“Global Community Cloud Market to reach a market value of USD 41.8 Billion by 2031 growing at a CAGR of 28.9%”
The Global Community Cloud Market size is expected to reach $41.8 billion by 2031, rising at a market growth of 28.9% CAGR during the forecast period.
Healthcare organizations experience varying demands for computing resources, storage capacity, and processing power based on factors such as patient volumes, clinical workflows, and research activities. Thus, the healthcare segment acquired 21.6% revenue share in the market 2023. Community clouds offer scalability and elasticity to accommodate these dynamic workloads, allowing healthcare providers to scale their infrastructure on-demand without overprovisioning or underutilization. Thus, they optimize operational efficiency, reduce IT costs, and enhance performance.
The major strategies followed by the market participants are Mergers & Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, in 2024 April, Cisco Systems, Inc. acquired Isovalent GmbH, a provider of open-source cloud-native networking and security. Under this acquisition, Isovalent will be integrated into Cisco Security Cloud Vision, an AI-driven, cloud-delivered, integrated security platform. Additionally, the acquisition offers IT and platform engineering with robust networking capabilities and improved visibility into cloud-native interactions. Additionally, In January 2023, Microsoft Corporation took over Fungible Inc., a technology company based in California. Under this acquisition, the Fungible team will become a part of Microsoft's datacenter infrastructure engineering teams and will focus on providing multiple DPU solutions, network innovation, and hardware system advancements. Additionally, the acquisition further enhances a wide range of technologies and offerings, including offloading, improving latency, increasing datacenter server density, optimizing energy efficiency, and reducing costs.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Community Cloud Market. In April 2024, Cisco Systems, Inc. acquired Isovalent GmbH, a provider of open-source cloud-native networking and security. Under this acquisition, Isovalent will be integrated into Cisco Security Cloud Vision, an AI-driven, cloud-delivered, integrated security platform. Additionally, the acquisition offers IT and platform engineering with robust networking capabilities and improved visibility into cloud-native interactions. Companies such as Cisco Systems, Inc., Broadcom, Inc. and Amazon Web Services, Inc. are some of the key innovators in Community Cloud Market.
The hardware segment is further divided into networking, storage, and server. The networking subsegment acquired 43% revenue share in the market in 2023. Hardware used in networks, including switches, routers, and access points, forms the backbone of cloud computing infrastructure.
The software segment is subdivided into enterprise applications software, business intelligence & dashboard, and collaboration tool software. In 2023, the business intelligence and dashboard subsegment procured 29.7% revenue share in the software segment. Community cloud-based business intelligence platforms serve as centralized data repositories, aggregating data from disparate sources across the organization.
On the basis of application, the market is classified into cloud-based storage, cloud backup & recovery, cloud security & data privacy, and others. The cloud backup & recovery segment recorded 27.4% revenue share in the market in 2023. Industries such as healthcare, finance, and government often have stringent regulatory compliance requirements regarding data protection and retention.
Based on component, the market is characterized into hardware, software, and services. The hardware segment garnered 65.2% revenue share in the market in 2023. Hardware, such as networking hardware, servers, and storage devices, forms the backbone of community cloud environments.
By end-use, the market is fragmented into BFSI, healthcare, education, government, IT & telecommunication, and others. The BFSI segment procured 27.8% revenue share in the market in 2023. Community clouds serve as catalysts for innovation and digital transformation initiatives within the BFSI sector by providing a collaborative platform for ecosystem partners, fintech startups, and developers to co-create and deploy innovative financial products, services, and applications.
Free Valuable Insights: Global Community Cloud Market size to reach USD 41.8 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment held 26.4% revenue share in the market in 2023. There are numerous prospects in the Asia-Pacific region for the market to expand and thrive, driven by rapid digital transformation, growing SME sector, government initiatives, industry-specific regulations, emerging markets, and strategic partnerships.
Community cloud providers implement security and privacy controls to safeguard private information and make sure that data protection laws, including GDPR, HIPAA, and PCI DSS. By offering features such as encryption, data masking, and anonymization, community cloud platforms enable organizations to safeguard their data privacy and confidentiality while sharing resources and collaborating with other community members.
Additionally, Digital transformation initiatives vary across industries and sectors, each with unique requirements and regulatory considerations. Community clouds offer industry-specific cloud solutions tailored to the requirements of several vertical markets, including the medical field, finance, government, and education.
Some industries may exhibit a higher degree of risk aversion and cultural resistance to change, making them hesitant to adopt community cloud solutions. Traditional industries with conservative business practices, such as manufacturing and construction, may prioritize stability and reliability over innovation and agility, leading to slower adoption of cloud technologies. Hence, limited and slow adoption in certain industries can hinder the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Mergers & Acquisition.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 5.6 Billion |
| Market size forecast in 2031 | USD 41.8 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 28.9% from 2024 to 2031 |
| Number of Pages | 354 |
| Number of Tables | 573 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Application, End-use, Region |
| Country scope |
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| Companies Included | Cisco Systems, Inc., Hewlett Packard enterprise Company, IBM Corporation, Microsoft Corporation, Salesforce, Inc., Akamai Technologies, Inc., Amazon Web Services, Inc. (Amazon.com, Inc.), Broadcom, Inc., Google LLC (Alphabet Inc.) and Dell Technologies, Inc. |
By Component
By Application
By End-use
By Geography
The Market size is projected to reach USD 41.8 billion by 2031.
Rise in adherence to stringent compliances and security are driving the Market in coming years, however, Limited and slow adoption in certain Industries restraints the growth of the Market.
Cisco Systems, Inc., Hewlett Packard enterprise Company, IBM Corporation, Microsoft Corporation, Salesforce, Inc., Akamai Technologies, Inc., Amazon Web Services, Inc. (Amazon.com, Inc.), Broadcom, Inc., Google LLC (Alphabet Inc.) and Dell Technologies, Inc.
The expected CAGR of this Market is 28.9% from 2023 to 2031.
The Cloud-based Storage segment is leading the Market by Application in 2023; thereby, achieving a market value of $15.4 billion by 2031.
The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $14.4 billion by 2031.
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