How Has the Cloud Sustainability Market Size Evolved in Recent Years?
The cloud sustainability market has seen considerable growth due to a variety of factors.
• In recent times, there has been a dramatic expansion in the size of the cloud sustainability market. Its valuation is set to surge from $30.29 billion in 2024 to $36.48 billion in 2025, showing a compound annual growth rate (CAGR) of 20.4%.
This significant growth during the historical period has been facilitated by factors such as greater environmental regulations, growing demand for energy-efficient solutions, an increase in government incentives for sustainability, emergence of green cloud certifications and standards, along with a notable increase in sustainable supply chain practices.
What are the Market Size and Expected Growth Rates for the Cloud Sustainability Market?
The cloud sustainability market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for tremendous expansion in the cloud sustainability market in the upcoming years, with projections seeing it swelling to an impressive $75.82 billion by 2029, presenting a compound annual growth rate (CAGR) of 20.1%.
Such anticipated growth in the coming time frame can be linked to factors such as the augmenting awareness among consumers about sustainability practices, the mounting stipulations for environmental compliance set by regulations, the burgeoning demand for effective data protection solutions, the escalating demand for green, eco-friendly IT solutions, and the surging expenditure on cloud services. Forecasts for the period also reveal major trends including the development of energy-efficient cloud infrastructure, a shift towards data centers powered by renewable energy, innovative technology for tracking and reporting carbon footprints, a shift towards edge computing for reduced latency and energy consumption, and a move towards serverless computing for optimal resource allocation.
What Are The Key Drivers Fueling Growth In The Cloud Sustainability Market?
The escalating need for efficient energy utilization is anticipated to accelerate the progress of the cloud sustainability market. Energy efficiency solutions, including technologies, strategies and methods, are designed to decrease power consumption without sacrificing performance. Factors propelling the need for energy efficiency include stringent environmental laws, escalating energy prices, increasing public awareness about sustainability, the requirement for operation cost reductions and the widening acceptance of green technologies and renewable energy sources in various sectors. Cloud sustainability promotes efficient energy use by incorporating advanced technologies like server virtualization, adaptable resource allocation, and renewable energy integration. This helps optimize resource utilization, curtail power usage, and mitigate the environmental impact of data centers. It eventually allows companies to conduct operations more effectively while fulfilling sustainability objectives. For example, the Food and Agriculture Organization, a specialized agency of the United Nations based in Canada, has highlighted that the European Union is striving to bolster energy efficiency, setting a goal of attaining a minimum 32.5% improvement by 2030. Consequently, the escalating need for energy efficiency is propelling the expansion of the cloud sustainability market.
What Are The Key Segments Within The Global Cloud Sustainability Market?
The cloud sustainability market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Model: Infrastructure As A Service (IaaS), Platform As A Service (PaaS), Software As A Service (SaaS), Other Models
3) By Enterprise Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By End-Use: Information Technology And Telecom, Banking, Financial Services, And Insurance (BFSI), Healthcare, Retail And E-commerce, Manufacturing, Other End-Uses
Subsegments:
1) By Solutions: Carbon Footprint Management, Energy-Efficient Cloud Infrastructure, Green Data Centers, Sustainable Cloud Optimization
2) By Services: Consulting And Advisory Services, Implementation And Integration Services, Support And Maintenance Services
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How Are New Trends Impacting The Size Of The Cloud Sustainability Market?
Major companies operating in the cloud sustainability market are focusing on developing innovative solutions, such as sustainable-based apps, to optimize environmental impact, enhance ESG reporting, reduce carbon footprints, improve resource efficiency, and align business strategies with sustainability goals. These apps enable organizations to track, analyze, and manage their environmental data more effectively, supporting compliance with regulations and driving long-term sustainable growth. For instance, in September 2024, Oracle Corporation, a US-based technology company specializing in enterprise software, cloud computing solutions, and database management systems, launched Oracle Fusion Cloud Sustainability to enhance the capabilities of its enterprise performance management (EPM) system. This application integrates data from Oracle's Fusion Cloud ERP and supply chain management (SCM) systems, enabling comprehensive analysis and reporting of environmental, social, and governance (ESG) metrics. The app offers built-in dashboards, emission factor mapping, and audit tools to streamline sustainability reporting, from data collection to validation and reporting. It integrates EPM’s scenario modeling features, enabling alignment of ESG goals with financial plans.
Who Are the Key Players In The Cloud Sustainability Market?
Major companies operating in the cloud sustainability market are:
• Microsoft Azure
• Dell Technologies Inc.
• Apple Inc.
• Amazon Web Services Inc.
• Intel Corporation
• Accenture plc
• International Business Machines Corporation (IBM)
• Deloitte Consulting LLP
• Oracle Corporation
• Google LLC
• SAP SE
• Capgemini SE
• Salesforce Inc.
• Cognizant Technology Solutions Corporation
• Vmware LLC
• Atos SE
• HCL Technologies Limited
• CGI Inc.
• Equinix Inc.
• Iron Mountain Data Centers
• Digital Realty Trust Inc.
• Geotab Inc.
• Rackspace Technology Inc.
What Are The Regional Insights Into The Cloud Sustainability Market?
North America was the largest region in the cloud sustainability market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud sustainability market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
