Cloud Industry Global Market Report 2025

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.

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 industry market research report is one of a series of new reports from The Business Research Company 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 size has grown rapidly in recent years. It will grow from $705.91 billion in 2024 to $846.58 billion in 2025 at a compound annual growth rate (CAGR) of 19.9%. The growth in the historic period can be attributed to digital transformation, the rise of SaaS, increased internet penetration, demand for data storage, and the growth of e-commerce.

The cloud industry market size is expected to see rapid growth in the next few years. It will grow to $1742.93 billion in 2029 at a compound annual growth rate (CAGR) of 19.8%. The growth in the forecast period can be attributed to the expansion of AI and ML, edge computing adoption, hybrid cloud growth, increasing cybersecurity concerns, and regulatory compliance needs. Major trends in the forecast period include multi-cloud strategies, quantum computing integration, cloud-native applications, advancements in virtualization, and industry-specific cloud solutions.

The forecast of 19.8% 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. Broadly, the cloud industry could face disruptions if tariffs affect key imports like server chips, storage arrays, and network accelerators, resulting in slower infrastructure scaling. 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 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 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.

Cloud Industry 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 industry 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.

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Where is the largest and fastest growing market for cloud industry ? 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 industry 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 market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

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.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Public Cloud; Private Cloud; Hybrid Cloud; Multi-Cloud
• 2) By Enterprise Size: Small And Medium-Enterprises; Large Enterprises
• 3) By Application: BFSI (Banking, Financial Services, And Insurance); Healthcare; Retail And E-Commerce; Information Technology (IT) And Telecom; Government And Defense; Manufacturing; Media And Entertainment; Education
• Subsegments:
• 1) By Public Cloud: Infrastructure As a Service (IaaS); Platform As a Service (PaaS); Software As a Service (SaaS); Function As a Service (FaaS)
• 2) By Private Cloud: On-Premise Private Cloud; Hosted Private Cloud
• 3) By Hybrid Cloud: Cloud Bursting; Disaster Recovery And Backup; DevOps Integration
• 4) By Multi-Cloud: Multi-Cloud Storage; Multi-Cloud Security; Multi-Cloud Networking; Multi-Cloud Application Management
• Companies Mentioned: 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
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.