Rapid digital transformation is facilitating organizations to offer better products and enhance customer experiences. The ability to analyze critical data is a crucial part of this digital transformation. With technological advancements, cloud computing has now become essential for everyone & everywhere.
Distributed cloud is a public cloud computing service that allows public cloud infrastructure to run in different locations and not just on the cloud provider's infrastructure but on-premises, or third-party data centers, or in other data centers of cloud providers. The originating public cloud provider controls the operation, governance, maintenance, & updates of the distributed infrastructure.
With distributed cloud services, businesses can run different applications in various cloud locations that best meet their requirements for performance & regulatory compliance. The adoption of distributed cloud solves the management & operational inconsistencies that might happen in hybrid cloud.
The Global Distributed Cloud Market is anticipated to grow at a CAGR of around 25% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the rapid adoption of the Internet of Things (IoT), edge computing, Artificial Intelligence (AI), & telecommunications, among others, to analyze a large volume of data in real-time. These applications that move the massive amount of data from edge locations to the cloud require cloud services to be as near as possible to edge locations. Hence, shifting cloud resources to edge locations will help increase the application’s performance, owing to which the adoption of distributed cloud would increase astronomically among businesses in the coming years.
Moreover, with the surging amount of data generated by various sources, the need for low-cost data backup and data security & safety options are increasing among organizations, thereby augmenting the market growth. In addition, increasing penetration of internet services and the snowballing usage of smart devices are other crucial factors driving the market.
Furthermore, the increasing prevalence of cyberattacks and mounting concerns over data privacy & security are escalating the need for high-end security measures with easy data sharing. It, in turn, is propelling the demand for distributed cloud technology among organizations. Besides, various digitalization initiatives by organizations across different industry verticals to improve operational transparency & efficiency entwined with business performance are also fueling the deployment of distributed cloud technology.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain, Netherlands|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil, and Argentina|
|Middle East & Africa: Middle East, Africa|
|Key Companies Profiled||Amazon Web Services, Digital-Ocean, Rackspace, Alibaba Cloud, Liquid Web, Microsoft Azure, Google Cloud Platform, VMware,Oracle Cloud, VeriZon Cloud, Navisite, IBM Cloud, Open Nebula, Cloud Sigma, Dell Cloud, etc.|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the Global Distributed Cloud Market
In 2020, the Covid-19 pandemic dramatically changed the way businesses function. The imposition of lockdown to curb the spread of the virus pushed organizations to adopt work-from-home policies, the increasing adoption of which fueled the need for better cloud communication & collaboration services worldwide. Although the pandemic has been a propellant for a global economic crisis, it has also augmented the demand for the digital economy. The usage of online platforms like Microsoft Teams & Zoom has witnessed enormous upticks. Moreover, the distributed nature of cloud services is a perfect fit to manage virtual work.
In addition, the adoption of digital platforms & tools has been a saving element during the pandemic. By ensuring secure remote work, cloud technology played a major role in underwriting a new era of corporate enterprise. It is going to take time to return to normal work cultures. However, travel restrictions due to the increasing dangers posed by disease transmission are changing the world economic system.
Given this economic reorientation, cloud computing is gaining immense popularity across modern businesses. Where traditional cloud services help to cut costs & focus on core business competencies, distributed cloud technology complements an additional geographical layer, shifting computing & data closer to users while reducing latency and enhancing security.
Amongst all End-Users, the BFSI sector acquired the largest share of the Global Distributed Cloud Market. Distributed cloud is beneficial in optimizing banking operations and scanning several transactions within seconds, which, in turn, helps the industry to protect against financial crimes and enhance customer experience.
The adoption of distributed cloud in financial institutions is increasing significantly to deliver an enhanced customer experience. The mounting use of the Internet of Things (IoT) for analyzing large data volumes and the increasing demand for cost-effective cloud computing services and scalable & agile systems to store confidential information are driving the market in the BFSI sector.
Additionally, the rising adoption of digital services & applications in banks & financial institutions and the ability of distributed clouds to enhance data security, confidentiality, & data sharing are other crucial aspects fueling the demand for distributed clouds in the BFSI industry.
On the other front, the automotive industry is expected to capture a substantial share of the Global Distributed Cloud Market. The rapidly expanding automotive industry and the increasing disposable income of consumers are accelerating the demand for integrating automation technology to improve the consumer experience, which, in turn, is positively influencing the growth of the distributed cloud market in the automotive sector.
In addition, the snowballing adoption of advanced technologies like Artificial Intelligence, Machine Learning, & the Internet of Things, among others, to improve the efficiency & performance of vehicles is another crucial aspect projected to fuel the demand for distributed cloud technology in the automotive industry.
By Service Type:
Of them all, Data Storage holds the largest share in the Global Distributed Cloud Market. It is due to the rapid digitalization of documents. Distributed cloud helps spread people’s data across a network, which further allows data to be located closer to end-users & accelerates the transfer speed, thereby minimizing the network congestion & risk of losing the data. In addition, distributed clouds do not rely on centralized data centers or energy-consuming cooling systems used for servers that make them a greener storage solution. Hence, these aspects of distributed cloud are expected to contribute to their increased adoption for data storage purposes in the years to come.
Key Trends in the Global Distributed Cloud Market
Rapid Digitalization across Most Industries Worldwide
Various end-user industries are reducing their reliance on paperwork as most organizations are rapidly digitalizing in their operations. The mounting adoption of digital systems by numerous companies is leading to the generation of large data volumes. Distributed clouds help store, share, & process massive datasets in the least possible time while providing easy data access to educational institutes, companies, & governments. As a result, the need for distributed clouds is significantly rising across different industrial verticals, thereby driving the global market.
Geographically, North America dominates the Global Distributed Cloud Market, owing primarily to the growing digitalization across its most prominent economies, viz., the US & Canada, and the extensive presence of IT industries across North America, especially in the US. In addition, the mounting demand for data backup, data security, & data recovery management solutions among organizations and the burgeoning utilization of AI & the Internet of Things (IoT) in various applications are also driving the regional market.
Across the region, the United States is expected to acquire the largest market share, mainly due to rapid industrial automation and the surging need to enhance customer experiences by providing them with quicker responses. Moreover, the high demand for cloud services across various industry verticals and the robust presence of skilled professionals shall further fuel the market growth across North America over the next ten years.
Key Driver: Mounting Need for Data Recovery Management Drives the Market
With the rapid adoption of digital platforms, organizations are increasingly focused on adopting cloud technologies, which, in turn, is fueling the threat of data loss. Hence, the need for data recovery techniques is increasing significantly among organizations. Here comes the role of distributed cloud that, to keep the data secure & reliable, provides a mechanism, which includes authorization, auditing, encryption, & authentication, thereby helping organizations keep their data safe. Hence, the burgeoning need for data recovery management across organizations is likely to drive the Global Distributed Cloud Market in the coming years.
Possible Challenge: Rising Concerns Regarding Security & Privacy to Hinder the Market Growth
Distributed cloud helps improve privacy by storing the data in the local area. However, data has to travel far to reach the nearby cloud, which increases security concerns. In addition, the use of public networks fuels several privacy & security concerns. Besides, data access in a centralized computing system requires more maintenance & security. Hence, these aspects might hamper the growth of the Global Distributed Cloud Market during 2021-26.
According to MarkNtel Advisors, the key players with a considerable share in the Global Distributed Cloud Market include Amazon Web Services, Digital-Ocean, Rackspace, Alibaba Cloud, Liquid Web, Microsoft Azure, Google Cloud Platform, VMware, Oracle Cloud, Verizon Cloud, Navisite, IBM Cloud, Open Nebula, Cloud Sigma, Dell Cloud, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Global Distributed Cloud Market is forecast to grow at a CAGR of around 25% during 2021-26.
A. The BFSI sector holds the largest share in the Global Distributed Cloud Market, and shall create lucrative growth opportunities for the leading market players in the coming years.
A. The mounting adoption of the Internet of Things (IoT), Edge Computing, Artificial Intelligence (AI), telecommunications, etc., to analyze a large volume of real-time data are the key factors projected to drive the Global Distributed Cloud Market during 2021-26.
A. In the coming years, the Global Distributed Cloud Market is expected to grow dramatically, owing to the increasing trend of work-from-home and the rising adoption of digital platforms among organizations.