Cloud Computing Market by Service Model (IaaS (Compute, Storage, Networking), PaaS (Application Development & Integration, Database & Data, Analytics & Reporting), SaaS (CRM, SCM, Collaboration & Productivity)), Impact of AI - Global Forecast to 2030
The cloud computing market is expanding rapidly, with a projected market size anticipated to rise from about USD 1,294.9 billion in 2025 to USD 2,281.1 billion by 2030, featuring a CAGR of 12.0% during the forecast period. Businesses are driving the demand for cloud computing by seeking scalable IT infrastructure, remote work support, and real-time data access. Organizations are increasingly prioritizing AI, big data analytics, and automation, making cloud platforms more essential. The shift is moving from traditional on-premises systems to flexible, hybrid, and multi-cloud environments for greater agility and innovation.
Scope of the Report
Years Considered for the Study
2020-2030
Base Year
2024
Forecast Period
2025-2030
Units Considered
USD (Billion)
Segments
Service Models, IaaS, PaaS, SaaS, Deployment Mode, Organization Size, Vertical
Regions covered
North America, Europe, Asia Pacific, Middle East & Africa, Latin America
"PaaS segment to account for the fastest growth during the forecast period"
Platform as a Service (PaaS) remains the fastest-growing segment in the cloud computing market, driven by evolving development needs and emerging technologies. Modern PaaS platforms now integrate AI/ML services, DevOps automation, and container orchestration tools such as Kubernetes, enabling faster and smarter application development. They offer low-code/no-code capabilities, built-in CI/CD pipelines, and support for microservices architectures, helping developers innovate with agility and reduce complexity. Enhanced scalability, integrated security, real-time monitoring, and automatic patch management ensure high performance and compliance. Serverless computing is also gaining traction within PaaS, allowing developers to deploy functions without provisioning infrastructure. Ideal for startups, developers, and large enterprises, PaaS accelerates time to market, lowers operational costs, and simplifies cross-team collaboration. With abstraction from hardware, runtime environments, and backend maintenance, organizations can focus on building intelligent, scalable, and user-centric applications while staying ahead in a fast-changing digital landscape.
"Public cloud to hold the largest market share during the forecast period"
Public cloud continues to dominate the cloud computing market due to its scalability, cost efficiency, and global reach. It provides on-demand access to computing resources such as servers, storage, databases, and applications via the internet, with no need for upfront hardware investment. Providers such as AWS, Microsoft Azure, and Google Cloud now offer advanced capabilities, including generative AI tools, serverless computing, and edge integration, making the public cloud suitable for dynamic workloads and digital transformation. Its flexible pricing and robust security frameworks appeal to businesses of all sizes. A standout case is the Commonwealth Bank of Australia, which migrated to AWS in 2025 and deployed 2,000 AI models across 61,000 data pipelines. This enabled 55 million AI-driven decisions daily, reducing fraud losses by 50% and cutting loan approval times to under 10 minutes. Such real-world outcomes highlight how public cloud accelerates innovation and improves operational efficiency across industries.
"North America is leading in cloud computing with strong infrastructure and early adoption, while Asia Pacific is the fastest-growing region driven by digital transformation and government-backed AI initiatives."
North America continues to dominate the cloud computing landscape, leveraging mature digital infrastructure, widespread enterprise adoption, and the presence of major providers like AWS, Microsoft Azure, and Google Cloud. The region is at the forefront of emerging technologies, including generative AI, serverless edge computing, and quantum-ready cloud services. Businesses are integrating tools such as Azure Arc for hybrid management, AWS's Nitro Enclaves for secure computing, and AI-driven DevSecOps pipelines. Advancements in 5G edge partnerships and private 5G networks are enabling ultra-low latency applications in manufacturing, healthcare, and autonomous systems. Furthermore, initiatives such as sovereign cloud efforts and enhanced confidential computing are boosting data privacy and compliance. Together, these developments reinforce North America's leadership in innovation, security, and scalability within the global cloud ecosystem.
Breakdown of Primaries
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the cloud computing market.
By Company: Tier I - 20%, Tier II - 34%, and Tier III - 46%
By Designation: C-Level Executives - 35%, D-Level Executives -25%, and others - 40%
By Region: North America - 42%, Europe - 25%, Asia Pacific - 18%, Middle East & Africa - 8%, and Latin America - 7%
The report includes a study of key players offering cloud computing services. It profiles major vendors in the cloud computing market. The major market players include Microsoft (US), Google (US), IBM (US), AWS (US), Oracle (US), Salesforce (US), Tencent Cloud (China), SAP (Germany), Alibaba Cloud (China), Adobe (US), Workday (US), Fujitsu (Japan), Broadcom (California), Rackspace Technology (US), DXC Technology (US), NEC Corporation (Japan), Joyent (California), Digital Ocean (US), OVHcloud (France), NaviSite (US), Infor (US), Sage (UK), Intuit (US), OpenText (Canada), Cisco (US), Zoho (Texas), Epicor (US), ServiceNow (US), Huawei (China), Dell Technologies (US), and NTT Data Corporation (Japan).
Research Coverage
This research report categorizes the cloud computing market based on Service Model (IaaS, PaaS, SaaS), Infrastructure as a Service (Compute, Storage, Networking,), Platform as a Service (Application Development & Platforms, Application Testing & Quality, Analytics & Reporting, Data Management, Other PaaS Applications), Software as a Service (Customer Relationship Management, Enterprise Resource Management, Human Capital Management, Content Management, Collaboration & Productivity Suites, Supply Chain Management, System Infrastructure Software, Other SaaS Applications), Deployment Mode (Public Cloud, Private Cloud, Hybrid Cloud), Organization Size (Large Enterprises, Small & Medium Enterprises (SMEs)), Vertical (Government & Public sector, Banking, Financial Services, & Insurances (BFSI), Software & IT Services, Healthcare & Life Sciences, Retail & E-commerce, Manufacturing, Energy & Utilities, Telecommunications, Transportation & Logistics, Media & Entertainment, Other Verticals (Education, Real Estate, Construction, and Travel & Hospitality)), and Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the cloud computing market. A detailed analysis of the key industry players was done to provide insights into their business overview, solutions, and services; key strategies; contracts, partnerships, agreements, product & service launches, and mergers and acquisitions; and recent developments associated with the cloud computing market. Competitive analysis of upcoming startups in the cloud computing market ecosystem was also covered in this report.
Reasons to Buy This Report
The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall cloud computing market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights to better position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
Analysis of key drivers (Operational resilience & digital sovereignty imperative, Rising demand for AI, Accelerated spending on cloud, Personalized customer experience, Need for disaster recovery and contingency plans), restraints (Trust deficit in cloud adoption extends beyond basic security, Lack of technical knowledge and expertise, Data security and privacy concerns), opportunities (Intelligent infusion of AI and ML unlocks greater cloud value, Adoption of IoT and connected devices, Increasing government initiatives), and challenges (Multi-cloud complexity and integration challenges hinder seamless cloud operations, Risk of vendor lock-in, High complexity due to adoption of multi-cloud model).
Product Development/Innovation: Detailed insights into upcoming technologies, research & development activities, and product & service launches in the cloud computing market.
Market Development: Comprehensive information about lucrative markets - the report analyzes the cloud computing market across varied regions.
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the cloud computing market.
Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players such as Microsoft (US), Google (US), IBM (US), AWS (US), Oracle (US), Salesforce (US), Tencent Cloud (China), SAP (Germany), Alibaba Cloud (China), Adobe (US), Workday (US), Fujitsu (Japan), Broadcom (California), Rackspace Technology (US), DXC Technology (US), NEC Corporation (Japan), Joyent (California), Digital Ocean (US), OVHcloud (France), NaviSite (US), Infor (US), Sage (UK), Intuit (US), OpenText (Canada), Cisco (US), Zoho (Texas), Epicor (US), ServiceNow (US), Huawei (China), Dell Technologies (US), and NTT Data Corporation (Japan). The report also helps stakeholders understand the pulse of the cloud computing market and provides them with information on key market drivers, restraints, challenges, and opportunities.
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 MARKET SCOPE
1.3.1 MARKET SEGMENTATION AND REGIONAL SCOPE
1.3.2 INCLUSIONS AND EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 STAKEHOLDERS
1.6 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH APPROACH
2.1.1 SECONDARY DATA
2.1.2 PRIMARY DATA
2.1.2.1 Breakup of primary profiles
2.1.2.2 Key industry insights
2.2 MARKET BREAKUP AND DATA TRIANGULATION
2.3 MARKET SIZE ESTIMATION
2.4 MARKET FORECAST
2.5 RESEARCH ASSUMPTIONS
2.6 RESEARCH LIMITATIONS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN CLOUD COMPUTING MARKET
4.2 CLOUD COMPUTING MARKET, BY SERVICE MODEL
4.3 CLOUD COMPUTING MARKET, BY IAAS
4.4 CLOUD COMPUTING MARKET, BY PAAS
4.5 CLOUD COMPUTING MARKET, BY SAAS
4.6 CLOUD COMPUTING MARKET, BY DEPLOYMENT MODEL
4.7 CLOUD COMPUTING MARKET, BY VERTICAL
4.8 CLOUD COMPUTING MARKET, BY REGION
5 MARKET OVERVIEW AND INDUSTRY TRENDS
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Operational resilience & digital sovereignty imperative
5.2.1.2 Rising demand for AI
5.2.1.3 Accelerated spending on cloud
5.2.1.4 Personalized customer experience
5.2.1.5 Need for disaster recovery and contingency plans
5.2.2 RESTRAINTS
5.2.2.1 Trust deficit in cloud adoption extends beyond basic security
5.2.2.2 Lack of technical knowledge and expertise
5.2.2.3 Data security and privacy concerns
5.2.3 OPPORTUNITIES
5.2.3.1 Intelligent infusion of AI and ML unlocks greater cloud value
5.2.3.2 Adoption of IoT and connected devices
5.2.3.3 Increasing government initiatives
5.2.4 CHALLENGES
5.2.4.1 Multi-cloud complexity and integration challenges hinder seamless cloud operations
5.2.4.2 Risk of vendor lock-in
5.2.4.3 High complexity due to adoption of multi-cloud model
5.3 CASE STUDY ANALYSIS
5.3.1 CASE STUDY 1: ZEOTAP IMPLEMENTED DEVOPS ARCHITECTURE TO IMPROVE PROCESS OPTIMIZATION
5.3.2 CASE STUDY 2: GHOST TEAM IMPLEMENTED DIGITALOCEAN'S APP TO MEET ITS CLOUD COMPUTING REQUIREMENTS
5.3.3 CASE STUDY 3: CITRIX CLOUD ENABLED AUTODESK TO ENHANCE ITS DIGITALIZATION
5.3.4 CASE STUDY 4: AWS CLOUD HELPED SIMSCALE SIMULATE COST-EFFECTIVE DESIGNS AND MAKE BETTER-INFORMED DECISIONS
5.3.5 CASE STUDY 5: ACCENTURE DIGITAL EXPERIENCE REVOLUTIONIZED MINNA BANK
5.4 SUPPLY CHAIN ANALYSIS
5.5 ECOSYSTEM ANALYSIS
5.6 PORTER'S FIVE FORCES ANALYSIS
5.6.1 THREAT OF NEW ENTRANTS
5.6.2 THREAT OF SUBSTITUTES
5.6.3 BARGAINING POWER OF SUPPLIERS
5.6.4 BARGAINING POWER OF BUYERS
5.6.5 INTENSITY OF COMPETITIVE RIVALRY
5.7 PRICING ANALYSIS
5.7.1 AVERAGE SELLING PRICE OF KEY PLAYERS, BY REGION, 2025
5.7.2 INDICATIVE PRICING ANALYSIS OF CLOUD COMPUTING SOLUTIONS
11.2.1 DRIVING ENTERPRISE INNOVATION AND RESILIENCE WITH SECURE, SCALABLE, AND AGILE HYBRID CLOUD SOLUTIONS
11.3 SMALL & MEDIUM-SIZED ENTERPRISES
11.3.1 EMPOWERING SMES TO INNOVATE AND GROW THROUGH ACCESSIBLE, SCALABLE, AND COST-EFFECTIVE CLOUD SOLUTIONS
12 CLOUD COMPUTING MARKET, BY VERTICAL
12.1 INTRODUCTION
12.1.1 VERTICAL: CLOUD COMPUTING MARKET DRIVERS
12.2 BANKING, FINANCIAL SERVICES, AND INSURANCE (BFSI)
12.2.1 NEED TO DECREASE EXPENSES, ENCOURAGE INNOVATION, AND INCREASE FLEXIBILITY
12.2.2 BFSI: USE CASES
12.2.2.1 Core banking systems
12.2.2.2 Online & mobile banking
12.2.2.3 Risk management & compliance
12.3 ENERGY & UTILITIES
12.3.1 ADDRESSING ISSUES RELATED TO CRUDE OIL, STORAGE, AND TRANSPORTATION
12.3.2 ENERGY & UTILITIES: USE CASES
12.3.2.1 Smart grid management
12.3.2.2 Energy monitoring & management
12.3.2.3 Renewable energy forecasting
12.4 GOVERNMENT & PUBLIC SECTOR
12.4.1 NEED FOR GOVERNMENT AGENCIES TO GAIN GREATER VISIBILITY AND FASTER DATA ANALYSIS TO DRIVE MARKET
12.4.2 GOVERNMENT & PUBLIC SECTOR: USE CASES
12.4.2.1 Government infrastructure migration
12.4.2.2 Digital government & e-government services
12.4.2.3 Open data & transparency
12.5 TELECOMMUNICATIONS
12.5.1 DEMAND FOR GREATER NETWORK REACH ACROSS TELECOM PROVIDERS
12.5.2 TELECOMMUNICATIONS: USE CASES
12.5.2.1 CDN, VoIP, IoT Connectivity
12.6 SOFTWARE & IT SERVICES
12.6.1 INVESTMENT IN NEW TECHNOLOGIES TO SPUR INNOVATION AND ATTRACT CONSUMERS
12.6.2 SOFTWARE & IT SERVICES: USE CASES
12.6.2.1 IT security & compliance
12.7 HEALTHCARE & LIFE SCIENCES
12.7.1 INCREASED FOCUS ON MANAGING PATIENTS' RECORDS
12.7.2 HEALTHCARE & LIFE SCIENCES: USE CASES
12.7.2.1 Electronic health records (EHRs)
12.7.2.2 Telemedicine & remote patient monitoring
12.8 RETAIL & E-COMMERCE
12.8.1 INCREASING DEMAND FOR DIGITAL SHOPPING EXPERIENCES AND NEED FOR OPERATIONAL EFFICIENCY TO AID MARKET GROWTH
12.8.2 RETAIL & E-COMMERCE: USE CASES
12.8.2.1 Customer relationship management (CRM)
12.8.2.2 Point of sale (PoS) systems
12.9 MANUFACTURING
12.9.1 SEAMLESS DATA MANAGEMENT AND REAL-TIME VISIBILITY OFFERED BY CLOUD COMPUTING SERVICES
12.9.2 MANUFACTURING: USE CASES
12.9.2.1 Supply chain management
12.9.2.2 Product lifecycle management
12.9.2.3 Manufacturing execution systems (MES)
12.10 TRANSPORTATION & LOGISTICS
12.10.1 CLOUD SOLUTIONS TO DRIVE EFFICIENCY AND INNOVATION BY ENHANCING OPERATIONS AND REDUCING COSTS
12.10.2 TRANSPORTATION & LOGISTICS: USE CASES
12.10.2.1 Supply chain management
12.11 MEDIA & ENTERTAINMENT
12.11.1 HYBRID OR MULTI-CLOUD DEPLOYMENTS TO ALLOW WORKLOADS TO BE SHIFTED ACROSS PUBLIC AND PRIVATE INFRASTRUCTURES
12.11.2 MEDIA & ENTERTAINMENT: USE CASES
12.11.2.1 Content storage & distribution
12.11.2.2 Media streaming
12.11.2.3 Content production & post-production
12.12 OTHER VERTICALS
13 CLOUD COMPUTING MARKET, BY REGION
13.1 INTRODUCTION
13.2 NORTH AMERICA
13.2.1 NORTH AMERICA: MACROECONOMIC OUTLOOK
13.2.2 NORTH AMERICA: CLOUD COMPUTING MARKET DRIVERS
13.2.3 US
13.2.3.1 Driven by AI infrastructure investments, enterprise multicloud adoption, and regulatory clarity around data and generative AI
13.2.4 CANADA
13.2.4.1 Cloud growth supported by sovereign data policies, low-carbon infrastructure, and rising adoption of AI workloads and multicloud platforms
13.3 EUROPE
13.3.1 EUROPE: CLOUD COMPUTING MARKET DRIVERS
13.3.2 EUROPE: MACROECONOMIC OUTLOOK
13.3.3 UK
13.3.3.1 Cloud market expansion fueled by AI infrastructure investments, GDPR-compliant demand, and subsea-connected data center growth around London and South Wales
13.3.4 GERMANY
13.3.4.1 Cloud growth shaped by strict data-sovereignty laws, industrial cloud demand, and renewable-powered sovereign infrastructure in Frankfurt, Brandenburg, and North Rhine-Westphalia
13.3.5 FRANCE
13.3.5.1 Cloud market growth fueled by sovereign cloud demand, sustainable infrastructure incentives, and national policy support for AI and digital upskilling
13.3.6 SPAIN
13.3.6.1 Cloud expansion supported by hyperscaler investments, digital transformation programs, and strong regional incentives for sustainable, sovereign infrastructure deployment
13.3.7 ITALY
13.3.7.1 Cloud market acceleration supported by digital transformation programs, sovereign cloud focus, and hyperscaler growth across Milan, Turin, and regional availability zones
13.3.8 NETHERLANDS
13.3.8.1 Cloud growth led by interconnection density, early enterprise adoption, and strict sustainability mandates shaping future-ready, renewable-powered infrastructure
13.3.9 REST OF EUROPE
13.4 ASIA PACIFIC
13.4.1 ASIA PACIFIC: CLOUD COMPUTING MARKET DRIVERS
13.4.2 ASIA PACIFIC: MACROECONOMIC OUTLOOK
13.4.3 CHINA
13.4.3.1 Cloud expansion supported by national tech self-reliance, strict data localization mandates, and hyperscaler investments aligned with sovereign AI and westward infrastructure policies
13.4.4 INDIA
13.4.4.1 Cloud growth supported by DPI infrastructure, national AI initiatives, hyperscaler investment, and policy incentives for regional edge and data localization
13.4.5 JAPAN
13.4.5.1 Cloud growth reinforced by data localization, disaster resilience, and hyperscaler-backed AI infrastructure in highly regulated and energy-efficient environments
13.4.6 SINGAPORE
13.4.6.1 Cloud growth shaped by AI-focused national strategy, energy-efficient infrastructure mandates, and hyperscaler expansions supporting Southeast Asia's latency-sensitive enterprise workloads
13.4.7 AUSTRALIA & NEW ZEALAND (ANZ)
13.4.7.1 Cloud expansion anchored in public sector digitization, green data center initiatives, and robust multicloud strategies across key urban and regional hubs
13.4.8 SOUTH KOREA
13.4.8.1 Cloud growth propelled by national AI infrastructure roadmap, advanced 5G connectivity, and sovereign cloud expansion across regulated public and enterprise sectors
13.4.9 REST OF ASIA PACIFIC
13.5 MIDDLE EAST & AFRICA
13.5.1 MIDDLE EAST & AFRICA: CLOUD COMPUTING MARKET DRIVERS
13.5.2 MIDDLE EAST & AFRICA: MACROECONOMIC OUTLOOK
13.5.3 GULF COOPERATION COUNCIL (GCC)
13.5.3.1 Saudi Arabia
13.5.3.1.1 Cloud market surge fueled by Vision 2030, sovereign mandates, AI-focused infrastructure investments, and hyperscaler partnerships across Riyadh and key verticals
13.5.3.2 United Arab Emirates (UAE)
13.5.3.2.1 Cloud growth supported by AI-aligned national strategy, sovereign cloud mandates, and hyperscale-ready infrastructure backed by clean energy and policy incentives
13.5.3.3 QATAR
13.5.3.3.1 Cloud growth enabled by government-led AI and digital programs, localized infrastructure, and hyperscaler scaling for energy and regulated workloads
13.5.3.4 Rest of Gulf Cooperation Council (GCC) Countries
13.5.4 SOUTH AFRICA
13.5.4.1 Cloud ecosystem growth powered by multi-region infrastructure, government-led digitization, POPIA compliance, and cross-border latency improvements via subsea connectivity
13.5.5 REST OF MIDDLE EAST & AFRICA
13.6 LATIN AMERICA
13.6.1 LATIN AMERICA: CLOUD COMPUTING MARKET DRIVERS
13.6.2 LATIN AMERICA: MACROECONOMIC OUTLOOK
13.6.3 BRAZIL
13.6.3.1 Cloud growth anchored in AI demand, national data localization mandates, and hyperscaler expansions focused on regional low-latency access and training
13.6.4 MEXICO
13.6.4.1 Cloud market growth supported by nearshore IT positioning, national connectivity upgrades, and hyperscaler investments targeting sovereign and latency-sensitive workloads
13.6.5 REST OF LATIN AMERICA
14 COMPETITIVE LANDSCAPE
14.1 INTRODUCTION
14.2 KEY PLAYERS' STRATEGIES/RIGHT TO WIN
14.3 REVENUE ANALYSIS
14.4 MARKET SHARE ANALYSIS, 2024
14.5 BRAND/PRODUCT COMPARISON
14.6 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2024
14.6.1 STARS
14.6.2 EMERGING LEADERS
14.6.3 PERVASIVE PLAYERS
14.6.4 PARTICIPANTS
14.6.5 COMPANY FOOTPRINT: KEY PLAYERS, 2024
14.6.5.1 Cloud Computing Market: Company Footprint
14.6.5.2 Cloud Computing Market: Region Footprint
14.6.5.3 Cloud Computing Market: Service Model Footprint
14.6.5.4 Cloud Computing Market: Deployment Model Footprint
14.7 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2024