Cloud Migration Services Market Size, Share & Trends Analysis Report By Platform (Solution, Service), By Deployment (Private, Public, Hybrid), By Enterprise Size, By End-use Industry, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global cloud migration services market size was valued at USD 11.7 billion in 2022 and is anticipated to expand at a CAGR of 25.9% from 2023 to 2030. The rise in the adoption of hybrid cloud solutions is driving the global demand for cloud migration services. Increased demand for business agility and increased adoption of automation solutions are expected to drive the growth of the global cloud migration services market over the forecast period. Increasing demand for quicker and simpler application deployment using a pay-as-you-go model, combined with increased adoption of cloud-based migration in business operations, is predicted to increase market growth.

Fiserv, a global fintech and payment company, enhanced its payment processing systems to improve processes, resulting in benefits such as risk mitigation and cost benefits. In addition, The Bank of Angola was the first bank in Angola to adopt modernization by migrating to the cloud to enhance and innovate infrastructure and processes.

COVID-19 had a positive impact on cloud computing as data storage and other cloud services, as the overall cloud ecosystem witnessed a rise in adoption during the period. Many companies have shifted to a remote workplace environment to comply with social distancing guidelines and government work-from-home mandates. According to a National Association of Business Economists study on the impact of COVID-19 on small businesses, 45% of large and small businesses moved to a part-time remote workforce. Since the pandemic has entirely disrupted logistics and supply chains, the demand for inventory control, system integration, and contactless delivery have surged.

Platform Insights

In terms of platform, the cloud migration services market is further segmented into solutions and services. The solution segment is further bifurcated into infrastructure migration, platform migration, database migration, application migration, and storage migration. The solution segment accounted for the largest revenue share of 67.3% in 2022 and is expected to continue to dominate the market over the forecast period. Platform migration is crucial for ensuring cloud migration in various businesses. It may involve upgrading from older applications to the latest software platforms or selecting a new platform based on growing business needs. Organizations are adopting platform migration to reduce the IT cost of ownership by consolidating the number of platforms in their firms.

In addition, the growing popularity of hybrid cloud is driving platform migration growth. Hybrid cloud enables organizations to distribute their workloads across various platforms to utilize the best of each of them. In January 2021, Blueprint, a process automation solution provider announced the launch of Robotic Process Automation (RPA) platform migration solution. The solutions enable organizations to switch quickly and seamlessly from one RPA tool to another, allowing them to save 75% cost along with providing 3 times faster migration compared to other RPA platforms or migrating bots

The service segment is anticipated to expand at the highest CAGR of 27.0%% during the forecast period. The service segment is bifurcated into professional services and managed services. Cloud migration services enhance service delivery, streamline IT operations, and enable cloud migration initiatives. It includes services such as integration and deployment as well as consulting. These services have the advantage of being portable and scalable, allowing organizations to refactor code for one cloud while maintaining compatibility with other cloud solutions.

Deployment Insights

Based on the deployment, the global cloud migration services market is sub-segmented into public, private and hybrid. The public segment held the largest revenue share of 47.3% in 2022 over the forecast period. Organizations often choose the public cloud due to its cost savings and flexible pricing structure such as pay-as-you-go or subscription-based plans. There are many benefits of moving to the public cloud, such as scalability, reliability, security, improved analytics, and disaster recovery. Various companies are moving from private cloud to public cloud migration services for various industries such as retail, automotive, BSFI among others.

On the other hand, the hybrid cloud segment is anticipated to attain the highest CAGR of 27.0% during the forecast period. The migration to the hybrid cloud has witnessed significant growth over the last few years compared to other cloud services. Companies can scale computing resources by employing a hybrid cloud, which minimizes the need for significant amounts of cash to handle abrupt surges in demand. A company may rapidly penetrate new markets due to the capability enabled by many cloud service providers to boost infrastructure in multiple global locations. According to NASSCOM, in 2022, 91% of organizations worldwide were expected to rely on hybrid cloud environments to meet their infrastructure needs.

Enterprise Size Insights

Based on the enterprise size, the global cloud migration services market is segmented into small and medium sized enterprises (SMEs) and large size enterprise. The large size enterprise segment held the largest revenue share of 65.5% in 2022 and is expected to maintain its position over the forecast period. Large enterprises are gaining a significant competitive edge by migrating to cloud-based solutions due to rapid digital acceleration. Thus, fueling cloud computing investments across industries.

This has resulted in a significant increase in cloud computing investments across industries, which is why large enterprises have made digitally skilled environments a top priority. HCL Technologies Limited, for example, partnered with Google in October 2022 to enhance enterprise migration to Google Cloud. The collaboration will enable two new services to assist enterprise clients in migrating to Google cloud - based solutions and reaping the benefits of their cloud investments. The new Google Cloud global migration and modernization factory will help businesses move critical workloads into Google Cloud solutions more quickly, while also improving security and ensuring compliance with emerging regulatory frameworks.

On the other hand, the small and medium sized enterprises segment is anticipated to expand at the highest CAGR of 26.8% during the forecast period. Cloud computing enables small and medium-sized enterprises (SMEs) to compete at technical levels with much larger enterprises by providing access to vast computing resources as well as a wide range of services & applications that they would not otherwise be capable of financing. The cloud also enables businesses to test new processes or services without investing in new infrastructure or time & resources in developing new applications for on-premise solutions.

End-use Industry Insights

Based on the end-use industry, the global cloud migration services market is segmented into IT & telecommunications, BFSI, healthcare, government & public sector, manufacturing, automotive, retail & consumer goods, media & entertainment, and others. The IT & telecommunications segment held the largest revenue share of 20.1% in 2022 and is expected to maintain its position over the forecast period. Telecom companies are using cloud computing to innovate their products and services, develop innovative business models (B2B), and enable possible applications. For instance, in June 2022, IDEMIA announced a partnership with SK Telecom in migrating its consumer eSIM management platform to the Microsoft Azure public cloud. IDEMIA collaborated closely with SK Telecom to migrate their eSIM management platform to the public cloud, allowing SK Telecom to utilize carrier-grade services to accomplish adaptability, affordability, ability, and security for their eSIM connectivity operations.

The healthcare segment is anticipated to attain the highest CAGR of 29.1% during the forecast period. Healthcare organizations are going through a transformation in which product innovations and automation are reshaping new boundaries for the industry. With the latest developments in cloud migration services, healthcare corporate giants are adapting cloud-based services to remain competitive and provide premium services that would support clinical research.

In November 2022, Hackensack Meridian Health announced to migrate its Epic workloads to Google Cloud to achieve technological efficiency and security. The contract between Google Cloud and Epic would provide healthcare providers with more alternatives for a virtualized environment. Healthcare companies have been able to boost their business transformation by adopting the cloud and utilizing technologies such as artificial intelligence and analytics to improve health outcomes.

Regional Insights

North America dominated the market with a share of 32.1% in 2022 and is anticipated to retain its position over the forecast period. The high adoption of cloud migration services in this region is the major factor behind the market growth. North America has the most mature cloud migration services market due to several factors, including the presence and availability of technological resources and innovative IT infrastructural facilities. In June 2022, SADA Inc. announced customer growth, talent acquisition, and leadership expansion in the Canadian market. This acceleration and continued global expansion are in response to the demand for SADA's services and capabilities with Google Cloud in Canada as it demonstrates SADA's commitment to adding Google Cloud to work for its customers worldwide.

The market within Asia Pacific is anticipated at the highest CAGR of 27.2% during the forecast period. The market for cloud migration services in this region is driven by the rise in investments by cloud migration companies such as Alibaba Cloud, Aokumo Inc., Macquarie Telecom Group, and Megazone Cloud Corp. For instance, in September 2022, Alibaba.com announced an investment of USD 1 billion over the next three financial years to assist its cloud-computing clients. In recent years the company has opened up new data centers outside China to gain customers in markets such as Singapore and Thailand.

Key Companies & Market Share Insights

The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are undertaking strategies such as product launches, collaborations, and partnerships to survive the highly competitive environment and expand their business footprints.

For instance, in November 2022, Hackensack Meridian Health announced its plans to migrate its Epic workloads to Google Cloud, to achieve technological efficiency and security. The contract between Google Cloud and Epic will provide healthcare providers with more alternatives for a virtualized environment. Healthcare leaders, such as Hackensack Meridian Health, have increased their business transformation by adopting the cloud and utilizing technology, such as artificial intelligence and analytics, with the ultimate objective of improving health outcomes. Some of the prominent players operating in the global cloud migration services market are:

• IBM Corporation

• SAP SE

• Google LLC

• Capgemini

• Amazon Web Services, Inc.

• Microsoft

• Hewlett Packard Enterprise Development LP

• Accenture

• VMware, Inc.

• NTT DATA Americas, Inc.

• Tata Communications

• Wipro

• Kyndryl Inc.

• Vodafone Limited

• Veritis Group Inc.

Cloud Migration Services Market Report Scope

Global Cloud Migration Services Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cloud migration services market report based on platform, deployment, enterprise size, end-use industry, and region:

• Platform Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

    • Infrastructure Migration

    • Platform Migration

    • Database Migration

    • Application Migration

    • Storage Migration

  • Service

    • Professional Services

    • Managed Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Public

  • Private

  • Hybrid

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Size Enterprises

  • Small and Medium Sized Enterprises (SMEs)

• End-use Industry Outlook (Revenue, USD Million, 2017 - 2030)

  • IT & Telecommunications

  • BFSI

  • Healthcare

  • Government & Public Sector

  • Manufacturing

  • Automotive

  • Retail & Consumer Goods

  • Media & Entertainment

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Sweden

    • Finland

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Chile

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa