"Rapid adoption of cloud technology will spur the market revenue growth"
The global cloud service brokerage market was valued at US$ 6.90 Bn in 2021 and is anticipated to grow to US$ 19.44 Bn growing at a CAGR of 12.4% throughout the forecast period from 2023 to 2030.
The proliferation in demand of cloud has bolstered the number of cloud providers and has opened a space for cloud brokerage services. Cloud brokers act as an intermediary amid cloud customers and service providers to support customers in choosing the most appropriate cloud service, helping in management of the risk accompanying with cloud services. Many organizations are adopting hybrid cloud in order to accelerate innovation and to create new business model and revenue streams.
Cloud service brokerage assists in solving the issues hybrid cloud has introduced including lack of visibility and control, security risks, and non-compliant IT environment among others. In addition, cloud service brokerage also provides many services including application assessment, cloud compare, estimate billing, cost management, and financial reporting among others. Thus proliferating the demand for the cloud service brokerage market.
"External brokerage segment to register maximum growth throughout the forecast period"
Based on platform, internal brokerage enablement segment accounted for approximately 50% of revenue share of the total market revenue generated worldwide. This is due to the benefits offered by internal cloud brokerage such as spend management, compliance, license management & support and reduced costs among others. Organizations developing in-house cloud broking software remain an exception to date. In addition, IT departments can make better decisions to actively support multi-cloud strategy and position themselves as true partners that enables business and can also fortify their impact on in-house IT.
In contrast, external brokerage enablement segment is estimated to register maximum growth during the forecast period. Owing to the product offerings by many third party service providers who are delivering fast track solutions to pressing challenges. In addition, external cloud brokerage provides varied sets of benefits including enablement of channels, management of administrative activities, and multi-tenancy cloud delivery system among others.
"IT & Telecom segment is expected to be dominant during the forecast period"
Based on end-use, the global cloud service brokerage market is segmented into BFSI, IT & Telecom, Healthcare, Government, Manufacturing, and Others (Education, Logistics, & Retail etc.). IT & Telecom, segment leads the market with more than 20% of market share in terms of revenue. This can be attributed to growing inclination towards hybrid IT and high demand to manage and integrate IaaS, SaaS, and PaaS platforms across the organizations. Large enterprises are rapidly adopting cloud service brokers due to the benefits associated with it and to gain a competitive edge in the market.
In comparison, BFSI segment is estimated to register highest growth during the forecast period. This can be attributed to the rapid adoption of cloud technology in banking sector. According to a report by PwC, Public cloud will become the dominant infrastructure model by 2020 for FinTech, and will thus boost the market demand of cloud service brokerage market.
"Increasing number of startups to bolster the growth in Asia Pacific region"
In 2021, North America was the leading revenue contributor to the global cloud service brokerage market with a market share of more than 35%. North America is anticipated to remain dominant throughout the forecast period trailed by Asia Pacific. This is due to North America being the early adopter of technology, availability of state-of–the-art infrastructure and the presence of major IT & Telecom service providers in the region with significant cloud adoption will bolster the cloud service brokerage market growth in this region.
On the contrary, Asia Pacific region is projected to record significant growth during the forecast period. This growth can be associated with the exponential growth of cloud services adoption among businesses, high investment in research and development, support by government for cloud integration are proliferating the growth in this segment. In addition, an increasing number of IT startups in developing economies such as China and India along with growing demand for cloud-based solutions is further fuelling the market growth.
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Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Cloud Service Brokerage market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
