Cloud Computing Market Size Worth USD 5,150.92 Billion by 2034

GlobeNewswire | Precedence Research
Yesterday at 3:58pm UTC

Ottawa, July 23, 2025 (GLOBE NEWSWIRE) -- In terms of revenue, the cloud computing market reached USD 753.11 billion in 2024 and is projected to hit over USD 3,506.54 billion by 2032. A government's compliance with international regulations and standards, technological integration, and interoperability transform public services for the digital age.  

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Cloud Computing Market Highlights:

  • The global cloud computing market size is estimated to reach USD 912.77 billion in 2025.
  • It is projected to hit USD 5,150.92 billion by 2034.
  • The market is growing at a remarkable CAGR of 21.20% from 2025 to 2034.
  • North America accounted for the largest market share of 41% in 2024.
  • Asia Pacific is expected to grow at the fastest CAGR from 2025 to 2034.
  • By deployment, the private segment held the major market share of 47% in 2024.
  • By deployment, the hybrid segment is expanding at a solid CAGR from 2025 to 2034.
  • By service, the software as a service (SaaS) segment contributed the highest market share of 55% in 2024.
  • By end user, the BFSI segment generated the highest market share of 26% in 2024.
  • By end user, the manufacturing segment is expected to grow at the fastest CAGR during the forecast period.
  • By organization size, the large enterprises segment captured the largest market share of 51.7% in 2024.
  • By organization size, the small and medium-sized enterprises (SMEs) segment is expected to grow at the fastest CAGR during the forecast period.
  • By workload, the database management segment dominated the market in 2024.

Market Overview and Industry Potential

How did the Cloud Computing Platforms Introduce Rapid Digital Transformation? 

Cloud computing refers to on-demand access to computing resources, which include physical servers, virtual servers, application development tools, and many others. Cloud computing technology is the crucial medium for accessing cloud applications such as Google Gmail, Netflix, cloud-hosted video games, etc. It also plays a pivotal role in businesses from small startups to global enterprises. It introduces increased speed, agility, cost-effectiveness, unlimited scalability, and enhanced strategic value.  

  • In December 2024, AWS and TSYS Financial Services announced the shift to the cloud, which includes responsible innovation. 

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Major Trends in the Cloud Computing Market

What is the Emergence of Advanced Technologies?

  • Data Centers and Networking Capabilities: Remote data centers involve physical or metal bare servers, physical hardware, and cloud storage systems that create the infrastructure for cloud computing. Moreover, high-speed networking connections are important in networking capabilities.
  • Cloud Computing Services: These include services such as infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). These services offer full control over IT infrastructure and allow organizations to build and manage systems.

Growth Factors in the Cloud Computing Market

  • Serverless Computing: It is one of the cloud computing models that can offload back-end infrastructure management tasks such as scaling, scheduling, and patching to the cloud provider.
  • Cloud Security: It involves shared responsibility for security, data encryption, collaborative management, and compliance monitoring. These are the best practices for cloud security.

What is the Role of AI in the Cloud Computing Industry?

The benefits of artificial intelligence in cloud computing include automation, data analysis, security, cost optimization, scalability, productivity, and data management. AI helps in resource optimization, customer service, predictive analytics, and natural language processing (NLP). It also assists in computer vision, recommendation systems, anomaly detection, and business intelligence.

Recent Breakthroughs in the Cloud Computing Market

  • In January 2025, Vantage Data Centers announced the investment of $13 billion in debt and equity across new and current investors and also reported significant growth in 2024 driven by the rising demand for cloud computing and AI. (Source: https://vantage-dc.com)
  • In October 2024, the Center for Security and Emerging Technology reported that Amazon, Google, and Microsoft announced 21 investments across 15 countries for a total of $130 billion between January and July 2024. (Source: https://cset.georgetown.edu)
  • In September 2024, Amazon announced the investment of £8 billion ($10.45 billion) to establish cloud and AI infrastructure. (Source: https://www.cnbc.com)
  • In April 2024, Microsoft announced the investment of US$2.9 billion in AI and cloud infrastructure in Japan to accelerate the skills, research, and cybersecurity of the nation. (Source: https://news.microsoft.com)

Limitations and Challenges in the Cloud Computing Market

What are the Challenges of AI in Cloud Computing?

  • Data Privacy: It is possible for AI models to expose sensitive information from training datasets. It raised the need for robust data governance and security measures to address these risks effectively.
  • Data Integration: It is challenging for AI models to integrate and standardize data from internal units, external sources, and partners for businesses.

Scope of Cloud Computing Market

Report AttributesStatistics
Market Size in 2024USD 753.11 Billion
Market Size in 2025USD 912.77 Billion
Market Size in 2030USD 2,387.12 Billion
Market Size in 2032USD 3,508.54 Billion
Market Size in 2034USD 5,150.92 Billion
CAGR (2025-2034)21.20% 
U.S. Market Size in 2025USD 523.29 Billion
U.S. Market Size in 2034USD 2,992.81 Billion
U.S. Market CAGR (2025-2034)21.36% 
Dominated Region in 2024North America (Holding 41% Market Share)
Fastest Growing RegionAsia Pacific (2025-2034)
Base Year2024 
Historic Years2020 to 2023
Forecast Years2025 to 2034
Segments CoveredDeployment, Service, End User, Organization Size, Workload, Geography
Regions CoveredNorth America, Europe, Asia-Pacific, Latin America, Middle East & Africa (MEA)

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How North America Dominated the Cloud Computing Market in 2024? 

North America dominated the cloud computing market in 2024 owing to the support offered by cloud service providers to governments. Some of the customized solutions for government are Microsoft Azure Government, AWS GovCloud (US), and Google Cloud for Government. There are enhanced security and compliance measures, including FedRAMP Compliance and the DoD Cloud Computing Security Requirements Guide. The customized solutions for government include dedicated government cloud platforms and scalable infrastructure. 

How Big is the U.S. Cloud Computing Market?

According to Precedence Research, the U.S. cloud computing market size surpassed USD 431.76 billion in 2024 and is expected to grow from USD 523.29 billion in 2025 to USD 2,992.81 billion by 2034. The market is poised to grow at a notable CAGR of 21.36% from 2025 to 2034.

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How does the U.S. Lead with the Cloud Smart Initiative? 

The U.S. General Services Administration (GSA) took IT initiatives across various sectors, including artificial intelligence, cybersecurity, digital strategy, and IT modernization. The U.S. federal cloud computing strategy aims to accelerate the adoption of cloud-based solutions and name them cloud smart. This new strategy focuses on the adoption of cloud services and solutions across three important sectors, including security, procurement, and workforce. 

What is the Rising Trend of Cloud Adoption in Asia Pacific? 

The Asia Pacific is expected to grow at the fastest CAGR in the cloud computing market during the forecast period due to the great economic impact of cloud computing on the economies of India, Australia, Japan, Indonesia, Philippines, New Zealand, Singapore, Malaysia, Thailand, Vietnam, and the Republic of Korea. The countries with greater cloud penetration driven by cloud-enabling government policies are experiencing the marginal economic impact of cloud adoption. Government policies promote cloud adoption and impact the rest of the economy. 

  • In December 2024, the Ministry of Information and Broadcasting reported about India’s digital revolution, driven by transforming infrastructure, governance, and public services. (Source: https://www.pib.gov.in)

How is the Digital Revolution in India?

The National Informatics Center reported on the cloud computing initiative of the Government of India, which focuses on accelerating the delivery of e-services in India. It also pays attention to improving the ICT expenditure of the government. This initiative ensures the optimum use of infrastructure and rapid development and deployment of eGov applications. 

Cloud Computing Market Segmentation Analysis

Deployment Analysis

How Private Segment Dominated the Cloud Computing Market in 2024?

The private segment dominated the cloud computing market in 2024 owing to the diverse range of private clouds, including on-premises private cloud, virtual private cloud, hosted private cloud, and managed private cloud. These types of private cloud services are advantageous in terms of full control of the organization over the environment, greater visibility and control over data storage and workloads, and customization. These services offer enhanced security, regulatory compliance, and predictable and stable costs. They result in improved performance and modernization of legacy applications.  

The hybrid segment is expected to grow at the fastest CAGR in the cloud computing market during the forecast period due to the high preference of most large enterprises for hybrid cloud approaches. These hybrid cloud services include combinations of on-premises, public cloud, private cloud, and edge settings. The hybrid cloud services are used in combination with multi-cloud service solutions, which raises their importance in the global market. 

Service Analysis

What made Software as a Service (SaaS) the Dominant Segment in the Cloud Computing Market in 2024?

The Software as a Service (SaaS) segment dominated the cloud computing market in 2024 and is expected to grow at the fastest CAGR during the predicted timeframe owing to the high demand for SaaS services as ready-to-use software applications. SaaS services can allot tasks of software development and infrastructure management to cloud service providers. SaaS services also contribute to maintaining the server hardware and software, managing user access and security, storing and managing data, and implementing upgrades. 

End User Analysis

How did the BFSI Segment Dominate the Cloud Computing Market in 2024?

The BFSI segment dominated the cloud computing market in 2024 owing to the benefits of cloud computing to the banking, financial services, and insurance (BFSI) sectors to detect frauds, reduce costs, strengthen security, and comply with regulations. This technology helps the BFSI sector with customer relationship management (CRM) and greater scalability for financial services. The BFSI sector gets benefits in business case development, solution design, execution, and vendor management from planning and implementing cloud solutions. 

The manufacturing segment is expected to grow at the fastest CAGR in the cloud computing market during the forecast period due to the strategic advantages of cloud computing for manufacturers. This technology can transform operations with enhanced scalability and flexibility. It drives cost reduction and operational efficiency by revolutionizing data management. It helps the manufacturing sector to optimize its supply chain, enhance product development, and accelerate innovations. It contributes to advancing smart manufacturing, promotes sustainability in manufacturing, and ensures security and compliance. 

Organization Analysis

How Large Enterprises Segment Dominated the Cloud Computing Market in 2024?

The large enterprises segment dominated the cloud computing market in 2024 owing to the various cloud computing solutions, including service models and some vital components such as infrastructure as a service (IaaS), platform as a service (PaaS), software as a service (SaaS), public cloud, private cloud, and hybrid cloud hold superior potential to transform business operations.

Cloud computing expands the businesses of large enterprises through scalability, cost efficiency, business continuity, and some other advantageous modes. It introduces enhanced security and collaborations, allows remote work, and maintains innovation and competitiveness. 

The small and medium-sized enterprises (SMEs) segment is expected to grow at the fastest CAGR in the cloud computing market during the predicted timeframe due to the benefits of cloud computing to these businesses in terms of cost savings, scalability, flexibility, enhanced collaboration, improved security, etc. It also results in data backup, disaster recovery, environmental sustainability, and provides access to advanced technologies. 

Workload Insights

What made Database Management the Dominant Segment in the Cloud Computing Market in 2024?

The database management segment dominated the cloud computing market in 2024 owing to the advantages of cloud database management, including enhanced reliability, reduced costs, improved security, and increased flexibility. It also offers simplified management and revolutionized data storage and data management in businesses. It results in vendor inventory management and improved regulatory compliance. 

Related Topics You May Find Useful:        

  • The global edge computing market size is calculated at USD 432.94 billion in 2024 is predicted to increase from USD 564.56 billion in 2025 to approximately USD 5,132.29 billion by 2034, growing at a CAGR of 28% from 2025 to 2034.
  • The global healthcare cloud computing market size was valued at USD 61.78 billion in 2023 and is predicted to surpass around USD 210.02 billion by 2033 with a registered CAGR of around 13.01% during the forecast period 2024 to 2033.
  • The global high performance computing as a service market size accounted for USD 38.82 billion in 2024 and is predicted to increase from USD 41.3 billion in 2025 to approximately USD 72.12 billion by 2034, expanding at a CAGR of 6.39% from 2025 to 2034.
  • The global cloud computing in automotive market size was estimated at USD 8.31 billion in 2024 and is anticipated to reach around USD 36.96 billion by 2034, expanding at a CAGR of 16.09% from 2025 to 2034.
  • The global high performance computing market size accounted for USD 54.76 billion in 2024 and is predicted to increase from USD 59.85 billion in 2025 to approximately USD 133.25 billion by 2034,, expanding at a CAGR of 9.3% from 2025 to 2034.
  • The global embedded computing market size is estimated at USD 112.73 billion in 2024 and is anticipated to reach around USD 199.99 billion by 2034, expanding at a CAGR of 5.90% from 2024 to 2034.
  • The global next generation computing market size was estimated at USD 234.13 billion in 2024 and is predicted to increase from USD 281.2 billion in 2025 to approximately USD 1,461.83 billion by 2034, expanding at a CAGR of 20.10% from 2025 to 2034.

Cloud Computing Market Leading Companies

  • AWS
  • Microsoft Azure
  • Google Cloud
  • Alibaba Cloud
  • Oracle
  • IBM Cloud
  • Tencent Cloud
  • OVHcloud
  • DigitalOcean
  • Linode
  • RackSpace
  • Salesforce
  • Adobe
  • Verizon
  • Cloudera

What is Going Around the Globe?

  • In November 2024, Microsoft and Atom Computing announced the launch of a commercial quantum machine with the largest number of entangled logical qubits on record. (Source: https://azure.microsoft.com)
  • In November 2024, IBM announced the launch of its most advanced quantum computers that will accelerate the value of new scientific innovations and achieve progress towards quantum computing. (Source: https://newsroom.ibm.com)

Cloud Computing Market Segments Covered in the Report

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 Region

North America

  • U.S.
  • Canada
  • Mexico

Asia Pacific

  • China
  • Singapore
  • Japan
  • India
  • South Korea
  • Thailand

Europe

  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway

Latin America

  • Brazil
  • Mexico
  • Argentina

Middle East and Africa

  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait   

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