Industry cloud spending across four major verticals - finance, manufacturing, healthcare and the public sector - will total US$22.5 billion globally in 2018, as specialised sector solutions take precedent.
According to IDC research, of the four industry groups, healthcare providers will account for 48 per cent of total spending on industry cloud.
Meanwhile, the finance industry and the public sector will spend US$4.5 billion and US$4.3 billion respectively, with the manufacturing industry estimated to invest close to US$3 billion on industry cloud deployment in 2018.
“As it continues to develop, the industry cloud market is expected to sustain its double-digit growth for the next five to ten years,” IDC senior research analyst, Zachary Rabel, said.
“Industry clouds continue to arise every year, digitally transforming industries, encouraging industry collaboration, and driving industry innovation; while, to meet market needs, software vendors shift to portfolio verticalisation, designing industry-tailored solutions.”
In a nod to specialised cloud partners, the channel is expected benefit further from increased demand for tailored solutions and services, with the four combined industries expected to boost spending by 24.3 per cent in 2018, a rate similar to 2018.
Specifically, research suggests that both the finance industry and the public sector are expected to grow below average at 23.4 per cent and 19.4 per cent respectively, while the healthcare and manufacturing industries will increase spending on industry cloud solutions by 26.1 per cent.
“From a vertical perspective, healthcare leads the way, but manufacturing, healthcare, and the public sector each represent expanding markets,” Rabel added.
“Due to the market's acceleration, IDC believes the industry cloud market is among the largest vertical growth opportunities for both technology vendors and professional services firms through 2025.”
According to IDC findings, SAP was cited to be the top industry cloud player in 2017 among the 50 vendors tracked in the finance industry while Veeva Systems came out first among the 40 vendors covered in the manufacturing industry cloud market.
Lockheed Martin earned top billing with US$1.4 billion in revenues in the public sector industry cloud market.
The only other vendor with over US$1 billion in industry cloud business in 2017 was athenaHealth, which took in US$1.2 billion in revenue.
“More and more leaders within major industries are using the same cloud services delivery models as companies like Amazon, Google, Facebook, and others – to deliver new and innovative digital services to their customers,” IDC chief analyst, Frank Gens, added.
“This new type of digital services revenue stream is already reaching significant scale in four of the biggest industries on the planet, growing at roughly four times the growth of the S&P 500's overall revenue growth.
“As strategic crossroads for digital innovation in each industry, industry clouds will drive even greater growth and industry transformation over the next five years.”