AMR forecasts Asia Pacific cloud services market fastest-growing through to 2020

Allied Market Research (AMR) forecasts that the global cloud services market is expected to grow at a CAGR of 17.6% from 2014 to 2020, reaching a market size of US$555 billion in 2020. The fastest-growing geographical market is the Asia Pacific which is growing with a CAGR of 23.5% during the forecast period, with the economic benefits from cloud services being the key driving factor in developing countries of the region.

In 2014, the overall cloud services market revenue will reach US$209.9 billion, led by public cloud services. The community cloud services segment is gaining momentum and is expected to garner revenue of US$1 billion this year, thanks to its adoption in the healthcare segment, the research firm said.

According to Global Cloud Services Market (Services, Type, End User and Geography) - Global Analysis, Industry Growth, Trends, Size, Share, Opportunities and Forecast, 2013-2020, over 35% of traditional IT costs can be slashed with the adoption of cloud technology. Although the cost and functional benefits such as scaling ability and multi-tenancy are still driving much of cloud services market growth, solutions that create value and productivity are will become the new engine for this market. Data security continues to hinder some potential customers, the company added.

Strong growth is anticipated within the varied segments of cloud services market such as infrastructure as a service (IaaS), software as a service (SaaS), platform as a service (PaaS), business process as a service (BPaaS), cloud advertisement services, and cloud management & security services. Cloud advertising services will be the largest segment followed BPaaS with about 47% and 28% market share respectively in 2013. The cloud management & security services will be the fastest growing segment at a CAGR of 28.4% during the forecast period.

Reduced total cost of ownership through deploying public cloud has led to AMR predicting that the public cloud segment will dominate in market share through 2020, with a CAGR of 16.4% during the forecast period. Private cloud will grow the most quickly during the analysis period.