Cloud computing involves providing computing resources over the internet, such as storage, servers, applications, and networking, facilitating faster innovation and economies of scale. Clients prefer cloud computing to conventional on-premise setups because it allows them to pay for specific resources they need and manage their technology more effectively. The rising acceptance of cloud computing services, particularly in the public cloud sector, is anticipated to lead to a significant increase in Europe's cloud computing market share.
Europe Cloud Computing Market Driving Factors and Challenges
The increasing demand for cost-effective IT infrastructure and higher returns on investment is driving market growth. Traditional on-premises IT infrastructure limitations have led enterprises to turn to cloud computing services, which offer cost-effectiveness and on-demand computing without the need for hardware resources. Government investments to boost economic growth are encouraging enterprises to adopt cloud solutions. However, cloud outages and service unavailability can negatively impact market revenue, particularly for small and medium enterprises without backup solutions.
The need to enhance customer experience has also fueled the demand for Customer Relationship Management (CRM) software, with SaaS emerging as a viable option for SMEs due to its affordability and hardware-independent operation. The manufacturing sector is witnessing an increased adoption of cloud computing services due to the rapid shift towards Industry 4.0 and digitalization trends. Cloud services enable manufacturers to manage core applications like ERP and resource management systems in the public cloud. The enhanced analytics capabilities and on-demand data availability facilitate real-time data analysis and issue resolution for enterprises.
However, the cloud computing market's revenue can be negatively affected by instances of cloud outages or service unavailability, which in turn impacts business continuity. Small and medium enterprises (SMEs) that lack on-premise backup solutions may encounter difficulties when adopting cloud services. Issues such as performance problems and system downtime arising from network outages, data center challenges, power disruptions, and physical damage to data centers can significantly impede operational continuity for these businesses. Consequently, SMEs must exercise caution when choosing a cloud service provider and consider their reliability. Additionally, investing in backup solutions becomes crucial for mitigating potential risks and ensuring uninterrupted business operations, enabling SMEs to maintain a seamless flow of activities and data accessibility even during unforeseen disruptions in cloud services.
Impact of COVID-19 on Europe Cloud Computing Market
The Europe cloud computing industry experienced a positive impact from the COVID-19 pandemic. Lockdown restrictions led to a widespread shift to remote work, driving increased reliance on cloud services. Businesses used these services to streamline communication and collaboration among employees, ensuring uninterrupted operations. The sustained trend of remote working post-pandemic could present new growth opportunities for market participants.
Europe Cloud Computing Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Alibaba Group Holding Limited, Amazon Web Services, Inc. (AWS), CenturyLink (Lumen Technologies), CloudSigma Holding AG, DigitalOcean, LLC, Fujitsu Limited, Google LLC, Hewlett Pac kard Enterprises (HPE), IBM Corporation, Microsoft Corporation, NTT Communications Corporation, Oracle Corporation, OVHcloud, Rackspace, Inc., Salesforce.com, Inc., SAP SE, Tencent Holdings, Ltd., UpCloud, VMware, Inc., Others.
Europe Cloud Computing Market Segmentation:
By Service Type: Based on the Service Type, Europe Cloud Computing Market is segmented as; Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS).
By Organisation Type: Based on the Organisation Type, Europe Cloud Computing Market is segmented as; Large Enterprises, SMEs.
By Application: Based on the Application, Europe Cloud Computing Market is segmented as; BFSI, Education, Government and Public Sector, Healthcare, IT and Telecom, Manufacturing, Retail, Others.
By Deployment Model: Based on the Deployment Model, Europe Cloud Computing Market is segmented as; Hybrid, Private, Public.
By Region: This research also includes data for France, Germany, Italy, Netherlands, Nordics, Spain, Switzerland, United Kingdom, Others.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.