Cloud Professional Services Market

Cloud Professional Services Market Size (2023 - 2028)

professional cloud services market was valued at USD 21.5 billion in 2022. The market size is expected to grow at a CAGR of 18.34% over the forecast period, reaching USD 56.9 billion by the end of 2028. 

Cloud Professional Services Market Overview:

Cloud professional services provide enterprises with focused direction and technical knowledge to manage their cloud-based infrastructure flexibly and cost-effectively. These services are given through a variety of technologies, methods, and frameworks that aid businesses in streamlining and concentrating on their day-to-day operations and enhancing their productivity. In addition, service providers offer automated cloud environment solutions to accelerate the product development cycle, reduce overall operating expenses and eliminate human error in production facilities. 

The increasing emphasis on corporate digitizing operations encourages the use of cloud computing across all industry verticals to boost business agility and safeguard critical data and workloads. This is one of the primary factors driving the growth of the worldwide professional cloud services market. Furthermore, the growing adoption of robotics due to emerging automation trends in manufacturing processes positively influences the need for cloud professional services to deploy robotic applications in the cloud. In addition, service providers are merging cloud platforms with analytic tools, AI, ML, development, and operations to create a hybrid cloud environment. In addition, the rising adoption of remote working methods due to the COVID-19 outbreak increased the demand for cloud computing solutions to ensure business continuity. It is predicted that this will stimulate market expansion. 

Cloud Professional Services Market Drivers:

Accelerated adoption of public cloud services- The cloud is a key part of helping businesses survive lockdowns and inconsistencies in their IT infrastructure. It lets them develop new ideas faster, improving their speed to market, agility, and responsiveness. Also, people are becoming more willing to use hybrid and public cloud models. For example, 68% of small businesses prefer the public cloud because it is cheaper. In another survey done by ESG, 59% of organizations said that they would spend more on public cloud applications in 2023, and 56% said they would spend more on public cloud infrastructure services in the same year. 

Cloud Professional Services Market Restraints:

Lack of knowledge and expertise will make it difficult to use professional cloud services- It takes a lot of knowledge and a wide range of skills on the subject. The PWC CEO Survey 2020 found that 77% of CEOs were worried about having enough skilled labors. However, the survey also found that companies that worked to improve the skills of their employees were ahead of their fellow companies in a variety of ways and were more optimistic about the future. So, these professionals need to learn new skills to easily manage cloud-based apps with fewer problems and ensure better performance and reliability. 

Cloud Professional Services Market Opportunities:

Cloud-based Artificial Intelligence and Machine Learning technologies- AI and ML technologies are increasingly embraced by businesses worldwide. Many organizations have begun to believe that AI and ML-based cloud applications have the potential to support large-scale data analytics, data insights, and the automation of manual tasks as businesses focus on bolstering their digital infrastructure to support remote employees and ensure proper functioning during the pandemic. According to the research Voice of the Enterprise: AI & Machine Learning Use Cases 2021, 95% of firms cited AI as a crucial component of digital transformation. As a result of their focus on enhancing client experiences through innovation and automation, communication, OTT, gaming, technology, and financial services are the industries with the highest AI adoption rate. 

Impact of COVID-19 on the Cloud Professional Services Market:

During the COVID-19 pandemic, many businesses were compelled to adjust their policies and procedures to ensure the safety of their employees. In addition, owing to the inability to travel, cross borders, and interact socially, corporations have been compelled to mostly their current modes of operation and evaluate their strategic decisions. 

Key Developments in the Cloud Professional Market:

• In February 2023, IBM announced the acquisition of N51, a network provider of SaaS automation solutions for driving agility in hybrid cloud settings. 

• In December 2022, EY partnered with Software AG to use business process management, IoT, and integration platforms, to assist enterprises with their transformation. 

• In December 2021, Deloitte bought BIAS Corporation to complement its existing cloud applications and infrastructure capabilities. 

Cloud Professional Services Market Segmentation:

By Service-

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

• Infrastructure as a Service (IaaS)

By service model, the Infrastructure as a Service or IaaS segment will expand at the highest CAGR over the forecast period. The Infrastructure as a Service paradigm provides computation, memory storage, networking, and other related software and hardware as a cloud service instead of traditional on-premises servers. It provides the end user with hosting freedom for custom-built applications or standard software and a general data center for storage. 

By Deployment Mode

• Public Cloud 

• Private Cloud 

• Hybrid Cloud 

By deployment mode, it is anticipated that the public cloud segment will account for the highest market size throughout the projected period. The public cloud is defined as computer services provided by third-party providers through the public internet, making them accessible to anybody who desires to use or purchase them. Under the public cloud deployment paradigm, clients’ organizations have access to a variety of resources, including apps, storage, virtual servers, and hardware via the internet. In addition, it helps enterprises achieve scaling requirements, provides a pay-per-use pricing model, and facilitates deployment. 

By Organization Size:

• Small

• Medium

• Large

Based on organization size, the professional cloud services market is segmented into small enterprises, medium enterprises, and large enterprises. Out of these, the large enterprise segment is anticipated to hold the most prominent shares in the professional cloud services market owing to its variety of features that could help these organizations to grow. 

By End-use Industries-

• BFSI 

• Government 

• IT and Telecom 

• Healthcare and Life Sciences  

• Energy and utilities

• Manufacturing 

Over the forecast period, the Healthcare and Life Sciences segment is esteemed to have the highest shares of the market. The COVID-19 mandate’s use of HER, e-prescribing, telemedicine, eHealth, other healthcare IT services, and the increasing use of big data analytics, wearable technologies, and the Internet of Things all contribute to the expansion of the healthcare cloud computing market. 

Cisco offers telehealth and remote patient monitoring technologies to more than 17 thousand healthcare institutions in 118 countries. The increased awareness of telehealth among healthcare practitioners is expected to increase the use of the telecloud in a number of nations, creating considerable growth opportunities for organizations in the healthcare cloud professional services market. 

Cloud Professional Services Market Regional Analysis:

• North America

• Asia Pacific 

• Europe 

• Latin America

• Middle East & Africa 

The North American cloud professional services market will have the most growth rate during the forecast period. The market growth in this area is being driven by emerging countries like the UK, Canada, Mexico, and Brazil, which are becoming more interested in cloud and mobility trends. The North American region is one of the world’s digital hubs, and businesses have been quick to see how cloud technology helps with digital transformation. The adoption of cloud professional services applications in the region is helped by strong economies, well-built ICT infrastructure, businesses that spend a lot on IT, and strong regulatory frameworks. Different government programs in the North American region also make it easier for people to use these services. Smart city projects will be one of the main reasons why people start using public cloud professional services. This is because government agencies use them to change their IT infrastructure. Cloud professional services are getting a lot of money from big players all over the region. 

Cloud Professional Services Market Key Players:

• Accenture

• IBM

• Deloitte

• EY

• PwC

• HPE

• HCLTech

• Wipro

• TCS 

• Capgemini 

• Dell

• Infosys Limited 

• Microsoft Corporation 

• Oracle Corporation

• SAP SE