Sovereign Cloud Market Size, Share, Trends, Industry Analysis Report: By Functionality, Deployment Mode, Industry Vertical, and Region

Description

List of Tables

The global sovereign cloud market size is expected to reach USD 102.70 billion by 2034, according to a new study by Polaris Market Research. The report "Sovereign Cloud Market Size, Share, Trends, Industry Analysis Report: By Functionality (Data Sovereignty, Technical Sovereignty, and Operational Sovereignty), Deployment Mode, Industry Vertical, and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Forecast, 2025-2034" gives a detailed insight into current market dynamics and provides analysis on future market growth.

A sovereign cloud is a cloud computing environment that ensures data residency, compliance with local regulations, and operational control within a specific country or region. The market is driven by concerns over data privacy, cyber threats, and geopolitical tensions that necessitate local control over critical digital infrastructure.

The increasing focus on regulatory compliance and data sovereignty is propelling the sovereign cloud market growth. Governments worldwide are implementing stringent data protection laws to ensure that personal and critical business information is stored and processed within national borders. Regulations such as GDPR in the EU, the CLOUD Act in the US, and India's Personal Data Protection Bill highlight the need for organizations to maintain control over their data, leading to the demand for sovereign cloud solutions.

The growing concern over national security and cyber threats is fueling the sovereign cloud market growth expansion. Governments and enterprises are increasingly aware of the risks associated with storing sensitive data in global cloud infrastructure that may be subject to foreign jurisdiction and cyberattacks. The risk of cyber espionage, data breaches, and unauthorized access has prompted governments to establish sovereign cloud infrastructures that offer enhanced security and local control. In addition, geopolitical tensions have increased the need for data localization strategies to prevent potential threats from foreign entities, leading to high adoption of sovereign cloud solutions.

Sovereign Cloud Market Report Highlights

In terms of functionality, the data sovereignty segment held the largest sovereign cloud market share in 2024 due to an increasing focus on data privacy regulations and compliance requirements worldwide.

Based on industry vertical, the BFSI segment is expected to grow at a robust pace in the coming years owing to the stringent regulatory requirements and increasing concerns over financial data security.

In the global market, Europe held the largest sovereign cloud market share in 2024 due to strict data sovereignty regulations, increasing cybersecurity concerns, and government-led digital initiatives.

The market in Asia Pacific is estimated to grow at a rapid pace during the forecast period, owing to rapid digital transformation, expanding cloud adoption across industries, and increasing concerns over data storage.

Some of the global key market players are Alibaba Cloud, Atos, AWS, Civo, Huawei Cloud, IBM, Microsoft, Oracle, OVHcloud, Rackspace Technology, SAP, T-Systems, Vultr, and VMware.

Polaris Market Research has segmented the sovereign cloud market report on the basis of functionality, deployment mode, industry vertical, and region:

By Functionality Outlook (Revenue, USD Billion, 2020-2034)

Data Sovereignty
Technical Sovereignty
Operational Sovereignty

By Deployment Mode Outlook (Revenue, USD Billion, 2020-2034)

Fully Managed Sovereign Cloud
Hybrid Sovereign Cloud
On-Premises Sovereign Cloud

By Industry Vertical Outlook (Revenue, USD Billion, 2020-2034)

Government & Defense
Healthcare
BFSI
Telecommunications
Energy & Utilities
Manufacturing
Others

By Regional Outlook (Revenue, USD Billion, 2020-2034)

North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Netherlands
Russia
Rest of Europe
Asia Pacific
China
Japan
India
Malaysia
South Korea
Indonesia
Australia
Vietnam
Rest of Asia Pacific
Middle East & Africa
Saudi Arabia
UAE
Israel
South Africa
Rest of Middle East & Africa
Latin America
Mexico
Brazil
Argentina
Rest of Latin America

Product Code: PM5493

1. Introduction

1.1. Report Description
- 1.1.1. Objectives of the Study
- 1.1.2. Market Scope
- 1.1.3. Assumptions
1.2. Stakeholders

2. Executive Summary

2.1. Market Highlights

3. Research Methodology

3.1. Overview
- 3.1.1. Data Mining
3.2. Data Source
- 3.2.1. Primary Source
- 3.2.2. Secondary Source

4. Global Sovereign Cloud Market Insights

4.1. Sovereign Cloud Market - Market Snapshot
4.2. Sovereign Cloud Market Dynamics
- 4.2.1. Drivers and Opportunities
  - 4.2.1.1. Growing Healthcare Sector Across the Globe
  - 4.2.1.2. Growing Advancement in Technology
- 4.2.2. Restraints and Challenges
  - 4.2.2.1. High cost
4.3. Porter's Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers (Moderate)
- 4.3.2. Threats of New Entrants: (Low)
- 4.3.3. Bargaining Power of Buyers (Moderate)
- 4.3.4. Threat of Substitute (Moderate)
- 4.3.5. Rivalry among existing firms (High)
4.4. PESTEL Analysis
4.5. Sovereign Cloud Market Trends
4.6. Value Chain Analysis

5. Global Sovereign Cloud Market, by Functionality

5.1. Key Findings
5.2. Introduction
- 5.2.1. Global Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
5.3. Data Sovereignty
- 5.3.1. Global Sovereign Cloud Market, by Data Sovereignty, by Region, 2020-2034 (USD Billion)
5.4. Technical Sovereignty
- 5.4.1. Global Sovereign Cloud Market, by Technical Sovereignty, by Region, 2020-2034 (USD Billion)
5.5. Operational Sovereignty
- 5.5.1. Global Sovereign Cloud Market, by Operational Sovereignty, by Region, 2020-2034 (USD Billion)

6. Global Sovereign Cloud Market, by Deployment Mode

6.1. Key Findings
6.2. Introduction
- 6.2.1. Global Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
6.3. Fully Managed Sovereign Cloud
- 6.3.1. Global Sovereign Cloud Market, by Fully Managed Sovereign Cloud, by Region, 2020-2034 (USD Billion)
6.4. Hybrid Sovereign Cloud
- 6.4.1. Global Sovereign Cloud Market, by Hybrid Sovereign Cloud, by Region, 2020-2034 (USD Billion)
6.5. Statistical Analysis
- 6.5.1. Global Sovereign Cloud Market, by Statistical Analysis, by Region, 2020-2034 (USD Billion)
6.6. On-Premises Sovereign Cloud
- 6.6.1. Global Sovereign Cloud Market, by On-Premises Sovereign Cloud, by Region, 2020-2034 (USD Billion)

7. Global Sovereign Cloud Market, by Industry Vertical

7.1. Key Findings
7.2. Introduction
- 7.2.1. Global Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
7.3. Government & Defense
- 7.3.1. Global Sovereign Cloud Market, by Government & Defense, by Region, 2020-2034 (USD Billion)
7.4. Healthcare
- 7.4.1. Global Sovereign Cloud Market, by Healthcare, by Region, 2020-2034 (USD Billion)
7.5. BFSI
- 7.5.1. Global Sovereign Cloud Market, by BFSI, by Region, 2020-2034 (USD Billion)
7.6. Telecommunications
- 7.6.1. Global Sovereign Cloud Market, by Telecommunications, by Region, 2020-2034 (USD Billion)
7.7. Energy & Utilities
- 7.7.1. Global Sovereign Cloud Market, by Energy & Utilities, by Region, 2020-2034 (USD Billion)
7.8. Manufacturing
- 7.8.1. Global Sovereign Cloud Market, by Manufacturing, by Region, 2020-2034 (USD Billion)
7.9. Others
- 7.9.1. Global Sovereign Cloud Market, by Others, by Region, 2020-2034 (USD Billion)

8. Global Sovereign Cloud Market, by Geography

8.1. Key Findings
8.2. Introduction
- 8.2.1. Sovereign Cloud Market Assessment, By Geography, 2020-2034 (USD Billion)
8.3. Sovereign Cloud Market - North America
- 8.3.1. North America: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
- 8.3.2. North America: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
- 8.3.3. North America: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.3.4. Sovereign Cloud Market - U.S.
  - 8.3.4.1. U.S.: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.3.4.2. U.S.: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.3.4.3. U.S.: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.3.5. Sovereign Cloud Market - Canada
  - 8.3.5.1. Canada: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.3.5.2. Canada: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.3.5.3. Canada: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
8.4. Sovereign Cloud Market - Europe
- 8.4.1. Europe: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
- 8.4.2. Europe: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
- 8.4.3. Europe: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.4. Sovereign Cloud Market - UK
  - 8.4.4.1. UK: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.4.2. UK: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.4.3. UK: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.5. Sovereign Cloud Market - France
  - 8.4.5.1. France: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.5.2. France: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.5.3. France: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.6. Sovereign Cloud Market - Germany
  - 8.4.6.1. Germany: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.6.2. Germany: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.6.3. Germany: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.7. Sovereign Cloud Market - Italy
  - 8.4.7.1. Italy: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.7.2. Italy: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.7.3. Italy: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.8. Sovereign Cloud Market - Spain
  - 8.4.8.1. Spain: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.8.2. Spain: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.8.3. Spain: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.9. Sovereign Cloud Market - Netherlands
  - 8.4.9.1. Netherlands: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.9.2. Netherlands: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.9.3. Netherlands: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.10. Sovereign Cloud Market - Russia
  - 8.4.10.1. Russia: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.10.2. Russia: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.10.3. Russia: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.4.11. Sovereign Cloud Market - Rest of Europe
  - 8.4.11.1. Rest of Europe: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.4.11.2. Rest of Europe: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.4.11.3. Rest of Europe: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
8.5. Sovereign Cloud Market - Asia Pacific
- 8.5.1. Asia Pacific: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
- 8.5.2. Asia Pacific: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
- 8.5.3. Asia Pacific: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.4. Sovereign Cloud Market - China
  - 8.5.4.1. China: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.4.2. China: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.4.3. China: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.5. Sovereign Cloud Market - India
  - 8.5.5.1. India: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.5.2. India: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.5.3. India: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.6. Sovereign Cloud Market - Malaysia
  - 8.5.6.1. Malaysia: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.6.2. Malaysia: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.6.3. Malaysia: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.7. Sovereign Cloud Market - Japan
  - 8.5.7.1. Japan: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.7.2. Japan: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.7.3. Japan: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.8. Sovereign Cloud Market - Indonesia
  - 8.5.8.1. Indonesia: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.8.2. Indonesia: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.8.3. Indonesia: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.9. Sovereign Cloud Market - South Korea
  - 8.5.9.1. South Korea: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.9.2. South Korea: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.9.3. South Korea: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.10. Sovereign Cloud Market - Australia
  - 8.5.10.1. Australia: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.10.2. Australia: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.10.3. Australia: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.5.11. Sovereign Cloud Market - Rest of Asia Pacific
  - 8.5.11.1. Rest of Asia Pacific: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.5.11.2. Rest of Asia Pacific: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.5.11.3. Rest of Asia Pacific: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
8.6. Sovereign Cloud Market - Middle East & Africa
- 8.6.1. Middle East & Africa: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
- 8.6.2. Middle East & Africa: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
- 8.6.3. Middle East & Africa: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.6.4. Sovereign Cloud Market - Saudi Arabia
  - 8.6.4.1. Saudi Arabia: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.6.4.2. Saudi Arabia: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.6.4.3. Saudi Arabia: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.6.5. Sovereign Cloud Market - UAE
  - 8.6.5.1. UAE: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.6.5.2. UAE: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.6.5.3. UAE: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.6.6. Sovereign Cloud Market - Israel
  - 8.6.6.1. Israel: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.6.6.2. Israel: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.6.6.3. Israel: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.6.7. Sovereign Cloud Market - South Africa
  - 8.6.7.1. South Africa: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.6.7.2. South Africa: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.6.7.3. South Africa: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.6.8. Sovereign Cloud Market - Rest of Middle East & Africa
  - 8.6.8.1. Rest of Middle East & Africa: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.6.8.2. Rest of Middle East & Africa: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.6.8.3. Rest of Middle East & Africa: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
8.7. Sovereign Cloud Market - Latin America
- 8.7.1. Latin America: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
- 8.7.2. Latin America: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
- 8.7.3. Latin America: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.7.4. Sovereign Cloud Market - Mexico
  - 8.7.4.1. Mexico: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.7.4.2. Mexico: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.7.4.3. Mexico: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.7.5. Sovereign Cloud Market - Brazil
  - 8.7.5.1. Brazil: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.7.5.2. Brazil: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.7.5.3. Brazil: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.7.6. Sovereign Cloud Market - Argentina
  - 8.7.6.1. Argentina: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.7.6.2. Argentina: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.7.6.3. Argentina: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)
- 8.7.7. Sovereign Cloud Market - Rest of Latin America
  - 8.7.7.1. Rest of Latin America: Sovereign Cloud Market, by Functionality, 2020-2034 (USD Billion)
  - 8.7.7.2. Rest of Latin America: Sovereign Cloud Market, by Deployment Mode, 2020-2034 (USD Billion)
  - 8.7.7.3. Rest of Latin America: Sovereign Cloud Market, by Industry Vertical, 2020-2034 (USD Billion)

9. Competitive Landscape

9.1. Expansion and Acquisition Analysis
- 9.1.1. Expansion
- 9.1.2. Acquisitions
9.2. Partnerships/Collaborations/Agreements/Exhibitions

10. Company Profiles

10.1. Alibaba Cloud
- 10.1.1. Company Overview
- 10.1.2. Financial Performance
- 10.1.3. Product Benchmarking
- 10.1.4. Recent Development
10.2. Atos
- 10.2.1. Company Overview
- 10.2.2. Financial Performance
- 10.2.3. Product Benchmarking
- 10.2.4. Recent Development
10.3. AWS
- 10.3.1. Company Overview
- 10.3.2. Financial Performance
- 10.3.3. Product Benchmarking
- 10.3.4. Recent Development
10.4. Civo
- 10.4.1. Company Overview
- 10.4.2. Financial Performance
- 10.4.3. Product Benchmarking
- 10.4.4. Recent Development
10.5. Huawei Cloud
- 10.5.1. Company Overview
- 10.5.2. Financial Performance
- 10.5.3. Product Benchmarking
- 10.5.4. Recent Development
10.6. IBM
- 10.6.1. Company Overview
- 10.6.2. Financial Performance
- 10.6.3. Product Benchmarking
- 10.6.4. Recent Development
10.7. Microsoft
- 10.7.1. Company Overview
- 10.7.2. Financial Performance
- 10.7.3. Product Benchmarking
- 10.7.4. Recent Development
10.8. Oracle
- 10.8.1. Company Overview
- 10.8.2. Financial Performance
- 10.8.3. Product Benchmarking
- 10.8.4. Recent Development
10.9. OVHcloud
- 10.9.1. Company Overview
- 10.9.2. Financial Performance
- 10.9.3. Product Benchmarking
- 10.9.4. Recent Development
10.10. Rackspace Technology
- 10.10.1. Company Overview
- 10.10.2. Financial Performance
- 10.10.3. Product Benchmarking
- 10.10.4. Recent Development
10.11. SAP
- 10.11.1. Company Overview
- 10.11.2. Financial Performance
- 10.11.3. Product Benchmarking
- 10.11.4. Recent Development
10.12. Vultr
- 10.12.1. Company Overview
- 10.12.2. Financial Performance
- 10.12.3. Product Benchmarking
- 10.12.4. Recent Development