Cloud Computing Market Research Report - Global Forecast till 2032

Cloud Computing Market Research Report Information By Service Model (Software as a Service (Saas), Infrastructure as a Service (laas), Platform as a Service (PaaS)), By Deployment Mode (Private, Public, Hybrid Cloud), By Organization Size (Small- and Medium-Sized Enterprises, Large Enterprises), By Vertical (Banking Financial Services and Insurance (BFSI), IT and Telecommunications, Government and Public Sector, Retail and Consumer Goods, Manufacturing) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forec

ID: MRFR/ICT/0507-CR | 141 Pages | Author: Ankit Gupta | February 2020         

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Cloud Computing Market Overview


Cloud Computing Market Size was valued at USD 450.9 Billion in 2022. The Cloud Computing Market industry is projected to grow from USD 534.4 Billion in 2023 to USD 2082.2 Billion by 2032,exhibiting a compound annual growth rate (CAGR) of 18.53% during the forecast period (2023 - 2032). Enterprises are concerned about the initial deployment and maintenance expenses of hosting data on-premises, as well as the rising return on investment with decreased infrastructure and storage costsare the key market drivers enhancing the market growth.


Cloud Computing Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Cloud Computing Market Trends


Integration of Big Data, Analytics, and Machine Learning with the Cloud to Drive Market Growth


Market CAGR for cloud computing is being driven by the integration of big data, analytics, and machine learning with the cloud.The growing use of Big Data, Artificial Intelligence (Al), Machine Learning (ML), and other technologies is predicted to fuel market expansion. These technologies are changing the market landscape because they help users monitor, analyse, and visualise raw data.Adopting these emerging technologies in tandem with cloud solutions helps organisations improve their visualisation capabilities and make complex data accessible and usable. The expanding use of Al and ML technologies in enterprises has increased data utilisation while decreasing data storage concerns. These technologies also help to boost business efficiency, improve decision-making processes, and reduce operating costs. Businesses are embracing Al-powered solutions in order to become more strategic, efficient, and insight-driven.


Al can automate repetitive and difficult procedures to enhance production and execute data analysis without the need for manual intervention. IT departments can also utilise Al to monitor and manage critical work flows. For instance, In March 2022, Microsoft Corporation launched Azure Health Data Services. It is a platform as a service (PaaS) designed to support analytical and transactional workloads. It supports PHI alone and unifies health data while enabling cloud-based Artificial Intelligence (AI). As a result, big data, artificial intelligence, and machine learning are expected to grow more popular.


Additionally, cloud computing services and cloud-based apps have enhanced productivity and adaptability for businesses and their employees. However, most businesses are concerned that the threats to cloud computing systems are outpacing their ability to develop sufficient solutions. There are various advantages to leveraging the cloud as a platform for innovation in terms of performance, cost, and reactivity. Companies, for example, can use cloud computing to expedite innovation in the Internet of Things product development field at previously unheard-of rates. The Internet of Things (loT) industry has been able to build and distribute game-changing inventions that are revolutionising the economy thanks to cloud computing. Due to budgetary restrictions, it has forced more firms, particularly SMEs, onto the cloud.


Cloud Computing Market Segment Insights


Cloud Computing Service Model Insights


The Cloud Computing Market segmentation, based on service model includes Software as a Service (Saas), Infrastructure as a Service (laas), and Platform as a Service (PaaS). In 2022, the software as a service (Saas) segment dominated the industry, accounting for more than 53.95% of total revenue. The category is expected to develop at a steady rate, maintaining its leadership position during the projected period. The popularity of SaaS can be due to its ease of use, low prices, and quick deployment. Remote working has resulted in an increase in demand for SaaS services.


Cloud Computing Deployment Mode Insights


The Cloud Computing Market segmentation, based on deployment mode, includes private, public, hybrid cloud. The hybrid cloud segment is the market's largest contributor and is predicted to expand during the forecast period. An IBM study discovered that firms might gain a competitive edge by embracing the hybrid cloud because of its capacity to help businesses save money and time while enhancing data security, application speed, and overall IT management. More firms are implementing hybrid cloud models and smart approaches to improve business operations, resource utilisation, cost optimisation, user experience, and application modernisation while reaping the most benefits.


Figure1: Cloud Computing Market, by Deployment Mode, 2022 & 2032 (USD Billion)


Cloud Computing Market


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Cloud Computing Organization Size Insights


Small and medium-sized organisations, as well as large enterprises, comprise the Cloud Computing Market segmentation. The large enterprises segment will account for more than 51.00% of total revenue in 2022. By allowing collaborative teams to access previously centralised data, remote working raises demand for cloud computing services. Factors such as lowered better cooperation, cheaper operational costs, greater flexibility, and a faster time to market all influence demand. Large-scale organisations can employ cloud computing to automate and accelerate common activities.


Cloud Computing Vertical Insights


The cloud computing market is segmented by vertical, including government and public sector, retail and consumer goods, manufacturing, technology and telecommunications, banking financial services and insurance (BFSI), and retail and public sector. More than 24.75% of the total income was supplied by the banking financial services and insurance (BFSI) category. The BFSI sector has seen a growth in online banking activity, which has led money lenders to embrace the digital revolution. Cloud computing has been essential to this strategy. By encouraging innovation, reducing expenses, boosting flexibility, and enhancing client relationships, cloud computing has benefited businesses in the BFSI sector.


Cloud Computing Regional Insights


By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Cloud Computing Market area will dominate this market, owing to the early use of cloud computing solutions. The presence of several vendors in the region, combined with a stronger proclivity to adopt new technology, is projected to assist these regions strengthen their market positions.


Further, the major countries studiedin the market reportare The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure2:CLOUD COMPUTING MARKET SHARE BY REGION 2022 (USD Billion)


Cloud Computing Market


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe Cloud Computing Market accounts for the second-largest market share due to the presence of strong and well-established IT and telecommunications infrastructure. Further, the German Cloud Computing Market held the largest market share, and the UK Cloud Computing Market was the fastest growing market in the European region


The Asia-Pacific Cloud Computing Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing availability of skilled labor and keen focus provided by SMEs and large enterprises to enter and grow in this region. Moreover, China’s Cloud Computing Market held the largest market share, and the Indian Cloud Computing Market was the fastest growing market in the Asia-Pacific region.


Cloud Computing Key Market Players & Competitive Insights


Leading market players are investing heavily in R&D to expand their product lines, which will help the Cloud Computing Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cloud Computing industry must offer cost-effective items.


Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Cloud Computing industry to benefit clients and increase the market sector. In recent years, the Cloud Computing industry has offered some of the most significant advantages to medicine. Major players in the Cloud Computing Market, including Google LL.CA, International Business Machines Corporation, Alibaba Group Holding Limited, Oracle Corporation: Workday Inc., Microsoft Corporation and others are attempting to increase market demand by investing in R&D operations.


Amazon Web Services, Inc. (AWS) is an Amazon company that offers metered, pay-as-you-go cloud computing platforms and APIs to consumers, businesses, and governments. Clients frequently utilise this in conjunction with autoscaling (a procedure that allows a client to use more compute during periods of heavy application activity and subsequently scale down to decrease expenses during periods of low application usage). Through AWS server farms, these cloud computing web services provide a variety of services relating to networking, computation, storage, middleware, IoT, and other processing resources, as well as software tools. In March 2022, Amazon Web Services (AWS) announced plans to open the first data centre region in New Zealand as part of a NZ$7.5 billion investment strategy. The business intends to open its data centre in Auckland by 2024. Furthermore, the business intends to build 24 additional availability zones and eight additional AWS regions in Australia, India, Indonesia, Israel, Spain, Switzerland, and the United Arab Emirates.


Microsoft Corporation is an international technology corporation with headquarters in Redmond, Washington. Microsoft's most popular software products include the operating system Windows, the Microsoft Office suite, its Internet Explorer and Edge web browsers, and the Microsoft Office suite. Major hardware products include the Xbox gaming consoles and the Microsoft Surfaces family of touchpad personal computers. Microsoft ranked fourteenth on the list of Fortune 500 of the greatest US companies by total revenue in 2022; it was the world's greatest software manufacturer by revenue in 2022. In addition to Alphabet (Google's parent company), Amazon, Apple, and Meta (formerly Facebook), it is considered one of the Big Five American telecommunications companies. In October 2021, Microsoft introduces three new Azure industry-specific cloud offerings: Microsoft Cloud for Financial Services, Microsoft Cloud for Manufacturing, and Microsoft Cloud for Nonprofit.


Key Companies in the Cloud Computing market include



Cloud Computing Industry Developments



June 2023: HCLTech, a global technology specialist, and Google Cloud have expanded their strategic cooperation to assist organisations in leveraging generative artificial intelligence (AI) and developing joint solutions based on Google Cloud's generative AI capabilities.

HCLTech is actively developing generative AI capabilities for its clients leveraging Google Cloud's large language models (LLMs) across three primary domains: industries, enterprise functions, innovation, and technology modernisation. HCLTech's AI platforms and solutions will use the whole array of enterprise generative AI products and services from Google Cloud, including Vertex AI, Generative AI Studio, Model Garden, and Generative AI App Builder, as well as the underlying LLMs that power these Google Cloud AI advancements.


HCLTech will build a Google Cloud Generative AI Centre of Excellence (GenAI CoE) to collaborate on cooperative solutions that would help clients to harness the value of data and unleash the full potential of generative AI. The GenAI CoE will draw on AI knowledge anchored in HCLTech Cloud Native Labs in London, Dallas, and Noida (India).



February 2021, Microsoft is trying to broaden its ambition to provide industry-specific cloud offerings for its clients by releasing bespoke product and service bundles for financial services, manufacturing, and non-profit organisations.


October 2022, Oracle announced the establishment of a new Oracle Interconnect for the Microsoft Azure site in Johannesburg, South Africa, with the goal of providing direct connectivity between the Oracle Cloud Johannesburg area and the Microsoft Azure South Africa region. Because of the most recent Oracle Interconnect, African users can now use the Oracle Database Service for Azure Microsoft.


November 2022, Alibaba Cloud has released ModelScope, a freely available Model-as-a-Service (MaaS) fresh platform, in an effort to lower the barrier to materialising business innovation. Over the past five years, the Alibaba DAMO Institute ("DAMO"), the company's worldwide study arm, has produced more than 300 AI models that are ready for deployment. On the ModelScope platform, these models are now accessible.


Cloud Computing Market Segmentation


Cloud Computing Market Service Model Outlook




  • Software as a Service (Saas)




  • Infrastructure as a Service (laas)




  • Platform as a Service (PaaS)




Cloud Computing Market Deployment Mode Outlook




  • Private




  • Public




  • Hybrid Cloud




Cloud Computing Market Organization Size Outlook




  • Small- and Medium-Sized Enterprises




  • Large Enterprises




Cloud Computing Market Vertical Outlook




  • Banking Financial Services and Insurance (BFSI)




  • IT and Telecommunications




  • Government and Public Sector




  • Retail and Consumer Goods




  • Manufacturing




Cloud Computing Regional Outlook




  • North America






  • US




  • Canada






  • Europe






  • Germany




  • France




  • UK




  • Italy




  • Spain




  • Rest of Europe






  • Asia-Pacific




    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World




    • Middle East




    • Africa




    • Latin America







Report Scope:

Report Attribute/Metric Details
Market Size2022 USD 450.9 Billion
Market Size 2023 USD 534.4 Billion
Market Size2032 USD 2082.2Billion
Compound Annual Growth Rate (CAGR) 18.53% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Service Model, Deployment Mode, Organization Size, Vertical, and Region
Geographies Covered North America, Europe, AsiaPacific, and the Rest of the World
Countries Covered The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Salesforce.com Inc; Adobe Inc., SAP SE, Amazon.com Inc, Google LL.CA, International Business Machines Corporation, Alibaba Group Holding Limited, Oracle Corporation: Workday, Inc. Microsoft Corporation, among others
Key Market Opportunities Increasing government initiatives to accelerate cloud computing usage.
Key Market Dynamics Integration of cloud, big data, AI, and machine learning.


Frequently Asked Questions (FAQ) :

The Cloud Computing Market size was valued at USD 450.9Billion in 2022.

The market is projected to grow at a CAGR of 18.53% during the forecast period, 2023-2032.

North America had the largest share in the market

The key players in the market are Google LL.CA, International Business Machines Corporation, Alibaba Group Holding Limited, Oracle Corporation: Workday, Inc. Microsoft Corporation

The Service SaaS category dominated the market in 2022.

The Hybrid cloud had the largest share in the market.

Key Questions Answered

  • ✅Global Market Outlook
  • ✅In-depth analysis of global and regional trends
  • ✅Analyze and identify the major players in the market, their market share, key developments, etc.
  • ✅To understand the capability of the major players based on products offered, financials, and strategies.
  • ✅Identify disrupting products, companies, and trends.
  • ✅To identify opportunities in the market.
  • ✅Analyze the key challenges in the market.
  • ✅Analyze the regional penetration of players, products, and services in the market.
  • ✅Comparison of major players’ financial performance.
  • ✅Evaluate strategies adopted by major players.
  • ✅Recommendations
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