A new report from Allied Market Research expects the global cloud services market to continue to grow over the next six years, eventually reaching a market size of $555 billion in 2020.

The study showed that the market for cloud computing technologies increased greatly during the recession, in part because of the fact that enterprises were able to save 35 percent on IT costs by implementing a cloud infrastructure. The cloud based services segment of the market also grew as companies with shrinking budgets required solutions with a minimum investment that would reduce the management of IT resources.

The rapidly growing IT sector has caused private enterprises to lead the market in end-users, according to the report. This subsection of the large global cloud market is expected to grow by 24 percent annually between 2014 and 2020, with researchers from AMR expecting registered revenue of almost $87 billion by 2020.

Reasons for adoption
The functional and cost benefits of cloud computing, like scalability, are still the biggest drivers in market growth for global cloud services as organizations realize the value-creating, productive solutions available to them through the cloud. Cloud services are also entirely customizable and promote sector-specific functions, such as the implementation of electronic health records in the healthcare sector. Thanks in part to widespread adoption in the health services sector, the community cloud services segment of the overall market is expected to earn $1 billion in revenue this year.

The report also found that the fastest growing segment of the total global cloud services market will be the cloud management and security services. The segment is expected to rise at an compounded annual growth rate of more than 28 percent between 2014 and 2020. Private cloud platforms are projected] to be the fastest growing type of cloud within that time frame.

Allied Market Research found that, due to early adoption, North America will continue to hold the biggest share of the cloud services market during the next six years. However, the fastest growing area will be the Asia Pacific region, increasing at a CAGR of almost 24 percent from 2014 to 2020.