Global Distributed Cloud Market To Generate A Revenue Of USD 11.2 Billion By 2028

04-Aug-2022 | Zion Market Research

The global distributed cloud market size was worth around USD 5.4 billion in 2021 and is predicted to grow to around USD 11.2 billion by 2028 with a compound annual growth rate (CAGR) of roughly 12% between 2022 and 2028

Distributed cloud computing is a form of cloud computing where geographically distributed divides are used to process, position, and serve applications and data in order to meet redundancy, performance, and regulations requirements. In the case of traditional cloud services, on-demand and measured access to computing services like servers, databases, storage, and applications, are provided to companies that do not want to buy, build, or run their IT infrastructure. In a distributed cloud network, computation workload is spread across interconnected multiple servers. These systems are execution-based where components of the applications are placed in different but appropriate regional locations that are chosen specifically to meet the application requirements including location, regulations, security, and redundancy.

Some of the benefits of using distributed cloud systems are increased compliance by distributing data and workload depending on the regulatory demands, an increase in uptime owing to the cloud services residing on subnets that can be isolated from the main cloud, improved scalability by adding nodes as per requirement, rapid processing by leveraging multiple systems for a given task, and higher performance. However, the technology has come along with some challenges that involve bandwidth, security, and data protection issues.

Global Distributed Cloud Market

Covid-19 had a positive impact on the global market cap owing to virtually the entire world moving to operate from home. Since all non-essential sectors were closed for operations, the world economy relied heavily on IT infrastructure during the initial restrictions laid down due to the global lockdown. There was a significant rise in demand for better and advanced IT architecture globally propelled by the need to function smoothly even in the case of remote work culture.

The global distributed cloud market growth is attributed to the rise in the use of mobile technologies propelled by global digitization which has resulted in an immense increase in data generated across the globe. Data back-up is an essential component of digitization which can be achieved with the help of cloud and distributed cloud services. Another growing trend witnessed in the global market is the emergence of multiple distributed cloud systems that are created by companies for their own systems. For example, IBM, one of the global market leaders created “IBM Cloud Satellite” which is a distributed cloud technology that allows the IBM cloud to be accessed from anywhere. This is possible because the government and private players are investing heavily in leveraging the benefits of distributed cloud technology. E-commerce is an exponentially growing sector that is expected to aid the higher adoption trend of advanced technology. The e-commerce segment in India is expected to grow from USD 46 billion to over USD 187 billion in a span of 5 years. Since e-commerce relies heavily on IT infrastructure for smooth functioning and analyzing consumer preferences, it may propel global market growth with its own expansion.

The high cost of initial setup and maintenance may impede the global market growth.

The growing need for data privacy is expected to provide global market expansion opportunities.

The lack of skilled professionals is projected to challenge the global market expansion.

The global distributed cloud market is segmented by enterprise size, application, service type, industry, and region.

Based on enterprise size, the global market is segmented into large-scale enterprises and SMEs. The global market may be led by large-scale enterprises during the forecast period since they possess the monetary capability to install and maintain such technologies. Companies that have more than USD 100 million in fixed assets are considered large-scale firms.

Based on application, the global market is segmented into fog/edge computing, volunteer cloud, and public resource computing. The global market trend is more inclined toward fog/edge computing since it is capable of reducing the volume of data that flows through the crowd resulting in the utilization of lesser bandwidth. The fog counting segment is expected to grow at a CAGR of more than 50% in the next 4 years.

Based on service type, the global market is segmented into networking, data security, and data storage. Data storage is expected to dominate the global market during the forecast period. As per GlobalDots, more than 1 exabyte of information is stored with the aid of cloud services.

Based on industry, the segments in the global market are IT & telecom, BFSI, government, retails, education, and e-commerce. BFSI was the largest shareholder amongst all industry types. Distributed cloud networks are most useful in a banking setup because of the high data security concerns and the need to save banks from financial frauds.

The global distributed cloud market may generate the highest revenue from North America owing to the advanced IT infrastructure in this region. The region has a presence of multiple world leaders who have shown immense interest in incorporating distributed cloud technology for the smooth running of their business. In the 2021 fiscal year, the USA spent over USD 92 billion on IT infrastructure alone where USD 50 billion was from civilian agencies and the rest from government institutes. The regional growth may also be attributed to the increased use of the internet of things (IoT). Europe is anticipated to grow significantly in the coming years majorly driven by GAIA-X which is a project initiated by the European territories which encourages goals like data protection, data security, and accountability.

The global distributed cloud market is expected to be dominated by players like Microsoft Corp, Salesforces Inc, IBM Corp, Pivotal Inc, Alibaba Corp, Cloud Sigma Inc, Amazon web services, Google LLC, VMware Inc., and Digital Ocean Inc.

Recent Development:

  • In June 2022, Oracle Cloud Infrastructure (OCI) announced the expansion of its distributed cloud services which is expected to aid customers in meeting data residency, strict latency, and data sovereignty requirements which are the pillars of IT modernization efforts. Customers that include NRIs and Vodafone have already chosen OCI dedicated regions in order to leverage the full functionality of the OCI cloud as per their choice of locations.
  • In October 2021, Google announced its version of distributed cloud which is a set of software and hardware solutions that will aid the extension of Google infrastructure into and to the edge of customer data centers

Browse the full Global Distributed Cloud Market By Application (Fog/Edge Computing, Volunteer Cloud, and Public Resource Computing), By Enterprise Size (Large Scale Enterprises and SMEs), By Industry (IT & Telecom, BFSI, Government, Retail, Education, and E-Commerce), By Service Type (Networking, Data Security, and Data Storage), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028???????. Report at

The global distributed cloud market is segmented as follows:

By Application

  • Fog/Edge Computing
  • Volunteer Cloud
  • Public Resource Computing

By Enterprise Size

  • Large Scale Enterprises
  • SMEs

By Industry

  • IT & Telecom
  • BFSI
  • Government
  • Retail
  • Education
  • E-Commerce

By Service Type

  • Networking
  • Data Security
  • Data Storage

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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