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The global cloud computing market size was valued at USD 676.29 billion in 2024. The market is projected to grow from USD 781.27 billion in 2025 to USD 2,291.59 billion by 2032, exhibiting a CAGR of 16.6% during the forecast period.
Cloud computing refers to the technique of storing, processing, and handling data on a network of remote computers hosted on the internet, instead of on a local server or personal computer. It provides storage and computing power, enabling businesses to access data from anywhere.
The major driving factors that are influencing the cloud computing market growth are increasing digital transformation across industries, growing internet and mobile device adoption across the globe, and increased usage of big data. As industries modernize, cloud platforms are essential in supporting digital business operations. Moreover, the implementation of IoT, edge computing, 5G, and real-time analytics driven by Artificial Intelligence (AI) and Machine Learning (ML) is anticipated to increase the value of cloud computing technology across different businesses. For instance,
The global cloud computing market comprises a vibrant start-up ecosystem. The market is expected to have 100+ start-ups and innovative cloud computing solutions and services for consumers. Such a fragmented market is likely to create intense competition by forcing existing companies to upgrade and continuously adopt new developments in cloud offerings. Hence, increasing competition is likely to increase market size, creating more opportunities for market players. | China: Developing and deploying applications that leverage edge computing to process data and boost IoT devices, autonomous vehicles, and real-time applications will create a new revenue stream for the Chinese market. |
India: Implementing AI and ML algorithms on cloud platforms to power predictive analytics, automation, and intelligent applications will create a great opportunity for the Indian market.
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Integration of AI, Machine Learning, and Big Data with Cloud to Fuel Market Progress
The growing adoption of Artificial Intelligence (AI), big data, Machine Learning (ML), and other emerging technologies is anticipated to drive market growth. Such technologies are reshaping the market landscape as enabling real-time data processing, visualization, and analytics. Various service providers, such as Google, Amazon, Microsoft, and many others, continue to implement artificial intelligence to enhance efficiency and reduce cost in cloud services.
Thus, the rising integration of AI, big data and ML technologies are anticipated to drive the market’s growth.
Data Privacy and Security Concerns to Hamper Market Growth
Customers adopt cloud services to securely store business and personal data on cloud platforms. However, concerns related to data privacy and data breaches, loss of data, unexpected emergencies, application susceptibilities, and cyberattacks pose significant challenges to the growth of the cloud industry. Cybercrimes, such as cloud malware injection, service or account hijacking, meltdown, and man-in-the-cloud assaults can expose critical company data resulting in financial losses and operational disruptions. Cyberattacks also disturb corporate functions, thereby restraining the progress of the market.
Growing Acceptance of Omni-Cloud over Multi-Cloud to Propel Market Growth
An Omni-cloud platform offers upgraded connection facilities to businesses, enabling data to be rationalized and integrated across different platforms. By adopting Omni-cloud systems, companies can achieve greater precision in data management while improving operational efficiency. Hence, major players are leveraging strategies, such as new product innovations, partnerships, and mergers & acquisitions to expand their market presence. For instance,
These added advantages of omni-cloud over multi-cloud platforms will boost the cloud computing market share.
Infrastructure as a Service (Technology) | Challenges: Netflix initially relied on traditional data centers, but scaling them became increasingly difficult as the platform’s popularity grew. The physical infrastructure couldn’t keep up with the demands of its global user base, especially as content streaming needed more computational power and storage. Solution: Netflix teamed up with IaaS providers such as Amazon Web Services to host its content streaming services. By using cloud infrastructure, Netflix can dynamically scale their resources based on demand, ensuring seamless content delivery to users globally. |
Retail (Industry) | Challenges: Maintaining an on-premise infrastructure required constant investment in hardware, software, and IT personnel. As Walmart’s operations expanded globally, this became increasingly expensive, particularly with data centers that needed constant monitoring and updates Solution: Walmart adopted cloud platforms such as Microsoft Azure to integrate its online and offline systems, enabling a seamless Omni channel experience. Now, customers can shop on Walmart’s website and mobile app while receiving real-time updates. |
Implementation of Generative AI Capabilities Across Cloud Infrastructure to Fuel Market Expansion
Generative AI can transform cloud investment and returns, creating numerous growth opportunities for market players. Cloud infrastructure supports generative AI’s innovations, enabling enterprises to improve threat detection, data augmentation, data anonymization, tech democratization, and cybersecurity. End-to-end, generative AI-driven workflows allow enterprises to mitigate their transactional applications to the cloud, optimizing efficiency.
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Source: Forrester September 2024 Artificial Intelligence Pulse Survey
Public Cloud Segment Dominated Owing to Rising Cost-Efficient Solution of Cloud Computing
Based on type, the market is categorized into public cloud, private cloud, and hybrid cloud.
The public cloud segment accounted for the highest market share in 2024 driven by the rising demand for secure, scalable, and cost-efficient solutions. Further, it is driven by factors such as digital transformation, increasing data storage needs by users in major countries.
The hybrid cloud segment is predicted to record a leading CAGR during the forecast period due to the increasing usage of cloud-driven solutions and the added benefits of cloud platform over public and private cloud. These benefits include minimized costs, improved control and scalability due to the integration of both private and public cloud and improved security and risk.
Rising Need for Easy Deployment Models to Increase the Use of Software as a Service (SaaS)
By service, the market is segmented into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).
The Software as a Service (SaaS) segment held the highest market share in 2024, due to its ease of deployment, lesser maintenance costs, and low cost of possession. These features will give new market opportunities for SaaS in different regions including North America, APAC and European countries.
Infrastructure as a Service (IaaS) will grow at the highest rate during the forecast period (2025-32), as it minimizes initial investment costs by eliminating the need for onsite data centers and reducing ongoing service and maintenance costs. Moreover, the rise of digitization, along with the increasing adoption of cloud computing services are key drivers of the cloud computing market growth.
SMEs Segment to Dominate due to Increase Product Adoption among SMEs
Based on enterprise type, the market is bifurcated into SMEs and large enterprises.
The SMEs segment is projected to display the highest CAGR during the forecast period as cloud technology has revolutionized the operations of small and medium-sized enterprises. It helps SMEs decrease spending on expensive hardware and software by offering flexible payment options, such as a pay-as-you-go, thereby reducing overall costs. Moreover, various market players are introducing new cloud solutions designed for SMEs, driving adoption.
For instance, DE-CIX and BasicBrix collaborated to leverage cloud computing solutions for SMEs in Malaysia. With the unification of hassle-free computing services of BasicBrix and high performance and secure direct connections of DirectCLOUD, a service offered by DE-CIX, Malaysian start-ups and SMEs can take advantage of these solutions.
The large enterprises segment accounted for the highest market share in 2024 as cloud technology enhances operational efficiency, offers better scalability, and drives widespread adoption among large enterprises.
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Higher Adoption of Cloud Solutions Propels IT & Telecommunications Industry Expansion
Based on industry, the market is distributed into BFSI, IT and telecommunications, government, consumer goods and retail, healthcare, manufacturing, and others.
The IT and telecommunications segment holds the largest market share due to the rising popularity of cloud-powered computing solutions in different organizations. With the help of this technology, telecommunication service providers and operators can store and calculate customer data, build cloud data warehouses, transfer cloud data, manage with other cloud-based telecommunication services, autonomously access tele service with the help of cloud, and many more. Moreover, various market players are collaborating and forming alliances with telecom providers to drive business growth.
The healthcare segment is projected to record the highest CAGR during the forecast period. The segment’s growth can be accredited to the increased deployment of mobile applications, cloud-based software, wearable healthcare tools, and smart healthcare apparatus.
North America Cloud Computing Market Size, 2024 (USD Billion)
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North America will account for the highest market share during the forecast period owing to the early adoption of high-tech technologies, such as AI, Blockchain, robotics, the Internet of Things (IoT), and the cloud. The major presence of leading cloud providers, such as IBM Corporation, Oracle Corporation, and Microsoft Corporation, will further contribute to the adoption of cloud in the region.
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The market in the U.S. is undergoing a continuous digital transformation across various industries, where emerging and established companies are integrating new technologies to deliver real-time user experiences to consumers.
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Europe is estimated to capture a noteworthy share of the global market during the forecast period. Government initiatives and investments to improve cloud adoption and implementation will fuel the market’s growth across European countries. Additionally, private corporations are accelerating cloud adoption through growing investments and business expansions.
Asia Pacific is expected to dominate the global market with the highest CAGR during the forecast period, driven by the rising demand for cloud-based solutions in telecommunications and healthcare sectors.
The Middle East & Africa are projected to grow at a rapid pace in the market in the coming years. The region’s progress is attributed to improved investments in developing technologies, such as 5G, Machine Learning (ML), Big Data, Artificial Intelligence (AI), and cloud computing, by governments of Israel, the GCC countries, and Turkey.
The market in South America is in an evolving phase, owing to the increased use of smartphones, laptops and the internet. The need to store and process huge volumes of data has increased significantly, allowing businesses to provide customer-centric services to their customers, driving market growth.
Key Players to Focus on Advanced Solutions to Strengthen Their Market Positions
Key market players are working on creating a wide variety of distributed cloud solutions to address the needs of customers and organizations. The introduction of innovative solutions helps companies increase their business expertise. In addition, the upgrading and expansion of existing product portfolios will improve vendors’ market position.
Large Companies | SMEs |
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Key players are focusing on Research and Development (R&D) activities to develop a comprehensive range of cloud computing offerings to meet the customers' and organizations' needs. In January 2025, Microsoft invested USD 3 billion in AI and cloud computing in India. Furthermore, the launch of advanced cloud computing solutions assists players in sustaining their business competence. The enhancement and expansion of the existing product portfolio uplift the position of vendors in the market.
The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.
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ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2024 |
Estimated Year | 2025 |
Forecast Period | 2025-2032 |
Historical Period | 2019-2023 |
Growth Rate | CAGR of 16.6% from 2025 to 2032 |
Unit | Value (USD Billion) |
Segmentation | By Type
By Service
By Enterprise Type
By Industry
By Region
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Companies Profiled in the Report | Amazon Web Services Inc. (U.S.), Oracle Corporation (U.S.), IBM Corporation (U.S.), Alibaba Group Holding Limited (China), Microsoft Corporation (U.S.), VMware, Inc. (U.S.), Google LLC (U.S.), Rackspace Technology, Inc. (U.S.), SAP SE (Germany), and Salesforce, Inc. (U.S.) |
The market is projected to reach USD 2,291.59 billion by 2032.
In 2024, the market was valued at USD 676.29 billion.
The market is projected to grow at a CAGR of 16.6% during the forecast period.
By industry, IT and telecommunications segment leads by holding the largest market share.
Integration of AI, machine learning, and big data with cloud is a key factor driving market growth.
Amazon.com Inc., Oracle Corporation, Microsoft Corporation, and IBM Corporation are the top players in the market.
North America is expected to hold the highest market share.
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