Cloud FinOps Market Size is valued at USD 12.9 billion in 2023 and is predicted to reach USD 26.8 billion by the year 2031 at a 9.8% CAGR during the forecast period for 2024-2031.
Cloud FinOps is a set of practices that combines financial management with cloud computing to optimize cloud spending. It focuses on gaining visibility into costs, implementing governance, fostering collaboration between teams, and identifying cost-saving opportunities. By adopting Cloud FinOps, organizations can effectively manage their cloud investments and ensure maximum value while controlling costs.
The market for cloud FinOps in organizations is being driven by rising cloud environment complexity, increasing need to optimize costs, and growing demands for financial responsibility to effectively control spending, enhance communication, and match cloud usage with business goals; organizations need effective tools and processes as they increase their cloud operations. Furthermore, the cloud FinOps market could see growth in the next years due to factors such as the increasing demand for advanced cost management solutions, the growing use of AI and automation in financial operations, and the widespread acceptance of cloud computing in developing economies. Increased financial transparency, improved communication between IT and finance, and optimized cloud spending are all drivers of the cloud FinOps market.
However, the high cost of cloud FinOps, the need for qualified personnel, and the excessive expense of specialist tools and training hindered the market growth. Additionally, a number of factors are creating opportunities in the Cloud FinOps market. These include the increasing need for advanced cost management solutions, the growing usage of AI and automation in financial operations, and the broad acceptance of cloud computing in developing economies. The increasing focus on sustainability and efficient resource utilization also presents an opportunity for innovative FinOps products and services.
Competitive Landscape
Some Major Key Players In The Cloud FinOps Market:
- Amazon Web Services, Inc.
- Microsoft
- IBM
- Oracle
- Hitachi
- VMware
- ServiceNow
- Datadog
- Lumen Technologies
- Flexera
- Nutanix
- Amdocs
- Bmc Software
- HCL
- Virtasant
- Opentext
- Accenture
- Manageengine
- Softwareone
- Corestack
- Doit
- Virtana
- Cast AI
- Densify
- Anodot
- Harness
- Cloudzero
- Pepperdata
- Spot (NetApp, Inc.)
- Unravel Data
- Centilytics
- Kubecost
- Finout
- Hyperglance
- Other Market Players
Market Segmentation:
The cloud FinOps market is segmented based on offering, application, service model, deployment model, organization size, and vertical. Based on the offering, the market is segmented into solutions and services. By application, the market is segmented into cost management & optimization, budgeting & forecasting, cost allocation & chargeback, workload management & optimization, reporting & analytics, and others. By service model, the market is categorised into IaaS, PaaS, and SaaS. By deployment model, the market comprises public cloud, private cloud, and hybrid cloud. The organization size category is segmented into large enterprises & SMEs. As per the vertical, the market is segmented into IT & ITeS, BFSI, retail & consumer goods, healthcare & life sciences, media & entertainment, manufacturing, telecommunications, government & public sector, and others.
Based On The Offering, The Services Segment Accounts For A Major Contributor To The Cloud FinOps Market.
Services are expected to hold a major global market share in 2023 in the cloud FinOps market because reducing cloud costs, managing complicated multi-cloud systems, and executing FinOps strategies are becoming increasingly complex and require expert help. Additionally, the cloud FinOps market is growing because more and more companies are looking for professional help with training, consultancy, and the continuous maintenance of FinOps processes.
IT & ITeS Segment To Witness Growth At A Rapid Rate
The IT & ITeS segment is growing because it relies heavily on cloud services, necessitating solutions for optimizing costs and managing resources efficiently. Moreover, the need for FinOps solutions to manage complex cloud expenditures and ensure financial accountability is growing in these industries as they adopt multi-cloud environments for operational efficiency and scalability. This is driving significant growth in the cloud FinOps market.
In The Region, The North American Cloud FinOps Market Holds A Significant Revenue Share.
The North American cloud FinOps market is expected to report the maximum market share in revenue in the near future. This can be attributed to the extensive use of cloud computing, highly developed infrastructure for cloud computing, and the dominance of large cloud providers. Additionally, the market is expanding because of the rising demand from large organizations for financial responsibility and cost efficiency. In addition, Europe is expected to grow rapidly in the cloud FinOps market because of the rising consciousness about the need for cost management strategies and the stepping-up of digital transformation efforts. Rising global cloud providers, the influence of emerging nations, and technological improvements are driving this market.
Recent Developments:
- In Sept 2024, IBM has enhanced its FinOps capabilities in response to evolving cloud competition. IBM expanded its multi-cloud and hybrid cloud FinOps capabilities through the acquisition of Kubecost, while its AI infrastructure approach diverged from VMware's under Broadcom.
Cloud FinOps Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 12.9 Bn |
|
Revenue Forecast In 2031 |
USD 26.8 Bn |
|
Growth Rate CAGR |
CAGR of 9.8% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Service Model, Deployment Model, Organization Size, And Vertical |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
|
Competitive Landscape |
AWS, Microsoft, IBM, Google, Oracle, Hitachi, VMware, ServiceNow, Datadog, Lumen Technologies, Flexera, Nutanix, Amdocs, Bmc Software, HCL, Virtasant, Opentext, Accenture, Manageengine, Softwareone, Corestack, Doit, Virtana, Cast AI, Densify, Anodot, Harness, Cloudzero, Pepperdata, Spot, Unravel Data, Centilytics, Kubecost, Finout, Hyperglance. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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