3 min
The sudden outbreak of COVID-19 has progressively impacted the global cloud application market. According to Research Dive, it will grow at a compound annual rate of 18% through 2026.
The new coronavirus pandemic (COVID-19) has made a positive impact on the cloud application market and has also created lucrative opportunities for cloud applications in the first quarter of 2020. The sustainability of this market is primarily attributed to increasing adoption of cloud applications, especially in the health sector to maintain large databases of patients.
Shortly after the COVID-19 outbreak, many organizations around the world quickly adopted teleworking, and therefore the cloud has provided companies with various solutions for remotely accessing data and building and running crucial applications. This has enabled employees to work efficiently from home in this unprecedented situation.
Cloud applications help reduce the cost of deploying IT infrastructure and hardware. In addition, users can interact through web browsers or mobile applications with the help of these applications and is therefore creating great growth opportunities in the global industry until 2026. However, limited bandwidth is anticipated and the high-speed Internet in many underdeveloped and developed economies and the increasing cyber attacks could hinder the growth of the market in the coming years.
SMBs Will Be The Ones To Adopt The Most Cloud Solutions
Based on the size of organizations, the overall cloud application market is segmented into large companies and SMBs. In 2018, the SMB market generated $ 57 billion in revenue, and is projected to grow at a compound annual rate of 19.2% over the next six years. This is primarily due to the increasing adoption of cloud-based applications by small and medium-sized businesses worldwide.
Retail And Consumer Goods Will Dominate The Industry
According to the verticals, the global market for cloud application is segmented into BFSI (banking, financial and insurance services), government and the public sector, energy and public services, health and life sciences, retail and consumer goods, manufacturing, telecommunications, travel and tourism, transportation and logistics.
The consumer goods and retail market is projected to play a dominant role in the global industry through 2026, generating 36 billion dollars in revenue and growing at a compound annual rate of 19.4% through the end of 2029. This domain is attributed to rapid growth in cloud technology adoption and online retailing.
The Supply Chain Management Segment Will Grow At The Highest Rate
Based on the application, the global market for cloud applications is divided into: enterprise resource management, customer relationship management, human capital management, collaboration and productive sets, business intelligence and analytics, content management, supply chain management and others. Among these, the supply chain management segment is expected to reach 67.9 billion dollars in 2026, growing at a compound annual rate of 18.5% during the forecast period.
The Asia Pacific Region Will Create Lucrative Opportunities In The Industry
Depending on the region, the global industry is segmented in North America, Latin America, the Middle East, Africa, Europe and Asia Pacific. The Asia Pacific cloud application market represented 29.7 billion dollars in 2018 and is projected to experience the highest compound annual growth rate, 18.5%, in the next six years. This rapid growth is due to the growing awareness among organizations and industry players regarding the benefits of cloud applications in emerging countries such as India, China and South Korea, among others.
Subscribe
Ask for a demo