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Cloud Automation Market

ID: MRFR/ICT/40139-HCR
200 Pages
Garvit Vyas
October 2025

Global Cloud Automation Market Research Report: By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Technology (Infrastructure as a Service, Platform as a Service, Software as a Service, Function as a Service), By Service Type (Provisioning, Orchestration, Configuration Management, Monitoring), By End User (Small and Medium Enterprises, Large Enterprises, Government) and By Regional (North America, Europe, South America, Pacific, Middle East and Africa) - Forecast to 2035.

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Cloud Automation Market Summary

As per MRFR analysis, the Cloud Automation Market Size was estimated at 10.26 USD Billion in 2024. The Cloud Automation industry is projected to grow from 11.32 USD Billion in 2025 to 30.03 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 10.25 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Cloud Automation Market is experiencing robust growth driven by technological advancements and evolving business needs.

  • The market is witnessing increased adoption of AI and machine learning technologies to enhance automation capabilities.
  • North America remains the largest market, while Asia-Pacific is emerging as the fastest-growing region in cloud automation.
  • The public cloud segment dominates the market, whereas the hybrid cloud segment is rapidly gaining traction.
  • Rising demand for operational efficiency and an emphasis on cost reduction are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 10.26 (USD Billion)
2035 Market Size 30.03 (USD Billion)
CAGR (2025 - 2035) 10.25%

Major Players

Amazon Web Services (US), Microsoft (US), Google Cloud (US), IBM (US), Oracle (US), Salesforce (US), Red Hat (US), VMware (US), Cisco (US)

Cloud Automation Market Trends

The Cloud Automation Market is currently experiencing a transformative phase, driven by the increasing demand for efficiency and scalability in IT operations. Organizations are increasingly adopting automation solutions to streamline processes, reduce operational costs, and enhance service delivery. This shift is largely influenced by the growing complexity of cloud environments, which necessitates sophisticated management tools that can automate routine tasks and optimize resource allocation. As businesses strive to remain competitive, the integration of automation technologies into cloud services appears to be a strategic priority, fostering innovation and agility in operations. Moreover, the Cloud Automation Market is characterized by a diverse range of solutions, including infrastructure automation, application deployment, and orchestration tools. These solutions not only facilitate seamless integration across various platforms but also empower organizations to respond swiftly to changing market demands. The emphasis on security and compliance further propels the adoption of automation technologies, as businesses seek to mitigate risks associated with data management. Overall, the Cloud Automation Market is poised for continued growth, as organizations recognize the potential benefits of automation in enhancing operational efficiency and driving digital transformation.

Increased Adoption of AI and Machine Learning

The integration of artificial intelligence and machine learning into cloud automation solutions is becoming more prevalent. These technologies enable predictive analytics and intelligent decision-making, allowing organizations to optimize their cloud resources dynamically. As businesses seek to leverage data-driven insights, the role of AI in automating cloud operations is likely to expand.

Focus on Security and Compliance Automation

With the rising concerns over data breaches and regulatory requirements, there is a growing emphasis on automating security and compliance processes within cloud environments. Organizations are increasingly implementing automated solutions to monitor compliance, manage vulnerabilities, and ensure data protection, thereby enhancing their overall security posture.

Expansion of Multi-Cloud Strategies

Organizations are increasingly adopting multi-cloud strategies to avoid vendor lock-in and enhance flexibility. This trend necessitates advanced automation tools that can manage and orchestrate resources across multiple cloud platforms seamlessly. As businesses diversify their cloud environments, the demand for automation solutions that facilitate multi-cloud management is expected to rise.

Cloud Automation Market Drivers

Emphasis on Cost Reduction

Cost reduction is a fundamental driver influencing the Cloud Automation Market. Organizations are under constant pressure to optimize their budgets while maintaining high levels of service. Cloud automation solutions offer a pathway to achieve these objectives by minimizing manual processes and reducing the likelihood of errors. Data suggests that businesses can save up to 25% on IT costs through effective automation strategies. This emphasis on cost efficiency is prompting more companies to invest in cloud automation technologies, thereby propelling the growth of the Cloud Automation Market as firms seek to balance quality and affordability.

Growing Need for Scalability

Scalability remains a critical driver in the Cloud Automation Market as organizations seek to adapt to fluctuating demands. The ability to scale resources up or down based on real-time needs is essential for maintaining operational efficiency. Recent studies indicate that 70% of businesses prioritize scalability when selecting cloud solutions. This trend is particularly evident in sectors such as e-commerce and finance, where demand can vary significantly. As companies increasingly recognize the importance of scalable solutions, the Cloud Automation Market is expected to grow, driven by the need for flexible and responsive automation capabilities.

Integration of Advanced Technologies

The integration of advanced technologies such as artificial intelligence and machine learning is a pivotal driver in the Cloud Automation Market. These technologies facilitate intelligent automation, allowing organizations to analyze vast amounts of data and make informed decisions. The market for AI-driven automation solutions is projected to reach USD 20 billion by 2026, indicating a robust growth trajectory. This integration not only enhances operational efficiency but also improves service delivery and customer satisfaction. As businesses increasingly adopt these technologies, the Cloud Automation Market is poised for substantial expansion, reflecting a shift towards more sophisticated automation solutions.

Rising Demand for Operational Efficiency

The Cloud Automation Market is experiencing a notable surge in demand for operational efficiency. Organizations are increasingly seeking to streamline their processes and reduce operational costs. According to recent data, companies that implement cloud automation can achieve up to a 30% reduction in operational expenses. This trend is driven by the need for businesses to remain competitive in a rapidly evolving landscape. Automation tools enable organizations to optimize resource allocation, enhance productivity, and minimize human error. As a result, the Cloud Automation Market is likely to witness significant growth as more enterprises recognize the value of automating routine tasks and processes.

Increased Focus on Compliance and Security

The Cloud Automation Market is witnessing an increased focus on compliance and security as regulatory requirements become more stringent. Organizations are compelled to ensure that their automated processes adhere to various compliance standards, which can be complex and resource-intensive. The market for compliance automation solutions is expected to grow significantly, with estimates suggesting a rise to USD 15 billion by 2025. This heightened focus on security and compliance is driving investments in cloud automation technologies, as businesses strive to protect sensitive data while automating their operations. Consequently, the Cloud Automation Market is likely to expand as companies prioritize secure and compliant automation solutions.

Market Segment Insights

By Deployment Model: Public Cloud (Largest) vs. Hybrid Cloud (Fastest-Growing)

The Cloud Automation Market shows a competitive landscape in terms of deployment models, with Public Cloud leading in market share due to its scalability and cost-effectiveness. Organizations are increasingly adopting Public Cloud solutions to benefit from reduced operational overhead while leveraging advanced automated services. This segment encompasses a wide range of users, from small startups to large enterprises, contributing to its dominant presence in the market. In contrast, Hybrid Cloud is experiencing rapid growth as businesses seek the flexibility of combining on-premises infrastructure with cloud solutions. This trend is largely driven by the need for greater control, enhanced data security, and the ability to scale resources according to specific business needs, positioning Hybrid Cloud as the fastest-growing deployment model in the sector.

Public Cloud (Dominant) vs. Hybrid Cloud (Emerging)

In the Cloud Automation Market, the Public Cloud segment stands out as the dominant force, characterized by its extensive resources and broad accessibility. This deployment model offers organizations the ability to deploy applications swiftly and manage workloads efficiently without the need for significant capital investment in hardware. On the other hand, the Hybrid Cloud segment represents an emerging choice for organizations aiming to balance the scalability of Public Cloud with the control of Private Cloud. Companies adopting Hybrid Cloud are motivated by the desire to optimize performance and enhance security while maintaining the flexibility to adjust resources as needed. This synergy allows for innovative automation strategies that cater to diverse workload requirements, thus positioning both models uniquely in the competitive landscape.

By Technology: Infrastructure as a Service (Largest) vs. Software as a Service (Fastest-Growing)

The Cloud Automation Market is primarily segmented into four main categories: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), and Function as a Service (FaaS). Among these, IaaS holds the largest market share, providing businesses with fundamental computing resources such as virtual machines and storage solutions. This segment serves as the backbone for cloud services, catering to a broad spectrum of enterprises that require scalable infrastructure. Conversely, SaaS has emerged as the fastest-growing segment, appealing to organizations seeking quick deployment and ease of use, fostering a trend towards more integrated cloud solutions.

Technology: IaaS (Dominant) vs. SaaS (Emerging)

Infrastructure as a Service (IaaS) continues to dominate the Cloud Automation Market due to its flexibility and scalability, allowing businesses to efficiently manage their IT resources without heavy upfront investments. This segment enables organizations to remotely access servers, storage, and networking, thus driving operational efficiency. On the other hand, Software as a Service (SaaS) represents an emerging trend as it offers users on-demand access to applications over the internet. With its subscription-based model, SaaS eliminates the need for installations and maintenance, making it increasingly popular among SMEs and large enterprises alike. Together, IaaS and SaaS exemplify a shift towards cloud-driven solutions, enhancing business agility and innovation.

By Service Type: Provisioning (Largest) vs. Orchestration (Fastest-Growing)

The Cloud Automation Market is characterized by a diverse range of service types, with provisioning holding the largest market share. This segment is critical as it focuses on the deployment of resources and automated workflows, enabling organizations to efficiently allocate cloud services. Following closely is orchestration, which, while having a smaller share, is recognized as the fastest-growing segment. It encapsulates the process of integrating various automated tasks and services, substantially streamlining cloud operations.

Provisioning (Dominant) vs. Orchestration (Emerging)

Provisioning serves as the dominant service type in the Cloud Automation Market, emphasizing the importance of automation in deploying and managing cloud resources. It encompasses essential tasks such as resource allocation, scaling, and integration, which are vital for efficiency and cost-effectiveness. On the other hand, orchestration is identified as the emerging service type, gaining traction due to its ability to manage interdependencies among various automated services. This convergence not only optimizes resource utilization but also enhances the agility and responsiveness of cloud operations, making orchestration integral to future developments in cloud automation.

By End User: Small and Medium Enterprises (Largest) vs. Large Enterprises (Fastest-Growing)

In the Cloud Automation Market, Small and Medium Enterprises (SMEs) hold the largest share, driven by their increasing adoption of cloud technologies to enhance operational efficiency and reduce costs. These businesses are leveraging cloud automation solutions to optimize their workflows, scale their operations, and promote agility in a highly competitive landscape. Meanwhile, the share of Large Enterprises is rapidly increasing, spurred by their substantial investments in automation to drive digital transformation initiatives and improve resource management. The growth trends in the Cloud Automation Market show that while SMEs are currently dominant, Large Enterprises are expected to grow at a faster rate due to several factors, including the need for more complex and scalable solutions. Large organizations are increasingly recognizing the benefits of cloud automation in enhancing collaboration, improving incident management, and achieving better integration across their operations, contributing to their rapid market growth.

Small and Medium Enterprises (Dominant) vs. Large Enterprises (Emerging)

Small and Medium Enterprises (SMEs) represent a dominant force in the Cloud Automation Market, characterized by their agile nature and flexibility in adopting new technologies. These businesses typically have lower IT budgets, prompting them to seek cost-effective cloud automation solutions that enhance efficiency. On the other hand, Large Enterprises are emerging with a strong focus on sophisticated cloud automation strategies. With larger budgets and dedicated IT teams, these organizations are investing in complex automation tools to streamline their operations at scale. This shift not only reflects their ambition to stay competitive but also signals a growing reliance on advanced cloud solutions to meet evolving market demands.

Get more detailed insights about Cloud Automation Market

Regional Insights

The Global Cloud Automation Market has shown considerable growth across various regions, with North America leading as a significant contributor. Valued at 4.5 USD Billion in 2024 and projected to reach 13.5 USD Billion in 2035, this region dominates the cloud automation industry, driven by advanced technology adoption and robust infrastructure. Europe follows with a valuation of 2.5 USD Billion in 2024, expected to grow to 7.5 USD Billion by 2035, as businesses increasingly incorporate automation solutions to enhance operational efficiency.

The APAC region, valued at 2.75 USD Billion in 2024, is also significant, projected to reach 8.25 USD Billion in 2035, largely due to the rising demand for cloud services among SMEs and large enterprises.South America and MEA are smaller markets with valuations of 0.8 USD Billion and 0.71 USD Billion in 2024, anticipated to grow to 2.4 USD Billion and 2.25 USD Billion respectively by 2035; however, they represent essential future opportunities due to increasing digital transformation initiatives.

The overall regional data highlights a clear trend towards increased investment in cloud automation technologies, driven by globalization and the pressing need for operational agility across markets.

Cloud Automation Market Regional Image

Key Players and Competitive Insights

The competitive insights of the Global Cloud Automation Market reveal a dynamic landscape characterized by rapid innovation, diverse service offerings, and a continual evolution of technology that drives efficiency for businesses operating in this space. As organizations increasingly migrate their operations to the cloud, the demand for automation tools that streamline processes, enhance service delivery, and reduce operational costs has surged. Key players in the market are competing on multiple fronts, including the development of advanced automation platforms, integration capabilities, scalability, and security measures.

These elements contribute significantly to how companies differentiate themselves and build customer loyalty, leading to a fiercely competitive environment where strategic partnerships and ecosystem collaborations play an essential role in strengthening market positions.Google has emerged as a formidable competitor in the Global Cloud Automation Market, leveraging its extensive infrastructure and robust technology background to provide innovative cloud automation solutions. With a strong emphasis on artificial intelligence and machine learning, Google allows businesses to automate processes through its intelligent platforms, enhancing operational efficiency and accelerating the deployment of applications and services.

The commitment to integrating scalability with ease of use positions it well within the market, appealing to a wide range of enterprises, from startups to large corporations. Additionally, collaborative tools and open-source initiatives facilitate seamless integration with existing systems, thus providing customers with the flexibility needed to adapt to evolving business requirements while remaining competitive.VMware stands out in the Global Cloud Automation Market with its comprehensive suite of automation solutions designed to optimize cloud infrastructure management. The company excels in virtualized environments, enabling organizations to automate resource allocation, monitoring, and management tasks efficiently.

VMware's focus on hybrid cloud solutions appeals to businesses looking to modernize their IT strategies while retaining control over their existing infrastructure. Its strong market presence is bolstered by partnerships with various technology providers, enhancing its capabilities in cloud automation. VMware's commitment to improving operational efficiency, reducing costs through automated deployments, and providing exceptional user experiences reflects its strengths and solidifies its position as a leading player in the cloud automation realm.

Key Companies in the Cloud Automation Market market include

Industry Developments

Recent developments in the Global Cloud Automation Market indicate a dynamic shift as major tech players enhance their offerings. Google has been expanding its Anthos platform, allowing enterprises to manage applications across hybrid and multi-cloud environments more efficiently. VMware is integrating AI capabilities into its cloud management solutions, optimizing resource allocation and operational efficiencies. Amazon Web Services continues to dominate the market with innovative services, while IBM is focusing on security and compliance within its cloud automation strategies.

Cisco and Oracle are also making strides, with Cisco enhancing its cloud infrastructure offerings and Oracle emphasizing integration capabilities of its Cloud Infrastructure. In terms of mergers and acquisitions, Microsoft has been actively pursuing strategic partnerships to bolster its cloud services, and the acquisition of smaller firms specializing in automation tools has been noted as a trend among these companies. ServiceNow is enhancing its workflow automation, while Puppet and Red Hat are expanding their DevOps solutions.

The market is witnessing significant growth, with companies like BMC Software, Dell Technologies, and Salesforce also contributing to an overall valuation surge driven by increased demand for scalable and efficient automation solutions.

Future Outlook

Cloud Automation Market Future Outlook

The Cloud Automation Market is projected to grow at a 10.25% CAGR from 2024 to 2035, driven by increasing demand for operational efficiency and scalability.

New opportunities lie in:

  • Development of AI-driven automation tools for enhanced decision-making.
  • Integration of cloud automation with IoT for real-time data processing.
  • Expansion of managed services for cloud infrastructure optimization.

By 2035, the Cloud Automation Market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Cloud Automation Market End User Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • Government

Cloud Automation Market Technology Outlook

  • Infrastructure as a Service
  • Platform as a Service
  • Software as a Service
  • Function as a Service

Cloud Automation Market Service Type Outlook

  • Provisioning
  • Orchestration
  • Configuration Management
  • Monitoring

Cloud Automation Market Deployment Model Outlook

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Report Scope

MARKET SIZE 202410.26(USD Billion)
MARKET SIZE 202511.32(USD Billion)
MARKET SIZE 203530.03(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)10.25% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of artificial intelligence enhances efficiency and scalability in the Cloud Automation Market.
Key Market DynamicsRising demand for operational efficiency drives innovation and competition in the Cloud Automation Market.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the current valuation of the Cloud Automation Market in 2025?

The Cloud Automation Market is valued at 10.26 USD Billion in 2024 and is expected to grow significantly.

What is the projected market size for the Cloud Automation Market by 2035?

The market is projected to reach 30.03 USD Billion by 2035, indicating substantial growth.

What is the expected CAGR for the Cloud Automation Market during the forecast period 2025 - 2035?

The expected CAGR for the Cloud Automation Market during the forecast period 2025 - 2035 is 10.25%.

Which deployment model is anticipated to dominate the Cloud Automation Market?

The Hybrid Cloud segment is projected to grow from 4.63 USD Billion in 2024 to 13.01 USD Billion by 2035.

How do the revenues of Infrastructure as a Service compare to Software as a Service in 2025?

In 2024, Infrastructure as a Service generated 2.06 USD Billion, while Software as a Service reached 3.08 USD Billion.

What are the expected revenues for large enterprises in the Cloud Automation Market by 2035?

Large enterprises are projected to generate revenues of 15.15 USD Billion by 2035.

Which key players are leading the Cloud Automation Market?

Key players in the market include Amazon Web Services, Microsoft, Google Cloud, IBM, and Oracle.

What is the revenue forecast for the Monitoring service type by 2035?

The Monitoring service type is expected to grow from 3.5 USD Billion in 2024 to 11.13 USD Billion by 2035.

How does the revenue of Private Cloud compare to Public Cloud in 2025?

In 2024, Private Cloud generated 2.57 USD Billion, while Public Cloud reached 3.06 USD Billion.

What is the anticipated revenue for the Government sector in the Cloud Automation Market by 2035?

The Government sector is projected to generate revenues of 7.63 USD Billion by 2035.

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