Cloud Computing Market Size, Share, and Trends 2024 to 2034

Cloud Computing Market (By Deployment: Private, Hybrid, Public; By Service: Software as a Service (SaaS), Infrastructure as a Service (IaaS), Platform as a Service (PaaS); By End User: IT and Telecom, BFSI, Manufacturing, Healthcare, Retail and Consumer Goods, Media and Entertainment, Energy and Utilities, Government and Public Sector, Others; By Organization Size; By Workload) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023 – 2032

  • Last Updated : October 2023
  • Report Code : 1701
  • Category : ICT

Cloud Computing Market Size to Reach USD 2297.37 Bn by 2032

The global cloud computing market size was valued at USD 480 billion in 2022 and is expected to hit USD 2297.37 billion by 2032 with a registered CAGR of 17% from 2023 to 2032.

Cloud Computing Market Size 2023 to 2032

Key Takeaway:

  • North America dominated the global market with a revenue share of over 41% in 2022.
  • By service, software as a service (SaaS) segment has captured revenue share of 55% in 2022.
  • By deployment, private deployment segment has garnered revenue share of 47% in 2022.
  • By enterprise size, large enterprises segment accounted revenue share of 51.7% in 2022.
  • By end use, BFSI segment has held revenue share of 26% in 2022.

Cloud Computing Market in U.S. 2023 To 2032

The U.S. cloud computing market size was reached at USD 97.44 billion in 2022 and is predicted to be worth USD 458.45 billion by 2032 with a CAGR of 16.80%% from 2023 to 2032.

U.S. Cloud Computing Market 2023 To 2032

North America was the leading cloud computing market with highest revenue share in 2022. US emphasizes the adoption of advanced technologies across the industries and prefers digital transformation. US is one of the early adopters of various novel technologies like AI, IoT, AR/VR, ML, connected industries, additive manufacturing, and big data analytics. Furthermore, the rapid adoption of the 4G and 5G technologies owing to the presence of strong and well-established IT and telecommunications infrastructure. Moreover, the presence of tech giants like Amazon, Microsoft, Apple, and Google have significant contributions in the growth of the North America cloud computing market.

Cloud Computing Market Share, By Region, 2021 (%)

Asia Pacific is expected to witness the highest CAGR during the forecast period. Rapidly rising emerging economies like China and India and the emergence of regional tech giants like Alibaba are contributing to the market growth. Furthermore, various government initiatives like Make in India has attracted huge investments in the manufacturing and IT industry, which is expected to boost the demand for the cloud computing services in the forthcoming years.

Growth Factors

The rising popularity of the latest novel technologies like artificial intelligence and machine learning and its rapid adoption in the cloud computing is empowering the growth of the global cloud computing market. There has been a rapid increase in the technological advancements since the outbreak of the COVID-19 pandemic across the developed and the developing economies. The cloud computation is enabling the enterprises to sustain their business functions amid the rising adoption of work from home model. The cloud computing technology enables the enterprises to efficiently store, access, and manage critical data. With the rising adoption of the smartphones, laptops, and internet, the need for storing and processing huge volumes of data has significantly increased that enables the enterprises to offer customer-centric services to their customers and clients.

The rising focus on customer satisfaction, increasing need for controlling operational expenditure, and need for controlling capital expenditure are some of the most prominent factors that are significantly driving the growth of the global cloud computing market. Data security, fulfilling compliance requirement, and quick data recovery are major factors that boost the demand for the cloud computing services across the globe.

The rising demand for the various Over the Top (OTT) platforms such as Amazon Prime, Netflix, Disney+Hotstar, and Apple TV along with the increased adoption of the online communication platforms like Microsoft Teams, Google Meet, Zoom, and Skype are the major factors that has contributed significantly towards the growth of the cloud computing market in the past few years. Rapid digitization has compelled the various organizations to digitize and modernize their infrastructural landscape boost cost efficiency and agility. Furthermore, the rising investments in the development of strong telecommunications and IT infrastructure is expected to further fuel the growth of the global cloud computing market during the forecast period.

Market Dynamics

Driver: Acceptance for cloud computing by government agencies

In June 2023, Smart Nation Singapore and Digital Government Office launched government cloud cluster platform based on artificial intelligence. The government agencies have partnered with Google Cloud for boosting the acceptance of artificial intelligence solutions in the public sector of Singapore. The acceptance of cloud computing by government agencies serves as a significant driver for the cloud computing market.

Governments across the globe are focused on accepting cloud computing solutions for validating security, scalability and cost-effectiveness of deployed technology. This in turn encourages private sector organizations to follow suit. This acceptance also fosters innovation in the public sector while providing the local cloud-solution providers with continuous and stable revenue. All these combined effects with the government acceptance are thus observed to fuel the market’s growth.

Restraint: Unstable internet connectivity in underdeveloped areas

Unstable or lack of proper internet connectivity in underdeveloped areas poses a challenge for the cloud computing market as cloud service heavily depend on a reliable and fast internet connection. Inconsistent access can lead to slow data transfers, service disruptions and reduced usability of cloud applications, limiting the benefits of scalability and remote access that cloud computing offers. This hinders the adoption of cloud services in these regions, impacting the growth and profitability of cloud providers. Thus, the unstable internet connectivity in underdeveloped areas is observed to be the restraint for the market.

Opportunity: Integration of specialized computing solution

The integration of specialized computing solutions as per the industry’s requirements presents a significant opportunity for the cloud computing market to grow. The integration of such solutions enables more efficient and tailored processing of specific tasks. Cloud solutions providers can offer specialized hardware and accelerates as services, allowing customers to access these resources without the need for large investments in hardware infrastructure. With the specialized solutions, the workload can be managed, and cost can be optimized. Thus, as industries start focusing on integrating specialized computing solutions, the market for cloud computing solutions is expected to grow. RCH Solutions, based in the United States is one of the most prominent providers of specialized computing solutions. The company offers specialized solutions to help research and development teams accelerate the delivery of scientific breakthroughs.

Challenge: Regulatory hurdles

Regulatory hurdle for the adoption of cloud computing solutions is a major challenge for the market. Varying laws and regulations across different countries and regions can impact data privacy, security and compliance. Providers must navigate these complexities, adapting their services to meet different standards. This can slow down the expansion, increase costs of setting up the cloud computing systems and create uncertainty for both providers and users. Additionally, such regulations may restrict data sharing across borders, limiting the seamless global nature of cloud services. Thus, regulatory hurdles are observed to be a challenge that the global cloud computing market needs to address.

Report Scope of the Cloud Computing Market

Report Coverage Details
Market Size by 2032 USD 2297.37 Billion
Growth Rate from 2023 to 2032

CAGR of 17%

North America Market Share in 2022 40%
Software as a Service (SaaS) Segment Market Share in 2022 55%
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Deployment, Service, End User, Organization SizeWorkload, Geography
Companies Mentioned,  Adobe Inc., Alibaba Group Holding Limited, Amazon.com Inc., Google LLC, International Business, Machines Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc., SAP SE, Workday, Inc.


Deployment Insights

Based on deployment, the private deployment segment garnered highest revenue share in 2022. The private deployment cloud computing services are available to a small users groups. The major features of private deployment segment includes self-service, elasticity, and scalability that makes it more adaptable by the enterprises. The private clouds offers higher security and privacy for the third party service providers by using internal hosting and firewalls that ensures enhanced data protection.

Cloud Computing Market Share, By Deployment, 2022 (%)

The hybrid deployment is anticipated to be the most opportunistic segment during the forecast period. It is an integration of the public and private cloud models. The hybrid models is gaining traction among the industries to enhance their cost optimization, business model, application modernization, business operations, and user experience. The rapid emergence of the edge computing is expected to boost the demand for the hybrid clouds across the enterprises all over the globe in the upcoming future.

Service Insights

Software as a Service (SaaS) was the dominant segment in 2022. It is estimated that there is a rapid rise in the number of enterprises shifting towards cloud. More than 70% of the companies are shifting majority of their application to the Software as a Service (SaaS) platform. The increased adoption of remote working has resulted in a significant rise in the demand for the SaaS platform and this trend is expected to continue over the forecast period.

Cloud Computing Market Share, By Service, 2022 (%)

With the SaaS products experiencing a strong growth across the globe, its total cost of ownership (TCO) is expected to become equal to that of the on premise models. The surging number of businesses providing cloud based services and growing demand for SaaS delivery models is anticipated to boost the growth of the SaaS segment. SaaS offers great flexibility, options, and web based subscriptions that help is accessing program remotely. All these factors are boosting the growth of this segment and SaaS is also expected to be the fastest growing segment during the forecast period.

End User Insights

Depending on the end user, the BFSI segment garnered highest revenue share in 2022. A significant rise in the online banking activities is a major driver of the cloud computing market in the BFSI sector. Cloud computing helps the BFSI to control expenses, increase flexibility, boost innovation, and improve client connection. Furthermore, the rising adoption of cloud services for storing and administration of the consumer related data is attributable to the growth of the BFSI segment in the market. Online money transfer, unified customer experience, digital wallets, and payment gateways are expected to play a crucial role in the BFSI industry in the forthcoming future, which will have a significant impact on the growth of the cloud computing market.

The manufacturing is expected to be the most opportunistic segment during the forecast period. This industry is anticipated to be a prime user of the cloud services due to its benefits like real-time visibility and seamless management of data. The cloud service models helps the manufacturing sector by incorporating novel technologies like big data, machine learning, artificial intelligence, internet of things, and big data analytics. The rising adoption of the cloud services in the manufacturing sector for storing information, supply chain handling, and planning enterprise resources is expected to boost the growth of this segment during the forecast period.

Key Market Developments

  • In January 2020, IBM Corporation introduced Advertising Accelerator with Watson, an Ai-based predictive solution. It helps the advertisers and marketers to understand the preferences of their audience and offers useful insights.

Some of the prominent players include:

  • Adobe Inc.
  • Alibaba Group Holding Limited
  • Amazon.com Inc.
  • Google LLC
  • International Business Machines Corporation
  • Microsoft Corporation
  • Oracle Corporation
  • Salesforce.com Inc.
  • SAP SE
  • Workday, Inc.

Segments Covered in the Report

(Note*: We offer report based on sub segments as well. Kindly, let us know if you are interested)

By Deployment

  • Private
  • Hybrid
  • Public

By Service

  • Software as a Service (SaaS)
    • Customer Relationship Management (CRM)
    • Enterprise Resource Management (ERM)
    • Human Capital Management (HCM)
    • Content Management
    • Collaboration and Productive Suites
    • Supply Chain Management (SCM)
    • Others (Business Intelligence (BI) and Analytics, PPM and operations and manufacturing applications)
  • Infrastructure as a Service (IaaS)
    • Primary Storage
    • Disaster Recovery and Backup
    • Archiving
    • Compute
  • Platform as a Service (PaaS)
    • Application Development and Platforms
    • Application Testing and Quality
    • Analytics and Reporting
    • Integration and Orchestration
    • Data Management

By End User

  • IT and Telecom
  • BFSI
  • Manufacturing
  • Healthcare
  • Retail and Consumer Goods
  • Media and Entertainment
  • Energy and Utilities
  • Government and Public Sector
  • Others

By Organization Size

  • Small and Medium-sized Enterprises (SMEs)
  • Large Enterprises

By Workload

  • Storage, Backup, and Disaster Recovery
  • Application Development and Testing
  • Database Management
  • Business Analytics
  • Integration and Orchestration
  • Enterprise Resource Management
  • Collaboration and Content Management

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

The global cloud computing market size was reached at USD 480 billion in 2022 and it is anticipated to rake around USD 2297.37 billion by 2032.

The global cloud computing market is expected to drive growth at a CAGR of 17% during the forecast period 2023 to 2032.

The major players operating in the cloud computing market are Adobe Inc., Alibaba Group Holding Limited, Amazon.com Inc., Google LLC, International Business, Machines Corporation, Microsoft Corporation, Oracle Corporation, Salesforce.com Inc., SAP SE, Workday, Inc.

The rising popularity of the latest novel technologies like artificial intelligence and machine learning and its rapid adoption in the cloud computing is empowering the growth of the global cloud computing market.

The North America region is estimated to lead the cloud computing market during the forecast period.

Ask For Sample

No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client

Related Reports