PUBLISHER: The Business Research Company | PRODUCT CODE: 1843747
PUBLISHER: The Business Research Company | PRODUCT CODE: 1843747
Cloud services encompass a broad range of on-demand offerings provided to businesses and consumers via the internet, offering convenient and cost-effective access to applications and resources without the need for internal infrastructure or hardware. This involves accessing servers, software, and databases over the internet.
The primary types of cloud services include Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Business Process as a Service (BPaaS). SaaS provides complete applications over the internet, managed by the service provider in terms of security, availability, and performance. Deployment methods include public, private, and hybrid clouds, catering to various organization sizes. Cloud services find applications in storage, backup, disaster recovery, application development, testing, database management, business analytics, integration, orchestration, customer relationship management, and more. Industries such as BFSI, media, IT, energy, government, retail, manufacturing, and others utilize cloud services.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The cloud services market research report is one of a series of new reports from The Business Research Company that provides cloud services market statistics, including cloud services industry global market size, regional shares, competitors with a cloud services market share, detailed cloud services market segments, market trends and opportunities, and any further data you may need to thrive in the cloud services industry. This cloud services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The cloud services market size has grown strongly in recent years. It will grow from $570.05 billion in 2024 to $617.22 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to increased internet penetration, growing adoption of cloud in SMEs, technological development, emphasis on reducing it infrastructure costs, government initiatives, and a low-interest rate environment.
The cloud services market size is expected to see strong growth in the next few years. It will grow to $863.52 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to the rising adoption of cloud services in developing regions, the Internet of Things (IoT), the COVID-19 outbreak, increasing smart cities, and rising penetration of e-commerce. Major trends in the forecast period include increasing focus on virtual desktop solutions, implementing artificial intelligence (AI), collaborating with other cloud service providers, research and development in quantum computing, including public cloud platforms in their offerings, investing in research and development for innovations, and building green data centers or outsource cloud services with green data centers to save costs.
The forecast of 8.8% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. The broader cloud services sector may face rising operational expenditures if tariffs increase prices for compute, storage, and networking infrastructure. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The ascent in the adoption of online gaming stands as a significant catalyst propelling the growth of the cloud services market. Online gaming, encompassing games played over the internet or computer networks, extensively utilizes cloud services. These services facilitate platform-independent gaming, offering enhanced accessibility, scalability, cost-efficiency, and an enriched gaming experience. As evidenced in a March 2023 blog by CyberCrew UK, the UK experienced a remarkable surge in gamers, marking a 63% increase since the 2021 lockdown. Notably, consumer spending on video games surpassed $5.2 billion in 2020, marking a historic milestone in the UK, with projected revenues expected to reach $7.6 million by 2025. This burgeoning adoption of online gaming is a key driver fueling the expansion of the cloud services market.
The integration of new tools emerges as a prominent trend within the cloud services market. These tools encompass infrastructure, platforms, or software offered by third-party providers, accessed via the internet by users. An illustration of this trend is seen in Google LLC's move in September 2022 when they unveiled advanced data and analytics capabilities for their data cloud. These innovative capabilities encompass fresh data sharing and data lake platforms, devised to facilitate enhanced access to data at reduced costs. Essentially, these tools aim to surmount the typical hindrances that often restrict organizations in leveraging their data effectively.
In January 2023, Dell Technologies Inc., a US-based technology company, completed the acquisition of Cloudify for a total of $100 million. This strategic acquisition bolsters Dell's presence in the cloud services domain, notably strengthening its offerings within the DevOps sphere. Cloudify, an Israel-based cloud services startup, adds substantial value to Dell's portfolio, enabling the company to fortify its position and expand its range of cloud-related solutions.
Major companies operating in the cloud services market include Amazon, Microsoft Corporation, IBM Corporation, Oracle Corporation, Dell Technologies Inc., Salesforce, SAP, Alibaba Group Holding Limited, Nippon Telegraph And Telephone Corp, Kingsoft Corporation, UCloud Information Technology, Tencent Cloud, KingCloud, Fujitsu Ltd., Hitachi Ltd., KDDI Corporation, Infosys Technologies Ltd., Tata Consultancy Services, Cisco Systems, Zenith Infotech Limited, DigitalOcean, Inc., Wipro Ltd, NetApp India Pvt Ltd., SAVVIS Australia Pty Ltd, OVH, CloudSigma AG, Capgemini SE, Castleton Technology PLC, Caretower Ltd, Niu Solutions, HPE United Kingdom, SiteGround, CROC Incorporated, Servionica, Comarch, Onlanta Ltd., Red Hat, Inc., Google LLC, Adobe Inc., Claro, Locaweb, AllCloud Platforms Ltd, Commtouch, Visual Tao, Libox
North America was the largest region in the cloud services market in 2024. Western Europe was the second largest region cloud services market. The regions covered in the cloud services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the cloud services market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa
The cloud services market includes revenues earned by entities by providing cloud services that can be used for the delivery of information technology resources and applications on-demand through an internet platform. Companies in the cloud services market provide access to servers, storage, databases and a broad set of application services managed by hardware networking. This market includes sales of storage servers which are used to store, access, secure and manage digital data, files and services. It also includes sales of public cloud services, private cloud services, hybrid cloud services and multi-cloud services offered by providers are included. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Cloud Services Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cloud services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cloud services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The cloud services market global report from the Business Research Company answers all these questions and many more.
The 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 forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.