Global Virtual Private Cloud (VPC) Market – Industry Trends and Forecast to 2029

Virtual Private Cloud (VPC) Market Analysis and Size

Over the recent years, the businesses are demanding the highest levels of security, privacy, and control, such healthcare and finance firms tasked with regulatory compliance. Therefore, there has been increased demand for the virtual private cloud (VPC) that is used by all sizes of businesses, including small and medium-sized businesses and huge enterprises. Thus, such factors further aid the market to have a positive outlook over forecasted period.

Global virtual private cloud (VPC) market was valued at USD 13.70 billion in 2021 and is expected to reach USD 76.58 billion by 2029, registering a CAGR of 24.00% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Virtual Private Cloud (VPC) Market Scope and Segmentation

Market Definition

A private cloud solution is offered within the infrastructure of public cloud providers using a cloud computing concept called a virtual private cloud (VPC). The factors driving the growth of the VPC market in the projected period include the rising demand for disaster recovery solutions that are simple to install and affordable, as well as the rising popularity of VPC among most small and medium-sized businesses. However, the development of the virtual private cloud business may be hampered by some nations' subpar internet infrastructure.

Virtual Private Cloud (VPC) Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Escalating Usage across BFSI Sector

The banking business is becoming more and more important on a global scale due to growing client concerns in this vertical. Customers benefit from the convenience of cloud computing by having transactions simplified anytime, anywhere, which saves them time and effort. Cloud computing services also assist BFSI suppliers in concentrating more on the customer-centric approach by establishing a multi-channel contact with clients at every stage of service provision. The popularity of cloud computing services is growing as a result of these considerations. To fulfil increased customer demands and maintain the fiercely competitive market, the BFSI sector is implementing digitalization efforts quickly. Large amounts of data must be processed, stored, and repeatedly duplicated in BFSI organizations, which further boosts the adoption of the virtual private cloud (VPC).

• Increasing Adoption across Various Verticals

The various essential advantages such as seamless scalability, flexibility, pay-as-you-go billing, lower operational expenses, and tailored offers based on business requirements encourage various end-use industries to adopt virtual private cloud (VPC) solutions. The virtual private cloud (VPC) solutions are increasingly been adopted across verticals such as the IT and the telecommunication, BFSI, manufacturing, healthcare, government and media and entertainment.

Furthermore, factors such as rising purchasing power of customers, easy installation process of virtual private cloud, and the need for secure IT modernization will accelerate the overall market expansion during the forecast period. Additionally, the increased cost savings is anticipated to drive the growth rate of the virtual private cloud (VPC) market. The requirement to satisfy customer expectations resulting in existing customer retention and new customer acquisition will further positively impact the market's growth rate during the forecast period.

Opportunities

• Increasing Investors and Surging Developmental Activities

The increasing investors from the telecom sector and BFSI is estimated to generate lucrative opportunities for the market, which will further expand the virtual private cloud (VPC) market's growth rate in the future. Moreover, the surging developmental activities and numerous innovations further offer numerous growth opportunities within the market.

Restraints/Challenges

• Complexities Due to COVID-19

The virtual private cloud market has encountered a number of previously unheard-of difficulties due to the global epidemic COVID-19. All regions have been placed under lockdown as a result of this global epidemic, which has had an influence on product sales, development, and demand. As a result, this factor has largely derailed the overall market’s growth over the forecast period.

• Compatibility Issues

The market growth rate will be further slowed down by compatibility issues with legacy systems especially in developing economies. This determinant is therefore estimated to be a major challenge for the virtual private cloud (VPC) market over the forecast period.

This virtual private cloud (VPC) market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the virtual private cloud (VPC) market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Virtual Private Cloud (VPC) Market

The virtual private cloud (VPC) market was largely impacted by the outbreak of COVID-19. The virtual private cloud market has encountered a number of previously unheard-of difficulties due to pandemic. Lockdowns have been implemented due to the global pandemic since it was one approach to stop the virus from spreading. However, when the virus was being controlled, every market in the world experienced a decline, and the virtual private cloud industry was one of them.

The prolonged COVID-19 dispute has had catastrophic consequences on the world economy as well as a variety of trade restrictions and disrupted supply lines for hundreds of companies. Moreover, due to the increase in remote work and the greater absorption of digitalization in businesses, it turned out to be a potential booster for the virtual private cloud sector. According to some recent polls, there is a considerable reliance on private cloud services to satisfy the need for improved data protection and disaster recovery. This is expected to hugely affect the virtual private cloud (VPC) market.

Recent Developments

• In February 2021, Dell Technologies launched a new private cloud service via Project Apex. With the help of its recently released private cloud platform, Dell Technologies Cloud Platform (DTCP) hopes to give its clients the ability to scale up or down their IT infrastructures. This private cloud service, made available via the company's flagship Cloud Console, gives users a scalable approach to create their own clouds without having to set up an additional layer of the VMware Cloud Foundation (VCF) software stack.

Global Virtual Private Cloud (VPC) Market Scope

The virtual private cloud (VPC) market is segmented on the basis of component, organization, delivery model and vertical. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Software
• Service
• Training and Consulting
• Integration and Deployment
• Support and Maintenance
• Managed Services

 Organization Size

• Small and Medium-Sized Enterprises,
• Large Enterprises

 Vertical

• Banking
• Financial Services
• Insurance
• IT and Telecom
• Government
• Defense
• Healthcare
• Media
• Entertainment
• Retail
• Manufacturing
• Others

 Delivery Model

• Software as a service (SaaS)
• Platform as a service (Paas)
• Infrastructure as a service (IaaS)

Virtual Private Cloud (VPC) Market Regional Analysis/Insights

The virtual private cloud (VPC) market is analyzed and market size insights and trends are provided by country, component, organization, delivery model and vertical as referenced above.

The countries covered in the virtual private cloud (VPC) market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the virtual private cloud (VPC) market because of the presence of numerous players offering virtual private cloud (VPC) within the region over the forecast period of 2022 to 2029. Moreover, the growing adoption of digital business strategies and organizational shift towards adoption of emerging technologies is further estimated to accelerate the expansion over the forecast period.

Asia-Pacific is expected to witness significant growth during the forecast period of 2022 to 2029 due to the enterprises’ increasing budget allocation for cloud services within the region. The adoption of cloud computing offerings is a significant contributor to the expansion of the regional market.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Virtual Private Cloud (VPC) Market Share Analysis

The virtual private cloud (VPC) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to virtual private cloud (VPC) market.

Some of the major players operating in the virtual private cloud (VPC) market are

• Amazon Web Services, Inc. (U.S.)
• IBM (U.S.)
• Microsoft (U.S.)
• Cisco Systems Inc. (U.S.)
• Siemens (Germany)
•  ANSYS, Inc (U.S.)
• SAP SE (Germany)
• Robert Bosch GmbH (Germany)
• NetApp (U.S.)
• Atos SE (U.S.)
• Fujitsu (Japan)
• Oracle (U.S.)
• Google Inc., (U.S.)
• Atos SE (France)
• Hewlett Packard Enterprise Development LP (U.S.)
• Dell Inc. (U.S.)
• RACKSPACE TECHNOLOGY (U.S.)

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