28 Nov 2019
Posted in Technology
China to account for one-third of APAC cloud computing market by 2023, says GlobalData
With the increasing presence of ‘hyper-scale’ cloud providers in big data, analytics, artificial intelligence (AI) and Internet of Things (IoT), cloud has emerged as a compelling proposition for the enterprises and governments alike. Against this back drop, China is forecast to account for nearly one-third of the overall Asia-Pacific (APAC) cloud computing market by 2023, says GlobalData, a leading data and analytics company.
According to GlobalData’s Market Opportunity Forecasts Model, China, Japan and India will continue to drive the cloud computing market in the APAC region and account for two-thirds of the overall region’s cloud computing market in 2023.
Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “Cloud computing market in China is forecast to reach US$84bn by year-end 2023. Favorable regulatory landscape, growing adoption of cloud by enterprises and the emergence of ‘glocal’ cloud powerhouses such as Alibaba, Tencent and China Telecom will drive the market growth in the country.”
In Japan, the establishment of Japan Cloud Consortium (JCC) organization in 2010 to promote the adoption of cloud services is bearing positive results. Cloud computing revenue in Japan is estimated to grow at a CAGR of 20.7% during 2018-2023 to reach US$69bn in 2023.
Verma adds: “Support from the Government, increased investment in ICT infrastructure by public/private enterprises coupled with increasing adoption of cloud services amongst the small and medium-sized enterprises (SMEs) will provide thrust to the growth of cloud in Japan.”
In India, which is home to the world’s second largest mobile subscriber base, the cloud computing market is estimated to grow at a CAGR of 15.1% during the outlook period, driven by the necessity to serve global demand of enterprises and domestic demand from customers. The National Digital Communications Policy-2018, which aims to establish India as a global hub for cloud computing, content hosting and delivery, and data communication systems and services, will further aid the country’s cloud computing market growth.
Verma concludes: “Cloud computing will continue to witness upward trend as enterprises are now migrating specialized, high-performance applications to the cloud, with a view to reduce time and cost for new products launch. Improvised monitoring and enhanced visibility provided by the cloud vendors, along with the focus of enterprises to optimize their applications to predominantly a cloud-native environment will further fuel cloud computing growth in the region.”