Cloud Computing Market Growth | Industry Analysis, Size & Forecast Report

Dataset updated: Jun 27, 2024

Dataset authored and provided by: Mordor Intelligence

License: https://www.mordorintelligence.com/privacy-policy

Time period covered: 2019 - 2029

Area covered: Global

Variables measured: CAGR, Market size, Market share analysis, Global trends, Industry forecast

Description: The Cloud Computing Market size is estimated at USD 0.68 trillion in 2024, and is expected to reach USD 1.44 trillion by 2029, growing at a CAGR of 16.40% during the forecast period (2024-2029).

Report Attribute

Study Period	2019-2029
Market Size (2024)	USD 0.68 Trillion
Market Size (2029)	USD 1.44 Trillion
CAGR (2024 - 2029)	16.40%
Fastest Growing Market	Asia Pacific
Largest Market	North America

Quantitative Units: Revenue in USD Billion, Volumes in Units, Pricing in USD

Regions and Countries Covered:

North America	United States, Canada
Europe	Germany, United Kingdom, Italy, France, Russia, and Rest of Europe
Asia-Pacific	India, China, Japan, South Korea, and Rest of Asia-Pacific
Latin America	Brazil, Mexico, Argentina, and Rest of Latin America
Middle East and Africa	Brazil, Mexico, Argentina, and the Rest of Middle East and Africa

Industry Segmentation Covered:

By Cloud Computing: IaaS, SaaS, PaaS

By End-User: IT and Telecom, BFSI, Retail and Consumer Goods, Manufacturing, Healthcare, Media and Entertainment

Market Players Covered: Amazon Web Services, Google LLC, Microsoft Corporation, Alibaba Cloud, and Salesforce

In 2024, the global public cloud services market is expected to grow by approximately **** percent, which amounts to about *** billion U.S. dollars. While the growth of cloud services is relatively rapid, it still represents a small percentage of the global IT services market, which is forecast to cross *** trillion U.S. dollars in 2024. What is a public cloud? A public cloud is a type of cloud computing through which a service provider makes resources, such as applications, virtual machines, or storage capabilities, available to the public via the internet. Clients pay for these resources through a pay-as-you-go model or by subscription. The kind of resources offered vary by cloud provider, which is why organizations that want to migrate their data and workloads to the cloud need to develop a migration strategy beforehand. Public cloud as part of the IT infrastructure solution Today’s clouds used by organizations are usually not deployed as standalone solutions. Rather, they are an integral part of a heterogeneous mix of information technology (IT) network solutions and environments. Ultimately, organizations seek to increase performance and security while lowering costs and ensuring a wider availability of their services and applications by deploying public clouds.

North America Cloud Computing Market Report is Segmented by Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Service Model (Infrastructure-As-A-Service (IaaS), Platform-As-A-Service (PaaS), Software-As-A-Service (SaaS)), Organization Size (SMEs, Large Enterprises), End-User Verticals (Manufacturing, Education, Retail, Healthcare, BFSI, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The cloud system infrastructure services (IaaS) segment is forecast to grow by **** percent in 2025 compared to 2024. The public cloud services market as a whole is expected to grow by around ** percent in 2025. Cloud computing as a service The cloud-based “as-a-service” market is a relatively new tech phenomenon where cloud computing resources are rented from large providers. These service companies provide businesses of all sizes with cloud capabilities without the need to purchase and maintain their own hardware and software. The software as a service (SaaS) market size alone is expected to surpass *** billion dollars in 2024. Cloud service providers Over ** percent of surveyed technical professionals from industries around the world stated that their organization was currently running apps using the as a service platform Amazon Web Services, and many of the world’s largest tech firms are quickly incorporating cloud service packages into their offerings. Microsoft’s intelligent cloud segment, which includes the Microsoft Azure cloud offerings, has grown rapidly, rivaling even the company’s long-established personal computing segment in terms of revenue generation.

The Public Cloud Market report segments the industry into By Deployment (Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS)), By Organization Size (SME's Organization, Large Organizations), By End User Industry (BFSI, Healthcare, Government, Manufacturing, IT and Telecom, Others End Users), and By Geography (North America, Europe, Asia, Australia and New Zealand, and more).

The Asia-Pacific Cloud Computing Market Report is Segmented by Deployment Model (Public, Private, Hybrid, Multi-Cloud), Service Model (IaaS, Paas, Saas, FaaS/BaaS, Draas), Organization Size (SMEs, Large Enterprises), End-User Industry (Manufacturing, Education, Retail, Transportation, Healthcare, BFSI, Telecom, Government, Utilities, Media), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Public Cloud Market size was valued at USD 444.7 billion in 2019 and is poised to grow from USD 521.63 billion in 2023 to USD 2193.04 billion by 2031, growing at a CAGR of 17.3% in the forecast period (2024-2031).

Cloud Computing Market Outlook

According to our latest research, the global cloud computing market size reached USD 678.9 billion in 2024, reflecting robust expansion driven by digital transformation across industries. The market is expected to grow at a CAGR of 17.2% from 2025 to 2033, reaching a forecasted value of USD 2,334.6 billion by 2033. This rapid growth is primarily fueled by increased enterprise adoption of cloud-based solutions, demand for scalable IT infrastructure, and the proliferation of advanced technologies such as artificial intelligence, machine learning, and big data analytics.

A key growth factor propelling the cloud computing market is the accelerating pace of digitalization across both private and public sectors. Organizations are increasingly prioritizing cloud-first strategies to enhance operational agility, streamline workflows, and reduce capital expenditure on traditional IT infrastructure. The flexibility and scalability offered by cloud computing services allow businesses to quickly adapt to changing market conditions, launch new products and services, and respond to customer needs with unprecedented speed. Additionally, the COVID-19 pandemic has significantly amplified the need for remote work solutions, further driving the adoption of cloud platforms for collaboration, data storage, and application deployment.

Another major driver is the continuous evolution of cloud service models, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). These models provide organizations with tailored solutions that cater to diverse operational requirements, from data management and application development to analytics and cybersecurity. The increasing integration of artificial intelligence and machine learning capabilities within cloud platforms is enabling businesses to harness data-driven insights, automate processes, and foster innovation. Moreover, the growing trend of hybrid and multi-cloud deployments is allowing organizations to optimize their IT environments by leveraging the strengths of multiple cloud providers while maintaining control over sensitive workloads.

Security and compliance considerations are also shaping the growth trajectory of the cloud computing market. As data privacy regulations become more stringent, enterprises are seeking cloud solutions that offer robust security features, data encryption, and compliance with industry standards. Cloud service providers are continuously enhancing their offerings to address these concerns, investing in advanced security technologies and collaborating with regulatory bodies to ensure adherence to global standards. This heightened focus on security is not only mitigating risks but also building trust among organizations, thereby accelerating cloud adoption across sectors such as BFSI, healthcare, and government.

From a regional perspective, North America continues to dominate the cloud computing market, accounting for the largest share due to the presence of major technology companies, early adoption of cloud technologies, and substantial investments in research and development. However, the Asia Pacific region is witnessing the fastest growth, driven by rapid digital transformation in emerging economies, increasing internet penetration, and government initiatives supporting cloud adoption. Europe and Latin America are also experiencing significant market expansion, with enterprises leveraging cloud solutions to enhance competitiveness and drive innovation. The Middle East & Africa region, while still in the nascent stages of cloud adoption, is expected to demonstrate steady growth as digital infrastructure improves and awareness of cloud benefits increases.

Service Model Analysis

The cloud computing market is segmented by service model into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Among these, Software as a Service (SaaS) continues to hold the largest share, primaril

The global private cloud services market is set to grow, with a valuation of USD 124.6 billion in 2025, and it is going to touch USD 618.3 billion by 2035. The CAGR of 15.9% is likely during the projection period proposed.

Metric	Value
Industry Size (2025E)	USD 124.6 billion
Industry Value (2035F)	USD 618.3 billion
CAGR (2025 to 2035)	15.9%

Country-wise CAGR Analysis of the Private Cloud Services Market (2025 to 2035)

Country	CAGR (2025 to 2035)
USA	15.2%
UK	13.8%
France	12.5%
Germany	13.0%
Italy	11.3%
South Korea	14.0%
Japan	12.8%
China	16.5%
Australia	13.2%
New Zealand	11.9%

Competitive Outlook

Company Name	Estimated Market Share (%)
Amazon Web Services (AWS)	32%
Microsoft Azure	25%
IBM Cloud	15%
Google Cloud Platform (GCP)	10%
VMware	8%
Other Companies Combined	10%

Hybrid Cloud Market is Segmented by Component (Solutions, Services), Service Model (IaaS, Paas, Saas), Organization Size (Large Enterprises, Smes), End-User Industry (Government and Public Sector, Healthcare and Life Sciences, BFSI, and More) and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

In 2023, the worldwide cloud computing market achieved a valuation of US$ 579.58 billion, and it is anticipated to expand at a steady pace of 13.5% between 2023 and 2033, ultimately reaching an impressive value of US$ 2,062.26 billion by 2033.

Attributes	Details
Cloud Computing Market Value (2023)	US$ 579.58 billion
Cloud Computing Market Value (2033)	US$ 2,062.26 billion
Cloud Computing Market Growth Rate (2023 to 2033)	13.5 %.

What is the Performance of the Cloud Computing Industry in Different Geographical Regions?

Regions	CAGR (2023 to 2033)
The United Kingdom (UK)	12.5%
China	13.7%
India	13.1%

The worldwide public cloud computing market continues to grow and is expected to reach an estimated ****** billion U.S. dollars in 2025. This encompasses business processes, platform, infrastructure, software, management, security, and advertising services delivered by public cloud services. A public cloud is a cloud deployment model that offers computing services over the internet. The physical hardware of this cloud model is shared by multiple companies. The services offered to customers include storage, bandwidth, or CPU cycles. Public clouds are cost-effective Among the many benefits of a public cloud is that services are offered to the customer through a pay-as-you-go model. This means that no upfront investments must be made, which otherwise lead to running costs for maintaining on-premise hardware and application infrastructure. Instead, the cloud service provider ensures proper management and maintenance of the system and the customer only pays for services consumed. AWS, Azure, and Google are dominating the market Key companies offering public cloud platforms to customers are Amazon Web Services, Microsoft Azure, and Google Cloud. Their preeminence on the market is demonstrated by organizations’ plans to continually migrate their data to the cloud and use cloud applications for their business operations on a global scale.

The global cloud computing market is calculated at a size of US$ 628.6 billion for 2024 and is projected to increase at a noteworthy CAGR of 14.2% to reach US$ 2,371.6 billion by 2034.

Report Attributes	Details
Cloud Computing Market Size (2024E)	US$ 628.6 Billion
Forecasted Market Value (2034F)	US$ 2,371.6 Billion
Global Market Growth Rate (2024 to 2034)	14.2% CAGR
South Korea Market Value (2034F)	US$ 126.6 Billion
Key Companies Profiled	Google LLC IBM Corporation Oracle Corporation Salesforce Adobe Inc. Microsoft Corporation SAP SE Workday, Inc. Alibaba Group Holding Limited Amazon Inc.

Country-wise Analysis

Attribute	United States
Market Value (2024E)	US$ 66.9 Billion
Growth Rate (2024 to 2034)	14.7% CAGR
Projected Value (2034F)	US$ 262.8 Billion

Attribute	China
Market Value (2024E)	US$ 68.9 Billion
Growth Rate (2024 to 2034)	14.2% CAGR
Projected Value (2034F)	US$ 260.2 Billion

Category-wise Analysis

Attribute	Large Enterprises
Segment Value (2024E)	US$ 352 Billion
Growth Rate (2024 to 2034)	13.6% CAGR
Projected Value (2034F)	US$ 1256.9 Billion

Attribute	BFSI
Segment Value (2024E)	US$ 114.6 Billion
Growth Rate (2024 to 2034)	12.6% CAGR
Projected Value (2034F)	US$ 474.3 Billion

The Report Covers Germany Cloud Computing Companies and the Market is Segmented by Type (Public Cloud, Private Cloud, Hybrid Cloud), Organization Type (SMEs, Large Enterprises), End-User Industries (Manufacturing, Education, Retail, Transportation, and Logistics, Healthcare, BFSI, Telecom, and IT, Government and Public Sector). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The public cloud market size is projected to grow from USD 0.567 trillion in 2024 to USD 3.36 billion by 2035, representing a CAGR of 17.58%, during the forecast period till 2035.

According to Cognitive Market Research, the global Public Cloud market size will be USD 685.3823 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 12.80% from 2024 to 2031. Market Dynamics of Public Cloud Market

Key Drivers for Public Cloud Market

Increased Digital Transformation Initiatives - One of the main reasons for the Public Cloud market growth is the surge in digital transformation initiatives across various industries. Businesses are increasingly adopting cloud technologies to enhance their operational efficiency, agility, and scalability. The need to stay competitive in a rapidly evolving digital landscape has pushed organizations to move their workloads and applications to the cloud, enabling them to take advantage of cutting-edge technology like machine learning, artificial intelligence, and big data analytics. This shift is further accelerated by the demand for remote work solutions, which have become essential in the wake of the COVID-19 pandemic.
The cost efficiency and scalability are anticipated to drive the Public Cloud market's expansion in the years ahead.

Key Restraints for Public Cloud Market

Regulatory compliance and data sovereignty issues to the Public Cloud industry growth.
Challenges in integrating with existing IT infrastructure and applications to data security and privacy impact market growth.

Introduction of the Public Cloud Market

Public Cloud, also referred to as cost-efficiency, plays a crucial role as organizations seek to optimize their IT expenditures by shifting from capital-intensive infrastructure to scalable, pay-as-you-go models offered by public cloud providers. Secondly, scalability and flexibility are significant drivers, enabling companies to scale operations and adjust to shifting demands seamlessly and quickly. Thirdly, advancements in technology, such as AI and machine learning, integrated within cloud services enhance productivity and innovation capabilities. Additionally, the global shift towards remote work and digital transformation initiatives further accelerates cloud adoption, ensuring anytime, anywhere access to data and applications securely. Lastly, regulatory requirements and data sovereignty issues push organizations towards cloud solutions that offer compliance and robust security measures, reinforcing trust and reliability in public cloud platforms.

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Cloud Computing Market Size 2025-2029

The cloud computing market size is forecast to increase by USD 600.5 billion, at a CAGR of 18.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing trend towards cost savings and the heightened priority placed on data security. Businesses are increasingly turning to cloud solutions to reduce IT expenses and improve operational efficiency by using AI and ML technologies. Simultaneously, the demand for private cloud deployments is surging due to concerns over data security and compliance. However, the adoption of cloud computing is not without challenges. Integration issues persist as organizations grapple with combining various cloud services and on-premises systems. These challenges necessitate a strategic approach from companies seeking to capitalize on the market's potential while effectively navigating obstacles. By focusing on seamless integration and addressing data security concerns, organizations can maximize the benefits of cloud computing and maintain a competitive edge.

What will be the Size of the Cloud Computing 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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Cloud infrastructure continues to evolve, shaping the technological landscape with its dynamic nature. Compliance and security remain paramount, with data encryption being a critical component. Nosql databases and relational databases (RDBMS) coexist, catering to diverse business needs. Cloud cost management is an ongoing concern, as organizations navigate the complexities of public, private, and hybrid cloud environments. Business continuity and disaster recovery are integral to cloud computing adoption. Agile methodologies and serverless computing facilitate swift development and deployment. Virtual machines (VMs) and containerization offer flexibility, while cloud databases power data-driven decision-making. Cloud-native applications, cloud-based monitoring, and cloud-based software development streamline operations.

Cloud computing training and certifications equip professionals with the necessary skills. API management and edge computing expand the reach of cloud services. Cloud computing solutions cater to various sectors, from data warehousing and cloud analytics to cloud gaming and cloud-based productivity suites. Cloud telephony, cloud-based support, and unified communications enhance communication capabilities. Cloud optimization and artificial intelligence (AI) drive efficiency and innovation. Cloud governance ensures compliance with regulations and best practices. Cloud storage, cloud networking, and object storage provide scalable and secure data management. Cloud collaboration tools and file storage facilitate teamwork. Cloud monitoring and data analytics platforms offer insights into operational performance.

The continuous unfolding of market activities reveals evolving patterns, with public cloud, big data analytics, and cloud-based email services gaining traction. Cloud computing consulting and cloud-based training support organizations in their digital transformation journeys. The integration of load balancers, cloud-based testing, and cloud deployment tools further enhances the versatility of cloud infrastructure. In the ever-evolving cloud landscape, cloud computing regulations and business intelligence (BI) solutions emerge to address the unique challenges of the digital age. Cloud gaming, cloud-based productivity suites, and cloud-based support services expand the reach of cloud computing, offering new opportunities for businesses and individuals alike.

The ongoing adoption of cloud computing is marked by the seamless integration of various components, including cloud cost management, virtual machines, data warehousing, and cloud-native applications. The future of cloud infrastructure lies in its ability to adapt and innovate, driven by advancements in AI, ML, and edge computing.

How is this Cloud Computing Industry segmented?

The cloud computing 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.

Deployment

  Public cloud
  Private cloud


Service

  SaaS
  IaaS
  PaaS


Workload

  Application Development & Testing
  Data Storage & Backup
  Resource Management
  Orchestration Services
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW). 

By Deployment Insights

The public cloud segment is estimated to witness significant growth durin

The Private Cloud Market is Segmented by Deployment Model (Software-As-A-Service, Platform-As-A-Service, and More), End-User Enterprise Size (Small and Medium-Sized Enterprises, and More), End-User Industry (BFSI, Healthcare and Life Sciences, and More), Hosting Type (On-Premises Dedicated Private Cloud, Virtual Private Cloud (VPC), and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

In 2023, the cloud computing market in China recorded a net growth of over ** million U.S. dollars. According to the estimate, the industry was projected to grow by over *** million U.S. dollars in 2028. The largest cloud computing provider in China was Alibaba.

Globally, the public cloud market is currently valued at 685.3823 billion USD and is projected to reach a staggering 2,225.9945 billion USD by 2033, reflecting a robust CAGR of 12.81% from 2025 to 2033. Faster digital transformation, rising cloud-native application development, increased affordability, and rapid penetration of mobile devices and IoT are some key growth drivers shaping the public cloud market. Furthermore, the adoption of innovative technologies like AI, ML, and analytics further fuels demand for cloud computing resources. Regionally, North America holds the largest market share, followed by Europe and Asia Pacific. Leading cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) dominate the market, offering comprehensive cloud services across IaaS, PaaS, and SaaS models. Key trends shaping the market include the increasing adoption of multi-cloud and hybrid cloud solutions, the rise of edge computing, and the growing significance of data security and compliance. Despite these growth drivers, factors such as data privacy and security concerns, legacy systems, and potential vendor lock-in can restrain market growth to some extent. Recent developments include: In March 2023, Alibaba Cloud, the foundation of Alibaba Group's digital technology and intelligence, announced its partnership with long-time partner Dubai Holding to upgrade the facility with cutting-edge cloud infrastructure and a wider range of products and services in analytics, databases, industry solutions, and AI services to provide customers with the best digital solutions during their journey towards digitalization. In February 2023, Alibaba Cloud, the digital technology and intelligence core of Alibaba Group has been selected by e-commerce platform MyEUShop and its joint venture logistics partner, Nederlands Express (NLE), as their preferred cloud service provider and technology partner. MyEUShop and NLE will receive assistance from Alibaba Cloud to optimize their retail solutions and e-commerce platform infrastructure to achieve future commercial growth. In March 2023, AWS, a division of Amazon.com, Inc., has announced plans to open a region for its infrastructure in Malaysia. The new Amazon Region will allow developers, start-ups, entrepreneurs, businesses, government, educational, and charity institutions more options for using Malaysian data centers to operate their applications and serve end users. In October 2022, UBS and Microsoft announced a significant expansion of their collaboration to expand UBS's public cloud footprint over the next five years. As part of this transformational endeavour, UBS intends to operate more than half of its applications, including key workloads, on Microsoft Azure, the firm's primary cloud platform. The collaboration advances UBS's "cloud-first" strategy and modernization of its global technology estate. In July 2022, in India, Adobe Experience Manager (AEM) as a Cloud Service, powered by Adobe Experience Cloud, is now generally available, according to Adobe. With SaaS-like agility and experience management capabilities, AEM, a cloud-native solution, helps businesses manage and scale customized digital content for every channel. This enables marketers and developers to quickly create powerful, personalized digital experiences in just a few weeks, unlike the industry norm of months. . Notable trends are: Increasing demand for immersive virtual reality experiences is driving the market growth..