Global industry cloud spending across finance, manufacturing, healthcare and public sector will reach $22.5 billion in 2018, according to a new research by IDC.
The industry cloud is the one of the next untouched area of technology and business world, which focuses on vertical industries and more specific applications.
- Industry cloud spending by vertical
According to IDC, the healthcare providers will spend the most on cloud ($10.8 billion) this year, accounting for around half (48%) of the total spending.
Whereas, the finance industry ($4.5 billion) and public sector ($4.3 billion) together will spend $8.8 billion on cloud, which is less than the cloud spending by healthcare.
The manufacturing industry is expected to spend around $3 billion on cloud in 2018.
“As it continues to develop, the industry cloud market is expected to sustain its double-digit growth for the next five to ten years. Industry clouds continue to arise every year, digitally transforming industries, encouraging industry collaboration, and driving industry innovation; while, to meet market needs, software vendors shift to portfolio verticalization, designing industry-tailored solutions,” said Zachary Rabel, Senior Research Analyst, Cloud, SaaS, and Industry Cloud research at IDC.
- Industry cloud spending growth for 2019
These industries will increase their spending on cloud by 24.3% in 2019. Particularly, the healthcare and manufacturing industries are expected to increase their cloud spending by 26.1% each.
On the other hand, the finance industry and public sector will grow below average at 23.4% and 19.4% respectively.
“From a vertical perspective, healthcare leads the way, but manufacturing, healthcare, and the public sector each represent expanding markets. Due to the market’s acceleration, IDC believes the industry cloud market is among the largest vertical growth opportunities for both technology vendors and professional services firms through 2025,” added Zachary Rabel.
- Top industry cloud companies
SAP, the German multinational software corporation, dominated the industry cloud wars in the finance industry in 2017.
Veeva Systems, the cloud-based software provider for life sciences, was found to be the top industry player in 2017 among the 40 vendors tracked in manufacturing industry.
In the public-sector industry, Lockheed Martin, a global security and aerospace company, represented the top billing with $1.4 billion in revenue.
Furthermore, athenahealth, a network-enabled services provider for healthcare, also generated a revenue of more than $1 billion in industry cloud business in 2017.
“More and more leaders within major industries are using the same cloud services delivery models as companies like Amazon, Google, Facebook, and others – to deliver new and innovative digital services to their customers,” said Frank Gens, Senior Vice President & Chief Analyst at IDC.
“IDC’s latest Industry Cloud Tracker data shows that this new type of digital services revenue stream is already reaching significant scale in four of the biggest industries on the planet, growing at roughly four times the growth of the S&P 500’s overall revenue growth. As strategic crossroads for digital innovation in each industry, industry clouds will drive even greater growth and industry transformation over the next five years.”
- Industry cloud spending by region
IDC further said that US will be the only region to spend over $1 billion in 2018 on industry cloud for each industry.
In 2019, Western Europe is expected to join the list of regions which spend $1 billion annually in finance industry. Whereas, China will cross the $500 million mark in 2019 for all the four industries combined.