United States Cloud Market to Reach $60.6 Billion by 2031, Driven by Digital Infrastructure & Cloud Migration

Leander, Texas and Tokyo, Japan - Dec.09.2025
As per DataM intelligence research report" The Global Cloud Market is estimated to have reached around USD 373 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 202 billion by 2031. The market is growing at a CAGR of 23.9% during the forecast period 2024-2031." Scalability needs, digital workloads, and hybrid environments continue to accelerate cloud adoption globally.

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United States: Recent Industry Developments

✅ In November 2025, Microsoft Azure unveiled its custom "Maia" AI accelerator chips for cloud data centers. The chips are optimized for training large language models and generative AI workloads. It reduces the cost and energy consumption of AI services for U.S. enterprise customers.

✅ In October 2025, Amazon Web Services (AWS) launched a new "Sovereign Cloud" zone for U.S. government agencies. The zone ensures strict data residency and classification controls for sensitive workloads. It strengthens AWS's position in the federal defense and intelligence sector.

✅ In September 2025, Google Cloud introduced "Duet AI" integration across its entire workspace and cloud platform. The AI assistant helps developers write code and operators manage infrastructure. It enhances productivity for U.S. tech teams using the Google ecosystem.

✅ In August 2025, Oracle completed the migration of a major U.S. healthcare provider's EHR system to OCI. The move demonstrates the capability of Oracle's cloud to handle mission-critical medical data. It highlights the vertical-specific growth of cloud services in the U.S.

Japan: Recent Industry Developments

✅ In December 2025, NEC Corporation launched a "Sovereign Cloud" service built on domestic data centers. The service guarantees that data never leaves Japanese jurisdiction, appealing to economic security concerns. It targets government and critical infrastructure clients in Japan.

✅ In November 2025, Fujitsu partnered with Microsoft to offer a hybrid cloud platform for Japanese financial institutions. The platform combines Azure's scalability with Fujitsu's localized security and compliance services. It facilitates the modernization of Japan's banking systems.

✅ In October 2025, The Digital Agency of Japan selected Google Cloud as a primary provider for the "Government Cloud" initiative. The decision accelerates the migration of municipal systems to a standardized cloud environment. It promotes the digitalization of public services across Japan.

✅ In September 2025, Sakura Internet expanded its GPU cloud infrastructure to support domestic generative AI development. The expansion is subsidized by the Japanese government to foster AI sovereignty. It ensures Japanese startups have access to high-performance computing.

Cloud Market: Drivers
Cloud computing continues to reshape enterprise IT by enabling scalable infrastructure, SaaS applications, and platform services that reduce capital expenditure and accelerate innovation cycles. Public, private, and hybrid cloud models support diverse workloads from enterprise ERPs and analytics to AI training and edge-assisted services boosting operational agility. Advances in containerization, serverless architectures, and multi-cloud orchestration are improving developer velocity and deployment flexibility. Security, data governance, and cost optimization remain critical focus areas for cloud adopters navigating complex regulatory landscapes.

Service providers are expanding managed cloud offerings, verticalized solutions, and integrated security stacks to meet sector-specific needs. Edge cloud options and distributed compute continue to grow alongside 5G deployments and IoT use cases. Integration of AI/ML capabilities, data lakes, and automation tools is enhancing business insights and process automation. With continuous innovation and high enterprise demand, cloud computing will remain a central pillar of digital transformation strategies.

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Cloud Market: Major Players
Microsoft, oracle, IBM Corporation, Cisco Systems Inc., Google, SAP SE, Salesforce.com, Inc., Quickbase, Inc., ThoughtSpot, Inc and QlikTech International AB.

Segment Covered in the Cloud Market:
By Type
The market is segmented into SaaS 40%, IaaS 20%, BPaaS 10%, Cloud Management & Security Services 15%, DaaS 5%, and PaaS 10%, with SaaS dominating due to widespread adoption for business applications, collaboration, and remote work solutions. IaaS is growing rapidly with enterprise infrastructure migration. Cloud management and security services are increasingly critical for compliance and cybersecurity. PaaS and BPaaS support application development and business process outsourcing.

By Organization Size
Organizations include large enterprises 60% and SMEs 40%, with large enterprises dominating due to higher IT budgets, multi-cloud adoption, and global operations. SMEs are adopting cloud for cost efficiency and scalability. Large-scale deployments leverage SaaS, IaaS, and security solutions. Cloud adoption in SMEs is accelerating due to digital transformation and remote work trends.

By End-User
End-users include Banking & Financial Sector 20%, Telecommunications & IT 15%, Public Sector & Government 15%, Consumer Goods & Retail 10%, Healthcare & Life Sciences 10%, Logistics & Transportation 10%, Education & Research 10%, and others 10%, with banking, IT, and public sector leading adoption due to high data dependency, compliance requirements, and need for agility. Other sectors are increasingly investing in cloud solutions for efficiency and innovation. Healthcare and education adoption is growing steadily. Cross-sector integration drives overall growth.

By Revenue-Source
Revenue sources include subscriptions & licenses 55%, consulting/professional services 25%, and managed services 20%, with subscriptions dominating due to recurring revenue models and software adoption. Consulting and professional services are critical for deployment and migration. Managed services support operational efficiency, monitoring, and security. Enterprises increasingly prefer hybrid and managed cloud engagements.

By Distribution Channel
Distribution channels include direct sales 70% and distributors 30%, with direct sales dominating due to customized enterprise solutions, contract-based deals, and vendor-managed services. Distributors support SME adoption and channel-based reach. Multi-channel distribution enables global penetration and scalability. Vendors are increasingly leveraging e-commerce and partner networks for cloud offerings.

Regional Analysis
Americas - 40% Share
Americas lead the market with 40% share driven by U.S. and Canada adoption, mature IT infrastructure, and cloud-first strategies. SaaS dominates. Large enterprises are primary users. Banking, IT, and public sector lead adoption. Subscriptions and direct sales channels drive revenue. Strong digital transformation initiatives support growth.

Europe - 25% Share
Europe holds 25% share due to cloud adoption in Germany, UK, France, and Nordics, regulatory support, and digital transformation initiatives. SaaS and Cloud Management & Security Services dominate. Large enterprises are primary users. Banking, IT, and government lead adoption. Subscriptions and direct sales are key revenue channels.

Asia-Pacific - 20% Share
Asia-Pacific accounts for 20% share driven by cloud adoption in China, India, Japan, and Australia, digitalization in enterprises, and SME adoption. SaaS and IaaS dominate. Large enterprises and SMEs adopt cloud solutions. Banking, IT, and consumer goods lead usage. Subscriptions and consulting services drive revenue.

Middle East - 10% Share
Middle East holds 10% share due to growing digital transformation initiatives in UAE, Saudi Arabia, and Qatar, and cloud adoption in public and financial sectors. SaaS dominates. Large enterprises lead adoption. Banking, IT, and government are key end-users. Direct sales and subscription models drive revenue growth.

Africa - 5% Share
Africa holds 5% share with growth supported by IT infrastructure development in South Africa, Nigeria, and Kenya, and adoption in banking, telecom, and government. SaaS dominates. Large enterprises are primary users. Subscriptions and managed services drive revenue. Cloud adoption is gradually increasing with digital initiatives.

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