Cloud Services Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)
Get a Comprehensive Overview of the Cloud Services Market Report Prepared by P&S Intelligence, Segmented by Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Type (Infrastructure as a Service, Platform as a Service, Software as a Service), Organization Size (Large Enterprise, SME), Vertical (BFSI, IT and Telecom, Government, Media and Entertainment, Healthcare, Manufacturing, Oil and Gas, Metals and Mining, Chemicals, Energy and Utilities, Pulp and Paper, Agriculture), and Geographic Regions. This Report Provides Insights From 2019 to 2030.
Cloud Services Market Size
Market Statistics
Study Period | 2019 - 2030 |
2024 Market Size | USD 882.5 Billion |
2025 Market Size | USD 1,029.7 Billion |
2030 Forecast | USD 2,273.8 Billion |
Growth Rate (CAGR) | 17.1% |
Largest Region | North America |
Fastest-Growing Region | Asia-Pacific |
Nature of the Market | Consolidated |
Largest Deployment Model | Public |
Market Size Comparison
Key Players
Key Report Highlights
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Cloud Services Market Analysis
The size of the global cloud services market is estimated to have stood at USD 882.5 billion in 2024, and it is expected to reach USD 2,273.8 billion by 2030, advancing at a CAGR of 17.1% over the forecast period (2024–2030).
Cloud computing involves diverse IT applications and resources, including servers, databases, networking, storage, software, analytics, and intelligence, hosted by third-party service providers.
Cloud services essentially entail the on-demand delivery of IT applications and resources over the internet, with an upfront payment. Instead of permanently buying and setting up the infrastructure for maintaining servers and physical data centers, people can access computing power, databases, storage, and other resources from various cloud service providers over the internet.
One of the major growth factors for the cloud services market is the cost-effectiveness of this approach, different organizations in various sectors can save significantly on operating costs annually.
Cloud Services Market Growth Drivers & Opportunities
Increasing Usage of IoT, Connected Devices, and Wireless Transmission
- The increasing adoption of IoT, wireless transmissions, and connected devices is a key trend in the market as cloud computing provides computer power and storage for IoT applications.
- Data can be stored by companies on a remote server, to be accessed anytime, from anywhere. This way, devices stay connected and exchange data in real time with each other, as well as a centralized monitoring software.
- Connecting wireless devices and networks to the cloud is termed as wireless networking cloud integration. It offers benefits such as scalability, security, flexibility, and cost-effectiveness.
- Wireless networking cloud integration provides an edge over traditional wireless networking solutions. This is because people can manage and access wireless devices and networks anytime, from anywhere and any device, with a mobile app or a web-based dashboard.
- This increasing use of the cloud with connected and IoT devices has opened up a new pathway for the cloud services market.
Rise in Use of Cloud Services in Developing Regions Drives Market
- The economic growth in developing countries, increase in the number of industries and enterprises due to the establishment of manufacturing hubs, rise in the awareness of businesses and individuals of the benefits of cloud services propel the market.
- Using cloud service, enterprises can massively reduce their annual operating costs, by eliminating the need for investing in on-site IT infrastructure. Moreover, as these services are available on the pay-as-you-go basis, there is little risk of overpaying.
- The digitalization of business is necessary nowadays to increase brand value and achieve a stronger position in the market. Therefore, many small and medium enterprises are collaborating with cloud service providers for making their businesses more profitable, which is a major growth opportunity for the cloud services market.
Concerns Regarding Data Privacy and Security Hamper Market Advance
- Cloud platforms are often used to store sensitive data regarding businesses and individuals. However, the cloud services sector is at a potential risk of data breaches, invasion of privacy, loss of data, and cyberattacks. This is a key restraining factor for the market growth, especially with governments around the world implementing stringent data privacy regulations.
- Cybercrimes, such as malware, account hijacking, meltdown, or unauthorized selling of the data of an enterprise, could lead to a major loss of finances and reputation for the victim. The financial losses also stem from the ransoms paid to the criminals in return for the restoration of the data to the owner.
- Individuals, businesses, and even government organizations have to suffer unexpected downtime and disruption in operations due to these cyberattacks.
Cloud Services Industry Outlook
Deployment Model Insights
- Public is the largest category, holding a share of 55% in 2024. The rise in the demand for cost-efficient, scalable, and secure solutions is boosting the demand for public cloud across large enterprises.
- One of the other reasons for the category’s growth is the rising adoption of connected devices and IoT, increasing level of automation in several industries, and digital transformation in different businesses.
- The hybrid category is expected to advance at the higher CAGR, of 17.5%, during 2024–2030. This model involves orchestration, workload portability, and management across two or more data centers, private clouds, and public clouds.
- With hybrid cloud systems, the advantages of both private and public clouds are combined, resulting in better optimization of resources, greater flexibility, and higher scalability.
- A hybrid cloud system has the ability to back up systems across different networks and virtual locations. In the case of an error in one location, workloads and tasks can be shifted to another environment, ensuring business continuity.
During the study we found three major deployment models:
- Private
- Public (Largest Category)
- Hybrid (Fastest Growing Category)
Type Insights
- Software as a service (SaaS) is the largest category, holding a share of 50% in 2024. It is also the fastest-growing category, advancing at a CAGR of 17.6% during 2024-2030. This is due to the cost-effectiveness, low maintenance costs, and ease of deployment of these solutions.
- The major reasons for the growth of this category are the rising usage of hybrid clouds, surging need for the storage of data, and high demand for security solutions.
The type segment is categorized as -
- Infrastructure as a Service (IaaS)
- Primary storage
- Disaster recovery and backup
- Archiving
- Compute
- Platform as a Service (PaaS)
- Application development and platforms
- Application testing and quality
- Analytics and reporting
- Integration and orchestration
- Data management
- Software as a Service (SaaS) (Largest and Fastest-Growing Category)
- Customer relationship management (CRM)
- Enterprise resource management (ERM)
- Human capital management (HCM)
- Content management
- Collaboration and productive suites
- Supply chain management (SCM)
- Others
Organization Size Insights
- Large enterprises are the larger category, holding a share of 65% in 2024. Large enterprises require cloud service for the better handling of their operations. To them, the cloud provides scalability, operational efficiency, seamless collaboration among globally dispersed teams, enhanced communication, location independence, and strong security.
- Small and medium businesses (SMEs) are the faster-growing category, advancing at a CAGR of 17.3% during 2024–2030. By using cloud services, SMEs can eliminate the need for setting up their own infrastructure onsite, thereby raising cost-efficiency manifold.
On the basis of organization size, the market is bifurcated as:
- Large Enterprise (Larger category)
- Small and Medium Enterprise (SME) (Faster Growing Category)
Vertical Insights
- The IT & telecom category held the largest share, of 25%, in 2024. With the help of cloud services, telecommunication service providers can analyze customer data and store it. Telcos have plenty of data to deal with and, that too, sensitive information, which requires robust security.
- By using cloud services, telecommunication service providers can build online data warehouses, store and transfer data, access it from different locations, and manage other cloud-based telecommunication services.
- The market is witnessing several collaborations among companies operating in the IT & Telecommunication sector and cloud service providers. For example, in February 2023, Airtel collaborated with Vultr to offer cloud services to enterprises in India.
- The BFSI category is expected to witness the highest CAGR, of 17.8%, during 2024–2030. This sector requires cloud services for offering payment gateways, digital wallets, online funds transfer, and other banking facilities to customers.
- The cloud services provided to the BFSI sector must adhere to data privacy regulations and provide real-time reporting. The need to provide customers banking at their fingertips and the digitization of payments are the major reason for the market growth in this sector.
The verticals that have been covered in the market analysis are:
- BFSI (Fastest growing category)
- IT & Telecom (Largest category)
- Government
- Media and Entertainment
- Healthcare
- Manufacturing
- Oil and Gas
- Petrochemicals
- Metals and Mining
- Energy and Utilities
- Pulp and Paper
- Agriculture
- Others
North America Is Largest Region
- North America held the largest global market share, of 45%, in 2024. This is due to the early adoption of advanced technologies, including blockchain, robotics, artificial intelligence, internet of things, and connected devices.
- A major reason for this domination is the presence of cloud service giants, such as Amazon, Microsoft, Oracle, Google, and IBM.
- Asia-Pacific is the fastest-growing region, at a CAGR of 17.7% during 2024–2030. Countries across the region are witnessing economic growth and adopting advanced technologies, such as blockchain, robotics, AI, IoT, and 5G, across different industries.
- All these technologies generate massive volumes of data, which creates the need for cloud servers to store it and access the related software.
The regions and countries analyzed in this report include:
- North America (Largest Regional Market)
- U.S. (Larger and Faster-Growing Country Market)
- Canada
- Europe
- U.K.
- Germany (Largest and Fastest-Growing Country Market)
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific (APAC) (Fastest Growing Regional Market)
- China (Largest Country Market)
- Japan
- India (Fastest-Growing Country Market)
- South Korea
- Australia
- Rest of APAC
- Latin America (LATAM)
- Brazil (Largest and Fastest-Growing Country Market)
- Mexico
- Rest of LATAM
- Middle East and Africa (MEA)
- Saudi Arabia (Largest Country Market)
- South Africa
- U.A.E. (Fastest-Growing Country Market)
- Rest of MEA
Market Concentration - High
There are a large number of companies offering cloud services to various sectors.
The sector witness’s frequent collaboration among telecommunication companies and cloud service providers. This is a lucrative market for startups, who face financial issues; therefore, are unable to afford expensive onsite computing infrastructure.
Major Cloud Service Providers:
- Amazon Web Services Inc.
- Oracle Corporation
- IBM Corporation
- Alibaba Group Holding Limited
- Microsoft Corporation
- Alphabet Inc.
- Cisco Systems Inc.
- Dell Technologies Inc.
- Hewlett Packard Enterprise Development LP
- Adobe Inc.
- DXC Technology Inc.
Cloud Services Industry News
- In January 2024, Microsoft and Vodafone signed a 10-year strategic partnership to bring digital services and generative AI to more than 300 million consumers and businesses.
- In January 2023, Google Cloud partnered with TTEC Holdings to provide Google’s AI-powered contact center as a service (CCaaS) capability, to consolidate real-time interactions with customers across live and digital channels.
- In February 2023, Tech Data launched its deployment, cloud implementation, configuration, trouble ticket management, support, and infrastructure monitoring services in Australia.
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