The cloud computing market is expanding rapidly, driven by increasing demand for IT solutions with scalability and digital transformation, led by North America.

Cloud computing is not a trend; it's the foundation of digital transformation, driving efficiency, scalability, and innovation across industries.”
— Polaris Market Research

NEW YORK CITY, NY, UNITED STATES, September 15, 2025 /EINPresswire.com/ -- ???????????? ????????????????

Polaris Market Research analyzes the cloud computing market size to witness robust growth. The market for cloud computing was valued at USD 736.10 billion in 2024. It is projected to reach USD 4,860.73 billion by 2034. The market is expected to grow at a CAGR of 20.8% from 2025 to 2034. Market growth is primarily driven by the growing need for scalable IT infrastructure, cost savings, and rapid digital transformation across sectors. Cloud computing refers to providing computer facilities, such as storage space, computing capacity, and software, via the internet, thus allowing users and businesses to use these facilities as and when they need them without owning or having to maintain physical infrastructure. It provides scalability, flexibility, and value, which makes it simple for organizations to handle data and applications without increasing IT overhead. Cloud computing is implemented extensively by all industries for anything from business applications and data storage to AI and analytics.

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• The increasing demand for scalable IT infrastructure, digital transformation at an aggressive pace, and the implementation of new technologies such as AI, machine learning, and big data are driving the demand for high-quality cloud computing services across industries to varying degrees.

• In terms of services, the SaaS segment, due to the simplicity of adoption, price, and widespread utilization of cloud-based business applications, is set to maintain its significant market share in cloud computing.

• From a workload perspective, the application development and testing market will experience the most growth, as there is an increase in demand for agile, on-demand cloud infrastructures that accelerate the development process and facilitate cloud-native app development.

• The large enterprise market is still the largest, driven by early adoption, complex IT needs, and ongoing investment in cloud strategies to automate, enhance scalability, and control costs.

• North America is the leader in cloud computing, followed by big technology firms, high digitalization penetration, and enormous data center facility infrastructure, and high-tech spending, including AI and machine learning.

• Europe has a robust market position in cloud computing based on consistent industry adoption and robust data privacy regulations such as GDPR, which have also propelled the expansion of specialist cloud suppliers for local compliance demands.

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• AI drives cloud computing through maximizing data processing efficiency, enabling faster decision-making through real-time analytics and auto-tasks.

• Automation of cloud computing with AI reduces the cost of operations through effective resource management and allocation, thus increasing cloud operation efficiency.

• Cloud services with artificial intelligence are improving security through the detection of anomalies, using predictive analytics, and benefiting from more effective threat intelligence, which in turn reduces the likelihood of cyberattacks.

• AI-powered cloud platforms facilitate advanced machine learning models, which help businesses leverage AI solutions without extensive infrastructure.

• Cloud computing augmented with AI helps accelerate innovation by facilitating more intelligent applications, ranging from personalized services to predictive maintenance offerings.

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Growth Drivers

Cloud Security and Compliance: The increasing need for protection of data and regulatory compliance, such as HIPAA and GDPR, is encouraging organizations to choose cloud providers with good security features. This ensures legal compliance and protects sensitive data, instilling confidence and bringing greater adoption of the cloud in regulated industries such as healthcare and finance.

Rising Digital Transformation: Digital transformation is increasingly calling for cloud computing as businesses take operations and services onto the internet in an attempt to stay ahead. Cloud services offer a scale-up IT foundation, with the ability to deploy digital solutions quickly without the need for capital expenses on high-cost physical infrastructure, converting many companies from legacy systems to more agile, cloud-based ones.

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Advancements in AI, ML, and Edge Computing: AI, ML, and edge computing are revolutionizing cloud platforms by enhancing the effectiveness of data processing and enabling real-time analysis. Businesses can automate processes, forecast trends, and make quicker, wiser decisions using these technologies, promoting operational efficiency and better customer experience.

Improved Cybersecurity and Compliance: The higher the cloud adoption, the higher is the need for robust cybersecurity and data privacy regulation. Companies are instead opting for advanced security solutions to protect sensitive information, especially in sectors including healthcare, finance, and government.

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Growing Demand for Cloud-Based Business Applications: With companies increasingly shifting their business to the web, there is a high need for cloud applications such as CRM, ERP, and collaboration software. These enable organizations to grow cost-effectively, enhance productivity, and decrease operating expenses.

Expansion of Cloud Services in Emerging Markets: Cloud deployment is evolving very quickly in emerging economies, with growth prospects. With the rise in internet penetration and digitalization in Asia Pacific and Latin America regions, cloud offerings can enable firms to enhance their IT infrastructure and enhance digital capabilities.

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Data Privacy and Security Issues: With more businesses going to the cloud, data security becomes a major priority. Cloud environments are more exposed to cyber threats, and strict regulations such as GDPR make compliance more difficult. Having strong encryption and secure access controls becomes mandatory to securing data while maintaining privacy levels.

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The SaaS segment dominated the market in 2024 because it offers ease of use, simple deployment, and cost-effective, subscription-based business model, thus becoming the solution of preference for businesses of all sizes seeking scalable, cloud-based software without infrastructure management hassles.

In addition, the PaaS segment is also likely to see the fastest growth due to its ability to offer agile as well as scalable platforms for application development that support digital transformation and newer technologies such as AI, ML, and IoT, thereby enabling companies to innovate at a quicker speed and in an optimal manner.

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The data backup & storage segment is the market leader due to growing needs for reliable, secure, and scalable storage solutions, which offer organizations cost-effective and affordable options for handling large amounts of data and ensuring business continuity.

The testing and application development segment is also likely to grow at a rapid rate since cloud environments enable faster, more interactive development cycles, allowing businesses to innovate and deploy applications more efficiently with the aid of specialized cloud tools.

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?????????? ??????????????: North America led the cloud computing market in 2024 due to strong digital adoption, high investments in infrastructure, and the embracement of advanced technologies such as AI and machine learning, ensuring continued market leadership.

???????? ??????????????: The area is quickly becoming a leading market, fueled by digitalization, the pervasiveness of the internet, and robust government support for digital economies, leading to growing adoption, especially among SMEs.

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The cloud computing industry is highly competitive, dominated by a few giants, in addition to several small-scale specialized firms. The giants rule the roost because of their massive resources and global outreach, which, coupled with their continuous innovation, draw a broad clientele. The smaller businesses tend to build niches across industries or hybrid clouds, which results in a dynamic market where competition is determined by price, security, scalability, and performance. Below are some of the main players in the industry:

• Alibaba Cloud
• AWS (Amazon Web Services)
• DigitalOcean
• Google Cloud (Alphabet Inc.)
• IBM Cloud (IBM)
• Microsoft Azure
• Oracle Cloud Infrastructure
• OVHcloud
• Rackspace Technology
• Salesforce
• Tencent Cloud

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?????????????? ????????: Amazon Web Services (AWS) signed a memorandum of understanding (MOU) with Mitsubishi Electric Corporation. The MOU is focused on collaborating in the digital domain. According to Mitsubishi, the MOU will help it leverage AWS’s insights and technologies in cloud computing and generative AI for developing innovative data solutions.

?????????????? ????????: Microsoft announced USD 3 billion investment in cloud and AI infrastructure in India over the next two years. The company stated that the investment includes the establishment of data centers. With the investment, Microsoft aims to drive AI innovation in the country.
List of Segments Covered in Report

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• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

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• Application Development & Testing
• Data Storage & Backup
• Resource Management
• Orchestration Services
• Others

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• Public
• Private
• Hybrid

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• Small & Medium Enterprises
• Large Enterprise

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• BFSI
• IT & Telecom
• Retail & Consumer Goods
• Manufacturing
• Energy & Utilities
• Healthcare
• Media & Entertainment
• Government & Public Sector
• Others

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• North America
? U.S.
? Canada
• Europe
? Germany
? France
? UK
? Italy
? Spain
? Netherlands
? Russia
? Rest of Europe
• Asia Pacific
? China
? Japan
? India
? Malaysia
? South Korea
? Indonesia
? Australia
? Vietnam
? Rest of Asia Pacific
• Middle East & Africa
? Saudi Arabia
? UAE
? Israel
? South Africa
? Rest of Middle East & Africa
• Latin America
? Mexico
? Brazil
? Argentina
? Rest of Latin America

Thank you for your time in reviewing our report. If you require a more specific analysis, we offer chapter-wise analysis and country-specific reports, including insights for North America, Europe, and Asia Pacific.

We at Polaris Market Research offer insightful market research that enables companies to navigate industry change, identify new opportunities, and make more informed decisions. With a combination of sound data and a clear vision of market trends, we enable companies to address challenges, optimize their strategies, and remain competitive. Our purpose is to provide actionable insights that facilitate growth and success in an ever-changing market.

Likhil G
Polaris Market Research and Consulting
+ +1 929-297-9727
[email protected]
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