Market Trends of Italy Cloud Computing Industry
Large Enterprises are Analyzed to Hold Largest Market Share
- Large enterprises in Italy are anticipated to hold a significant market share in the Italian cloud computing market, owing to the greater penetration of advanced technologies coupled with the growing trend of cloud migration in large businesses across sectors in Italy. Moreover, several benefits, such as flexibility and scalability, offered by cloud computing services further amplify the adoption among large enterprises in the country.
- Furthermore, large businesses store vast amounts of data, with this volume growing exponentially each year. Relying on traditional data storage methods can lead to challenges. As data collection increases, so does the demand for storage space, necessitating investments in additional on-site servers. Cloud computing offers a solution by eliminating the need for ever-expanding physical storage facilities. Such benefits further supported the adoption of cloud computing services among large enterprises in Italy.
- In addition, the high level of digital transformation in large enterprises across Italy further augments the demand for cloud computing services for scalability, cost savings, security, and operational efficiency. According to the Digitalisation in Europe – 2024 edition by Eurostat, in 2023, 61.2% of all Italian businesses reached a basic level of digital intensity. The share for large enterprises was 91.1%. Large businesses in Italy had a bigger share for very high (24.1%) and high digital intensity (44.1%).
- In the current business landscape, large enterprises in the country are leveraging the power of cloud computing to gain a competitive advantage. This technology enables these enterprises to adjust their resource allocation dynamically, optimizing operations during peak demand and realizing cost efficiencies during slower times. Furthermore, these large enterprises have the flexibility to select from a diverse range of cloud offerings, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), allowing them to customize their cloud strategies to meet distinct requirements.
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BFSI Segment is Expected to Hold a Significant Market Share in the Studied Market
- In Italy, the BFSI sector is set to drive the growth of the cloud computing market during the forecast period. Companies in the BFSI sector are leveraging cloud computing to boost efficiency, bolster security, and foster innovation in an ever-evolving digital landscape. Moreover, by adopting cloud services, these BFSI firms can rapidly transform their operations at a lower cost, all while delivering the personalized and seamless experiences their customers demand.
- Furthermore, banks' increasing focus on AI is accelerating their shift to cloud-based architectures, with spending on cloud services projected to rise in the coming years. As AI solidifies its role as a crucial strategy of banking operations, a full transition to cloud-based infrastructures emerges as the sole pathway for banks to leverage their extensive historical data for business expansion.
- Furthermore, as banks and financial institutions increasingly adopt advanced technologies like artificial intelligence, the adoption of cloud computing services in the BFSI sector is set to surge. For instance, AmCham Italy projects that from 2017 to 2030, AI adoption could boost Italy's economic revenue by approximately 23%. Notably, the telecommunications and high-tech industries, alongside the financial services sector, are poised for significant growth, with projected revenue increases of 56% and 45%, respectively.
- As automation and AI adoption rise, the significance of cloud computing services is set to grow in the Italian BFSI sector in the coming years. Many banking institutions are already leveraging a variety of AI tools. These include predictive analytics for fraud detection, traditional machine learning algorithms, and Large Language Models (LLM) for generative AI. Given the rapid advancements in these technologies, their application in cloud banking is poised to broaden over the forecast period.
