Cloud Billing Market Share, Size, Trends, Industry Analysis Report, By Component (Solutions, Services); By Billing Type; By Deployment Type; By Service Model; By Organization Size; By Vertical; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 117
- Format: PDF
- Report ID: PM3680
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global cloud billing market was valued at USD 5.24 billion in 2023 and is expected to grow at a CAGR of 16.30% during the forecast period.
The rise in cloud spending and the challenges associated with complex cloud bills are driving the growth of the cloud billing market. As organizations increasingly migrate applications to the cloud, the need to optimize workloads and reduce costs becomes crucial. However, the lack of visibility and standardization in cloud billing poses obstacles to achieving these objectives.
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To address this issue, the FinOps Foundation has sponsored an initiative called FinOps Open Cost & Usage Specification (FOCUS). By creating a common schema for cloud billing, FOCUS helps unify cost data across different cloud vendors, enabling FinOps practitioners to better allocate resources, implement chargeback mechanisms, manage budgets, and forecast expenses.
The research report offers a quantitative and qualitative analysis of the Cloud Billing Market to enable effective decision-making. It covers the key trends and growth opportunities anticipated to have a favorable impact on the market. Besides, the study covers segment and regional revenue forecasts for market assessment.
Industry Dynamics
Growth Drivers
The increasing number of cloud billing enrollments is the one of the major factors to driver the industry
Cloud billing systems are designed to handle the scalability and flexibility requirements of cloud computing environments. This flexibility and scalability of cloud deployment models are key drivers behind the growth of the cloud billing market. Unlike traditional on-premises software applications that involve lengthy planning processes and have high failure rates, the cloud offers a pay-as-you-go model that allows enterprises to start small and expand as needed. This ability to easily scale up or down aligns well with the requirements of cloud billing, enabling businesses to efficiently manage their billing processes based on customer demand and resource usage. The contrast between the agile nature of cloud-based billing solutions and the challenges associated with on-premises software further emphasizes the relevance and importance of cloud billing in driving market growth.
Artificial Intelligence (AI) is creating significant growth potential for cloud billing. Google Cloud's incorporation of AI principles in all new products and its India unit's development of a payment gateway will further create innovations in cloud billing. The incorporation of AI in cloud billing processes can significantly improve efficiency and accuracy. With AI-powered automation, tasks that were previously time-consuming and error-prone, such as data entry and invoice generation, can now be performed swiftly and accurately.
Report Segmentation
The market is primarily segmented based on component, billing type, deployment type, service model, organization size, vertical and region.
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By Component |
By Billing Type |
By Deployment Type |
By Service Model |
By Organization Size |
By Vertical |
By Region |
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By Component Analysis
Solutions segment is expected to witness fastest growth over the forecast period
Solutions segment is expected to have faster growth for the market. These billing solutions provide businesses with insights into their resource consumption patterns and costs. They offer advanced analytics and reporting capabilities that allow users to analyze usage data, identify cost drivers, and optimize resource allocation. This helps businesses make informed decisions about resource usage, identify cost-saving opportunities, and control their cloud spending. The ability to manage costs effectively is a significant driver for adopting cloud billing solutions.
By Billing Type Analysis
Usage-based segment accounted for the largest market share in 2022
Usage-based segment holds the largest market share for the market in the study period. This billing allows customers to pay for cloud services based on their actual usage of resources. This model offers cost efficiency as businesses only pay for the resources they consume. It eliminates the need for upfront commitments or fixed pricing structures, enabling businesses to optimize costs by aligning expenses with their actual resource usage. This will further fuel the growth of the market in coming years.
By Deployment Type
Public Cloud segment is expected to hold the larger revenue share
Public Cloud segment is projected to witness a larger revenue share in the coming years. Public cloud platforms offer a wide range of services and tools that enable rapid innovation and reduce time-to-market for businesses. These platforms provide access to advanced technologies, such as artificial intelligence, machine learning, and big data analytics, without the need for significant upfront investments. Businesses can leverage these technologies to gain a competitive edge, accelerate product development, and deliver innovative solutions faster. The rapid innovation and time-to-market advantages provided by public cloud deployments contribute to the segment’s growth.
By Service Model Analysis
SaaS segment is expected to have higher growth rate
SaaS segment is projected to witness higher growth in the study period. SaaS applications operate on a subscription basis, where customers pay a recurring fee to access and use the software. This subscription-based billing model requires efficient and automated billing processes. Cloud billing solutions are specifically designed to handle subscription-based billing, providing functionalities to manage customer subscriptions, track usage, and automate invoicing. The subscription-based nature of SaaS applications fuels the demand for cloud billing solutions that can effectively manage and streamline the billing operations associated with SaaS subscriptions.
By Organization Size Analysis
Large Enterprises segment is expected to have significant revenue share
Large enterprises segment is projected to witness significant revenue share. These businesses typically have extensive IT infrastructure and complex operations, which involve the utilization of a wide range of cloud services and resources. Managing and optimizing these resources at scale requires sophisticated cloud billing solutions. Large enterprises invest in comprehensive cloud billing platforms to gain visibility into their cloud usage, allocate costs accurately across departments or business units, and optimize resource utilization. Their demand for robust and scalable cloud billing systems drives innovation and development in the market.
By Vertical Analysis
BFSI segment is projected to have significant market share
BFSI segment is expected to witness significant market share in the study period. This industry has increasingly embraced cloud computing to enhance operational efficiency, scalability, and agility. Banks, financial institutions, and insurance companies are leveraging cloud services for a wide range of applications, including data storage, customer relationship management (CRM), risk management, fraud detection, and regulatory compliance. This growing adoption of cloud services in the BFSI sector creates a demand for robust cloud billing solutions to accurately track, measure, and bill for the usage of these services.
Regional Insights
Asia Pacific registered with the highest growth rate in the study period
APAC is projected to witness a higher growth rate for the market. The growth of the cloud billing market is being driven by several factors, including the increasing adoption of cloud services. In recent years, the importance of cloud as a critical component of future business growth has become evident. A survey conducted by EY in collaboration with NASSCOM revealed that a significant number of enterprises are optimistic about their cloud budgets, with four out of five expressing bullishness for the coming year. The COVID-19 pandemic played a pivotal role in accelerating cloud adoption, as businesses sought ways to sustain operations during lockdown scenarios and overcome IT infrastructure challenges. The survey indicated that large enterprises (67%), medium-sized companies (39%), and small companies (38%) all embarked on their cloud journey, with a focus on driving business growth and transformation.
Growing investments by companies is creating further development of cloud billing in the region. AWS recognizes India as a high-growth market with immense potential. By investing over $12 billion in the country's cloud infrastructure by 2030, AWS is positioning itself to tap into the growing demand for cloud services in India. This investment signifies the confidence AWS has in the Indian market and its belief that cloud technology adoption will accelerate, driving the need for robust cloud billing solutions.
North America garnered with the larger revenue share in the forecast time frame
North America is expected to witness a larger revenue share for the market. Growing contribution to cloud computing is creating new growth potential for cloud billing in this region. According to a recent forecast from the International Data Corporation (IDC), the Information Communications Technology (ICT) sector in Canada is projected to achieve a substantial value of USD 132.6 Bn, by 2025. This remarkable expansion is anticipated to be primarily driven by the prominent growth of cloud computing, core business applications, security solutions, and advancements in customer experience.
Key Market Players & Competitive Insight
The cloud billing market is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share
Some of the major players operating in the global market include:
- Aria Systems
- AWS
- BillingPlatform
- Cerillion
- Chargebee
- Chargify
- CloudBilling
- Fusebill
- Google Cloud Platform
- Gotransverse
- Microsoft
- Oracle
- Recurly, Stripe
- Salesforce
- SAP
- Zuora
Recent Developments
- In January 2023, Zuora unveiled specialized solutions for consumption-based billing and revenue recognition.
- In September 2022, Aria Systems unveiled a strategic partnership with Prodapt, a leading global provider of consulting, technology, and managed services.
Cloud Billing Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 6.08 billion |
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Revenue forecast in 2032 |
USD 20.41 billion |
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CAGR |
16.30% from 2024 - 2032 |
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Base year |
2023 |
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Historical data |
2019 - 2022 |
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Forecast period |
2024 - 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Component, By Billing Type, By Deployment Type, By Service Model, By Organization Size, By Vertical, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
Gain profound insights into the 2024 Cloud Billing Market with meticulously compiled statistics on market share, size, and revenue growth rate by Polaris Market Research Industry Reports. This thorough analysis not only provides a glimpse into historical trends but also unfolds a roadmap with a market forecast extending to 2032. Immerse yourself in the comprehensive nature of this industry analysis through a complimentary PDF download of the sample report.
FAQ's
The cloud billing market report covering key segments are component, billing type, deployment type, service model, organization size, vertical and region.
Cloud Billing Market Size Worth $20.41 Billion By 2032.
The global cloud billing market is expected to grow at a CAGR of 16.3% during the forecast period.
Asia Pacific is leading the global market.
key driving factors in cloud billing market are rise in number of billing enrollments on cloud.
