What Fueled Cloud Services Market?
The cloud services market has seen considerable growth due to a variety of factors.
• The scale of the cloud services market has robustly expanded over the past few years. An escalation from $570.22 billion in 2024 to $611 billion in 2025 is anticipated, corresponding to a compound annual growth rate (CAGR) of 7.2%.
Factors such as enhanced internet accessibility, SMEs' increasing use of the cloud, technological progression, a focus on decreasing IT infrastructure expenses, governmental efforts, and a setting of low interest rates have contributed to the growth observed in the historical period.
What Is The Expected Growth In The Cloud Services Market Size?
The cloud services market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of cloud services is projected to experience significant expansion in the forthcoming years, escalating to $841.63 billion in 2029 with a compound annual growth rate (CAGR) of 8.3%.
This predicted surge during the forecast period can be linked to the growing uptake of cloud services in emergent regions, advancements in the Internet of Things (IoT), the effects of the COVID-19 pandemic, the expansion of smart cities and the increasing infiltration of e-commerce. Expected trends within the forecast period encompass an intensified emphasis on virtual desktop solutions, the application of artificial intelligence (AI), partnerships among cloud service providers, quantum computing research and development, the inclusion of public cloud platforms in service offerings, investment in innovative research and development, and the creation of eco-friendly data centers or the outsourcing of cloud services to green data centers for cost efficiency.
Which Drivers Are Accelerating Growth In The Cloud Services Market?
The accelerated uptake of online gaming is expected to significantly fuel the expansion of the cloud services market in the future. Online gaming involves playing video games over the internet or other accessible computer networks. Cloud services contribute to making online games platform-independent, easily accessible, scalable, cost-effective, convenient, and offer enhanced gaming experiences. As highlighted in a March 2023 blog post by UK-based online audio and video media firm CyberCrew UK, the gamer population in the UK escalated by 63% following the 2021 lockdown. Video game consumers splurged $5.2 billion on these games in 2020, surpassing $5 billion for the first time in the UK's video gaming market. By 2025, profits are foreseen to hit $7.6 million. Consequently, the swift upswing in online gaming adoption is galvanising the growth of the cloud services market.
What Are The Primary Segments In The Global Cloud Services Market?
The cloud services market covered in this report is segmented –
1) By Type: Software as a service (SaaS), Platform as a service (PaaS), Infrastructure as a service (IaaS), Business Process as a service (BPaaS)
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Organisation Size: Large Enterprises, Small And Medium Enterprises
4) By Application: Storage, Backup, and Disaster Recovery, Application Development and Testing, Database Management, Business Analytics, Integration and Orchestration, Customer Relationship Management, Other Applications
5) By End-User Industry: BFSI, Media And Entertainment, IT and Telecommunications, Energy And Utilities, Government And Public Sector, Retail And Consumer Goods, Manufacturing, Other End User Industries
Subsegments:
1) By Software as a Service (SaaS): Customer Relationship Management (CRM) Software, Enterprise Resource Planning (ERP) Software, Human Resource Management (HRM) Software, Collaboration and Productivity Tools, Content Management Systems (CMS)
2) By Platform as a Service (PaaS): Application Development Platforms, Database Management Systems, Middleware Solutions, Integration Platforms, Analytics and Business Intelligence Platforms
3) By Infrastructure as a Service (IaaS): Virtual Servers, Storage Solutions, Networking Services, Backup and Disaster Recovery Solutions, Bare Metal Servers
4) By Business Process as a Service (BPaaS): Financial and Accounting Services, Human Resources Outsourcing, Customer Service and Support Solutions, Supply Chain Management Services, IT Management and Support Services
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Which Key Trends Are Driving Changes In The Cloud Services Market?
A significant trend emerging in the cloud services market is the advent of novel tools. These cloud service tools, encompassing infrastructure, platforms, or software, are hosted by external providers and can be accessed by users via the Internet. For example, in September 2022, new data and analytics features for its data cloud were unveiled by Google LLC, a technology firm based in the United States. These new platforms for data sharing and data lakes are intended to permit users to access more data at a reduced cost and help organizations to overcome common hurdles that often restrict their abilities with data.
Who Are the Key Players in the Cloud Services Market?
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
What Is The Most Dominant Region In The Cloud Services Market?
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
