Top 10 Emerging Cloud Computing Trends In 2024 and Beyond !

Research indicates that the Cloud computing market is projected to grow significantly, from an estimated USD 0.68 trillion in 2024 to USD 1.44 trillion by 2029, with a compound annual growth rate (CAGR) of 16.40% during the forecast period.

The expansion of the market is driven by several factors including increased digital transformation across various industries, widespread usage of internet and mobile devices globally, and the modernization of industrial solutions which will predominantly be cloud-based. The adoption of technologies such as IoT, edge computing, 5G, real-time computing & analytics, AI, and ML, along with improvements in security and sustainability, are also expected to boost the market value of cloud computing across businesses.

Let's take a quick look at the cloud technology trends and key areas that are propelling the evolution and growth of cloud computing in 2024.

1. Generative AI ~ Maintains Its Dominance Into 2024 and Beyond

"Generative AI (Gen AI) is becoming democratized by the confluence of massively pretrained models, cloud computing and open source, making these models accessible to workers worldwide,” Gartner stated. By 2026, more than 80% of enterprises will have used Gen AI APIs or models or deployed Gen AI-enabled applications in production environments, up from less than 5% in 2023, according to the firm"

?Gen AI can automate complex decision-making processes, enhance efficiency, and enable the creation of more intuitive and adaptive technology solutions. It could potentially handle a variety of tasks across different contexts, improving problem-solving and innovation. However, the cons include ethical and security concerns, such as the potential for AI to make decisions that reflect biases or result in unintended consequences. Additionally, the integration of Gen AI could lead to significant job displacement within the IT sector as automation replaces manual roles. Balancing these pros and cons will be critical as organizations consider implementing Gen AI technologies

2. Hybrid & Multi-Cloud Adoption

By 2024, it is projected that 85% of large businesses will have adopted a multi-cloud strategy, up from 76% in 2018. This strategy involves procuring cloud services from multiple providers. According to a 2023 Flexera survey, 87% of enterprises already have a multi-cloud strategy, and 72% are utilizing a hybrid cloud strategy. These numbers are expected to increase even further in 2024.

?The key drivers for adopting a hybrid and multi-cloud approach include enhanced flexibility and scalability, which enable organizations to tailor their cloud usage to specific needs while scaling resources dynamically. This strategy prevents vendor lock-in, allowing businesses to switch or integrate services from multiple providers, thereby avoiding dependence on a single vendor. It also offers cost optimization by enabling organizations to select the most cost-effective cloud solutions for different tasks. Additionally, hybrid and multi-cloud environments support compliance with regulatory requirements by allowing data to be stored and processed in specific locations as required by law.

This comes with increased complexity in managing security across diverse platforms, potential difficulties in achieving seamless integration and interoperability between different cloud services, and the need for more sophisticated management tools and skills to orchestrate operations effectively across multiple clouds.

3. Cloud Security & Resilience

Market research agencies suggest that the global cloud security market is expected to expand from USD 40.7 billion in 2023 to USD 62.9 billion by 2028, growing at a CAGR of 9.1% during the forecast period.

?This growth in the cloud security market is fueled by several factors. These include the increasing adoption of multi-cloud strategies, the integration of DevSecOps practices, the use of AI/ML technologies to enhance cloud security, and the increasing demand for cloud security solutions driven by BYOD (Brind Your Own Devce) and CUOD (Chose Your Own Device) trends. Additionally, the cloud security market is benefitting from opportunities created by the evolving cloud computing landscape, the growing adoption of mobile computing, the need for securing IoT systems, and the necessity to address the increasing sophistication of cybercriminals.

4. Edge Computing

According to IDC research, global spending on edge computing is projected to reach $232 billion in 2024, marking a 15.4% increase from 2023. This growth is expected to continue robustly until 2027, at which point spending is anticipated to approach nearly $350 billion.

?The recent surge in popularity of Edge Computing is primarily triggered by the exponential growth of mobile & IoT devices and the increasing need for real-time computing power in remote locations. As devices generate massive amounts of data, processing this data closer to the source rather than overloading distant cloud servers minimizes latency, enhances operational efficiency, and reduces bandwidth costs. Additionally, advancements in AI and ML have enabled smarter edge devices that can handle complex tasks on-site. This shift towards decentralization is further supported by industries demanding immediate data processing capabilities for applications like autonomous vehicles, smart cities, and industrial automation.

5. Real-Time Cloud Infrastructure

Real-time cloud architecture is another major trend in cloud computing by 2024. Businesses increasingly require immediate data processing and insights, leading them to prioritize quick access to data storage like flash and solid-state devices. To accommodate this need, cloud infrastructure will be optimized for fast and dynamic access to resources and services, utilizing technologies like serverless computing and edge computing, alongside advanced storage solutions.

?Industries including transportation, aviation, manufacturing and finance, which need rapid data processing and quick responses, are increasingly adopting real-time cloud infrastructure solutions.? As the demand for real-time data processing grows, the emphasis on real-time cloud infrastructure is expected to rise.

?Services such as Azure Stream Analytics & Event Hubs, AWS Amazon Kinesis, and Google Pub/Sub and BigQuery are popular real-time data streaming and processing services adopted by industries transitioning to real-time cloud infrastructure.

6. Sustainable Computing

Gartner forecasts that by 2027, the significance of sustainable technologies will grow to the extent that 25% of Chief Information Officers (CIOs) will have their personal compensation tied directly to the impact of their sustainable technology initiatives.

?Sustainable technology encompasses a framework of digital solutions designed to achieve environmental, social, and governance (ESG) outcomes. These outcomes aim to support the long-term ecological balance and uphold human rights. Technologies such as AI, IoT, Blockchain and conventional cloud computing platforms are increasingly under scrutiny due to their substantial energy consumption, high carbon footprint and consequent environmental impacts. As a result, there is a growing importance and need to make IT usage more efficient, circular, and sustainable. This shift is essential not only for minimizing negative environmental effects but also for ensuring that technological advancement contributes positively to social goals.

7. Simplified Cloud Computing

The world of cloud computing is changing with the introduction of low-code and no-code platforms, which simplify app development. These tools allow people without deep technical skills to build complex apps, reducing the need for expert software engineers. Cloud providers are making this even easier by adding features like drag-and-drop interfaces and natural language processing, which make managing cloud services more straightforward. This shift speeds up the launch of new technologies and aligns IT more closely with business goals. Using these platforms, organizations can quickly adapt, make use of the cloud’s benefits like scalability and security, and continuously drive innovation and efficiency.

8. Platform Engineering

Platform engineering is an emerging trend in the cloud space at present, continually adapting to meet the rapidly evolving needs of businesses. Gartner defines platform engineering as the discipline of building and operating self-service internal development platforms. Platform engineering involves designing, developing, and maintaining an organization’s core infrastructure, providing a robust and scalable platform that allows developers to efficiently deploy applications and services.

?The future of platform engineering is significantly influenced by several key trends. Foremost among these, is the integration of AI and ML, which are revolutionizing the field by automating repetitive tasks and enhancing efficiency. As cloud computing becomes more central to organizational infrastructure, platform engineers are crucial for optimizing these environments. The evolution of DevOps practices emphasizes stronger collaboration between development and operations, necessitating effective communication tools provided by platform engineers. Additionally, with rising cybersecurity threats, there's a greater focus on building secure platforms.

9. Cloud Native Development

Researches indicate that the cloud native development market size has grown exponentially in recent years. It will grow from $708.56 billion in 2023 to $881.98 billion in 2024 at a compound annual growth rate (CAGR) of 24.5%. It is further expected to grow to $2065.64 billion in 2028 at a compound annual growth rate (CAGR) of 23.7%.

?Traditional enterprise applications were developed using rigid methods where developers worked on large batches of functionality before testing, leading to longer deployment times and limited scalability. In contrast, cloud-native applications are built with a collaborative, automated approach that enhances scalability across various platforms. These applications leverage tools that automate building, testing, and deployment, allowing for the rapid setup, deployment, or duplication of microservices, capabilities not feasible with traditional software approaches.

?The cloud-native development approach utilizes containerization technologies such as Docker and Kubernetes, along with microservices architecture and DevOps practices. This combination helps create applications that are highly scalable, portable, and resilient, effectively meeting modern digital demands.

?The anticipated growth in the forecast period is driven by the adoption of serverless computing, increased open source contributions, integration of edge computing, and the use of AI and ML. Enhanced security measures will also boost cloud-native development. Key trends include continuous innovation, hybrid and multi-cloud deployments, the rise of low-code/no-code platforms, and expanded use of containerization technology and Kubernetes orchestration.

10. Industry Cloud Platform

A recent Gartner survey found that approximately 39% of North American and European enterprises have started adopting industry cloud platforms, with another 14% in pilot phases and 17% planning to deploy by 2026. Gartner predicts that by 2027, over 70% of enterprises will be using industry cloud platforms, up from less than 15% in 2023.

?Industry Cloud Platforms (ICPs) integrate software, platform, and infrastructure as a service (IaaS) capabilities to deliver tailored solutions for various industries. Typically based on public cloud services, these solutions offer industry stakeholders a more flexible way to handle workloads and drive change, addressing specific business, data, compliance, or other sector-specific needs. ICPs merge foundational services like software as a service (SaaS), platform as a service (PaaS), and IaaS with innovative technologies and methods. SAP DMC SAP Leonardo, Oracle Fusion Cloud, Siemens MindSphere are some leading examples of ICP solutions.

As an emerging trend, industry cloud platforms are gaining attention because they provide adaptable and relevant solutions tailored to specific industries. They significantly boost cloud adoption by attracting business consumers who go beyond the initial adopters of cloud infrastructure and platform technologies.