[INFOGRAPHIC] New Parallels SMB Cloud Insights™ Research Shows Global Market Projected to Reach $125 Billion by 2016

The new research is in, and the results are impressive. The Parallels SMB Cloud Insights™ research results continue to show a massive SMB cloud opportunity for service, with the global market reaching $62 billion in 2013 and projected to expand at a 26% CAGR to $125 billion by 2016.

This is the fourth consecutive year Parallels has interviewed SMBs of different sizes, industries and countries about their cloud service consumption, future plans and attitudes. Across the four cloud sub-segments – Infrastructure-as-a-Service (IaaS), Web Presence and Web Applications, Communications and Collaboration, and Business Applications (often called Software-as-a-Service) – SMBs are rapidly adopting cloud services. For example, in mature markets, SMBs are already using an average of five cloud services and are expected to use nine discrete cloud services by 2016.

New global research and forecast includes these key findings:

  • IaaS is expected to top $42 billion by the end of 2016, representing a 27% CAGR
    • From 2012 to 2013, IaaS grew by 28% globally, from $15.9 billion to $20.4 billion. Top add-ons for hosted servers included security, database add-ons, and server backup, and the top hosted server applications included web server and database applications.
    • From a geographic region perspective, IaaS will continue to grow strongly across all regions, with the strongest growth coming from Latin America, EMEA, Asia Pacific, and North America, respectively. For the first time, by 2016, the European market at $13.1 billion will be larger than the North American market at $12.1 billion.
  • The Web Presence and Web Applications market grew in 2013 from $10.2 billion to $13.8 billion, with the greatest gains coming from maturing and developing markets, due to the fact that many businesses in these markets are still continuing to add websites
    • Over the next three years, growth in mature markets will slow to 6% CAGR, while maturing and developing markets will continue to see strong growth at 23% and 30%, respectively
    • North America represents the most mature market and will see only a 5% growth rate, compared to 18-20% growth for the rest of the world.
  • Hosted Communication and Collaboration, which includes business-class email and hosted PBX services, is significantly outpacing the overall market, growing from $4.8 billion in 2012 to $6.5 billion in 2013, and expected to grow at a staggering 46% CAGR reaching $20 billion by 2016.
    • All geographic regions are expected to grow strongly, doubling and tripling in market opportunity between now and 2016. Comparing 2013 to 2016, regions are projected to see the following growth:
      • North America: From $3 billion to $6.8 billion, 32% CAGR
      • Europe: From $1.5 billion to $5.8 billion, 57% CAGR
      • Asia Pacific: From $855 million to $3.5 billion, 58% CAGR
      • Russia, Middle East, Africa: From $552 million to $1.9 billion, 51% CAGR
      • Latin America: From $526 million to $2 billion, 55% CAGR
  • Business Applications represents another huge opportunity for growth in the coming years, growing at 26% CAGR from a $21 billion market in 2013 to a $42 billion market in 2016.
    • Comparing 2013 to 2016, regions are projected to see the following growth:
      • North America: From $8.8 billion to $16.4 billion, 23% CAGR
      • Europe: From $5.1 billion to $9.9 billion, 25% CAGR
      • Asia Pacific: From $3.3 billion to $7.8 billion, 33% CAGR
      • Russia, Middle East, Africa: From $2.1 billion to $3.9 billion, 23% CAGR
      • Latin America: From $1.7 billion to $3.6 billion, 27% CAGR
    • Top business apps being used are Instant Collaboration, File Sharing, and Online Backup. Use of the top business applications will continue to grow strongly, as shown with the following findings:
      • Instant Collaboration: Growing from 27% market penetration in 2013 to 45% in 2016
      • File Sharing: Growing from 28% in 2013 market penetration to 43% in 2016
      • Backup & Storage: Growing from 16% market penetration in 2013 to 28% in 2016

For further information on these and other growth indicators in your markets, get your hands on the latest Parallels SMB Cloud Insights™ Reports today.





Posted on March 19, 2014 and filed under Industry & Market Insights.