By 2034, the Cloud Computing Market is expected to reach a valuation of USD 7,473.3 billion, expanding at a healthy CAGR of 23.4%.

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

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

Regions and Countries Covered:

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

The Cloud Infrastructure Services Market is Segmented by Service Type (Compute As A Service, Storage As A Service, and More), Deployment Model (Public Cloud, Private Cloud, and More), Organization Size (Small and Medium-Sized Enterprises (SMEs), and More), End-User Vertical (BFSI, IT and Telecommunications, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

The Healthcare Cloud Infrastructure Market is estimated to be valued at USD 84.6 billion in 2025 and is projected to reach USD 721.1 billion by 2035, registering a compound annual growth rate (CAGR) of 23.9% over the forecast period.

United States Cloud Computing Market Report is Segmented by Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), Service Model (Infrastructure-As-A-Service, Platform-As-A-Service, Software-As-A-Service), Organisation Size (SMEs, Large Enterprises), End-User Vertical (Manufacturing, Education, Retail, and More). The Market Forecasts are Provided in Terms of Value (USD).

The global cloud infrastructure market service spend exceeded ** billion U.S. dollars in the third quarter of 2024. The acceleration of digital transformation and continuous trend of using cloud services for application migration, machine learning, cloud native, and other service delivery is driving market spending.

The Cloud Computing Market is estimated to be valued at USD 746.6 billion in 2025 and is projected to reach USD 2648.9 billion by 2035, registering a compound annual growth rate (CAGR) of 13.5% over the forecast period.

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.

As organizations increasingly rely on cloud-based solutions, the role of Cloud API has become pivotal in ensuring seamless integration and functionality across diverse platforms. Cloud APIs facilitate communication between different software applications, enabling businesses to leverage a wide array of cloud services without the need for extensive reconfiguration. This capability is particularly beneficial for enterprises looking to enhance their digital ecosystems by integrating third-party services, improving interoperability, and streamlining operations. With the growing complexity of IT environments, Cloud API serves as a crucial tool for developers and IT professionals to build, manage, and scale applications efficiently, thereby driving innovation and agility in the cloud computing landscape.

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 & Afri

In the fourth quarter of 2023, enterprise spending on cloud infrastructure services reached approximately ** billion U.S. dollars. The market has seen a steady increase in quarter-over-quarter revenue over the past years and passed the ** billion U.S. dollars mark for the first time in the fourth quarter of 2021. The cloud infrastructure services market includes revenue from infrastructure as a service (IaaS), platform as a service (PaaS), and hosted private cloud services.

According to Cognitive Market Research, the global cloud infrastructure market size was USD 605142.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 22.30% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 242057.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 20.5% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 181542.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 139182.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.3% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 30257.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.7% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 12102.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 22.0% from 2024 to 2031.
The services held the highest cloud infrastructure market revenue share in 2024.

Market Dynamics of Cloud Infrastructure Market

Key Drivers for Cloud Infrastructure Market

Rise in the Technological Advancements to Increase the Demand Globally

Technological advancements are significantly propelling the cloud infrastructure market. Innovations in artificial intelligence, machine learning, and automation are enhancing cloud services' efficiency, scalability, and cost-effectiveness. The advent of edge computing and 5G technology is enabling faster data processing and reducing latency, further driving cloud adoption. Additionally, advancements in security technologies are making cloud environments more secure, encouraging more businesses to migrate to the cloud. These technological developments are transforming how companies operate, fueling the growth and expansion of the cloud infrastructure market.

Growing Number of Connected Devices to Propel Market Growth

The growing number of connected devices, particularly through the Internet of Things (IoT), significantly impacts the cloud infrastructure market. As IoT devices proliferate, they generate massive volumes of data that require robust processing, storage, and management capabilities. Cloud infrastructure provides the scalable and flexible environment needed to handle this influx of data, enabling real-time analytics, efficient data processing, and seamless connectivity across devices. This demand for enhanced cloud services drives the expansion of the cloud infrastructure market as businesses seek to leverage IoT-driven insights and efficiencies.

Restraint Factor for the Cloud Infrastructure Market

Data Privacy & Security Concerns Related to Cloud Solution to Limit the Sales

Data privacy and security concerns are critical in the cloud infrastructure market as organizations store sensitive data in cloud environments. Risks include data breaches, unauthorized access, and compliance with data protection regulations. Cloud providers must implement robust security measures, such as encryption, access controls, and regular audits, to protect customer data. Additionally, concerns about data sovereignty and cross-border data transfer further complicate security in the cloud. Addressing these concerns is essential for building trust and ensuring the continued growth of cloud adoption.

Impact of Covid-19 on the Cloud Infrastructure Market

The COVID-19 pandemic significantly accelerated the growth of the cloud infrastructure market. As businesses rapidly transitioned to remote work, the demand for cloud services surged, enabling companies to maintain operations and collaboration. The pandemic highlighted the need for scalable, flexible, and resilient IT infrastructure, driving widespread cloud adoption across industries. Additionally, the crisis spurred digital transformation initiatives, pushing organizations to invest in cloud-based solutions for business continuity, disaster recovery, and remote access, further fueling the expansion of the cloud infrastructure market. Introduction of the Cloud Infrastructure Market

Cloud infrastructure refers to the virtualized IT resources and services, including servers, storage, networking, and software, delivered over the i...

The Germany Cloud Computing Market Report is Segmented by Deployment Model (Public Cloud, Private Cloud, and Hybrid Cloud), Service Model (Infrastructure-As-A-Service, Platform-As-A-Service, and Software-As-A-Service), Organization Size (Small and Medium-Sized Enterprises, and Large Enterprises), End-User Industry (Manufacturing, Education, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The worldwide public cloud computing market continues to grow and is expected to reach an estimated 723.42 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 Cloud Infrastructure Market size is expected to reach USD 910 billion in 2034 growing at a CAGR of 13.5%. The Cloud Infrastructure Market report classifies market by segmentation, growth drivers, demand, trend, and forecast insights.

Cloud Infrastructure Market size was valued at USD 392.65 Billion in 2024 and is projected to reach USD 1323.92 Billion by 2032, growing at a CAGR of 18.10% from 2026 to 2032.

Global Cloud Infrastructure Market Drivers

The integration of artificial intelligence (AI), machine learning (ML), and big data with cloud infrastructure is now propelling industry growth. This convergence of cutting-edge technology is poised to transform how businesses operate and interact with their data. AI and ML capabilities, when combined with cloud services' scalability and flexibility, enable enterprises to extract meaningful insights from massive amounts of unprocessed data. Real-time analytics, predictive modelling, and improved decision-making capabilities are just a few of the advantages provided by this collaboration.

The scalability and accessibility that come from combining AI and ML with cloud infrastructure are significant benefits. Cloud platforms provide the computing and storage resources required to train and deploy complex AI models efficiently. This scalability ensures that enterprises of all sizes can benefit from AI and machine learning capabilities without making major upfront expenditures in hardware or infrastructure.

Another important factor driving market growth is the democratization of AI and ML technologies via the cloud. Cloud service providers provide a variety of AI-powered tools, APIs, and development frameworks to help developers and data scientists design and launch novel apps quickly. This democratization lowers the entrance barrier for enterprises interested in implementing AI and ML, making cutting-edge technology more accessible and encouraging creativity across industries. As businesses grasp the revolutionary potential of these technologies, the market is likely to grow and evolve, generating additional innovation and market expansion.

The cloud computing market is likely to grow from USD 766 Bn in 2024 to USD 951 Bn in 2025 and USD 5,116 Bn by 2035, representing a CAGR of 18.3%

Cloud Infrastructure Market Outlook

According to our latest research, the global cloud infrastructure market size reached USD 254.8 billion in 2024, fueled by the accelerated digital transformation across industries and the growing adoption of cloud-native technologies. The market is projected to expand at a robust CAGR of 15.2% from 2025 to 2033, reaching a forecasted value of USD 755.6 billion by 2033. This remarkable growth trajectory is primarily driven by enterprisesÂ’ increasing reliance on scalable, flexible, and cost-efficient IT infrastructure solutions to support innovation, remote work, and business continuity in a rapidly changing digital landscape.

One of the most significant growth factors propelling the cloud infrastructure market is the surge in demand for digital services and applications across both consumer and enterprise domains. Organizations are rapidly migrating their workloads to the cloud to achieve greater agility, reduce operational costs, and enhance their ability to innovate. The proliferation of data-intensive technologies such as artificial intelligence, machine learning, big data analytics, and the Internet of Things (IoT) has further intensified the need for robust and scalable cloud infrastructure. Enterprises are increasingly leveraging cloud platforms to support these advanced workloads, thereby driving the adoption of both public and hybrid cloud models. Additionally, the shift toward a remote and hybrid workforce has compelled businesses to invest in cloud infrastructure that can support secure, seamless, and collaborative work environments across distributed locations.

Another key driver shaping the cloud infrastructure market is the growing emphasis on security, compliance, and data sovereignty. As organizations handle sensitive data and operate in highly regulated environments, the demand for cloud infrastructure solutions that offer advanced security features, encryption, and regulatory compliance has surged. Vendors are responding by integrating cutting-edge security technologies and compliance frameworks into their offerings, enabling enterprises to maintain control over their data while leveraging the benefits of cloud computing. Furthermore, the rise of edge computing and multi-cloud strategies is prompting organizations to adopt more sophisticated cloud infrastructure architectures that can deliver low-latency performance and meet stringent data residency requirements. This trend is particularly pronounced in sectors such as healthcare, banking, and government, where data protection and regulatory adherence are paramount.

Cloud infrastructure market growth is also being driven by the increasing availability of innovative services and solutions from cloud service providers. Major players continue to invest heavily in expanding their global data center footprints, developing specialized hardware and software for cloud environments, and offering managed services that simplify cloud adoption for enterprises of all sizes. The emergence of industry-specific cloud solutions, such as those tailored for financial services, healthcare, and manufacturing, is enabling organizations to accelerate digital transformation while addressing unique industry challenges. Moreover, the growing ecosystem of cloud-native development tools, automation platforms, and integration services is making it easier for businesses to modernize their IT infrastructure and unlock new revenue streams through digital innovation.

As cloud infrastructure continues to evolve, Cloud Security has become a paramount concern for organizations worldwide. With the increasing migration of sensitive data and critical applications to the cloud, businesses are prioritizing robust security measures to protect against cyber threats and data breaches. Cloud providers are investing in advanced security technologies such as encryption, identity management, and threat detection to ensure data integrity and compliance with regulatory standards. The integration of artificial intelligence and machine learning into security frameworks is enhancing the ability to detect and respond to threats in real-time, providing organizations with greater confidence in their cloud deployments. As the cloud landscape grows more complex, the importance of a comprehensive security strategy cannot be overstated, making Cloud Security a critical component of any cloud infrastructure solu

Cloud Computing Market estimated at USD 761 billion in 2024, and is projected to reach USD 2.5 trillion in 2032, will grow at a CAGR of 16.5% till 2032

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Cloud Infrastructure Services Market Size 2024-2028

The cloud infrastructure services market size is forecast to increase by USD 109.2 billion at a CAGR of 9.4% between 2023 and 2028. The market is experiencing significant growth, driven by the shift from capital expenditure (CAPEX) to operational expenditure (OPEX) models. This trend allows businesses to reduce upfront costs and invest in other areas of their operations. Another key trend is the increasing adoption of hybrid cloud storage systems, which offer the benefits of both public and private clouds. However, challenges remain, including latency in cloud networks, security concerns, and the need for seamless integration between different cloud platforms. To address these challenges, cloud infrastructure service providers are investing in advanced technologies such as artificial intelligence and machine learning to improve network performance and enhance security features. Overall, the market is expected to continue growing as more businesses adopt cloud solutions to optimize their IT infrastructure and improve operational efficiency.

What will be the Size of the Market During the Forecast Period?

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Cloud infrastructure services refer to the hardware and software components required to build, deploy, and manage cloud architectures, including private cloud, public cloud, and hybrid clouds. These services encompass computing resources such as servers and storage devices, as well as networking and management software. Cloud architecture relies on virtualization technologies like hypervisors and virtual machine monitors to create and manage virtual servers and machines. Cloud services offer flexibility and scalability, enabling businesses to quickly deploy and manage resources as needed.

Moreover, cloud computing resources can be scaled up or down based on demand, while storage can be easily expanded or contracted. Networking is crucial for cloud infrastructure, ensuring seamless communication between servers, virtual machines, and users. Security is a top priority in cloud infrastructure, with intelligent monitoring and management software providing real-time threat detection and response. Deployment software streamlines the process of launching and managing applications in the cloud, while cloud management software provides a centralized interface for managing and monitoring cloud resources. Overall, cloud infrastructure services enable businesses to build and deploy applications and services more efficiently and cost-effectively than traditional on-premises solutions.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Deployment

  Public cloud
  Private cloud
  Hybrid cloud


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Deployment Insights

The public cloud segment is estimated to witness significant growth during the forecast period. In the dynamic business landscape of 2023, the public cloud segment holds a significant share of The market. This dominance can be attributed to the expanding IT, BFSI, education, healthcare, and retail sectors, which require cloud infrastructure for valuable business insights. The increasing number of Small and Medium Enterprises (SMEs) in emerging economies, such as China, India, Brazil, Indonesia, and Mexico, is driving the demand for public cloud services. These organizations seek cost-effective solutions for their business needs. Cloud infrastructure service providers offer virtualization technology, enabling organizations to deploy software applications on a shared backend infrastructure, ensuring flexibility and scalability. Public cloud computing and storage devices are accessible via the internet, making it a preferred choice for businesses seeking to reduce capital expenditures and focus on their core competencies.

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The public cloud segment was valued at USD 99.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In the global market for cloud infrastructure services, North America held the largest market share in 2023. The region's dominance can be attributed to the rising demand for computing services, leading to an expansion of data centers and storage spaces. Cloud infra

Discover Market Research Intellect's Cloud Infrastructure Service Market Report, worth USD 70 billion in 2024 and projected to hit USD 130 billion by 2033, registering a CAGR of 7.5% between 2026 and 2033.Gain in-depth knowledge of emerging trends, growth drivers, and leading companies.

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).