The private cloud services market is expected to grow at a CAGR of 25% during the forecast period. Growing adoption of cloud among smes, drivers.2, and drivers.3 are some of the significant factors fueling private cloud services market growth.
Growing adoption of cloud among smes
To estimate the size of the global private cloud services market, Technavio has tracked the recent trends and developments in the industry. The market size has been developed in terms of value by considering the following factors:
The market size has been calculated based on investments made by cloud service providers, colocation service providers, and enterprises in setting up new data centers or upgrading their existing data centers. The market size excludes all discounts and allowances, and government subsidies.
Revenues: Taken in local currencies, if not available in US dollars, for each country and vendor and then converted to US dollars using the yearly average currency exchange rate of 2019, the base year. This implies that the figures reflect industry trends, not distorted by fluctuations in international exchange rates.
Exclusions: The report does not consider the effect of inflation and price fluctuation over the forecast period.
Currency: Unless explicitly mentioned, all revenues are represented in US dollars.
The market sizing has been built and validated using multiple demand-side and supply-side approaches for a detailed understanding of the global private cloud services market. The specific market sizing approaches used for evaluating the global private cloud services market are:
Top down: Validated the market on the basis of the contribution of global private cloud services market to the overall IT spending market
Bottom up: Validated the market on the basis of the revenue of key technology solution providers from the global private cloud services market.
Combination: Using a combination of more than one approaches described above and integrating the results in a data model
Within the above-mentioned market sizing models, analysts have made assumptions and estimates listed below:
Extensive use of private cloud services for storage purpose
Stringent government regulations
For this report, we have also used the following macro data in modeling the market size for 2019:
GDP growth
Mobile penetration rates
Internet penetration rates
Broadband penetration rates
Based on the above data models, Technavio has estimated the total market for private cloud services as $34.14 billion in 2019.
