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The private cloud services market size is estimated to grow at a CAGR of 26.71% between 2023 and 2028. The market size is forecast to increase by USD 619.08 billion. The growth of the market depends on several factors, including increased inclination for private cloud for enhanced data security, rise in adoption of cloud among SMEs, and control over data backup and recovery. Private cloud services refer to a cloud computing model where computing resources, such as servers and storage, are exclusively dedicated to a single organization. Unlike public clouds, private clouds are hosted within the organizations own data center or by a third-party provider. This model offers enhanced security, control, and customization, making it suitable for businesses with specific regulatory requirements or sensitive data concerns.
The report includes a comprehensive outlook on the Private Cloud Services Market, offering forecasts for the industry segmented by Service, which comprises IaaS, SaaS, PaaS. Additionally, it categorizes Type into large enterprise, small, and medium enterprise, and covers Geography regions, including North America, Europe, APAC, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Driver
The increased inclination for private cloud for enhanced data security is notably driving the market growth. A private cloud offers cloud storage resources to a single enterprise or organization. Various enterprises and organizations, from the government. BFSI, among other verticals, has started using private cloud services because of the key benefits of private cloud services, such as security and control. Since private cloud operates entirely within corporate firewalls, they give complete control over the entire backup process to the organization.
In addition, the increasing use of private clouds is encouraging various vendors to start offering private cloud solutions to government agencies. For instance, Microsoft Corp. offers Azure Government, which provides government-cloud computing services with security and protection to US government agencies and their partners. Furthermore, various organizations are forming partnerships to launch new products or expand their presence. Owing to these factors, the global private cloud services market will grow during the forecast period.
Increasing acceptance of private cloud in the BFSI segment is the primary trend shaping market growth. Private cloud solutions are being adopted by financial service institutions due to their overall agility and cost savings. The need for data security and compliance with the changing regulatory environment is prompting financial institutions to adopt a private cloud. Moreover, many financial service organizations have invested in private cloud infrastructure in the past few years, as they typically generate lots of data, which must be kept secure.
For example, JPMorgan Chase and Co., an investment bank and financial services company, is spending USD11 billion on technology; also, the company is focusing on building its own private cloud platform by partnering with AWS, Microsoft, and Google. This will enable the bank to create a multi-cloud architecture and will allow it to choose the best options for its business. Thus, the increased adoption of private clouds in the BFSI sector will boost market growth during the forecast period.
Vendor lock-in and operational complexities is the major challenge that affects market growth. Vendor lock-in, also known as customer lock-in or proprietary lock-in, is where a customer using a product or service cannot easily transition to another vendor product or service. This makes a customer dependent on a vendor for products and services, due to which the enterprise/customer cannot use the technology, solution, or service developed by other market players. Therefore, it may be difficult to switch to public cloud service providers after all the data has been stored in the private cloud platform.
Moreover, although it is possible to switch between private cloud providers, the process can be time-consuming, labor-intensive, and expensive. Switching between players may even result in rebuilding or altering an application to fit the new platform. Thus, vendor lock-in may impede the growth of the global private cloud services market during the forecast period.
The market share growth by the IaaS segment will be significant during the forecast period. IaaS is a cloud service model that delivers computing infrastructure on an outsourced basis to support enterprise operations, and it is managed over the Internet. In general, IaaS provides hardware such as servers, storage, and data center space or network components. IaaS solutions vendors provide enterprises with computing-related services pulled from their multiple servers and networks, which are distributed across numerous data centers.
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The IaaS segment showed a gradual increase in the market share of USD 45.92 billion in 2018. Moreover, IaaS players offer storage and network resources to enterprises on demand from their large pool of IT equipment installed across data centers across the globe. In the IaaS model, services are provided in a highly automated delivery model. A few of the benefits of private IaaS include better security, eliminates CAPEX and reduces costs, allows rapid innovation, and ease in shifting resource usage. Thus, such factors will spur the growth of the IaaS segment of the global private cloud services market during the forecast period.
The large enterprises segment is expected to witness significant growth in the next five years. Metaverse is one of the most important opportunities for brands to increase awareness of their companies and services. Metaverse is a collection of interconnected virtual environments, augmented reality technologies, and a global network. Investing in the metaverse means investing in stocks of big brands, buying NFTs, creating your own non-fungible tokens, and buying or renting land from virtual platforms. Brokerage firms increasingly adopt metaverse to increase their customer reach. Consequently, with the rising investment by market players, the global private cloud services market through the large enterprises segment is expected to grow significantly during the forecast period.
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North America is estimated to contribute 59% 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. When public cloud services were introduced over ten years ago, the countries in North America were among the first to adopt them. Most of the established public cloud service providers are based out of the US and already have multiple data centers across different regions in the US. The performance of private cloud data center systems has improved considerably in the last few years.
Furthermore, hyperscalers are launching new data centers and, in turn, increasing the adoption of private clouds. Private cloud infrastructure solutions bring multiple benefits, such as lower total cost of ownership, ease of management, and flexibility. Correspondingly, a private cloud market player takes the responsibility of managing, maintaining, and developing the pool of computing resources shared with the organization across a network. Hence, such factors are expected to drive market growth in this region during the forecast period.
The Private Cloud Services Market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Private Cloud Services Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The private cloud services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
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Private Cloud Services Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.71% |
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Market growth 2024-2028 |
USD 619.08 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
23.9 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 59% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adobe Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Dell Technologies Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Rackspace Technology Inc., Salesforce Inc., SAP SE, ServiceNow Inc., Tencent Holdings Ltd., Verizon Communications Inc., VMware Inc., and Workday Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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