Cloud Industry Market Report 2025

The cloud industry market size has grown exponentially in recent years. It will grow from $705.91 billion in 2024 to $848.46 billion in 2025 at a compound annual growth rate (CAGR) of 20.2%. The expansion during the historic period can be attributed to digital transformation, the growth of Software as a Service (SaaS), greater internet penetration, the rising demand for data storage, and the increase in e-commerce.

The cloud industry market size is expected to see rapid growth in the next few years. It will grow to $1.75 trillion in 2029 at a compound annual growth rate (CAGR) of 19.9%. The projected growth during the forecast period can be attributed to the expansion of AI and ML, the adoption of edge computing, the growth of hybrid cloud, rising cybersecurity concerns, and the need for regulatory compliance. Key trends for the forecast period include multi-cloud strategies, the integration of quantum computing, cloud-native applications, advancements in virtualization, and industry-specific cloud solutions.

The growing adoption of digital transformation is expected to drive the growth of the cloud industry in the coming years. Digital transformation involves integrating digital technologies into all aspects of a business or organization, fundamentally changing its operations and how it delivers value to customers. This trend is fueled by the increasing need for businesses to improve operational efficiency, allowing them to collect, analyze, and use insights for smarter, data-driven decision-making. The cloud industry supports digital transformation by providing scalable, flexible, and cost-effective solutions that enable businesses to innovate, streamline operations, and enhance customer experiences in an ever-evolving digital landscape. For example, a report published by the UK government's website, gov.UK, in February 2024, revealed that in 2022, the digital sector contributed $171.77 billion (£158.3 billion) to the UK economy, representing 7.2% of the country's total gross value added (GVA). This was a slight increase from 7.1% in 2021, indicating the growing significance of digital transformation. As a result, the rising adoption of digital transformation is driving the cloud industry market's growth.

Leading companies in the cloud industry are focused on developing innovative solutions, such as cloud computing services, to improve scalability, enhance data security, and optimize operational efficiency. Cloud computing provides businesses and individuals access to resources such as servers, storage, databases, networking, software, and analytics over the internet. This eliminates the need for on-premises infrastructure and offers flexibility, scalability, and cost efficiency. For example, in August 2024, Vultr, a US-based cloud computing platform, launched Vultr Industry Cloud, a specialized cloud solution tailored to meet the specific needs of industries such as retail, manufacturing, healthcare, media, telecommunications, and finance. This solution utilizes Vultr’s infrastructure, including Cloud GPU powered by NVIDIA, to enhance AI and digital transformation initiatives.

In February 2025, International Business Machines Corporation (IBM), a US-based technology company, acquired HashiCorp Inc. for an undisclosed amount. The acquisition aims to enhance IBM’s hybrid cloud and AI capabilities by incorporating HashiCorp's infrastructure automation and security solutions, enabling businesses to more effectively manage and modernize cloud environments at scale. HashiCorp Inc., a US-based software company, specializes in automating and securing hybrid cloud infrastructure and generative AI applications.

Major players in the cloud industry market are Amazon Web Services Inc., Google LLC, Alibaba Group Holding Limited, Huawei Technologies Co. Ltd., Tencent Cloud Computing (Beijing) Co. Ltd., Microsoft Corporation, International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, Salesforce Inc., Equinix Inc., NetApp Inc., Workday Inc., VMware Inc., ServiceNow Inc., Nutanix Inc., Snowflake Inc., DigitalOcean Inc., OpenSta.

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

The cloud industry encompasses the sector involving cloud computing services, infrastructure, and technologies that facilitate the storage, processing, and management of data online. This industry includes cloud service providers, infrastructure vendors, and businesses that utilize cloud technology for enhanced scalability, efficiency, and innovation.

The key market types within the cloud industry are public cloud, private cloud, hybrid cloud, and multi-cloud. A public cloud offers scalable and cost-effective resources, such as storage and computing power, via the internet. The primary enterprise categories are small and medium enterprises (SMEs) and large enterprises. Cloud services are applied across various industries, including banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, information technology (IT) and telecom, government and defense, manufacturing, media and entertainment, and education.

The cloud industry market research report is one of a series of new reports that provides cloud industry market statistics, including the cloud industry global market size, regional shares, competitors with the cloud industry market share, detailed cloud industry market segments, market trends, and opportunities, and any further data you may need to thrive in the cloud industry. This cloud industry market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cloud industry market consists of revenues earned by entities by providing cloud services such as scalable computing resources, software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud industry market also includes sales of cloud-based platforms, virtualization technologies, and enterprise cloud solutions. 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).

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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