The cloud billing market projected to generate $9.34 billion by the end of 2022 – a CAGR of just over 19% – according to a new report from IndustryARC.
The report defines cloud billing as the process of generating bills from the resource usage data with the help of predefined data sets and billing policies.
Cloud billing offers low cost of ownership, the ability to add new services in a dynamic environment and independent access to billing information. Cloud billing systems enable users to easily manage and retrieve data from various locations, and helps them serve their customers better.
Cloud billing is expected to grow in popularity as companies shift focus from a product-centric approach to a customer-centric approach, the report says.
Cloud billing solutions include data center infrastructure management (DCIM) and other operation solutions which are mainly employed for generating the invoice for the clients based on individual resource utilization and policy. The demand for these services is expected to witness substantial growth in various SMEs across the globe.
According to IndustryARC, growing demand for billing operations and convergent billing solutions, coupled with the increasing need to lower capital and operating expenditures, is boosting revenues in this market.
The report breaks down the cloud billing market by type (subscription billing, metered billing, cloud service billing, provisioning), by application (customer, revenue, account management), by deployment model (SaaS, PaaS, and IaaS); by industry verticals (BFSI, retail, education, public sector & utilities, healthcare & life sciences) and by region.
IndustryARC says that metered billing accounted for the biggest share of the cloud billing market (30%) and is likely to continue its dominance, reaching an estimated $3.12 billion by the end of 2023. Increasing adoption of public cloud by SMEs is one of the major factor driving the cloud billing market.
The market is all set to exhibit robust development with a broad range of applications in various industry verticals, including banking financial & insurance sector, retail, education, public sector & utilities, and many others. The telecom sector is projected to continue its dominance in the cloud billing market, and is estimated to reach about $2.15 billion by the end of 2022.
The North American region dominated the cloud billing market in 2016, but APAC is estimated to be the fastest growing region at a CAGR of 22%.