At 15.5% CAGR, North America Distributed Cloud Market is Projected to be Worth US$ 6,191.99 Million by 2031, says Business Market Insights

According to Business Market Insights' research, the North America distributed cloud market was valued at US$ 1,951.23 million in 2023 and is expected to reach US$ 6,191.99 million by 2031, registering a CAGR of 15.5% from 2023 to 2031. Rising need of digitization and deployment of 6G technology are among the critical factors attributed to drive the North America distributed cloud market growth.

The increase in digital devices and applications leads to growth in data generation. This rise in data necessitates scalable and efficient cloud solutions, fueling the adoption of distributed cloud architectures that can manage and process data closer to its source. Further, the rollout of 5G networks complements rising digitization by offering faster and more reliable internet connections. This infrastructure enables distributed cloud systems to deliver seamless and robust services across geographically dispersed locations, further promoting their adoption. 5G mobile networks are designed to enable the fourth industrial revolution by providing high bandwidth and low-latency communication on the radio interface for downlink (DL) and uplink (UL) data. Cloud distributed exploit these features, enabling a distributed execution environment for applications to ensure performance, short latency, high reliability, and data locality. Several companies are engaged in offering distributed cloud solutions. For example, Ericsson has developed a distributed cloud solution that provides the required capabilities to support the use cases of the fourth industrial revolution, including private and localized networks. Its solution satisfies the specific security requirements needed to digitalize industrial operations, with automotive being one of the key use cases. Ericsson's distributed cloud solution provides edge computing and meets end-to-end network requirements, as well as offering management, orchestration and exposure for the network and cloud resources together. Thus, the rising digitization is anticipated to fuel the distributed cloud market growth in the coming years.

On the contrary, the higher deployment cost hampers the growth of North America distributed cloud market.

Based on application, the North America distributed cloud market is segmented into edge computing, content delivery, Internet of Things, and others. The edge computing segment held 43.3% market share in 2023, amassing US$ 844.62 million. It is projected to garner US$ 2,699.23 million by 2031 to register 15.6% CAGR during 2023-2031.

In terms of service, the North America distributed cloud market is categorized into data security, data storage, networking, and others. The data storage segment held 44.7% share of North America distributed cloud market in 2023, amassing US$ 873.02 million. It is anticipated to garner US$ 2,956.96 million by 2031 to expand at 16.5% CAGR during 2023-2031.

By enterprise size, the North America distributed cloud market is bifurcated into large enterprise and SMEs. The large enterprise segment held 67.7% share of North America distributed cloud market in 2023, amassing US$ 1,321.24 million. It is projected to garner US$ 4,088.71 million by 2031 to expand at 15.2% CAGR from 2023 to 2031.

Based on industry vertical, the North America distributed cloud market is segmented into BFSI, healthcare, retail & E-commerce, manufacturing, IT & telecom, energy & utilities, media & entertainment, government & defense, and others. The BFSI segment held 22.6% share of North America distributed cloud market in 2023, amassing US$ 440.34 million. It is predicted to garner US$ 1,442.72 million by 2031 to expand at 16.0% CAGR between 2023 and 2031.

Based on country, the North America distributed cloud market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 80.4% share of North America distributed cloud market in 2023. It was assessed at US$ 1,568.55 million in 2023 and is likely to hit US$ 4,726.97 million by 2031, registering a CAGR of 14.8% during 2023-2031.

Key players operating in the North America distributed cloud market are Amazon Web Services Inc, Google LLC, International Business Machines Corp, Oracle Corp, Microsoft Corp, Rackspace Technology Inc, Broadcom Inc, Databricks Inc, Salesforce Inc, and Alibaba Cloud., among others.

• In September 2023, Oracle has partnered with telecommunications service provider Telmex-Triara to open a second region in Mexico to keep expanding its data center footprint as it sees more revenue from AI and generative AI-based workloads. The new region in Mexico, in Monterrey, is part of Oracle's distributed cloud strategy, under which the company provides a managed open-source database service available across multiple clouds for transaction processing, analytics, and machine learning workloads.
• In May 2024, Microsoft announced the availability of its first data center region in Mexico, Mexico Central, for many organizations around the world, providing local access to scalable, highly available and resilient cloud services while confirming its commitment to promoting digital transformation and sustainable innovation in the country, providing cutting-edge technology for companies like Binaria ID y DocSolutions, among others.

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