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Multi-cloud Market Overview
Multi-cloud market size is projected to reach $11.2 billion by 2026, and it is estimated
to grow at around CAGR 30.8% during 2021-2026. Increasing penetration of Industry
4.0 and growing adoption of digital age technologies such as Internet of Things
(IoTs), big data, cloud computing, cloud automation, Artificial Intelligence
(AI), Machine Learning (ML) are estimated to be the key factors driving the
Multi-cloud Market during the forecast period. The rising adoption of
software as a service among enterprises due to its pay-per-usage model has
contributed to the growth of Multi-cloud Market. The growing demand for
reducing reliance on a single cloud provider to mitigate the risks associated
with vendor lock-ins, downtime or potential data loss is set to drive the
market. The transition of various enterprises towards digitalization to generate
new business outcomes ensuing cloud security and compliance management has
contributed to the growth of the market. For instance, IBM Institute for
Business Value estimates 85% of the enterprises have already adopted
multi-cloud infrastructure and by 2021, 98% of the enterprises will use
multi-cloud strategy. Further, the study confirmed Return on Investments (ROI)
derived from a fully hybrid, multi-cloud platform technology is 2.5 times of
the value derived from single cloud vendor approach and thus accelerating the
adoption.
Report
Coverage
The report: “Multi-cloud Market
Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the
following segments of the Multi-cloud Market.
By offering: Software, Service (Design & Deployment, Data Security & Risk
Management, Integration & Migration, Monitoring & Access Management, Reports
& analytics, Support & Maintenance, Training & Consultancy, others)
By deployment model: public, private, hybrid
By organization size: large enterprises, micro/ small/ medium enterprises
By application: Operational automation, Identity & Policy Management, Lifecycle Management, Asset Management,
Compliance Management, Provisioning, Metering & Billing, Infrastructure
& Resource Management, others
End user: Industrial (automotive, aerospace & defense, IT &
Telecommunications, Banking & finance (BFSI), power, utilities, Healthcare,
Food & beverages, retail, transportation & logistics, others),
Commercial (Hotels & restaurants, shopping malls, smart office buildings,
stadiums, Media, Entertainment, others)
By Geography: North America
(U.S., Canada and Mexico); Europe (U.K., Germany, Italy, Spain, Russia, France,
Rest of Europe); APAC (China, Japan, South Korea, India, Australia, Rest of
APAC); South America (Brazil, Argentina, Rest of South Americas); RoW (Middle
East & Africa)
Key Takeaways
- Service segment is anticipated to dominate the market with a CAGR 7.8% from 2021 to 2026 due to rising demand for controlling cost and configuration of digital businesses with more transparency.
- APAC is estimated to be the fastest growing market with a CAGR 9.3% during 2021-2026 owing to higher investments towards up-gradation of advanced technologies.
- BFSI sector is estimated to be the fastest growing market with a CAGR 10.7% from 2021 to 2026 due to growing adoption of software as a service model.
- Increasing penetration of Industry 4.0, Internet of Things and less reliability on single cloud vendor are set to drive the market during the forecast period 2021-2026.
- Data security issues are analyzed to be one of the major challenges to impede the market growth during 2021-2026.
Global Multi-Cloud Market Value Share, By Region, 2020 (by %)
Multi-cloud Market Segment
Analysis – By Offering
By offering, Multi-cloud
market has been segmented into software and services. Service segment
has dominated the market acquiring a share of 56% in 2020 and is estimated to
hold the largest market share with the fastest growing CAGR 7.8% during the
forecast period 2021-2026 owing to increasing demand for controlling cost,
usage and configuration of digital businesses with more visibility. The distribution of workloads across various cloud platforms enables enterprises to
run applications in a more efficient manner and contribute flexibility to
access data in a more simplified way. Multi-cloud management services enable
enterprises to optimize cost, protect IT environment from potential security
threats and streamline operations coupled with rapid progress in developments. In
July 2020, Fortinet launched cloud to cloud SD WAN solutions to expand
multi-cloud applications such as disaster recovery, product lifecycle
management. In December 2020, Teradata announced to expand it’s multi-cloud
capabilities for timely and cost effective analytics. Such developments and advancements are
analyzed to propel the market growth during 2021-2026.
Multi-cloud Market Segment
Analysis – By End User
By end user, Multi-cloud
market has been segmented into industrial and commercial sectors. The industrial sector is estimated to account for the largest market share of 46% during
2021-2026. Among industrial sectors, IT and Telecommunications held the
largest market share of 16% in 2020 and is estimated to dominate the market
with a CAGR 9.2% during 2021-2026 owing to the rising adoption of multi-cloud
strategy by leveraging two or more cloud computing platforms to use several resources
from various vendors to get the best solution from each unique service.
According to reports, in December 2020 IBM acquired Nordcloud, a multi-cloud
consulting firm to expand their multi-cloud strategy. Such acquisitions are set
to drive the market. BFSI sector is estimated to be the fastest growing market
with a CAGR 10.7% owing to increasing convergence of BFSI sector with digitalization
to deliver reliable, secure and seamless services to achieve enhanced customer
experience. Increasing adoption of cloud automation among BFSI sector to
automate manual tasks associated with managing cloud based IT infrastructure
while ensuring cloud security and compliance management is anticipated to drive
the market between 2021 and 2026. According to reports, Multi-cloud
architecture is analyzed to be the accelerator of digitalization in banking
sector as the organizations can choose the best fit from several IaaS, PaaS and
SaaS offerings from multiple service providers for their digital business
strategies.
Multi-cloud Market Segment
Analysis – By Geography
By Geography, Multi-cloud market has been segmented into North America, Europe, APAC, South America and RoW. North America dominated the Multi-cloud market in 2020 acquiring a share of 32% and is estimated to hold the largest market share with a CAGR 8.4% during 2021-2026 owing to well established IT infrastructure and high investments in up-gradation of advanced digital technologies. APAC is estimated to be the fastest growing market with a CAGR 9.3% during the forecast period 2021-2026 owing to rapid digitalization in this region. South-East Asia is analyzed to be the hot-zone for establishing manufacturing hubs during 2021-2026. The increasing adoption of cloud-based applications in various industry verticals across this region for real-time applications is estimated to boost the market. According to survey, India is estimated to witness a three-fold growth in e-commerce, 33% growth in digital banking. Moreover, Indian Government has launched “Digital India” movement which is analyzed to boost the market in the country.
Multi-cloud Market Drivers
Increasing adoption of Industry 4.0 is set to drive the market
Increasing penetration of Industry 4.0 promotes the convergence of Information Technology (IT) with Operational Technology (OT) to increase flexibility, agility and efficiency in the production process through connected systems and sharing data. Analysis of real-time data for efficient and accurate quality control and predictive maintenance is analyzed to stimulate the market during 2021-2026. Adoption of multi-cloud is analyzed to be the accelerator of digital transformation across various industry verticals by leveraging sensors, Robotics, Artificial Intelligence. The demand for multi-cloud infrastructure is estimated to gain a huge traction during the forecast period 2021-2026 owing to growing demand for increased operational efficiencies and infrastructure maintenance while minimizing the dependency on a single cloud provider. In November 2020, Multi-cloud service specialist Linkbynet has announced expansion to serve the massive growing luxury e-commerce market and such expansions are set to drive the market during 2021-2026.
Growing reliability on Multi-cloud strategies over single cloud vendor is catalyzing the market growth
Vendor lock-in is a feature of single-cloud platform which is
accelerating the transformation from single-cloud to multi-cloud platform. When
organizations choose individual cloud service, the vendors streamline the
process of migration of workloads to their clouds in such a complex way, so
that it becomes too expensive and critical for the customers to leave.
Multi-cloud allows organizations to mix and match platforms, avoiding vendor
lock-in and thus enterprises don’t have to rely on single cloud vendor. The
multi-cloud infrastructure also enables the closest data centers to provide the
requested data to end users with minimum delay. Multi-cloud services allow the
organizations to use different platforms to determine the best fit for their
business without compromising with their business demands. These advanced
capabilities, functionalities and benefits are set to drive the market during 2021-2026.
In September 2020, National Archives and Records Administration (NARA)
announced to shift in the process of multi-cloud acquisition strategy to
accommodate and modernize the storage of increasing volume of digital records
received from other federal agencies. Such developments are analyzed to drive
the market.
Multi-cloud Market Challenges
Data security issues is impeding the market growth
Enterprises that adopt Multi-cloud face security and privacy issues
and thus hampering the adoption. Enterprises hold confidential data, which
needs to be protected to avoid data breaches and cyber-attacks. There are
security issues in multi-cloud infrastructure as third party holds the
enterprise data and unauthorized personnel can forcefully access it. Protection
needs to be applied at the workload level, in the multi-cloud system, containers
and virtual machines pass freely among private and public infrastructure,
breaking down the notion of a network perimeter. However, significant investment
on cloud cyber security and cyber-hygiene is set to offset this challenge and
promote healthy growth during the later stages of the forecast period 2021-2026.
Multi-cloud Market Landscape
Product innovations, Acquisitions,
Collaboration, and R&D activities are key strategies adopted by players in
the Multi-cloud market. In 2020, the market of Multi-cloud industry outlook has
been fragmented by several companies. Multi-cloud top 10 companies include
- BMC software
- Accenture PLC
- VMware Inc.
- Dell Technologies
- Agile stacks Inc.
- IBM Corporation
- Centurylink
- Citrix systems
- Double horn
- Cloud more
Acquisitions/Technology
Launches
- In October 2020, VMware launched vRealize for software as a service on private deployment mode. VMware also announced CloudHealth Secure State is now upgraded with advanced features to monitor real-time applications for Google cloud, AWS and Microsoft azure cloud platforms.
- In June 2020, Agile Inc. announced it provides multi-cloud supports on Google Cloud, Red hat Openshift and Microsoft Azure platform.
Relevant Report Titles:
Report Code: ITR
52518
Report Code: ITR
0043
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