Community Cloud Market Size, Share & Industry Analysis, By Component (Infrastructure and Services), By Application (Data Storage & Backup, Security & Compliance, and Business Applications), By End-user (Government & Public Sector, BFSI, Healthcare, Education, IT & Telecom, and Others), and Regional Forecast, 2026 – 2034

The global community cloud market size was valued at USD 9.47 billion in 2025. The market is projected to grow from USD 11.95 billion in 2026 to USD 79.16 billion by 2034, exhibiting a CAGR of 26.7% during the forecast period.

The global cloud community market refers to cloud infrastructure and services designed for groups of organizations that share common regulatory, security, or operational requirements. A community cloud offers organizations a secure, compliant, and collaborative environment for sharing data, applications, and resources efficiently. It is used across the government & public sector, BFSI, healthcare, education, IT & telecom, and other industries to support secure data exchange, workload consolidation, and community-level applications. Market growth is driven by rising regulatory mandates, increasing demand for secure collaboration, and the growing adoption of shared cloud frameworks that enhance cost-effectiveness, compliance, and data governance.

Key companies in the market include Amazon Web Services, Inc., Microsoft Corporation, Google LLC, IBM Corporation, Salesforce, Inc., VMware, Inc., Oracle Corporation, Alibaba Group Holding Limited, Cisco Systems, Inc., and Atos SE.

MARKET DYNAMICS

MARKET DRIVERS:

Rising Need for Secure Collaboration Accelerates Growth in the Cloud Market

The increasing requirement for secure collaboration among organizations is substantially accelerating growth in the cloud community market. Enterprises and regulated institutions are prioritizing platforms that enable controlled data sharing and coordinated workflows, while maintaining confidentiality and security. These environments support joint operations across distributed teams, all while enforcing strict governance and compliance requirements. For instance,

• According to the Cloud Security Alliance, 70% of organizations have established dedicated SaaS security teams to enhance security and governance around cloud collaboration tools, reflecting the growing need for secure collaboration.

As secure inter-organizational collaboration becomes essential for efficiency and risk management, the demand for community cloud solutions continues to rise.

MARKET RESTRAINTS:

High Migration Costs and Security Concerns to Restrain Market Growth

High migration costs and security concerns restrain community cloud market growth by making it difficult for organizations to transition complex legacy systems into shared cloud environments. For instance,

• According to the 2025 Thales Cloud Security Study, 55% of enterprises report that the cloud is harder to secure than on-premises environments, and 52% now prioritize AI security, highlighting how security concerns continue to complicate cloud migration

The need to redesign applications, restructure data flows, and implement new governance frameworks adds significant operational and financial burdens. Persistent apprehension regarding shared security models, data sovereignty, and multi-tenant exposure further limits adoption, particularly in highly regulated sectors. These challenges collectively slow deployment timelines and reduce the overall pace of market expansion.

MARKET OPPORTUNITIES:

Industry-specific Clouds Present a Major Opportunity for Market Expansion

Industry-specific community cloud technology presents a significant opportunity for market expansion by providing environments tailored to sector-level compliance and operational requirements. These platforms enable organizations within the same industry to collaborate more effectively through shared data structures, applications, and governance frameworks. They also support digital transformation in highly regulated sectors by reducing integration complexity and improving operational efficiency. For instance,

• According to the Cloud Industry Forum, 93 percent of surveyed organizations state that the cloud is important to their digital transformation strategy, and 72 percent consider it critical, underscoring how industry-specific community clouds can support digital transformation.

As demand for specialized, compliant, and collaborative cloud ecosystems increases, industry-focused community clouds are expected to play a pivotal role in accelerating market growth.

Community Cloud MARKET TRENDS:

AI-Enabled Automation and Analytics Emerge as a Transformative Trend in Community Cloud Market

The growing use of cloud computing and AI-enabled automation and analytics is becoming a transformative trend in community cloud environments, as organizations seek more intelligent and efficient management capabilities. These technologies enable automated optimization of workloads, resource allocation, and system performance across shared cloud infrastructures. For instance,

• According to the State of AI in the Cloud report by Wiz, more than 70% of organizations already utilize managed AI services in their cloud environments, illustrating how AI-enabled automation and analytics are becoming a central trend in cloud operations.

They also strengthen security by providing advanced threat detection, anomaly identification, and real-time monitoring within multi-tenant settings. As community cloud deployments expand and operational demands increase, AI-driven tools are playing a critical role in enhancing governance, reliability, and overall efficiency.

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SEGMENTATION ANALYSIS

By Component

Infrastructure Segment Leads Due to Foundational Role in Cloud Deployment

Based on component, the market is divided into infrastructure and services.

Infrastructure holds the highest share by component as investments in compute, storage, and networking capabilities form the foundation for existing community cloud deployments.

Services are expected to grow at the highest CAGR of 27.8% as organizations increasingly rely on managed, integration, and consulting services to design, migrate, and operate complex community cloud environments.

By Application

Data Storage and Backup Segment Dominates as the Earliest Community Cloud Use Case

Based on application, the market is divided into data storage & backup, security & compliance, and business applications.

Data storage & backup leads the market as shared repositories, and disaster recovery represents the earliest and most widespread use cases in community cloud settings.

Security & Compliance is projected to grow at the maximum CAGR of 28.6%, as tightening regulatory requirements and rising cyber risks drive demand for advanced, cloud-based security and governance capabilities.

By End-user

Government and Public Sector Lead, Driven by Strong Compliance Mandates

By end-user, the market is segmented into Government & Public Sector, BFSI, healthcare, education, IT & Telecom, and others.

The government & public sector segment dominates the market as public agencies have strong mandates for shared, compliant infrastructure and have invested heavily in community and sovereign cloud programs.

Healthcare is expected to record the maximum growth rate of 29.0%, as providers accelerate electronic health records, telehealth, and data sharing initiatives that require secure, collaborative community cloud platforms.

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Community Cloud Market Regional Outlook

By geography, the market is categorized into North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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North America holds the largest community cloud market share, driven by increasing adoption of community cloud technologies and high IT spending across regulated industries. The U.S. accounts for the bulk of regional demand, supported by large-scale government, defense, BFSI, and healthcare community cloud initiatives.

Europe holds a significant share of the market, as stringent data protection rules, such as the General Data Protection Regulation (GDPR) and digital sovereignty initiatives, drive investment in compliant community and sovereign cloud environments. Strong uptake across government, BFSI, healthcare, and industrial sectors further supports the region’s substantial contribution to global revenues.

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Asia Pacific is expected to grow at the highest CAGR owing to rapid digitalization, expanding cloud adoption among enterprises and governments, and large-scale investments in smart city, financial, and e-government projects. Rising cloud spending in countries such as China, India, Japan, and South Korea is accelerating the shift toward community- and industry-specific cloud platforms.

The Middle East & Africa and South America are projected to experience significant growth as governments and service providers invest in modernizing infrastructure and establishing regional cloud hubs. The increasing focus on data sovereignty, public sector digital transformation, and telecom-led cloud services supports strong, albeit comparatively smaller growth in these regions.

COMPETITIVE LANDSCAPE

Key Industry Players:

Key Players Launch New Solutions to Strengthen Their Market Position

Market players launch new solutions to enhance their market positioning by leveraging technological advancements, addressing diverse consumer needs, and staying ahead of competitors. They prioritize portfolio enhancement and strategic collaborations, including acquisitions and partnerships, to strengthen their offerings. Such strategic launches enable technology companies to maintain and expand their market share in a rapidly evolving landscape.

LIST OF KEY COMMUNITY CLOUD COMPANIES PROFILED:

• Amazon Web Services, Inc. (U.S.)
• Microsoft Corporation (U.S.)
• Google LLC (U.S.)
• IBM Corporation (U.S.)
• Salesforce, Inc. (U.S.)
• VMware, Inc. (U.S.)
• Oracle Corporation (U.S.)
• Alibaba Group Holding Limited (China)
• Cisco Systems, Inc. (U.S.)
• Atos SE (France)

KEY INDUSTRY DEVELOPMENTS:

• June 2025: Microsoft expanded its Microsoft Sovereign Cloud portfolio to better meet the evolving needs of regulatory requirements and customers. The company is further strengthening its Sovereign Public and Private Cloud capabilities.
• June 2025: Amazon announced a USD 10 billion investment in North Carolina to expand AI and cloud data center infrastructure, creating 500 high-skilled jobs. The investment is expected to generate broader economic benefits across the AWS supply chain.
• March 2025: Google launched a new cloud region in Sweden to advance innovation, sustainability, and digital transformation across Europe. The region reinforces Google’s long-term commitment to expanding its cloud footprint.
• November 2024: SAP SE introduced its Sovereign Cloud capabilities in the U.K., providing secure, localized cloud services for regulated industries. The launch supports public sector organizations and critical national infrastructure providers with strict compliance needs.
• March 2024: Accenture Federal Services and Microsoft established a Cloud Modernization and Migration Factory on Azure Government. The initiative targets federal agencies that require high security standards, offering end-to-end modernization and migration support.

REPORT COVERAGE

The global community cloud market report analysis provides an in-depth study of the size and forecast by all market segments included in the report. It includes details on the market dynamics and market trends expected to drive the market in the forecast period. It offers information on the technological advancements, new solutions, key industry developments, and details on partnerships, mergers & acquisitions. The market research report also includes a detailed competitive landscape, providing information on market share and profiles of key operating players.

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REPORT SCOPE & SEGMENTATION