Finance Cloud Market Worth $101.71 Billion By 2030

Finance Cloud Market Growth & Trends

The global finance cloud market size is anticipated to reach USD 101.71 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 20.3% from 2022 to 2030. Financial organizations are modernizing their processes and embracing different aspects of digital transformation owing to the convenience offered by cloud solutions. Financial institutions using the cloud model benefit from improved disaster recovery, fault tolerance, and data protection.

The volume of data breaches has surged in recent years, forcing financial companies to step up their security measures. According to the Financial Services Sector Exposure Report 2018-2021 by Constella Intelligence, a global threat intelligence organization, there were 6,472 breaches and data leaks found between 2018 and 2021, with more than 3.3 million records stolen from 20 organizations of Fortune 500.

The COVID-19 pandemic had a positive effect on the market for finance cloud. The financial sector has significantly altered its existing business strategy, improving its business performance and modernizing the old product lines with more cost-effective strategies. To maintain effective internal operations in the event of a pandemic, banks and other financial institutions have embraced the cloud much more widely. As a result, there has been a significant increase in demand for financial cloud during this period.

The market is anticipated to benefit from strategies adopted such as frequent launches, developments, and innovations by market players in the finance cloud industry. For instance, in May 2021, Google Cloud officially confirmed the data share solution for financial services. The data share solution is created to enable sharing of market data with enhanced security and ease across the capital markets, including data consumers like asset managers, investment banks, and hedge funds, as well as market data issuers like exchanges and other providers. 

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Finance Cloud Market Report Highlights

• In terms of solution, the security segment accounted for the largest revenue share of USD 4.58 billion in 2021 and is projected to maintain its position during the forecast period. Rising security concerns due to organizations moving towards cloud-based services & tools and digital transformation strategy as part of their infrastructure development are driving the segment growth. The governance, risk & compliance segment is expected to register the highest CAGR of 21.8% during the projected period

• Based on service, the managed segment led the market with a 64.8% share in 2021 and is expected to retain its position during the forecast period. Managed services allow businesses to outsource all or a portion of their IT operations & infrastructure so they may concentrate on their main corporate objectives. By lowering operational expenditure (OPEX) and capital expenditure (CAPEX), outsourcing enables contact center-based businesses to lower the cost of network and IT spending

• The professional services segment is expected to register the highest CAGR of 24.8% in terms of revenue during the forecast period of 2022 to 2030

• In terms of deployment, the public cloud segment held the largest revenue share of USD 9.73 billion in 2021 and is projected to maintain its position during the forecast period. As a user of the public cloud, organizations are not in charge of administering cloud hosting services. The management and upkeep of the data center where data is stored fall under the purview of the cloud service provider

• This entails eliminating protracted procurement procedures and waiting for operations to set up servers, set up operating systems, and create connectivity. The public cloud also reduces expenditure because businesses only pay for the resources they use, thus cutting down on wasteful expenditure on idle resources. The private cloud segment is expected to register a CAGR of 23.0% during the assessment period

• Based on application, the wealth management segment held the largest revenue share of 29.6% in 2021 and is projected to maintain its position during the projected period. Moving wealth management systems to the cloud could assist in providing agile and flexible solutions that could help create a strategic competitive edge while positioning the business for long-term success. Companies are entering into partnerships for the adoption of cloud-based wealth management services

• The large enterprises segment dominated the market with a share of 68.2% in 2021. The small & medium enterprises segment is likely to register the highest CAGR of 24.0% during the forecast timeline. The growth of this segment is mainly due to the numerous benefits of cloud computing, including improved customer relationship management, regulatory compliance, data analysis, and assistance in detecting frauds in the financial sector

• According to a survey conducted by Ernst & Young Global Limited, a U.K.-based company, in March 2022, 39% of medium enterprises had made progress toward the cloud 

• For instance, in January 2022, Avaloq, a provider of business process as a service (BPaaS) and software as a service (SaaS) announced that it is extending its long-standing partnership with RBC Wealth Management, which is a part of the Royal Bank of Canada, throughout Asia, for switching to cloud-based SaaS model and updating the wealth management platform with cutting-edge solutions. The asset management segment is anticipated to register the highest CAGR of 23.4% during the assessment period

• In terms of end-use, the banking and financial services segment generated the largest revenue of USD 13.11 billion in 2021 and is projected to retain its dominance during the projected period. The need to distinguish and personalize services has made it essential for banks to modernize their core technology foundation to cloud-based infrastructure. This was further expedited by the pandemic's requirement for distant operations and the exponential growth of digital transactions

• For instance, in July 2020, Microsoft and Finastra, one of the largest fintech organizations, which offers solutions for the financial sector, announced a global strategic partnership to accelerate transformation in financial services. The insurance segment is anticipated to register the highest CAGR of 23.6% during the projected timeline

• North America dominated the market in 2021 with a revenue share of 35.0% and is expected to expand at a CAGR of 18.9% during the forecast period. Asia Pacific is likely to register the highest CAGR of 21.6% during this timeline, owing to the rapid increase in digitalization and sustained national investment in technological advancements. The rapid rise of banking and insurance organizations as well as the increasing demand for cloud services support the Asia Pacific market's expansion

Finance Cloud Market Segmentation

Grand View Research has segmented the global finance cloud market based on solution, service, deployment, enterprise, application, end-use, and region:

Finance Cloud Solution Outlook (Revenue, USD Million, 2017 - 2030)

• Financial Forecasting

• Financial Reporting & Analysis

• Security

• Governance, Risk & Compliances

• Others

Finance Cloud Service Outlook (Revenue, USD Million, 2017 - 2030)

• Professional Services

• Managed Services

Finance Cloud Deployment Outlook (Revenue, USD Million, 2017 - 2030)

• Public Cloud

• Private Cloud

• Hybrid Cloud

Finance Cloud Enterprise Outlook (Revenue, USD Million, 2017 - 2030)

• Large Enterprises

• Small & Medium Enterprises

Finance Cloud Application Outlook (Revenue, USD Million, 2017 - 2030)

• Revenue Management

• Wealth Management

• Account Management

• Customer Relationship Management

• Asset Management

• Others

Finance Cloud End-Use Outlook (Revenue, USD Million, 2017 - 2030)

• Banking & Financial Services

• Insurance

Finance Cloud Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

  • Italy

• Asia Pacific

  • China

  • India

  • Japan

• Latin America

  • Brazil

  • Mexico

• Middle East & Africa 

List of Key Players in Finance Cloud Market

• Acumatica, Inc.

• Amazon Web Services, Inc.

• ARYAKA NETWORKS, INC.

• Cisco Systems, Inc.

• Google (Alphabet Inc.)

• IBM

• Microsoft

• Oracle

• Sage Group plc

• SAP

• Unit4

• Wipro