Cloud Data Center Market Analysis

Service [Infrastructure-as-a-service model (IaaS), Platform-as-a-service model (PaaS), Software-as-a-service model (SaaS)]

Software-as-a-service model (SaaS) segment is likely to hold cloud data center market share of more than 32.1% by 2037 owing to the high adoption of SaaS across various industries such as healthcare, BFSI, retail, IT, and telecom. SaaS applications are easy to use and can be accesses without the need for extensive IT infrastructure. Moreover, it operates on a subscription model, thereby reducing the need for additional investments for software and provides greater flexibility and scalability to accommodate changing project requirements.

SaaS providers are focused on developing newer, advanced and cost-effective models. For instance, in February 2024, Klaviyo announced the launch of Klaviyo AI, a modern and intuitive SaaS platform, designed to help businesses leverage their consumer data effectively and create impactful marketing strategies. Predictive analysis, automated campaigns, and customized recommendations are some of the key components of Klaviyo AI.

Organization Size (Small/Medium Enterprises, Large Enterprises)

The large enterprises segment in cloud data center market is expected to account for largest revenue share between 2024 and 2037 owing to rising demand for cloud data centers in large enterprises to store and manage large amounts of data generated in these organizations. Large enterprises require substantial IT resources, to support their extensive operations. Cloud data centers provide better scalability and flexibility to handle large volumes of data and applications. Many businesses across various domains are investing in advanced cloud data centers due to better functionality, cost optimization, scalability, less maintenance, along with enhanced security and capacity.

End Use (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom, Others)

The BFSI segment is expected to hold the largest market share in the global cloud data center market during the forecast period owing to the high usage of cloud-based services in banks, insurance companies, and other financial centers for better data storage, processing, management, and security tasks. According to the World Cloud Report 2023 by Capgemini, the BFSI sector has accelerated the use of cloud data centers and cloud applications in recent years and the rate has surged from 37% in 2020 to 91% in 2023. North America reported the highest deployment rate of 98% and 77% in the APAC.

Banks and financial institutions generate huge amounts of sensitive data at multiple locations. Cloud data centers help these centers scale their operations based on demand, ensuring they only pay for the resources they need. Moreover, it offers remote access for better collaboration, leading to enhanced security and cost savings on infrastructure. Other factors such as increasing number of banks and financial centers across the globe, growing awareness about the benefits of cloud data centers in the BFSI sector, and rising investments for deploying advanced cloud-based solutions and applications are expected to drive segment revenue growth during the forecast period.

Our in-depth analysis of the global cloud data center market includes the following segments: