Cloud Computing Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The cloud computing market size has grown rapidly in recent years. It will grow from $735.45 billion in 2024 to $832.88 billion in 2025 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to data security and compliance, digital transformation, containerization and microservices, increasing need for remote collaboration and the globalization of businesses.

The cloud computing market size is expected to see rapid growth in the next few years. It will grow to $1.48 trillion in 2029 at a compound annual growth rate (CAGR) of 15.5%. The growth in the forecast period can be attributed to integration of artificial intelligence (AI) and machine learning (ML), demand for IoT, continued advancements in cybersecurity, cross-cloud interoperability, and quantum computing integration. Major trends in the forecast period include edge computing growth, serverless computing maturity, AI and machine learning integration, and hybrid and multi-cloud evolution.

The growing adoption of the internet of things (IoT) is expected to propel the growth of the cloud computing market going forward. The internet of things (IoT) denotes a network comprising interconnected devices that gather and share data with other IoT devices and the cloud. The adoption of the internet of things (IoT) is driven by its ability to enhance efficiency, connectivity, and data-driven decision-making across various industries, leading to improved productivity, cost savings, and innovative solutions. IoT and cloud computing are used together to create powerful and scalable solutions for collecting, storing, analyzing, and acting upon data generated by IoT devices. For instance, in February 2024, according to reports by DataProt, a Ukraine-based cybersecurity product company, it’s estimated that the number of active IoT devices will surpass 25.4 billion in 2030. Further, by 2025, there will be 152,200 IoT devices connecting to the internet per minute. Therefore, the growing adoption of the internet of things (IoT) is expected to propel the growth of the cloud computing market.

Major companies operating in the cloud computing market are developing innovative technologies, such as hybrid cloud mesh, to increase their profitability in this market. Hybrid cloud mesh seamlessly integrates on-premises, private, and public clouds, optimizing resource utilization and enhancing scalability. The technology aims to provide a flexible and efficient infrastructure, allowing organizations to balance performance, security, and cost-effectiveness across diverse cloud environments. For instance, in May 2023, IBM Corporation, a US-based technology company, launched a hybrid cloud mesh with enhanced security. This innovative SaaS offering empowers enterprises to regain control over their hybrid multi-cloud infrastructure by providing application-centric connectivity. It also provides detailed insights into how enterprises can leverage an automated, intelligent, and optimized network for seamless operations yet run over public cloud infrastructure. IBM hybrid cloud mesh aims to solve much of the complexity and properly enable multi-cloud strategies, creating a common platform for CloudOps and DevOps to work together to deliver on the overall business objectives, reducing the time to market for new applications and services.

In July 2023, DigitalOcean Inc., a US-based cloud infrastructure provider, acquired Paperspace for approximately $111 million. The acquisition expands Digital Ocean's AI offerings, enabling customers to test, develop, and deploy AI applications more efficiently. Further, DigitalOcean and Paperspace will provide smaller businesses and startups with a comprehensive suite of cloud offerings, advanced networking, and the flexibility to harness GPU and CPU capabilities as AI/ML technologies evolve and demand increases. Paperspace is a US-based cloud computing and deep learning development platform that delivers solutions featuring graphics processing unit (GPU) infrastructure and machine learning.

Major companies operating in the cloud computing market are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Alibaba Group Holding Limited, Tencent Holdings Limited, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Salesforce Inc., NEC Corporation, Adobe Inc., VMware Inc., Intuit Inc., ServiceNow Inc., Workday Inc., Infor Inc., OpenText Corporation, Citrix Systems Inc., Rackspace Technology Inc., Sage Group plc, Lumen Technologies Inc., IFS AB, Epicor Software Corporation, OVH SAS, DigitalOcean LLC, Upland Software Inc., Navisite LLC, Skytap Inc., Joyent Inc.

North America was the largest region in the cloud computing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud computing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cloud computing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cloud computing market consists of revenues earned by entities by providing management services, security and identity services, machine learning and AI services, database as a service (DBaaS), and function as a service (FaaS). The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud computing market also includes of sales of computing systems and parts. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Cloud computing refers to delivering services over the internet, allowing users to access and use a wide range of computing resources without needing local infrastructure or hardware. Users can utilize computing resources as needed, eliminating the local requirement to buy, install, set up, and oversee physical infrastructure. Cloud computing provides flexibility, scalability, and cost efficiency compared to traditional on-premises infrastructure.

The main types of cloud computing are public cloud, private cloud, and hybrid cloud. The public cloud refers to computing services provided by third-party providers over the internet, where resources such as servers and storage are shared among multiple users, its services include infrastructure as a service (iaas), platform as a service (PaaS), and software as a service (saas), and it used in banking, financial services, and insurance (BFSI), energy utilities, government, and public sector, retail and consumer goods, manufacturing, media and entertainment, healthcare and life sciences, and other verticals.

The main types of cloud computing are public cloud, private cloud, and hybrid cloud. The public cloud refers to computing services provided by third-party providers over the internet, where resources such as servers and storage are shared among multiple users, its services include infrastructure as a service (iaas), platform as a service (PaaS), and software as a service (saas), and it used in banking, financial services, and insurance (BFSI), energy utilities, government, and public sector, retail and consumer goods, manufacturing, media and entertainment, healthcare and life sciences, and other verticals.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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