The Europe Cloud Computing Market Report is Segmented by Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), Service Model (IaaS, Paas, Saas), Organization Size (SMEs, and Large Enterprises), End-User Industry (Education, Healthcare and Life Sciences, BFSI, and More), and Geography (United Kingdom, Germany, France, Italy, Spain, Netherlands, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

In the public cloud market in Europe in 2024, the Software as a Service segment generated the highest revenue, reaching approximately ************* U.S. dollars. The Platform as a Service segment ranked second with around ************ U.S. dollars, while Infrastructure as a Service followed with about ************* U.S. dollars.

By the second quarter of 2021, revenues from cloud computing in Europe amounted to approximately *** billion euros. At the same time, European service providers' market share declined to under ** percent, although their revenues increased. Both government investments in cloud computing initiatives as well as general digital transformation processes drive market growth. American cloud providers dominate the European market European cloud providers’ decline in market share is due the rise of American cloud providers including Amazon, Microsoft, and Google. Together, these three global players take ** percent of the European market. Deutsche Telekom is the leader among European cloud providers, taking *** percent of the market. It is followed by OVH Cloud from France and many regional cloud specialists and national telcos. European initiatives to strengthen regional providers Given the relative prominence of American cloud providers in the European market, the GAIA-X initiative has formed in 2019 to regain control over data sovereignty while simultaneously strengthening European cloud providers. Catching up with the US companies’ dominance in the European market will remain a challenge, however, given that in the future, European customers expect to increase spending on the American cloud companies rather than on regional providers.

Europe AI Cloud Computing Market in Automotive Industry Report is Segmented by Services (Public Cloud (Software-As-A-Service (SaaS) Platform-As-A-Service (PaaS), Infrastructure-As-A-Service (IaaS)), Private Cloud (Colocation, In-House (OPaas, Staas))), Country (United Kingdom, Germany, France, Italy, Spain, Poland, Rest of Europe). The Market Size and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The Europe cloud computing market is being driven by the rising adoption of SaaS segment and increasing consumer demand. The market is expected to grow at a CAGR of 9.00% in the forecast period of 2025-2034 to reach a value of approximately USD 115.38 Billion by 2034.

The size of the Europe Cloud Computing Market market was valued at USD 173.69 Million in 2024 and is projected to reach USD 497.44 Million by 2033, with an expected CAGR of 16.22% during the forecast period. Recent developments include: February 2024 - Admiral, a subsidiary of the Admiral Group, a British financial services firm, chose Google Cloud as its strategic cloud partner. As per the agreement, Google Cloud will power Admiral's core insurance operations, which include insurance policy administration and digital systems. Admiral plans to leverage Google Cloud technologies to innovate new digital products and services, notably enhancing its customer-facing mobile app. This partnership is expected to allow Admiral to speed up the launch of new products and services by utilizing containerized cloud applications and embracing modern software development practices. With Google Cloud’s data analytics capabilities, Admiral aims to boost operational efficiency and enhance customer service through AI and machine learning services., January 2024 - Vodafone and Microsoft Corp. unveiled a significant 10-year strategic partnership. This collaboration aims to harness their combined strengths, delivering expansive digital platforms to over 300 million businesses, public sector entities, and consumers throughout Europe and Africa. As part of the alliance, Vodafone is set to channel a USD 1.5 billion investment over the next decade, focusing on cloud services and AI solutions tailored for customers, all co-developed with Microsoft.. Key drivers for this market are: Strong Government Support for Promoting Cloud Adoption, Presence of Numerous Cloud Data Centers in the European Region. Potential restraints include: Strong Government Support for Promoting Cloud Adoption, Presence of Numerous Cloud Data Centers in the European Region. Notable trends are: Strong Government support for Promoting Cloud Adoption.

In 2021, the European cloud computing market is forecast to amount to ** billion euros. By 2030, the market is projected to reach *** billion euros.

In 2020, the software as a service (SaaS) segment of the European cloud computing market stood at ** percent. The share of the platform as a service segment is forecast to grow to ** percent market share by 2030 from ** percent in 2021.

Europe Cloud Computing Market is valued at USD 180 billion, driven by digital transformation, scalable IT solutions, and data security, with SaaS leading segments.

The Data Processing and Hosting Services industry has transformed over the past decade, with the growth of cloud computing creating new markets. Demand surged in line with heightened demand from banks and a rising number of mobile connections across Europe. Many companies regard cloud computing as an innovative way of reducing their operating costs, which has led to the introduction of new services that make the sharing of data more efficient. Over the five years through 2025, revenue is expected to hike at a compound annual rate of 4.3% to €113.5 billion, including a 5.6% jump in 2025. Industry profit has been constrained by pricing pressures between companies and regions. Investments in new-generation data centres, especially in digital hubs like Frankfurt, London, and Paris, have consistently outpaced available supply, underlining the continent’s insatiable appetite for processing power. Meanwhile, 5G network roll-outs and heightened consumer expectations for real-time digital services have made agile hosting and robust cloud infrastructure imperative, pushing providers to invest in both core and edge data solutions. Robust growth has been fuelled by rapid digitalisation, widespread cloud adoption, and exploding demand from sectors such as e-commerce and streaming. Scaling cloud infrastructure, driven by both established giants, like Amazon Web Services (AWS), Microsoft Azure and Google Cloud and nimble local entrants, has allowed the industry to keep pace with unpredictable spikes in online activity and increasingly complex data needs. Rising investment in data centre capacity and the proliferation of high-availability hosting have significantly boosted operational efficiency and market competitiveness, with revenue growth closely tracking the boom in cloud and streaming services across the continent. Industry revenue is set to grow moving forward as European businesses incorporate data technology into their operations. Revenue is projected to boom, growing at a compound annual rate of 10.3% over the five years through 2030, to reach €185.4 billion. Growth is likely to be assisted by ongoing cloud adoption, accelerated 5G expansion, and soaring investor interest in hyperscale and sovereign data centres. Technical diversification seen in hybrid cloud solutions, edge computing deployments, and sovereign clouds, will create significant opportunities for incumbents and disruptors alike. Pricing pressures, intensified by global hyperscalers’ economies of scale and assertive licensing strategies, will pressurise profit, especially for smaller participants confronting rising capital expenditure and compliance costs.

EU Countries with the Highest Share of Enterprises Buying Cloud Computing Services, 2016 Discover more data with ReportLinker!

Europe Hybrid cloud computing market USD 29442.66 million in 2024 and will grow at a compound annual growth rate (CAGR) of 16.5% from 2024 to 2031. Digital transformation initiatives are expected to aid the sales to USD 88786.8 million by 2031.

Discover the booming France cloud computing market! This in-depth analysis reveals a €19.25B market in 2025, projected to grow at a 16.91% CAGR until 2033, driven by digital transformation and increasing cloud adoption across sectors like BFSI and healthcare. Explore market trends, key players (AWS, Microsoft, Google, Orange), and growth opportunities in this dynamic landscape. Recent developments include: May 2024: Clever Cloud and Vates unveiled a partnership designed to bolster the strategic autonomy of cloud services in France and across Europe. By merging their unique expertise, these two French cloud technology firms, experts in Platform as a Service as well as Infrastructure as a Service solution, are collaborating to present a robust, independent, and open alternative to major hyperscalers., April 2024: OVHcloud, a European cloud provider, unveiled a new cloud region in Paris, France. The newly established 3-AZ Paris region encompasses three data centers strategically positioned about 30 km apart, ensuring organizations benefit from enhanced resilience and reduced latency. In this region, OVHcloud enables data replication for near-instant failover and distribution for scalability.. Key drivers for this market are: Robust Shift Towards Digital Transformation Across the Country, Data Privacy Concerns Are Driving Increased Adoption Of Public Cloud Services. Potential restraints include: Robust Shift Towards Digital Transformation Across the Country, Data Privacy Concerns Are Driving Increased Adoption Of Public Cloud Services. Notable trends are: Robust Shift Toward Digital Transformation Across the Country Is Driving the Market's Growth Opportunities.

Cloud computing services by size class of enterprise

The Europe Healthcare Cloud Computing Market would witness market growth of 16.6% CAGR during the forecast period (2024-2031). The Germany market dominated the Europe Healthcare Cloud Computing Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a ma

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The use of cloud computing services among travel agencies, tour operators, and related activities in the European Union (EU-27) increased in 2023 over 2021. Overall, around *** out of 10 travel agencies and similar enterprises in the EU reported buying cloud computing services used over the internet in 2023. Meanwhile, roughly ** percent of surveyed companies mentioned having bought emails as cloud computing services that year.

Table of INEBase Cloud computing. Autonomous Communities and Cities. Survey on the Use of Information and Communication Technologies and Electronic Commerce in Companies

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Private Cloud Services Market Size 2025-2029

The private cloud services market size is forecast to increase by USD 385.7 billion, at a CAGR of 19.6% between 2024 and 2029. The market is experiencing significant growth, driven by the increasing preference for enhanced data security. This trend is particularly notable in the BFSI sector, where the acceptance of private cloud solutions is on the rise.

Major Market Trends & Insights

North America dominated the market and contributed 51% to the growth during the forecast period.
The market is expected to grow significantly in Europe region as well over the forecast period.
Based on the Service, the IaaS segment led the market and was valued at USD 122.70 billion of the global revenue in 2023.
Based on the Type, the Large enterprise segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

Market Opportunities: USD 259.64 Billion
Future Opportunities: USD 385.7 Billion
CAGR (2024-2029): 19.6%
North America: Largest market in 2023

The market continues to evolve in various sectors. However, the market also faces challenges, primarily the high costs associated with implementing and maintaining private cloud services. These costs can be attributed to the need for specialized hardware, software, and skilled personnel. As businesses continue to prioritize data security and regulatory compliance, the demand for private cloud services is expected to persist. Concurrently, addressing the cost challenge through innovative pricing models, operational efficiencies, and economies of scale will be crucial for market participants to capitalize on this opportunity.

What will be the Size of the Private Cloud Services Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, with organizations increasingly adopting advanced technologies to optimize their IT infrastructure and enhance business agility. Service level agreements (SLAs) play a crucial role in ensuring the reliability and performance of these services. Configuration management tools help manage the complexity of private cloud environments, while serverless computing enables the deployment of applications without the need for managing infrastructure. Monitoring dashboards provide real-time insights into the health and utilization of compute resources, enabling high-availability clusters to minimize downtime. Cost optimization strategies, such as virtual desktop infrastructure and cloud storage optimization, help reduce costs and improve resource utilization.
Hybrid cloud integration allows organizations to leverage the benefits of both private and public clouds, while avoiding the challenges of virtual machine sprawl. Performance monitoring and application performance management ensure that applications run efficiently, and load balancing techniques distribute workloads evenly. Automated provisioning and microservices architecture facilitate faster deployment and scalability, while disaster recovery planning and DevOps automation ensure business continuity. Network virtualization and software-defined networking enable the creation of flexible, secure, and scalable networks. CI/CD pipelines streamline the development process, and compliance auditing ensures regulatory compliance. Capacity planning and multi-cloud management enable organizations to optimize their cloud resources and mitigate risks.
Data loss prevention and container orchestration help secure data and applications in private cloud environments. According to recent market research, the market is expected to grow by over 15% annually, driven by the increasing adoption of cloud technologies and the need for greater business agility and cost savings. For instance, a leading financial services firm reported a 20% increase in application performance and a 30% reduction in IT costs after migrating to a private cloud solution.

How is this Private Cloud Services Industry segmented?

The private cloud services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Service

  IaaS
  SaaS
  PaaS


Type

  Large enterprise
  Small and medium enterprise


Vertical

  BFSI
  IT & Telecom
  Healthcare & Life Sciences
  Government & Public Sector
  Retail & Consumer Goods
  Manufacturing
  Energy & Utilities


Deployment Type

  Dedicated Private Cloud
  Virtual Private Cloud


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Service Insights

The IaaS segment is estima

Western Europe Cloud Computing Market is predicted to increase due to the rising investment by the colocation service providers to strengthen their market position.