Cloud Computing Market Size, Share & Industry Analysis, By Type (Public Cloud, Private Cloud, and Hybrid Cloud), By Service (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS)), By Enterprise Type (SMEs and Large Enterprises), By Industry (BFSI, IT and Telecommunications, Government, Consumer Goods and Retail, Healthcare, Manufacturing, and Others), and Regional Forecast, 2025 – 2032

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,

• In January 2025, SAP SE integrated AI and Machine Learning (ML) into its enterprise ecosystem to help companies make better data-driven decisions and increase productivity.

MARKET DYNAMICS

Promising Opportunities in the Cloud Computing Market

Market Drivers

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.

• For instance, in August 2023, Microsoft partnered with Globant's to launch an AI and cloud innovation studio, combining Microsoft’s advanced cloud solutions with Globant's expertise in AI-driven digital transformation.

Thus, the rising integration of AI, big data and ML technologies are anticipated to drive the market’s growth.

Market Restraints

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.

• For instance, as per a Thales Cloud Security Study, 2023, more than 39% of businesses encountered a data breach in their cloud environment in 2022, marking a 35% increase from the previous year. Human error was identified as the leading reason for data breaches.

CLOUD COMPUTING MARKET TRENDS

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,

• In November 2023, Google Cloud and VMware expanded their alliance to integrate AlloyDB Omni on the VMware Cloud foundation. The tech preview combines the robust proficiencies of AlloyDB Omni and VMware’s Data Services Manager, providing users with a solution to streamline PostgreSQL management, improve existing databases, and modify processes into generative AI applications.

These added advantages of omni-cloud over multi-cloud platforms will boost the cloud computing market share.

USE CASES

IMPACT OF GENERATIVE-AI

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.

• For instance, according to industry experts, generative AI can provide around 75-110% points of Return on Investment (ROI) to cloud programs. Its key benefits include minimizing the cost and time of application migration and remediation, creating new business use cases, and improving the efficiency of application expansion and cloud infrastructure.

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Source: Forrester September 2024 Artificial Intelligence Pulse Survey

SEGMENTATION ANALYSIS 

By Type

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.

• For instance, in December 2023, Lenovo, in partnership with Intel, announced the launch of a hybrid cloud platform and services. ThinkAgile, the hybrid cloud solution, enhances the performance of Artificial Intelligence and quickness of cloud solutions by providing more computing power and better memory to its product line.

By Service

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.

By Enterprise Type

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.

By Industry

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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.

• For instance, in February 2023, Airtel announced a strategic alliance with Vultr to provide cloud solutions to businesses in India. These cloud solutions are hosted at Airtel’s data centers across Mumbai, Bangalore, and Delhi-NCR, allowing businesses to measure their digital functions globally.

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.

CLOUD COMPUTING MARKET REGIONAL OUTLOOK

North America

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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.

• For instance, in September 2023, Oracle announced a partnership with TELMEX-Triara and became the first hyperscaler with two cloud regions in Mexico. Enterprises benefit from Oracle’s Cloud Infrastructure (OCI), which enhances performance, strengthens security, and provides advanced analytics, and distributed cloud proficiencies.

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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

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.

• For instance, in December 2023, the European Commission approved financial aid worth USD 1.2 billion for cloud computing projects in the region. The project, named IPCEI CIS (Next Generation Cloud Infrastructure and Services), was developed by seven European Union states, including France, Poland, Hungary, Germany, Italy, the Netherlands, and Spain.

Asia Pacific

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.

• For instance, in February 2023, Tech Data introduced cloud services in Australia, offering customized solutions for AWS and Microsoft’s IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) business models.

Middle East & Africa

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.

South America

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.

COMPETITIVE LANDSCAPE

Key Market Players

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.

Long List of Key Cloud Computing Companies Studied

KEY INDUSTRY DEVELOPMENTS

• February 2025: Accenture collaborated with Google Cloud to accelerate the adoption of generative AI and cloud solutions in Saudi Arabia. The initiative aims to help enterprises unlock new business opportunities, improve customer experiences, enhance modern digital core and scale generative AI agents.


• January 2024: Microsoft and Vodafone signed a ten-year strategic alliance to bring generative AI, cloud, and digital services to over 300 million consumers, businesses, and public sector organizations across Africa and Europe. This collaboration enables Vodafone to leverage Microsoft’s generative AI to enhance customer experiences, build new digital and financial facilities for enterprises, and overhaul its global data center cloud strategy.


• January 2024: IBM collaborated with American Tower to introduce edge cloud services, driving innovation and improving customer experiences. The company aims to fast-track the progress of multi-cloud and hybrid cloud computing platforms at the edge.


• November 2023: Udemy collaborated with Google Cloud as an initial member of its new cloud-driven content program. The partnership addresses the increasing demand for cloud computing expertise across the globe.


• February 2023: Akamai Technologies, Inc. announced the launch of the Connected Cloud platform for content delivery, security, and cloud computing to preserve applications and avoid threats.

INVESTMENT ANALYSIS AND OPPORTUNITIES

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.

REPORT COVERAGE

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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REPORT SCOPE & SEGMENTATION