Market Definition
Mobile Cloud Computing is the method of providing services associated with cloud computing, such as infrastructure, platform, and software services, via mobile devices. These services allow users to access applications, data storage, and other computing resources stored on remote servers & that can be accessed using the internet.
Market Insights & Analysis: Global Mobile Cloud Computing Market (2023-28)
The Global Mobile Cloud Computing market is anticipated to grow at a CAGR of around 22% during the forecast period, i.e., 2023-28. The growing popularity of cloud services by businesses to launch their applications is one of the factors contributing to the growth. Cloud services provide companies to scale their applications quickly & easily and help to expand their resources to meet demand & accommodate growth without having to make extensive capital investments in the infrastructure. Owing to which companies are opting for these services since they help them reduce costs, improve flexibility, and enhance security & reliability, which can ultimately lead to increased competitiveness & success in the marketplace. For instance:
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 22% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA | |
| Key Companies Profiled | Amazon Web Services [AWS], Microsoft Azure, Google Cloud Platform [GCP], Alibaba Cloud, Oracle Cloud, IBM Cloud [Kyndryl], Salesforce Inc., SAP SE , Red Hat, Inc., VMware Inc., DigitalOcean, LLC., Tencent Cloud, OVHcloud, Parse, Rackspace Technology, Others [Lumen, Cloud Foundry, Inc., etc.] |
| Unit Denominations | USD Million/Billion |
In addition, this service provides solutions for data storage & management, enabling organizations to access their data from anywhere & at any time. Therefore, with the boost in the prevalence of data storage issues, the companies such as Netflix, Spotify, Dropbox, etc., are using mobile cloud computing to manage & store their data more efficiently. According to the company Filecoin in 2020, the cloud storage of the company Airbnb reached 1 billion terabytes. Hence, the inclination of small & large enterprises to adopt cloud services for eradicating data storage issues is driving market expansion.
Moreover, the mound in the rollout of the 5G network in the countries like China, the US, etc., is also propelling market revenue. The deployment of 5G networks is significantly advancing the speed & reliability of mobile internet connections, enabling new applications & their use cases in the different industry verticals like retail & e-commerce, IT & Telecom, etc.
Further, several countries have partially built the infrastructure to launch 5G. According to the statistics by GSM Association in 2022, around 70 countries have already started offering 5G services, and approximately 15 countries have partially built 5G mobile networks. Therefore, in the coming years, more countries are presumed to adopt advanced & reliable internet facilities, thus facilitating market growth in the forthcoming years.
Market Dynamics
Key Driver: Increased Focus on Mobility by the Enterprises to Augment the Market Growth
With the widespread adoption of mobile devices such as smartphones & tablets, there has been a significant upsurge in demand for mobile applications & services. Significant advancements in mobile technology, such as faster processing speeds, improved battery life, and better connectivity, have made it possible to run more complex applications & services on mobile devices. As a result, there has been a rise in demand for these solutions that can provide the necessary resources & capabilities to support these applications & services.
In addition, these solutions offer several benefits over traditional mobile computing, such as improved scalability, flexibility, and cost-effectiveness. Consequently, with the additional benefits these services offer over conventional on-premise services, many businesses have shifted their focus to mobile devices & mobility in recent years. As a result, there has been a growing demand for mobile cloud computing solutions that provides the necessary resources & capabilities to support these mobile initiatives.
Further, the government initiatives to accelerate digitalization in the countries such as India, the UAE, etc., are also propelling the industry verticals like banking & finance, retail & e-commerce to mitigate their business operations by launching appropriate applications. Hence, the shift of the end-users towards introducing their mobile apps to facilitate consumer reach would escalate the market in the forthcoming years.
Possible Restraint: High Cost, Device Compatibility, and Data Privacy Concerns Restrains the Market Growth
Mobile devices come in different sizes, shapes, and operating systems like iOS, Android, etc., which makes it difficult for developers to originate mobile applications & services that work seamlessly across all devices. This gives rise to compatibility issues that negatively impact user experience & adoption rates. Moreover, the cost associated with mobile computing services includes prices for cloud data storage, bandwidth, and other resources. As a result, these services are moderately expensive, especially for small-scale businesses or individuals who do not have the resources to invest in cloud infrastructure & services. Hence, it is difficult for small- & medium-scale enterprises to squander the lofty sum on their operational activities, further restraining market growth.
Further, these services involve storing & transmitting sensitive data, which can raise concerns about data privacy & compliance with regulations such as General Data Protection Regulation (GDPR) & California Consumer Privacy Act (CCPA). Therefore, it is primitive for businesses to have robust data privacy policies & procedures to ensure compliance & protect customer data. However, the lack of regulatory framework & appropriate structure regarding mobile cloud computing poses challenges for organizations in the market globally.
Growth Opportunity: Rising Investments & Government Initiatives for Upscaling Cloud Infrastructure
Governments & business organizations across the globe are heavily investing in cloud infrastructure as part of their broader efforts to drive digital transformation & innovation. For instance, in 2022, Amazon web Service pledged to double its investments & devote approximately USD2.19 billion in the UK to improve the cloud infrastructure of the country. By leveraging cloud computing technologies, governments/organizations would deliver more advanced & responsive services to citizens & encourage the development of new & innovative business models.
Moreover, cloud infrastructure creates a more competitive & innovative business environment & offers enhanced security compared to traditional on-premise IT systems. Therefore, to drive economic growth & job creation and improve their cybersecurity defenses, the government of the countries such as the US, India, and others, are launching strategies such as the FedRAMP program, the European Cloud Initiative, the European Open Science Cloud, etc. These initiatives & investments would further propel the industry verticals to adopt cloud services, building a demand scale in the coming years.
Key Trend: Growth in the Internet of Things (IoT) & Integration of Artificial Intelligence (AI) to be Trending in the Market
Devices like smartphones, tablets, etc., are becoming more connected to the internet. As a result, there has been a rise in the demand for cloud-based infrastructure & services to handle the large amounts of data generated by these devices. Moreover, the amalgamation of AI & ML technologies into mobile cloud computing solutions is also creating new opportunities for businesses & individuals and gaining traction since these technologies are primarily used to develop more intelligent & personalized mobile applications & services to enhance the user experience.
Furthermore, as more consumers turn to mobile devices for gaming, the demand for cloud-based infrastructure & services to support the development & delivery of high-quality, immersive gaming experiences is on the rise, which would drive the market in the coming years.
Market Segmentation
Based on Services:
Of them, Infrastructure as a Service (IaaS) offered by the service providers such as Amazon Web Services, IBM Cloud, etc., gained a significant share in the market since IaaS services offer cloud-based computing resources like servers, storage, and networking, which are essential for supporting mobile applications. Mobile applications generate a large amount of data that needs to be stored, processed, and accessed by mobile devices. As a result, enterprises & organizations like Netflix, Airbnb, etc., opt for IaaS as their essential service in the mobile cloud computing ecosystem, leading to market growth.
Additionally, IaaS provides a flexible & scalable infrastructure & allows organizations to pay only for the used computing resources, which makes it a cost-effective proposition for mobile application development & deployment. Hence, small- & medium-scale enterprises are gradually opting for IaaS, and the market is stipulated to witness growth during 2023-28.
Based on End Users:
BFSI (Banking, Financial Services, and Insurance) witnessed a burgeoning growth in the historical years since they were the early adopter of the services to offer their customers secure & reliable access to their financial services through mobile devices such as smartphones & tablets. By leveraging mobile cloud computing, banks potentially improve customer experience, increase customer engagement, and reduce operational costs. As a result, banks such as JPMorgan Chase, Bank of America, BBVA, etc., have adopted these solutions leading to the growth in the share of BFSI in the market.
Besides, IT & Telecom would also witness growth in the upcoming years owing to the rising usage of cloud services by the telecom operators to offer value-added services to their customers, such as mobile device management, mobile content delivery, and mobile security services. Hence, the soaring adoption of mobile cloud computing by the Telecom industry to optimize their network infrastructure & improve the quality of service for their customers would result in a surge in market share during the forecast period.
Regional Projection
Geographically, the market expands across:
Of all the regions across the globe, North America has been a prime contributor to the growth of the market owing to the factors such as the high adoption rate of mobile devices, with a large percentage of the population using smartphones & tablets for different tasks, including accessing cloud-based services. The region has a highly developed IT infrastructure & a strong focus on innovation & technological advancements, driving the adoption of these solutions during the forecast period.
However, Asia-Pacific (APAC) is predicted to be an emerging market with the most potential for growth over the projected period due to rising government investments & initiatives to foster digital transformation & the usage of these solutions.
Recent Developments in the Global Mobile Cloud Computing Market
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Frequently Asked Questions
A. The growth rate or CAGR of the Mobile Cloud Computing Market during 2023-28 is around 22%.
A. Increased focus on mobility by enterprises is expected to drive the Mobile Cloud Computing Market during 2023-28.
A. Some of the prominent players are Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), Alibaba Cloud, Oracle Cloud, IBM Cloud (Kyndryl), Salesforce Inc., SAP SE, Red Hat, Inc., VMware Inc., DigitalOcean, LLC., Tencent Cloud, OVHcloud, Parse, Rackspace Technology, and Others (Lumen, Cloud Foundry, Inc., etc.)
A. Infrastructure as a Service (IaaS) is the leading service in the Mobile Cloud Computing Market.
A. Asia-Ppacific would present growth prospects in the Mobile Cloud Computing Market during 2023-28.
A. The growth in the internet of things (IoT) and integration of artificial intelligence (AI) are the key trends shaping the growth of the Mobile Cloud Computing Market
A. The industry's potential end-users are Gaming, BFSI, Retail & E-Commerce, Healthcare & Life sciences, IT & Telecom, Government & Transportation, and Others (Education, Supply Chain & Logistics, etc.)
A. High cost, device compatibility, and data privacy concerns are the possible restraints affecting the growth of the Mobile Cloud Computing Market
