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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, 2024-2032

Last Updated: June 21, 2024 | Format: PDF | Report ID: FBI102697



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The cloud computing market size was valued at USD 587.78 billion in 2023. The market is projected to grow from USD 676.29 billion in 2024 to USD 2,291.59 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period.

Cloud computing refers to the technique of storing, processing, and handling data on a remote computer’s network hosted on the internet instead of a local server or personal computer. It predominantly refers to a collective storage area that can be accessed by all network devices at the same time.

The major driving factors that are influencing the cloud computing market growth are increasing digital transformation across businesses, growing internet & mobile device adoption across the globe, and increased usage of big data. Modernized industrial solutions will be cloud-driven, and a cloud platform will be essential to determine their digital business competencies. 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 market value of cloud computing technology across different businesses. For instance,

  • In December 2023, Bitdeer, in collaboration with Nvidia, announced the launch of a cloud computing service with the latter’s machine learning and AI expertise. This partnership represents a melding of Bitdeer's experience with AI and ML for advancements in cloud services.

The market witnessed acceleration in 2020 due to the COVID-19 pandemic. Nearly every sector shifted or planned to transfer its business to the cloud since the world went into a lockdown and shifted to remote working. Cloud services became a new crucial catalyst for businesses seeking digital transformation.


Implementation of Generative AI Capabilities Across Cloud Infrastructure to Fuel Market Expansion

Generative AI can transform the cloud investment-and-return equation, while creating numerous opportunities for the market’s growth. The usage of the cloud can maintain generative AI’s ingenuities. The substantial capabilities of generative AI, can help enterprises to improve threat detection, data augmentation, data anonymization, tech democratization, and enhance cybersecurity.

Generative AI capabilities also help accelerate the growth of these technology programs. The formation of end-to-end, generative AI-driven workflows encourages enterprises to transform their present transactional applications into cloud. For instance,

  • According to industry experts, generative AI can provide around 75-110% points of return on investment (ROI) to cloud programs with its three benefits. These benefits include minimizing the cost & time of application migration & remediation, creating new business use cases, and growing the efficiency of application expansion and infrastructure on the cloud.

Enterprises can build generative AI-powered cloud programs in various ways. These include integrating generative AI-driven business use cases and accelerating the transformation of on-premises transactions to develop end-to-end generative AI-powered user journeys and many more.

Hence, various key market players are introducing new cloud-driven solutions with generative AI capabilities to deliver a better user experience and accelerate business expansion.

Cloud Computing Industry Trends

Growing Acceptance of Omni-Cloud over Multi-Cloud to Propel Market Growth

Large enterprises are implementing multi-cloud solutions in their business functions to manage their workforce across cloud-driven platforms. Also, as cloud-powered applications, such as Gmail, Facebook, and Dropbox are becoming stronger and more flexible, the handling cycle needs to be quicker in a real-time scenario.

However, combining different cloud infrastructures lack efficiency due to disintegrated coordination. Thus, enterprises are shifting to omni-cloud solutions to take advantage of numerous advantages, such as simplicity of data usage, enhanced decision-making, real-time scalability, and improved data availability.

An omni-cloud platform offers upgraded connection facilities to businesses, enabling data to be rationalized and integrated across different platforms. With the help of an omni-cloud system, the data position system is more precise and well-organized. Hence, major players are employing various business strategies, such as new product innovations, partnerships, and mergers & acquisitions. For instance,

  • In November 2023, Google Cloud and VMware expanded their alliance to offer AlloyDB Omni of Google Cloud on the VMware Cloud foundation. The new 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 drive the cloud computing market share.

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Cloud Computing Market Growth Factors

Integration of AI, Machine Learning, and Big Data with Cloud to Amplify Market Progress

The growing adoption of Artificial Intelligence (AI), Big Data, Machine Learning (ML), and other emerging technologies is anticipated to fuel market growth. Such technologies can transform the market landscape as they help users visualize, monitor, and analyze unprocessed data.

Implementing these technologies in conjunction with cloud solutions supports organizations in enhancing their visualization proficiencies and making multifarious data available and usable.

Collecting data and training algorithms require huge amounts of computing power and storage capacity that is usually more cost-effective to rent as-a-service. Cloud service vendors are progressively relying on Artificial Intelligence for a variety of operations. These operations include managing the vast, distributed networks required to provide storage resources to their users, modifying the power & cooling systems in data centers, and empowering cyber security solutions to safeguard the data.

Enterprises are adopting AI-powered solutions to develop more strategic, insight-driven, and efficient operations. AI can mechanize monotonous and stimulating processes to increase productivity and conduct data analysis without human participation. IT teams can make use of AI to monitor and supervise vital workflows.

Various service providers, such as Google, Amazon, Microsoft, and many others continue to implement Artificial Intelligence to build more effective and cost-efficient cloud services for their users. For instance,

  • In August 2023, Microsoft launched Microsoft Studio for enterprises to accelerate the AI and cloud revolution. The new Studio consolidates the expertise and insights of Globant with Microsoft's proficiencies and solutions for computing and AI technologies.

Thus, the growing adoption and implementation of big data, AI, and Machine Learning (ML) technologies are anticipated to drive the market’s growth.


Data Privacy and Security Concerns Related to Cloud Solutions to Hamper Market Growth

Customers install cloud services to secure sensitive data regarding their business and personal operations on cloud-driven platforms. However, concerns related to data privacy and data breaches, loss of data, unexpected emergencies, application susceptibilities, and cyberattacks are predicted to hamper the growth of the cloud industry.

While cloud services aid businesses in augmenting their efficiency and cutting costs, data kept in the cloud is susceptible to cyberattacks. Cybercrimes, such as cloud malware injection, service or account hijacking, meltdown, and man-in-the-cloud assaults expose company data that may result in business closure and losses, thereby impeding the market’s expansion. 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 for the year 2022, a growth of 35% in data breach has been reported in 2022. Human error was stated as the leading reason for these cloud data breaches.

Furthermore, due to varying company necessities, the requirement for satisfying compliance and regulatory requirements is constantly increasing. In addition, enterprises need to take steps to fulfill regulatory necessities to remain in the market.

Hence, the factors mentioned above are expected to hamper the cloud computing growth.

Cloud Computing Market Segmentation Analysis

By Type Analysis 

Public Cloud Segment Dominates Owing to Growing Penetration of Connected Devices

Based on type, the market is categorized into private cloud, hybrid cloud, and public cloud.

The public cloud segment accounted for the highest market share in 2023. The rising demand for secure, scalable, and cost-efficient solutions is anticipated to boost the demand for public cloud across large businesses. The segment’s growth can also be attributed to the rising penetration of connected devices, growing automation, and digital transformation across different business sectors.

The hybrid cloud segment is predicted to record a leading CAGR over the forecast period due to the increasing usage of cloud-driven solutions and the added benefits of this cloud platform over public and private cloud. These benefits include minimized costs, improved control & scalability due to the integration of both private & public cloud, improved security & risk management, and many others. 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 Analysis

Rising Demand among Various Enterprises to Increase Use of Software as a Service (SaaS)

By service, the market is segmented into Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).

The Software as a Service (SaaS) segment held the highest market share in 2023. The segment’s growth is due to the benefits of this service, such as ease of positioning, lesser maintenance costs, and low cost of possession. 

By Enterprise Type Analysis

Ease of Availability and Cost Efficiency 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 record the highest CAGR during the forecast period as cloud technology has revolutionized the operations of small and medium-sized enterprises. It can help SMEs decrease investment in expensive hardware and software with several options, such as a pay-as-you-go basis, thereby significantly reducing the overall costs for SMEs. Also, various market players are introducing new cloud solutions designed for SMEs, thus aiding the adoption of the technology among these enterprises. For instance,

  • In August 2022, 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 & 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 revenue share in 2023. Cloud technology provides operational efficiency, better scalability, and other benefits that contribute to its implementation in large enterprises. It also enables seamless collaboration globally with location independence, enhanced communication, and a high level of security.

By Industry Analysis

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Higher Adoption of Cloud Solutions Propels IT & Telecommunications Industry Expansion

Based on industry, the market is distributed into Banking, Financial Services, & Insurance (BFSI), government, IT & telecommunications, healthcare, consumer goods & retail, manufacturing, and others.

The IT & 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. Thus, 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, among others.


Geographically, the market is studied across five key regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America Cloud Computing Market Size, 2023 (USD Billion)

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North America will account for the highest market share in terms of revenue during the forecast period owing to the early acceptance of high-tech technologies, such as AI, Blockchain, robotics, Internet of Things (IoT), and the cloud. The major presence of leading cloud providers, such as IBM Corporation, Oracle Corporation, Microsoft Corporation, and others will contribute to the adoption of cloud in the region. Cloud service vendors are concentrating on investing in innovative technological skills, alliances, and expansion of cloud centers. 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). It offers higher performance & better security, fundamental data, analysis, and distributed cloud proficiencies.

  • In January 2023, TTEC Holdings, Inc., in partnership with Google Cloud, enabled users to use the latter’s Contact Center-as-a-Service features to aid real-time customer interfaces across digital channels.

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Asia Pacific is expected to dominate the global market with a leading CAGR during the forecast period. Growth in the demand for cloud-based solutions in the telecommunications and healthcare sectors is boosting the regional market’s expansion. Moreover, the region's growth is also anticipated to be driven by increasing demand for smart Electric Vehicles (EVs), surge in internet penetration, and expansion of digital technologies. For instance,

  • February 2023: Tech Data introduced cloud services in Australia. The firm makes customized offerings for AWS and Microsoft’s IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) business models.

Europe is estimated to gain 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. Private corporations are expected to fast-track cloud implementation across the region with 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.

The Middle East & Africa and South America are projected to grow at a rapid pace in the market in the coming years. The regions’ progress is attributed to improved investments in developing technologies, such as 5G, Machine Learning (ML), Big Data, Artificial Intelligence (AI), cloud computing, and others by various governments such as Brazil, Israel, the GCC countries, Turkey, and others.

List of Key Companies in Cloud Computing Market

Key Players to Focus on Advanced Solutions to Strengthen Their Market Positions

The market comprises a vibrant start-up ecosystem and is expected to have numerous start-ups developing and innovating their solutions & services for consumers. Such a fragmented market is likely to create intense competition by forcing existing companies to continuously upgrade and adopt new developments in cloud technology. Hence, increasing competition is expected to expand the market size, thereby creating more opportunities for the companies.

List of Key Companies Profiled: 


  • 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. Through the collaboration, the enterprises can partner to enhance the experience of Vodafone customers with the use of Microsoft’s generative AI, build new digital & financial facilities for enterprises, and overhaul its global data center cloud strategy.

  • January 2024: IBM collaborated with American Tower to introduce edge cloud services to businesses for improved invention and better customer experiences. The company aims to fast-track the progress of a multi-cloud and hybrid cloud computing platform at the edge.

  • November 2023: Udemy collaborated with Google Cloud as an initial member of its new cloud-driven content program. The partnership aims to fulfill the increasing demand and changing necessities of cloud computing experts 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.

  • February 2023: Reply extended Storm Reply, a cloud-based solutions provider, to aid its AWS partnership in North America. With this collaboration, Storm Reply assisted clients globally in the execution of cloud-based systems.


An Infographic Representation of Cloud Computing Market

To get information on various segments, share your queries with us

The report includes prominent aspects to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry trends and an analysis of the technologies that are being adopted at a quick rate on a global scale. The report also emphasizes on some of the growth-stimulating factors and restrictions, allowing the reader to obtain a thorough understanding of the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 16.5% from 2024 to 2032


Value (USD Billion)


By Type

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

By Service

  • Infrastructure as a Service (IaaS)

  • Platform as a Service (PaaS)

  • Software as a Service (SaaS)

By Enterprise Type

  • SMEs

  • Large Enterprises

By Industry

  • BFSI

  • IT and Telecommunications

  • Government

  • Consumer Goods and Retail

  • Healthcare

  • Manufacturing

  • Others

By Region

  • North America (By Type, Service, Enterprise Type, Industry, and Country)

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)

  • Europe (By Type, Service, Enterprise Type, Industry, and Country)

    • U.K. (By Industry)

    • Germany (By Industry)

    • France (By Industry)

    • Italy (By Industry)

    • Spain (By Industry)

    • Russia (By Industry)

    • Benelux (By Industry)

    • Nordics (By Industry)

    • Rest of Europe

  • Asia Pacific (By Type, Service, Enterprise Type, Industry, and Country)

    • China (By Industry)

    • Japan (By Industry)

    • India (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of Asia Pacific

  • Middle East & Africa (By Type, Service, Enterprise Type, Industry, and Country)

    • Turkey (By Industry)

    • Israel (By Industry)

    • GCC (By Industry)

    • North Africa (By Industry)

    • South Africa (By Industry)

    • Rest of Middle East & Africa

  • South America (By Type, Service, Enterprise Type, Industry, and Country)

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America

Frequently Asked Questions

The market is projected to reach USD 2,291.59 billion by 2032.

In 2023, the market value stood at USD 587.78 billion.

The market is projected to record a CAGR of 16.5% over the forecast period.

By type, the public cloud segment led the market share in terms of revenue in 2023.

Integration of AI, machine learning, and big data with the cloud is predicted to amplify the market’s progress.

Amazon.com Inc., Oracle Corporation, IBM Corporation, Alibaba Group Holding Limited, Microsoft Corporation, VMware, Inc., Google LLC, Rackspace Technology, Inc., SAP SE, and Salesforce, Inc. are the top players in the market.

North America is expected to hold the highest market share.

By industry, the healthcare segment is expected to record the highest CAGR over the forecast period.

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Below is the list of companies that are studied in order to estimate the market size and/or understanding the market ecosystem

This list does not necessarily mean that all the below companies are profiled in the report. The report includes profiles of only the top 10 players based on revenue/market share.

  1. Adobe, Inc. 
  2. Alibaba Group Holding Limited (Profiled in the report)
  3. Amazon Web Services Inc. (Profiled in the report)
  4. Box 
  5. Cisco Systems, Inc
  6. Citrix Systems, Inc.
  7. Dell Technologies
  8. DigitalOcean Inc.
  9. Dropbox
  10. DXC Technology  
  11. Epicor Software Corporation
  12. Fujitsu  Limited
  13. Google  LLC (Profiled in the report)
  14. IBM Corporation (Profiled in the report)
  15. IFS 
  16. Intuit Inc.
  17. Joyent  Inc.
  18. Koch Industries (Infor) 
  19. Lumen Technologies, Inc.(CenturyLink)
  20. Microsoft  Corporation (Profiled in the report)
  21. Navisite, Inc.
  22. NEC Corporation 
  23. OpenText  Corporation
  24. Oracle Corporation  (Profiled in the report)
  25. OVH Groupe SAS,
  26. pCloud
  27. Rackspace  Technology, Inc. (Profiled in the report)
  28. Red Hat
  29. Sage Group 
  30. Salesforce, Inc. (Profiled in the report)
  31. SAP SE (Profiled in the report)
  32. Serverspace
  33. ServiceNow 
  34. Skytap Inc.
  35. Tencent Holdings Ltd.
  36. Upland Software 
  37. Verizon Cloud
  38. Virtuestream 
  39. VMware  Inc. (Profiled in the report)
  40. Workday Inc. 
  41. Zoho  Croporation
  • 2019-2032
  • 2023
  • 2019-2022
  • 150

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