Global Market Insights has added a European cloud computing market report that estimates the market valuation will surpass $ 140 billion by 2028 due to government support to drive cloud adoption across Europe.
The growing use of cloud computing across multiple organizations to ensure business continuity and adapt to market changes to maintain a competitive edge over competing firms is likely to drive the industry’s growth.
The growing trend towards digitalization seen in organizations with their move to cloud services is also increasing demand in the European cloud computing market. Leading companies are focusing on emerging technologies such as mobile cloud computing and edge computing to develop innovative solutions and services for their customers.
The IaaS segment will grow steadily
The IaaS segment is expected to grow at an average annual rate of over 15% from 2021 to 2028. IaaS plays an important role in enterprise-class enterprises due to its high flexibility and scalability, and is suitable for changing computing workloads.
Enterprises are increasingly moving to IaaS models due to ease of use, fast compute times, and cost effectiveness. Pay-As-You-Go (PAYG) eliminates the cost of deploying back-end infrastructure, driving the evolution of the IaaS model.
The market share of SMEs is expected to exceed 30% by 2028. The growth is driven by the increasing adoption of cloud technologies by small and medium-sized enterprises to improve business opportunities. Small and midsize businesses are focusing on securing their networks to ensure secure access to data, and are moving their core businesses to digital platforms to protect the business.
The benefits of cloud computing, such as remote computing, cost savings and availability of on-demand computing resources, are major drivers of cloud adoption by SMEs across Europe.
Private cloud is projected to grow exponentially over the forecast period. Several organizations use private cloud to achieve high levels of data security and privacy. Governments, BFSI businesses, and mission-critical organizations such as military installations and nuclear power plants are adopting private cloud solutions to maintain control over data and protect critical data. This is expected to create numerous opportunities for the private cloud.
In 2020, the retail segment should take over 10% of the cloud computing market in Europe. The growth is driven by the growing demand for online shopping and the dynamic change in purchasing patterns. The digital transformation among retailers is gaining momentum and retailers are focusing on increasing their IT spending to detect fraud and protect their payment channels.
Italy will grow significantly in the European cloud computing market
Italy is projected to see strong growth in the European cloud computing market, with a CAGR of over 15% over the forecast period. The growth is driven by the increasing adoption of cloud computing solutions and services by SMEs and other business verticals. The presence of multinational companies and their large investments are expected to support the growth of the market. For example, in May 2020, Microsoft invested $ 1.5 billion in Italian cloud computing services. This investment was aimed at providing cloud services to small and medium businesses and other business sectors.
In addition, in line with a five-year strategic plan, the company will provide access to on-premises cloud services and launch digital learning, smart work and artificial intelligence (AI) programs for small and medium-sized businesses.
Companies operating in the market are focused on working with government and public organizations to accelerate the adoption of cloud technologies. For example, in January 2021, CloudSigma was selected by Open Clouds for the Research Environments (OCRE) project. This project aims to accelerate the adoption of cloud technologies in the European research community. It will also help the company expand its presence in Europe and create a new revenue stream.