizations to maximize their use of public cloud platforms. The increasing adoption of public cloud solutions is driving the demand for these services. They encompass solutions and support for cloud adoption, implementation, management, and optimization. This includes infrastructure deployment, such as provisioning virtual machines, containers, storage, databases, and networking components. Additionally, public cloud professionals offer expertise in areas like cloud strategy development, application refactoring, workload assessment, performance optimization, and cloud architecture design. By leveraging these services, businesses can effectively manage their cloud resources and fully realize the benefits of public cloud platforms.

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The public cloud segment was valued at USD 7.60 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 38% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Cloud professional services have gained significant traction in North America as businesses increasingly adopt cloud computing to enhance their operations. With cloud technologies enabling scalability, cost-efficiency, flexibility, and collaboration, the demand for cloud services is on the rise in various industries. Cloud professional services encompass a range of offerings, including consulting, implementation, and management, that help organizations effectively transition their IT infrastructure and applications to the cloud. In 2023, the North American market for cloud professional services was growing rapidly, driven by the increasing digital transformation initiatives of businesses in the region. These initiatives aim to modernize operations, streamline processes, and improve customer experiences, all of which can be achieved through the adoption of cloud technologies. The regional market is expected to continue growing during the forecast period, making it an attractive investment opportunity for companies in the cloud services industry.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Cloud Professional Services Market?

Digital transformation of end-user industries is the key driver of the market.

• Cloud professional services are essential for businesses undergoing digital transformation by facilitating the adoption of cloud technologies. These services enable organizations to leverage advanced features such as data analytics, artificial intelligence, and machine learning to gain insights and make informed decisions. With the increasing use of Internet of Things (IoT) devices, multi-cloud security has become a top priority, and cloud professional services offer specialized expertise to ensure compliance with security measures and regulations. Industries such as healthcare and lifesciences are adopting cloud solutions for digitalization, with applications including Electronic Health Records (EHR), telemedicine, and big data analytics. Cloud first vision and strategic collaborations within the ecosystem are driving the adoption of cloud services, offering cost reduction and risk reduction through high-performance computing and productivity enhancements.

• Cloud platforms provide scalability, enabling businesses to handle varying workloads and increased demand. Cloud professional services support organizations in migration, architecture design, performance optimization, and ongoing management. Multi-cloud strategies, robotics, automation, and advanced analytics are essential components of a flexible and cost-efficient cloud infrastructure. Legacy applications, data transfer, and application compatibility are common challenges faced during cloud adoption. Cloud professional services offer expertise in application refactoring and infrastructure deployment to ensure a smooth transition. Compliance regulations and remote work capabilities are also addressed through security measures such as containerization and ongoing management. In conclusion, cloud professional services play a vital role in enabling businesses to adopt cloud technologies and achieve their digital transformation objectives.

What are the market trends shaping the Cloud Professional Services Market?

The increasing popularity of private cloud services is the upcoming trend in the market.

• Private cloud professional services refer to specialized offerings that help businesses implement, manage, and optimize their dedicated cloud computing resources and infrastructure. These services cater to the unique requirements of organizations seeking greater control over their data, applications, and security policies. Unlike public clouds, which are shared among multiple entities, private clouds are designed for the exclusive use of a single organization. This exclusivity offers advanced security features, scalability, and customization. In the realm of private cloud services, there is a growing demand for advanced services such as Internet of Things (IoT), Data analytics, Artificial Intelligence (AI), and Machine Learning (ML).

• Multi-cloud security is another critical area of focus, ensuring risk reduction and compliance with various regulations. Industry verticals like Healthcare and Lifesciences are increasingly adopting private cloud solutions for digital transformation, with applications including Electronic Health Records (EHRs), Telemedicine, Big Data Analytics, and Telehealth. Professional cloud services encompass consulting, development and operations, migration, architecture design, performance optimization, and ongoing management. Cost reduction and flexibility are significant benefits, with advanced features like containerization, hybrid cloud, and high-performance computing. Strategic collaborations and ecosystem partnerships play a crucial role in driving innovation and delivering value to businesses. In conclusion, private cloud professional services cater to the unique needs of organizations, offering enhanced security, customization, and control over their IT infrastructure.

What challenges does Cloud Professional Services Market face during its growth?

Security concerns regarding cloud services is a key challenge affecting the market growth.

• Cloud professional services play a crucial role in addressing the complexities and risks associated with cloud computing adoption. Cloud Services providers offer consulting, architecture design, performance optimization, and ongoing management to help businesses meet their unique needs. Security is a major concern in cloud environments, with risks related to data breaches, compliance issues, and security vulnerabilities. Multi-cloud security strategies, advanced analytics, and automation are essential to ensure cost-efficiency, flexibility, and compliance.

  Properly configuring access controls and ensuring isolation between tenants in public cloud environments are essential to prevent unauthorized access and data exposure. The adoption of cloud services is accelerating, with many organizations embracing a Cloud First Vision and digitizing their business processes. However, this rapid adoption can lead to cloud sprawl, where multiple services are used without proper oversight. Cloud Adoption requires careful planning, including workload assessment, application refactoring, and infrastructure deployment. Sovereign Cloud solutions offer additional security and compliance benefits for organizations with specific regulatory requirements. Collaborations and strategic partnerships between Cloud Services providers and ecosystem players are driving innovation and advanced features, such as Telehealth, Remote Patient Monitoring, and Big Data Analytics.

  These solutions enable productivity gains, cost reduction, and risk reduction for businesses across various sectors, including Healthcare and Lifesciences, IT Infrastructure, and Hybrid Cloud. Ensuring high-performance computing, scalability, and security in cloud environments requires specialized expertise. Cloud Strategy Development, Migration, and Ongoing Management are essential services to help organizations navigate the complexities of cloud adoption and optimization. Advanced services, such as Robotics, Automation, and Containerization, can further enhance business capabilities and improve operational efficiency.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast , partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Accenture Plc
• AT and T Inc.
• Capgemini Service SAS
• Cisco Systems Inc.
• Cloud Software Group Inc.
• Cognizant Technology Solutions Corp.
• Dell Technologies Inc.
• Deloitte Touche Tohmatsu Ltd.
• Deutsche Telekom AG
• Furukawa Electric Co. Ltd.
• Informatica Inc.
• Infosys Ltd.
• Microsoft Corp.
• Nippon Telegraph and Telephone Corp.
• Oracle Corp.
• SAP SE
• Tata Consultancy Services Ltd.
• Unisys Corp.
• Verizon
• Wipro Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Cloud computing has become an integral part of modern business infrastructure, enabling organizations to streamline operations, reduce costs, and enhance productivity. Cloud Professional Services cater to the evolving needs of stakeholders, driving market growth and enabling seamless platform as a service (PaaS), software as a service (SaaS), and infrastructure as a service (IaaS) solutions in the public cloud landscape. Professional cloud services play a crucial role in this landscape, offering advanced features, scalability, and security to meet the unique requirements of various industry verticals. The cloud services market is witnessing significant growth due to the increasing demand for digital transformation and the need for high-performance computing. The market is characterized by its dynamic nature, driven by technological advancements and evolving business needs. One of the key trends shaping the cloud services market is the integration of emerging technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) into cloud offerings.

Moreover, these technologies enable advanced analytics, real-time insights, and automated processes, offering significant value to businesses. Multi-cloud security is another critical aspect of the professional cloud services market. With the increasing adoption of multiple cloud environments, ensuring security and compliance across all platforms is essential. Advanced services such as containerization and ongoing management help organizations mitigate risks and maintain a secure cloud infrastructure. The consulting segment of the cloud services market is also experiencing growth, with businesses seeking expert guidance on cloud strategy development, workload assessment, application refactoring, and infrastructure deployment. These services enable organizations to optimize their cloud usage, reduce costs, and improve performance.

Furthermore, industry verticals such as healthcare and life sciences are leveraging cloud services to digitize business processes and enhance patient care. Electronic health records, telemedicine, and big data analytics are some of the key applications driving the adoption of cloud services in this sector. The cloud first vision is another trend shaping the market, with organizations increasingly adopting a cloud-native approach to IT infrastructure. Strategic collaborations and ecosystem partnerships are also on the rise, enabling businesses to leverage the expertise and resources of multiple providers and maximize the value of their cloud investments. The professional cloud services market is characterized by its flexibility and cost-efficiency, making it an attractive option for businesses of all sizes.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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