Market Forecast by Countries (Germany, United Kingdom, France, Italy, Russia, Spain, Rest of Europe), By Service Model (Infrastructure as a Service, Platform as a Service, Software as a Service), By Infrastructure as a Service (Primary Storage, Disaster Recovery and Backup, Archiving, Computer), By Platform as a Service (Application Development and Platforms, Application Testing and Quality, Analytics and Reporting, Integration and Orchestration, Data Management), By Software as a Service (Customer Relationship Management, Enterprise Resource Management, Human Capital Management, Content Management, Collaboration and Productivity Suites, Supply Chain Management, Others), By Organization Size (Large Enterprises, SMEs), By Deployment Model (Public Cloud, Private Cloud), By Verticals (BFSI, Telecommunication, IT & ITeS, Government & Public Sector, Retail & Consumer Goods, Manufacturing, Energy & Utility, Media & Entertainment) And Competitive Landscape
| Product Code: ETC4610175 | Publication Date: Jul 2023 | Updated Date: Nov 2025 | Product Type: Report | |
| Publisher: 6Wresearch | Author: Ravi Bhandari | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 300 |
According to industry data and market insights, the Europe Cloud Computing Market was valued at approximately USD 185.3 billion in 2024 and is projected to reach nearly USD 588.2 billion by 2031, registering a compound annual growth rate (CAGR) of 20.4% during the forecast period (2025-2031).
Below mentioned are the evaluation of year-wise growth rate along with key drivers:
| Years | Est. Annual Growth (%) | Growth Drivers |
| 2020 | 9 | Acceleration of enterprise digital transformation and remote working infrastructure |
| 2021 | 10.2 | Uptake of hybrid cloud deployments and demand for elastic IT infrastructure |
| 2022 | 11.5 | Growth in data analytics, AI workloads and cloud migration initiatives |
| 2023 | 13 | Expansion of multi-cloud strategies and sovereign cloud initiatives |
| 2024 | 14.8 | Surge in edge cloud adoption and regulatory support for digital infrastructure |
The Europe Cloud Computing Market report thoroughly covers the market by countries, service models, Infrastructure as a Service, Platform as a Service, Software as a Service, organization size, deployment model, and verticals. The report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high-growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.
| Report Name | Europe Cloud Computing Market |
| Forecast Period | 2025-2031 |
| Market Size | USD 588.2 billion by 2031 |
| CAGR | 20.4% |
| Growing Sector | Information Technology & Services |
The Europe Cloud Computing Market is experiencing rapid growth. This expansion of the market is primarily driven by increasing digital transformation initiatives, rising enterprise use of cloud platforms for scalability, and growing investments in data centre and edge infrastructure. Furthermore, strong regulatory support for data sovereignty and digital infrastructure across European countries is expected to significantly contribute to market development. The advancement of hybrid and multi-cloud architectures, along with the integration of artificial intelligence and analytics in cloud services, will further push market penetration across industries such as BFSI, IT & ITeS, manufacturing and energy & utility.
Below mentioned are some growth drivers and their impact on market dynamics:
| Drivers | Primary Segments Affected | Why It Matters |
| Digital Transformation Initiatives | All Verticals | Accelerates cloud service adoption as enterprises replace legacy infrastructure. |
| Data Sovereignty and Regulatory Support | Public Cloud, Private Cloud | Creates demand for regionally compliant cloud platforms in Europe. |
| Hybrid and Multi-Cloud Deployment | Deployment Model | Enables enterprises to combine agility and control, driving cloud spend. |
| AI, Analytics and Edge Computing | Service Models | Increases demand for cloud platforms capable of handling advanced workloads. |
| SME Cloud Adoption | Organization Size | Larger number of SMEs shifting to cloud creates incremental demand beyond large enterprises. |
The Europe Cloud Computing Market is expected to grow at a compound annual growth rate CAGR 20.4% of during the forecast period of 2025-2031. The Europe Cloud Computing Market is set for substantial expansion as enterprises accelerate digital transformation and adopt advanced cloud architectures. Strong regulatory support for data sovereignty and investments in regional infrastructure continue to drive demand. In the middle of this momentum, Europe Cloud Computing Market Growth is reinforced by the rapid shift toward hybrid and multi-cloud models. With sustainability, data protection, and operational agility becoming critical priorities, emerging technologies such as edge computing and advanced analytics will further enhance market progress.
Below mentioned are some major restraints and their influence on market dynamics:
| Restraints | Primary Segments Affected | What This Means |
| Dominance by Large Hyperscalers | All Service Models | Reduces opportunity for smaller or local cloud providers, limiting competitive diversity. |
| Stringent Data Protection & Privacy Laws | Public Cloud, SaaS | Slows adoption in regulated industries where compliance demands are high. |
| High Infrastructure Investment Costs | Private Cloud, Hybrid Cloud | Creates entry barriers for new providers and delays deployment in some regions. |
| Skills Shortage in Cloud Technology | All Verticals | Limits adoption speed as enterprises struggle to find cloud-trained personnel. |
The Europe Cloud Computing Industry faces several challenges such as dominance of large hyperscale cloud providers which limits local vendor growth and choice, especially across smaller markets. Stringent data protection and sovereignty regulations force additional compliance costs and may slow decision-making in adoption. High investment required for data centres and edge infrastructure poses a challenge for regional players. Furthermore, shortage of cloud-skilled professionals and rapid change in technology stacks create integration risks for enterprises.
Some major trends contributing to the development of the Europe Cloud Computing Market Growth are:
Here are some investment opportunities in the Europe Cloud Computing Market:
Here are some top companies contributing to the Europe Cloud Computing Market Share:
| Company Name | Amazon Web Services (AWS) |
|---|---|
| Headquarters | Seattle, Washington, USA |
| Established | 2006 |
| Official Website | Click Here |
AWS is a global cloud services leader offering a broad portfolio of IaaS, PaaS and SaaS solutions. It leads European market share with a wide range of services and regional data-centre presence.
| Company Name | Microsoft Corporation (Azure) |
|---|---|
| Headquarters | Redmond, Washington, USA |
| Established | 1975 |
| Official Website | Click Here |
Microsoft Azure provides enterprise-grade cloud services including IaaS, PaaS, SaaS and hybrid offerings. Its strong presence in Europe and deep enterprise relationships make it a major player.
| Company Name | Google LLC (Google Cloud Platform) |
|---|---|
| Headquarters | Mountain View, California, USA |
| Established | 1998 |
| Official Website | Click Here |
Google Cloud Platform offers advanced analytics, AI and container-based cloud services. It continues to expand its European data-centre footprint and enterprise portfolio.
| Company Name | SAP SE |
|---|---|
| Headquarters | Walldorf, Germany |
| Established | 1972 |
| Official Website | Click Here |
SAP provides enterprise software via cloud delivery models (ERP, analytics) and is leveraging its European enterprise base to drive SaaS adoption in the region.
| Company Name | OVHcloud |
|---|---|
| Headquarters | Roubaix, France |
| Established | 1999 |
| Official Website | Click Here |
OVHcloud is a European-based cloud services provider that differentiates through sovereign cloud offerings, compliance and local data-centre infrastructure, catering mainly to European enterprises.
Governments across Europe are actively promoting cloud-first strategies and stronger digital infrastructure. Germany Cloud Strategy advances public-sector migration and investment in hyperscale data centres. The United Kingdom Digital Strategy 2025 supports cloud adoption for government bodies and SMEs through targeted funding and skills development. France 2030 initiative further accelerates sovereign cloud and data infrastructure projects to reinforce national digital independence, enhance innovation capacity, and expand secure cloud adoption across key industries.
The future of the Europe Cloud Computing Market growth looks highly promising, driven by rapid technological advancements and rising demand for scalable and secure cloud environments. Growing adoption of edge computing, AI-enabled cloud services, and industry-specific platforms will shape the next phase of development. Sustainability-focused infrastructure investments and the push for sovereign cloud will further strengthen market expansion. Increasing enterprise need for flexible IT operations and strict compliance with data-localisation regulations will continue to accelerate cloud adoption across Europe.
The report offers a comprehensive study of the following market segments and their leading categories:
According to Ritika Kalra, Senior Research Analyst, 6Wresearch, Germany holds the dominant share in Europe due to its strong manufacturing base, high IT spending, advanced digital infrastructure and early adoption of cloud services in large enterprises. The United Kingdom and France are also significant contributors, but Germany remains the largest revenue generator.
Within service models, the Software as a Service (SaaS) segment dominates, as enterprises require ready-to-use applications rather than infrastructure build-out. Although IaaS is growing faster, SaaS currently leads in terms of revenue share.
In the Infrastructure as a Service (IaaS) sub-segment, Primary Storage holds the largest share because enterprises prioritise scalable storage and data archival before investing in more complex services like disaster recovery or archiving.
Within Platform as a Service (PaaS), Application Development & Platforms dominates as companies increasingly build, deploy and manage applications in cloud-native environments.
In the Software as a Service (SaaS) sub-segment, Customer Relationship Management (CRM) dominates, given its widespread enterprise adoption and move toward cloud-based CRM solutions across sectors.
Large Enterprises command the majority share of cloud spending due to their larger IT budgets and complex requirements. SMEs however are forecast to grow at a faster rate from a smaller base.
Public Cloud deployment dominates due to its cost-effectiveness, scalability and rapid time-to-value, although private and hybrid models are gaining traction.
Within verticals, the BFSI (Banking, Financial Services & Insurance) sector dominates cloud adoption in Europe due to heavy investment in digital banking, regulatory compliance and data-centric services.
The report offers a comprehensive study of the subsequent market segments:
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 Europe Cloud Computing Market Overview |
| 3.1 Europe Regional Macro Economic Indicators |
| 3.2 Europe Cloud Computing Market Revenues & Volume, 2021 & 2031F |
| 3.3 Europe Cloud Computing Market - Industry Life Cycle |
| 3.4 Europe Cloud Computing Market - Porter's Five Forces |
| 3.5 Europe Cloud Computing Market Revenues & Volume Share, By Countries, 2021 & 2031F |
| 3.6 Europe Cloud Computing Market Revenues & Volume Share, By Service Model, 2021 & 2031F |
| 3.7 Europe Cloud Computing Market Revenues & Volume Share, By Infrastructure as a Service, 2021 & 2031F |
| 3.8 Europe Cloud Computing Market Revenues & Volume Share, By Platform as a Service, 2021 & 2031F |
| 3.9 Europe Cloud Computing Market Revenues & Volume Share, By Software as a Service, 2021 & 2031F |
| 3.10 Europe Cloud Computing Market Revenues & Volume Share, By Organization Size, 2021 & 2031F |
| 3.11 Europe Cloud Computing Market Revenues & Volume Share, By Deployment Model, 2021 & 2031F |
| 3.12 Europe Cloud Computing Market Revenues & Volume Share, By Verticals, 2021 & 2031F |
| 4 Europe Cloud Computing Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.3 Market Restraints |
| 5 Europe Cloud Computing Market Trends |
| 6 Europe Cloud Computing Market, 2021 - 2031 |
| 6.1 Europe Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 6.2 Europe Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 6.3 Europe Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 6.4 Europe Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 6.5 Europe Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 6.6 Europe Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 6.7 Europe Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 7 Germany Cloud Computing Market, 2021 - 2031 |
| 7.1 Germany Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 7.2 Germany Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 7.3 Germany Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 7.4 Germany Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 7.5 Germany Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 7.6 Germany Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 7.7 Germany Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 8 United Kingdom Cloud Computing Market, 2021 - 2031 |
| 8.1 United Kingdom Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 8.2 United Kingdom Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 8.3 United Kingdom Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 8.4 United Kingdom Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 8.5 United Kingdom Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 8.6 United Kingdom Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 8.7 United Kingdom Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 9 France Cloud Computing Market, 2021 - 2031 |
| 9.1 France Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 9.2 France Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 9.3 France Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 9.4 France Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 9.5 France Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 9.6 France Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 9.7 France Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 10 Italy Cloud Computing Market, 2021 - 2031 |
| 10.1 Italy Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 10.2 Italy Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 10.3 Italy Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 10.4 Italy Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 10.5 Italy Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 10.6 Italy Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 10.7 Italy Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 11 Russia Cloud Computing Market, 2021 - 2031 |
| 11.1 Russia Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 11.2 Russia Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 11.3 Russia Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 11.4 Russia Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 11.5 Russia Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 11.6 Russia Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 11.7 Russia Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 12 Spain Cloud Computing Market, 2021 - 2031 |
| 12.1 Spain Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 12.2 Spain Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 12.3 Spain Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 12.4 Spain Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 12.5 Spain Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 12.6 Spain Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 12.7 Spain Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 13 Rest of Europe Cloud Computing Market, 2021 - 2031 |
| 13.1 Rest of Europe Cloud Computing Market, Revenues & Volume, By Service Model, 2021 - 2031 |
| 13.2 Rest of Europe Cloud Computing Market, Revenues & Volume, By Infrastructure as a Service, 2021 - 2031 |
| 13.3 Rest of Europe Cloud Computing Market, Revenues & Volume, By Platform as a Service, 2021 - 2031 |
| 13.4 Rest of Europe Cloud Computing Market, Revenues & Volume, By Software as a Service, 2021 - 2031 |
| 13.5 Rest of Europe Cloud Computing Market, Revenues & Volume, By Organization Size, 2021 - 2031 |
| 13.6 Rest of Europe Cloud Computing Market, Revenues & Volume, By Deployment Model, 2021 - 2031 |
| 13.7 Rest of Europe Cloud Computing Market, Revenues & Volume, By Verticals, 2021 - 2031 |
| 14 Europe Cloud Computing Market Key Performance Indicators |
| 15 Europe Cloud Computing Market - Opportunity Assessment |
| 15.1 Europe Cloud Computing Market Opportunity Assessment, By Countries, 2021 & 2031F |
| 15.2 Europe Cloud Computing Market Opportunity Assessment, By Service Model, 2021 & 2031F |
| 15.3 Europe Cloud Computing Market Opportunity Assessment, By Infrastructure as a Service, 2021 & 2031F |
| 15.4 Europe Cloud Computing Market Opportunity Assessment, By Platform as a Service, 2021 & 2031F |
| 15.5 Europe Cloud Computing Market Opportunity Assessment, By Software as a Service, 2021 & 2031F |
| 15.6 Europe Cloud Computing Market Opportunity Assessment, By Organization Size, 2021 & 2031F |
| 15.7 Europe Cloud Computing Market Opportunity Assessment, By Deployment Model, 2021 & 2031F |
| 15.8 Europe Cloud Computing Market Opportunity Assessment, By Verticals, 2021 & 2031F |
| 16 Europe Cloud Computing Market - Competitive Landscape |
| 16.1 Europe Cloud Computing Market Revenue Share, By Companies, 2024 |
| 16.2 Europe Cloud Computing Market Competitive Benchmarking, By Operating and Technical Parameters |
| 17 Company Profiles |
| 18 Recommendations |
| 19 Disclaimer |