DUBLIN--(BUSINESS WIRE)--The "Cloud Applications Market by Application (ERP, CRM, HCM, SCM, Content Management, BI and Analytics), Organization Size, Vertical (BFSI, Manufacturing, Government & Public Sector, and Telecommunications), and Region Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The total cloud applications market size is expected to grow from USD 171.2 billion in 2020 to USD 356.5 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.8% during the forecast period.
The Banking, Financial Services, and Insurance (BFSI); manufacturing; telecommunications; and government and public-sector verticals are shifting toward the adoption of cloud computing services rapidly. The increased awareness of cloud applications, lower operational costs, scalability, agility, and enhanced customer experience are a few factors driving the adoption of cloud application among end users. Data security concerns, threats from cyberattacks, and lack of access to high-speed internet in a large number of countries are some of the factors that are hindering the growth of the cloud applications market.
Among applications, the customer relationship management segment to hold a significant market share in 2020
Cloud Customer Relationship Management (CRM) solutions are deployed over the cloud environment and make the use of cloud computing platforms and services to provide businesses with flexible business process transformations. CRM implementation revolutionizes management across large enterprises and Small and Medium-sized Enterprises (SMEs), helping them improve their relationship with the customers. Vendors offer cloud-hosted CRM solutions that efficiently help organizations manage and store the customer data, offer instant access to real-time insights of sales opportunities, and automate task management processes. With the ease of use and affordability, it increases customer retention rates making business more successful.
Among verticals, the retail and consumer goods vertical is expected to grow at the highest CAGR during the forecast period
The retail and consumer goods vertical is adopting digitalization initiatives at a rapid pace to meet the rising customer expectations and sustain the highly competitive market. Nowadays, consumers across the world are influencing product trends through reviews and social media, doing extensive product research online, and expecting a seamless omnichannel experience across all touchpoints. This makes retailers face tremendous pressure to deliver new business capabilities faster. The use of cloud applications enhances agility and decreases time to market.
Asia Pacific to record the highest growth rate during the forecast period
The adoption of cloud applications in APAC has grown significantly in the last decade. Enterprises operating in APAC countries are looking forward to automating and streamlining the management of their day-to-day operations and gain differential competitive advantage by adopting cloud computing services. The use of technology-enabled cloud applications keep IT support teams better informed about service request and fix these issues with great accuracy. Smart cities initiatives taken by the government is acting as a catalyst for the growing adoption of cloud applications solution in APAC.
- Growing focus on delivering enhanced customer experience
- Business expansions by large vendors across different geographies to acquire an untapped customer base
- Increased awareness of the benefits of cloud and its adjacent technologies among enterprises
- Need for lower operational costs, scalability, and simplified application updates
- Data security concerns and threats from cyber attacks
- Limited bandwidth providers and lack of access to high-speed internet in a large number of countries
- Rising number of startups and SMEs in economically developing countries to create new revenue streams for cloud vendors
- Telecom service providers leveraging existing infrastructure to offer cloud-based services
- Difficulty in managing regulatory frameworks and compliance policy needs
- Higher possibilities of vendor lock-in
- Upland Software
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