Global Finance Cloud Market - Segmented by Solution and Services (Financial Forecasting, Financial Reporting and Analysis, Risk and Compliance), Application (Wealth Management System, Revenue Management), Deployment Model (Public Cloud, Private Cloud, and Hybrid Cloud), End Users, and Region - Growth, Trends, and Forecast (2018 - 2023)
The global finance cloud market was valued at USD 12.22 billion in 2017 and is expected to reach a value of USD 43.93 billion by 2023 at a CAGR of 23.77% over the forecast period of 2018–2023.
Increasing deployment of applications via cloud, the surging need for customer management, business agility, and efficiency, are expected to drive the global finance cloud market. Owing to the increasing critical cloud data, confidentiality, compliance and legal issues, cloud-based security solutions are gaining huge demand in the financial sector. The adoption in the market is likely to grow over the forecast period, owing to reduction in capital expenditure (CAPEX) and operational expenditure (OPEX).
However, the lack of skilled IT resources is likely to hamper growth in the market as the CSPs only offers tiered support within cloud solutions. As a result, the organizations will have to allocate resources in training to accommodate a learning curve before reducing IT resources.
Increasing Need for Customer Management Applications
Benefits, such as, improved productivity, lowered costs, and advanced data analytics provided by customer management applications, are having a significant impact on the adoption of finance cloud. The banking services and financial and insurance companies are opting for the application to quickly address customer queries and concerns, keeping in mind the long-term benefits and achieving a competitive advantage. The major providers of customer management application in finance cloud are Amazon Web Services (AWS), Oracle, Computer Sciences Corporation (CSC), SAP, Google, IBM, Microsoft Corporation, and Salesforce.com.
Professional Services to Dominate the Market
Worldwide, the focus on various organizations on offering specialized services to achieve a greater customer experience and obtaining operational efficiency at a reduced cost and time, are driving the demand for professional cloud services. The professional cloud services segment is growing at an exponential rate, since most of the players are focusing on providing specialized services for the market. Rapid increasing demand for customer satisfaction with better and faster support and its reliable and efficient integration, are some of the other drivers that have an impact on the professional services segment.
North America Leading the Finance Cloud Market
North America is anticipated to hold the largest market share as it dominated the finance cloud market in 2016, owing to the greater internet penetration rate and a strong economy that shifted isolated infrastructure to cloud in the region. Reduce CapEx spending, low IT management complexity, improved agility, and security, are some of the major driving factors that are contributing to the growth of cloud computing in North America.
Key Developments in the Market