The global Cloud equipment market size was over USD 9.5 billion globally in 2020 and is estimated to grow over 7.5% CAGR between 2021 and 2027. Cloud computing is the distributed computing on a network along with the capability to run an application or program on numerous connected computers at the same time. It specially refers to computing hardware device or group of computing hardware devices connected via communication network such as an intranet, internet, wide area network (WAN) or local area network (LAN). Individual user or users who have authorization to access the server can utilize the server's processing power for their individual computing requirements such as to store data, run an application and any other computing requirement.

The cloud focuses on make the most of the efficacy of the shared resources. Cloud resources are typically shared by manifold users and also dynamically reallocated as per demand. Cloud technology and solution is becoming increasingly vital to telecommunications service providers as they commence to employ virtualization of network functions. Several end-use industries employ cloud technology and solutions such as banking, financial services and insurance, energy, healthcare, transportation, government, telecommunication and media and entertainment and others.

Various types of cloud equipments include networking Infrastructure, storage and servers. Different types of cloud deployment public cloud, private cloud, and hybrid cloud.  Extensive adoption of cloud services, mainly public cloud services, is fuelling the demand of cloud equipment amongst cloud based IT service providers. North America is the major market for the cloud equipments followed by Europe. North America is expected to lead the global market over the forecast period.

Numerous benefits provided by Cloud equipment such as cost saving is one of the biggest Cloud equipment benefits. It helps to save substantial capital cost as it does not need any physical hardware investments. Also, users do not need trained personnel to maintain the hardware. The buying and managing of equipment is done by the cloud service provider. Therefore, these factors are becoming major factors propelling the market growth. In addition, it offers a competitive edge over competitors. It is one of the best advantages of Cloud services that helps users to access the latest applications any time without spending time and money on installations, which is further anticipated to boost the market growth. Furthermore, demand for Cloud equipment is growing tremendously due to employees who are working on the premises or at the remote locations can easily access all could services. All they need is an Internet connectivity. In addition, cloud equipment gives users the advantage of rapid deployment. So, when user decide to use the cloud, entire system can be fully functional in very few minutes. Although, the amount of time taken depends on what kind of technologies are used in their business

However, volatile prices of cloud equipment is becoming one of major factors limiting the overall growth of the market. Conversely, growing number of R&D activities is expected to provide a huge market opportunity for the key players operating in the Cloud equipment market.

Equipment Outlook

The network infrastructure segment is expected to dominate the market share in 2020 of global Cloud equipment market.  Since network infrastructure helps the hardware and software components, such as servers, storage, networking, virtualization software, services and management tools, that support the computing requirements of a cloud computing model which is becoming one of major growth factors in the market. Moreover, it has an ability to deploy service quickly in fewer clicks. This faster deployment allows to get the resources required for system within fewer minutes which is further promoting the growth of the type in the market during the forecast period.

Cloud Deployment Outlook

The public segment is expected to dominate the market share in 2020 of global Cloud equipment market. This is attributed to the fact that public cloud computing gives the advantage of rapid deployment. So, when users decide to use the cloud, their entire system can be fully functional in very few minutes. Although, the amount of time taken depends on what kind of technologies are used in the business. Furthermore, it offers a competitive edge over competitors. It is one of the best advantages of Cloud services that helps users to access the latest applications any time without spending time and money on installations, which is further anticipated to boost the market growth.

Regional Outlook

North America Cloud equipment market is dominated in 2020. Cloud technology and solution is becoming increasingly vital to telecommunications service providers as they commence to employ virtualization of network functions. Several end-use industries employ cloud technology and solutions such as banking, financial services and insurance, energy, healthcare, transportation, government, telecommunication and media and entertainment and others.

Asia Pacific is anticipated to grow at a highest CAGR in the Cloud equipment during the forecast period. Various types of cloud equipments include networking Infrastructure, storage and servers. Different types of cloud deployment public cloud, private cloud, and hybrid cloud.  Extensive adoption of cloud services, mainly public cloud services, is fuelling the demand of cloud equipment amongst cloud based IT service providers.

Key Companies & Recent Developments

Partnerships, strategic mergers, and acquisitions are expected to be the most successful strategies for industry participants to get speedy access to growing markets while also improving technological capabilities. Many of the enterprises across verticals have adopted the work from home model to safeguard employee well-being and maintain operational efficiency, surging the demand for Software-as-a-Service (SaaS)-based collaboration solutions. For instance, Microsoft Team platform users increased to 44 million globally due to the high demand for collaboration solutions. While the standalone 8x8 Video Meetings cloud solution experienced a more than 300% increase in registered users in the early 2020 across ~150 countries. Other popular SaaS-based collaboration tools gaining traction are Google Hangouts, Cisco Webex, Slack, Zoom, Ding Talk, WeChat Work, and Tencent Meeting, among others.

Market Segmentation of Global Cloud equipment Market

By Equipment

1. Networking Infrastructure

2. Storage

By Cloud Deployment

1. Public Cloud

2. Private Cloud

3. Hybrid Cloud