Cloud Computing Market Size, Share, Growth & Industry Analysis, By Service Model [Software as a Service (SaaS), Infrastructure as a Service (IaaS), Others], By Workload, By Deployment, By Enterprise Size, By End Use and Regional Analysis, 2024-2031

Cloud Computing Market Size

The global cloud computing market size was valued at USD 622.47 billion in 2023 and is projected to grow from USD 707.94 billion in 2024 to USD 1,985.83 billion by 2031, exhibiting a CAGR of 15.88% during the forecast period.

Cloud computing boosts business flexibility by allowing rapid deployment of applications and services. This enables organizations to swiftly adapt to market shifts, drive innovation, and meet customer demands, thereby improving efficiency and gaining a competitive edge.

In the scope of work, the report includes solutions offered by companies such as Amazon Web Services, Inc, IBM Corporation, Alibaba Cloud, SAP SE, Salesforce, Inc, Oracle, Adobe, Workday, Inc., Fujitsu, Broadcom Inc., and others.

The cloud computing industry has undergone rapid evolution, emerging as a crucial component for businesses across industries. As organizations adopt cloud-based solutions, significant investments are being made in infrastructure, software, and services.

The demand for flexible, scalable, and cost-effective IT solutions is fueling this expansion, with cloud platforms offering robust tools for collaboration, data management, and computing power. The market is marked by innovation, competition, and a growing shift toward more integrated, advanced cloud ecosystems.

• In September 2023, BMW announced its plans to develop a semi-autonomous driver assistance system using Amazon's cloud computing technology. This highlights the increasing the importance of cloud solutions in fostering innovation and scalability across industries, including automotive.

The cloud computing market encompasses services delivered over the internet, including storage, processing power, databases, networking, and software applications. These services allow businesses and individuals to access computing resources without owning or maintaining physical infrastructure. The market includes solutions ranging from basic data storage to complex enterprise systems that are scalable, cost-effective, and accessible globally.

As organizations shift from traditional on-premise IT models, cloud computing provides increased flexibility, faster service deployments, and simplified data management. It is a key element of digital transformation, fostering innovations across sectors and continuing to grow organizations seek efficient, agile, and secure solutions.

Analyst’s Review

The cloud computing market is dominated by companies that focus on strategic partnerships, infrastructure scaling, and innovation to maintain a competitiveness. Leading providers are enhancing their offerings by integrating cutting-edge technologies such as artificial intelligence and machine learning into their platforms, enabling faster data processing and delivering valuable insights to businesses.

• In March 2024, Nvidia and AWS introduced Project Ceiba, along with other advancements, aimed at integrating AI-driven technologies such as Grace Blackwell GPUs and DGX Cloud systems. This partnership accelerates innovation and strengthens cloud infrastructure, allowing businesses to leverage powerful AI capabilities for a competitive edge.

Additionally, leading players are investing heavily in building robust security protocols to maintain client trust. Their focus on providing scalable and cost-efficient solutions is central to meeting diverse customer needs across industries.

• In October 2023, AWS launched its European Sovereign Cloud, reinforcing its commitment to robust security protocols. The new cloud region, fully compliant with EU regulations, ensures data privacy and operational autonomy for European customers.

 Cloud Computing Market Growth Factors

Increased internet penetration, coupled with the expansion of mobile networks, is significantly boosting the growth of the cloud computing market. As access to fast and reliable internet rises, the demand for cloud-based services grows. This connectivity enables businesses to remotely store, manage, and process, enhancing efficiency and scalability.

Additionally, mobile networks facilitate access to cloud services from anywhere, promoting adoption and creating new opportunities for businesses to leverage cloud solutions.

• According to the World Bank Group, approximately 67.4% of the global population now has access to the internet, reflecting a 4.66% growth since 2022. This rise in internet penetration presents substantial opportunities for businesses to expand their customer base and leverage cloud computing services.

Compliance and regulatory issues are presenting significant challenges to the growth of the cloud computing industry, particularly for businesses operating across multiple regions. The complexity arises from varying regulations in different jurisdictions, making it difficult to ensure consistent compliance.

This challenge can be addressed by leveraging cloud service providers that offer built-in compliance tools and certifications, automating compliance processes and conducting regular audits. Additionally, partnering with legal and regulatory experts may help businesses stay informed on evolving laws and ensure efficient compliance.

• In March 2024, the European Commission announced new funding opportunities under the Digital Europe Programme, allocating over USD 181 million to enhance digital capabilities across sectors, including data management, AI, cloud-to-edge infrastructure, and digital skills development.

 Cloud Computing Industry Trends

The cloud computing market is witnessing significant growth, mainly driven by innovations such as multi-cloud, hybrid cloud, edge computing, and serverless computing. These advancements allow businesses to leverage the flexibility and scalability of multiple cloud providers, enhance performance by processing data closer to the source, and optimize resource management by eliminating server management overhead.

This is enabling organizations to improve efficiency, reduce costs, and foster innovation, offering more tailored cloud solutions for diverse industries ands government organizations.

• In October 2024, the first Internet of Forests (IoF) project was showcased at the United Nations Biodiversity Conference in Colombia. This initiative, a collaboration between Veea, the Colombian government, O.N.E. Amazon, and AECOM, uses hybrid edge-cloud computing to monitor rainforest health and promote sustainable development through AI and data integration.

Another growing trend in the cloud computing market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. Cloud platforms offer the scalability and computing power needed to deploy AI and ML applications efficiently, enabling businesses to foster innovation and enhance operational capabilities.

With the ability to process large datasets and leverage advanced algorithms, organizations can optimize decision-making, improve customer experiences, and automate processes. The integration of AI and ML with cloud computing driving industry transformation, fueling business growth and technological advancements.

• In November 2024, IBM Corporationand and AWS announced new milestones in their collaboration to promote responsible AI adoption. By integrating IBM Corporation’s Granite models with AWS services such as Amazon Bedrock and SageMaker, they empower businesses to leverage generative AI securely, transparently, and efficiently.

 Segmentation Analysis

The global market has been segmented based on service model, workload, deployment, enterprise size, end use, and geography.

By Service Model

Based on service model, the market has been segmented into software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). The software as a service (SaaS) segment led the cloud computing industry in 2023, reaching a valuation of USD 333.77 billion. This expansion is fueled by businesses increasing shifting to cloud-based solutions for enhanced flexibility, cost efficiency, and scalability.

With SaaS, organizations can access software applications on demand, eliminating the need for expensive infrastructure and reducing the complexity of software maintenance. The adoption of SaaS is further aided by digital transformation initiatives aimed at streamlining operations, improving collaboration, and supporting remote work.

As demand for cloud-based solutions rises, SaaS providers are expanding their offerings, including advanced analytics, AI, and security capabilities, further fueling segmental growth.

By Workload

Based on workload, the market has been segmented into resource management, data storage & backup, orchestration services, application development & testing, and others. The resource management segment secured the largest revenue share of 34.06% in 2023. The segment is witnessing notable expansion as businesses increasingly adopt cloud-based solutions to optimize resource allocation and operational efficiency.

Cloud computing enhances management of resources such as workforce, inventory, energy, and IT infrastructure by providing real-time data and insights. The flexibility and scalability of cloud platforms help businesses adapt to changing demands and streamline their resource management processes. As digital transformation accelerates, the integration of cloud-based tools for resource planning, tracking, and optimization continues to grow, fostering segmental growth.

By Deployment

Based on deployment, the market has been classified into private, public, and hybrid. The private segment is likely to grow at a robust CAGR of 17.64% through the forecast period. This growth is largely propelled by the growing need for enhanced security, data privacy, and regulatory compliance. Many enterprises prefer private clouds to maintain control over infrastructure and sensitive data, ensuring greater customization and isolation from public networks.

This trend is particularly prominent in industries such as finance, healthcare, and government, where compliance with strict regulations is essential. As organizations prioritize security and control, the demand for private deployment models continues to increase, supporting the growth of the segment.

• In October 2024, Q2 Holdings Inc. expanded its partnership with AWS to enhance digital banking solutions. By leveraging AWS’s generative AI, the collaboration aims to improve automation, security, and personalized services for financial institutions, fostering innovation and efficiency.

Cloud Computing Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America cloud computing market accounted for a share of around 40.35% in 2023 , with a valuation of USD 251.17 billion. This dominance is reinforced by the region's advanced technological infrastructure, high adoption rates of digital transformation, and a strong demand for scalable, cost-efficient solutions across various sectors.

The regional market benefits from a robust IT ecosystem, which fosters innovation and accelerates cloud adoption. Additionally, the presence of skilled professionals and a favorable regulatory environment enables businesses to leverage cloud technologies to optimize operations, improve flexibility, and enhance data security, solidifying the region's position.

Asia-Pacific market is set to grow at a staggering CAGR of 18.86% through the projection period. This growth is primarily bolstered by rapid digital transformation, increasing adoption of cloud technologies, and expanding internet infrastructure. The region's diverse and expanding economies, coupled with rising demand for scalable and cost-effective solutions, are fueling cloud adoption across sectors.

Additionally, governments' significant investments in digital initiatives further support cloud expansion. The increasing need for businesses to enhance agility, innovate, and improve customer experiences contributes to the growth of Asia-Pacific cloud computing market.

• In September 2024, Krom Bank, Indonesia’s first digital bank, upgraded its services with AWS Cloud. By utilizing AWS’s advanced AI and cloud technologies, Krom Bank aims to provide secure and innovative banking solutions, improving financial inclusion for ubderbanked populations.

Competitive Landscape

The global cloud computing industry report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Strategic actions such as increased investments in research and development, the creation of new manufacturing plants, and the enhancement of supply chain efficiency have the potential to open up new avenues for market expansion.

 List of Key Companies in Cloud Computing Market

• Amazon Web Services, Inc
• IBM Corporation
• Alibaba Cloud
• SAP SE
• Salesforce, Inc
• Oracle
• Adobe
• Workday, Inc.
• Fujitsu
• Broadcom Inc.

Key Industry Developments

• September 2024 (Launch): Oracle Cloud Infrastructure introduced the first zettascale cloud computing clusters powered by NVIDIA Blackwell GPUs, capable of scaling up to 131,072 GPUs and delivering 2.4 zettaFLOPS of peak performance. This supercomputer delivers unmatched AI capabilities, including ultra-low latency and extensive HPC storage options, supporting customers such as WideLabs and Zoom in data sovereignty and high-performance AI workloads, advancing innovation and research globally.
• September 2024 (Partnership): Xebia, a global digital transformation consultancy, signed a five-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). This partnership aims to help clients modernize IT solutions by leveraging AWS's innovative cloud technologies. Focusing on key areas such as migration, sustainability, cloud cost management, AI, and digital sovereignty, the collaboration aims to drive growth in sectors such as fintech, manufacturing, and retail, enhancing Xebia's global reach and cloud expertise, particularly in the Netherlands, UK, and US.

The global cloud computing market has been segmented as:

By Service Model

• Infrastructure as a Service (IaaS)
  • Primary storage
  • Disaster Recovery & Backup
  • Archiving
  • Computer
• Platform as a Service (PaaS)
  • Application Development & platforms
  • Application Testing & Quality
  • Analytics & Reporting
  • Data Management
• Software as a Service (SaaS)
  • Customer Relationship Management
  • Enterprise Resource Management
  • Human Capital Management
  • Content Management
  • Collaboration & Productivity Suites
  • Supply Chain Management
  • Other SaaS service models

By Workload

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

By Deployment

• Private
• Public
• Hybrid

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

By End Use

• BFSI
• IT & Telecommunications
• Retail & Consumer Goods
• Media & Entertainment
• Manufacturing
• Energy & Utilities
• Healthcare & Life Sciences
• Government & Public Sector
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America