Global Distributed Cloud Market is Expected to Grow at a CAGR of 20.4% over the Forecast Period (2024 – 2034): A Report by TNR, The Niche Research

Wilmington, Delaware, July 24, 2024 (GLOBE NEWSWIRE) -- Distributed cloud refers to the distribution of public cloud services to different physical locations, while the operation, governance, and evolution remain the responsibility of the public cloud provider. This model allows organizations to access cloud services closer to their data sources or end-users, enhancing performance, security, and compliance. The distributed cloud market is experiencing rapid growth, driven by increasing demand for low-latency data processing, regulatory compliance requirements, and the need for efficient resource utilization.

Integrating edge computing capabilities with distributed cloud solutions enables real-time data processing and analysis, crucial for applications like autonomous vehicles and industrial IoT. Organizations are increasingly embracing hybrid cloud strategies, utilizing distributed cloud solutions to securely expand their current on-premises infrastructure. Regulatory requirements are pushing organizations to store and process data within specific geographic regions, driving demand for distributed cloud solutions that offer compliance with local laws.

Global Distributed Cloud Market: Key Datapoints

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Distributed cloud offers scalability and flexibility, allowing organizations to scale resources up or down based on demand without major upfront investments. By decentralizing data processing closer to end-users or IoT devices, distributed cloud reduces latency, enhancing application performance and user experience. Distributed cloud models optimize resource utilization, reducing costs associated with data transfer and infrastructure maintenance.

During the pandemic remote work became the norm, wherein organizations prioritized scalable, secure, and reliable cloud services to support distributed workforces. This surge in demand highlighted the importance of distributed cloud in ensuring business continuity and resilience during global disruptions.

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The distributed cloud market is poised for substantial growth, driven by technological advancements, regulatory requirements, and evolving consumer expectations. As organizations continue to prioritize agility, scalability, and performance, the adoption of distributed cloud solutions will likely remain robust. Understanding these trends and growth drivers is crucial for businesses seeking to capitalize on the opportunities presented by the distributed cloud ecosystem.

Global Distributed Cloud Market: Key Takeaways of the Report: 

• Data security segment by material type is expected to grow at a CAGR of 7.9% in the distributed cloud market due to increasing cyber threats and regulatory compliance requirements. Organizations are prioritizing robust security measures to safeguard sensitive data stored and processed in distributed cloud environments. This growth reflects the escalating demand for advanced encryption, access controls, and threat detection solutions to mitigate cybersecurity risks effectively.
• Edge computing by application dominated the distributed cloud market with a substantial revenue share of 41.4% due to its ability to process data closer to the source, reducing latency and improving real-time application performance, edge computing. Industries leveraging IoT, autonomous vehicles, and smart cities benefit significantly from decentralized data processing capabilities, enhancing operational efficiency and user experience. This dominance underscores the critical role of edge computing in supporting advanced, low-latency applications in diverse sectors.
• Hybrid cloud is anticipated as the second leading deployment model in the distributed cloud market due to its ability to offer a balanced approach between flexibility and control over data. Organizations benefit from leveraging both public and private cloud infrastructures, allowing them to optimize workload placement based on performance, cost, and compliance requirements. This hybrid approach facilitates seamless integration of existing IT environments with scalable cloud solutions, catering to diverse business needs and accelerating digital transformation initiatives.
• Large enterprises, by organization size dominated the global distributed cloud market due to their extensive resources and complex IT infrastructure needs. Distributed cloud solutions offer these enterprises scalability, flexibility, and enhanced data management capabilities across multiple locations, optimizing operational efficiency and supporting global expansion strategies. Additionally, large enterprises prioritize robust security measures and compliance standards, which distributed cloud platforms effectively address. This dominance highlights the crucial role that distributed cloud plays in addressing the changing needs of extensive enterprise operations.
• By industry vertical, manufacturing segment is anticipated to grow fastest with revenue share of 14.7% in 2023 due to increasing adoption of Industry 4.0 technologies. Manufacturing companies are leveraging distributed cloud solutions to enhance operational efficiency, optimize supply chain management, and enable predictive maintenance through real-time data analytics. These technologies facilitate agile manufacturing processes and improve productivity, driving the demand for distributed cloud solutions in the manufacturing industry.
  
• In 2023, Latin America is anticipated as fastest growing region in the global distributed cloud market due to increasing digital transformation initiatives and rapid adoption of cloud technologies across various sectors. The region's expanding internet penetration, coupled with government incentives promoting digital infrastructure development, is driving demand for distributed cloud solutions. Businesses in Latin America are leveraging these technologies to enhance operational efficiency, reduce costs, and improve scalability, fostering significant growth in the distributed cloud market.

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Global Distributed Cloud Market: Key Participants

• Alibaba Cloud
• Amazon Web Services (AWS)
• Baidu Cloud
• CenturyLink (Lumen Technologies)
• Cisco Systems
• Dell Technologies
• Fujitsu
• Google Cloud Platform (GCP)
• Hewlett Packard Enterprise (HPE)
• Huawei Cloud
• IBM Cloud
• Microsoft Azure
• Nutanix
• Oracle Cloud
• Rackspace Technology
• Red Hat (IBM)
• Salesforce
• SAP
• Tencent Cloud
• VMware
• Other Industry Participants

Key Developments: Global Distributed Cloud Market

• In April 2024, Google unveiled comprehensive updates across its entire Google Cloud portfolio, spanning enhancements to AI infrastructure, models, platforms, Workspace, cybersecurity tools, and other core cloud technologies.
• On September 2023, Oracle announced enhancements to its Oracle Cloud Infrastructure (OCI) services. These updates encompass new offerings such as Oracle Database@Azure and MySQL HeatWave Lakehouse, available on AWS as part of OCI's distributed cloud solutions.

Global Distributed Cloud Market

By Service Type

• Data Security
• Data Storage
• Networking
• Autonomy
• Others

By Application

• Edge Computing
• Content Delivery
• Internet of Things
• Others

By Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

By Organization Size

• Small and Medium-sized Enterprises (SMEs)
• Large Enterprises

By Industry Vertical

• Healthcare and Life Sciences
• Banking, Financial Services, and Insurance (BFSI)
• Retail and Consumer Goods
• Manufacturing
• IT and Telecom
• Media and Entertainment
• Government and Public Sector
• Energy and Utilities
• Transportation and Logistics
• Education
• Others

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)  

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Jay Reynolds

The Niche Research

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