SAP Cloud Platform Services Market

Global SAP Cloud Platform Services Market Outlook

The global SAP cloud platform services market is estimated at USD 443 Million in 2022 and is forecast to reach USD 7,000 Million by 2032, growing at an exciting CAGR of 31% during 2022-2032.

Report Attributes	Details
Market Size Value in 2021A	USD 340 Million
Market Value Estimated in 2022E	USD 443 Million
Market Value Forecast in 2032F	USD 7,000 Million
Global Growth Rate (2022-2032)	CAGR 31%
North America Market Share in 2022	~31%
North America Growth Rate (2022-2032)	CAGR 33%
Top 5 Companies Market Share in 2021	~38%
Key Companies Profiled	SAP SE Accenture Plc. Wipro Limited Infosys Limited Capgemini SE Atos SE DXC Technology HCL Technologies Cognizant Technology Solutions Corp. Tata Consultancy Services Limited

The global SAP cloud platform services market accounts for <1% of the global cloud computing market in 2022. The global SAP cloud platform services market is estimated to have an absolute $ opportunity of USD 6,200 Million during the assessment period of 2022-2032.

With increase in number of cloud platforms, customers have been facing issues while managing applications, integrating, workload and various other facets in the space of cloud computing. Due to this, for resolving cloud challenges, vendors such as SAP SE created advanced cloud platform services which provides features such as simplified process control and enhanced workload management using services provided under the SAP cloud platform services portfolio.

In addition, the SAP cloud platform services sales are anticipated to multiply by factor of 1.3X during 2021-2022, along with the overall SAP cloud platform services to cross USD 340 Million market valuation by the year.

The demand for SAP cloud platform services is likely to stay bullish on back of remarkable growth prospects in the forecast period, with growing small and large scale enterprises venturing into SAP cloud platform services to enhance business performance.

SAP Cloud Platform Services Market Historical Outlook (2017-2021) Vs. Forecast Outlook (2022-2032)

• North America SAP cloud platform services market is expected to have a revenue share of 31.4% in 2022 and is likely to reach a valuation of USD 2.3 Billion by 2032 with a growth rate of 32.7%.
• The Europe region is presumed to hold market value of around USD 118 Million by the end of 2022 owing to high technology adoption rate.
• The migration services as service type is expected to be valued at USD 1.5 Billion by 2032 with a growth rate of 31.1%.
• By enterprise size, large enterprises a maximum growth rate of 31.6% with the market share of 42% by the end of 2032.
• Under industry, BFSI industry segment is expected to hold market share of 16.5% in 2022 and is likely to reach a valuation of USD 1 Billion by the end of forecast period.

Increasing acceptance of SAP cloud platform services and business agility by verticals are creating demand for cloud based applications which is leading to business efficiency. This is thus driving the global SAP Cloud platform services market growth towards an impressive CAGR over the forecast period of 2022-2032.

However, global SAP cloud platform services market has generated USD 340 Million in last half-decade (2017-2021) growing at a CAGR of approximately 27%.  It is projected to witness a growth of 31% CAGR and generate an absolute dollar opportunity of around USD 6.2 Billion during the 2022 & 2031.

From the regional analysis, North America SAP cloud platform services market acquires nearly 1/3rd market share and it reached at a valuation of around USD 139.2 Million by 2022. It is expected to continue its dominance in coming years by generating USD 221.6 Million incremental dollar opportunity every year.

Further, European SAP cloud platform services market is projected to grow at 31.8% CAGR and obtain more than 1/4th global cloud platform services market share by the end of 2032.

In the segmental analysis basket, strategy & consulting service type is the largest market shareholder. It reached the valuation of USD 122 Million by 2021 and is projected grow at 29.8% CAGR and offer absolute dollar opportunity of more than USD 1.6 Billion by the end of 2032.

Further, small and medium enterprises under enterprise type, accounts for nearly 2/3rd market share and is estimated to grow at a CAGR of 30.6% and is estimated to lose 186 BPS during forecast period of 2022 & 2032.

How Small and Medium Scale Business are Contributing to SAP Cloud Platform Services?

Organizations across the globe are widely adopting SAP cloud platform as their application tools in order to increase business efficiency processes and to enhance their application development by offering agile and integrated application. Small and medium scale enterprises are widely adopting cloud platform to transform and innovate their businesses by adopting integrated enterprise application development.

Moreover, small scale organizations are quicker to adopt cloud platform as compared to large enterprises as SAP cloud platform provide multiple benefits such as efficiency, flexibility, scalability, and ease of migration, etc. These services help them to make an efficient and effective use of SAP cloud platforms.

What is the Key Restraint in the Growth of SAP Cloud Platform Services Market?

A company requires multiple services throughout the span of using the SAP cloud platform services. For instance, the strategy & consulting services, which are expensive, are required to determine which software and information are critical to business, requires high availability and needs to be shifted to cloud.

The end-users of SAP cloud platform services requires to efficiently leverage the benefits of the platform such as using migration services to migrate data or any information from one legacy system to other. Therefore, high cost of these services makes it difficult for small and medium-size organizations to deploy such technologies that require high investment in services thus, hampering the growth of SAP cloud platform services market.

Country-Wise Insights

What are the driving factors of SAP Cloud Platform Services in Latin America?

COVID-19 pandemic has boosted the sales of cloud platform services in Latin America. According to the research, nearly 39% of organizations have decided to increase investment in cloud computing. Furthermore, around 68% of firms, surveyed in the IDC Latin America information technology investment trends 2021, are looking to increase the productivity by 2022 by retaining customer (41%), reducing costs (50%), and launching new products and services (36%).

Therefore, the growth of Latin America SAP Cloud Platform Services market is expected to witness a growth of CAGR of nearly 29% during the forecast period of 2022-2032 and is estimated to offer absolute dollar opportunity of USD 430 Million by the end of 2032.

Segment-Wise Insights

How small & medium enterprises as enterprise size is to remain an attractive segment in the market?

Small and medium scale enterprises are emerging as lucrative end users with respect to adoption of SAP cloud platform services. Small and medium scale businesses are fundamentally focusing on cloud computing services owing to relatively low cost associated with it as compared to on-premise deployment, and SAP cloud platform services are no exception.

The report estimates that the revenue generated from small and medium enterprises is estimated to register a valuation of USD 106 Million in 2022 and is projected to grow at a CAGR of 27.8% over the forecast period.

Moreover, affordability quotient of on-premise deployment services by large enterprises is high as compared to SMEs. However, SAP cloud platform services are likely to gain higher traction across large enterprises in the future, according to the report.

Competitive Landscape: Top companies in SAP Cloud Platform Services Market

Fact.MR profiled the following key cloud platform services manufacturers in its report are SAP SE, Accenture Plc., Wipro Limited, Infosys Limited, Capgemini SE, Atos SE, DXC Technology, HCL Technologies, Cognizant Technology Solutions Corp and Tata Consultancy Services Limited. Key manufacturers are constantly innovating product designs to meet the modern day challenges pertaining to components placement in the engine environment.

For instance,

• On January 27, 2021, SAP SE launched software and service package called "Rise with SAP", a new collection of service and software, to assist customers with cloud migration and digital transformation initiatives.
• On February 16, 2021, Accenture acquired Edenhouse, an on-premises and SAP cloud software consulting partner in the UK. This acquisition will help the Accenture to expand the SAP services in UK Market.

Global SAP Cloud Platform Services Market by Category

• By Service Type :

  • Strategy & Consulting Services
  • Proof of Concept (PoC) Services
  • Migration Services
  • Integration Services
  • System Conversion Services

• By Enterprise Size :

  • Small and Medium Scale Enterprises
  • Large Scale Enterprises

• By End Use Industry :

  • BFSI Industry
  • Consumer Goods & Retail Industry
  • Energy & Utility Industry
  • Government Industry
  • Media & Entertainment Industry
  • IT & Telecom Industry
  • Manufacturing Industry
  • Healthcare Industry
  • Others