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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