North America Cloud Computing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 248.07 Billion |
| Market Size (2029) | USD 504.14 Billion |
| CAGR (2024 - 2029) | 15.23 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Cloud Computing Market Analysis
The North America Cloud Computing Market size is estimated at USD 248.07 billion in 2024, and is expected to reach USD 504.14 billion by 2029, growing at a CAGR of 15.23% during the forecast period (2024-2029).
- North America's cloud computing market is expanding, fuelled by businesses' rising demand for scalable and flexible infrastructure. By leveraging cloud computing, companies can effortlessly adjust resources, reducing costs and enhancing efficiency. Across industries, the surge in digital transformation initiatives has hastened the adoption of cloud technologies. Companies are transitioning their applications to the cloud to boost agility, elevate customer experiences, and facilitate remote work, a trend that has intensified in the wake of the pandemic.
- Organizations are increasingly drawn to cloud platforms owing to advancements in cloud technologies such as artificial intelligence, machine learning, and big data analytics. These technologies offer valuable insights and capabilities, fuelling business innovation. Moreover, the advancement of the Software as a Service (SaaS) model, providing on-demand software and applications, is driving cloud adoption among small and medium-sized enterprises (SMEs) searching for cost-effective solutions.
- Moreover, companies increasingly turn to cloud services with robust security features to address regulatory compliance and data security concerns. In North America, the dominance of major cloud service providers, including Microsoft Azure, Amazon Web Services, and Google Cloud, is propelling market growth through their reliable and diverse cloud solutions.
- In August 2023, Ginkgo Bioworks, a provider of cell programming and biosecurity platforms, entered a five-year strategic cloud and AI partnership with Google Cloud. This collaboration aims to empower Ginkgo in building and implementing AI tools tailored for biology and biosecurity. Through this strategic partnership, Ginkgo aims to harness Google Cloud's Vertex AI platform to develop advanced large language models (LLMs). These advancements span areas like genomics, protein function, and synthetic biology. As a result, Ginkgo's clientele can expedite breakthroughs in varied domains, including drug discovery, agriculture, industrial manufacturing, and biosecurity.
- However, concerns over data privacy, compliance challenges, and the high costs associated with cloud migration are restricting the North American cloud computing market. Furthermore, security risks, including cyber threats, and the complexities of managing multi-cloud environments pose significant challenges to widespread adoption across all sectors.
North America Cloud Computing Market Trends
Robust Shift Towards Digital Transformation Across North America
- North America's cloud computing market is experiencing substantial growth, driven by a strong push towards digital transformation. As industries undergo digital transformation to maintain competitiveness, cloud computing is a pivotal technology facilitating this transition. Cloud platforms provide flexibility, scalability, and cost efficiency, bolstering digital initiatives and fuelling their widespread adoption.
- Digital transformation frequently entails integrating advanced technologies such as machine learning, artificial intelligence, the Internet of Things (IoT), and big data analytics. These technologies demand significant computing power and data storage, which are efficiently provided by cloud computing. By harnessing cloud services, businesses can process vast amounts of data, derive actionable insights, and automate processes, boosting operational efficiency and fostering innovation.
- Further, cloud-based computing driven by 5G facilitates real-time data streaming and storage, promoting virtual business operations and reinforcing productivity through uninterrupted data flow. The US and Canada have made impressive progress in deploying 5G nationwide despite differences in the spectrum bands they have used. Today, around 59% of North American smartphone subscriptions are 5G. 5G penetration and high population coverage make the region fertile ground for technological innovation.
- The surge in remote work, catalyzed by the COVID-19 pandemic, has signified the necessity for universally accessible digital tools and platforms. Cloud computing facilitates smooth collaboration, data sharing, and application access among dispersed teams, solidifying its role as an essential element of today's digital workplaces. Also, the cloud's role in facilitating agile development and deployment practices, including DevOps, empowers organizations to innovate and adapt to market shifts swiftly. This underscores the prominence of cloud services as a pivotal component of digital transformation strategies in North America.
- In August 2024, Cloudelligent, a cloud technology solutions provider, unveils its upgraded Cloud Migration Services. These services are designed to propel digital transformation for businesses spanning multiple sectors. This latest initiative underscores Cloudelligent's dedication to providing innovative solutions that streamline and hasten the journey to cloud environments.
United States is Expected to Hold Significant Market Share
- In recent years, the United States has dominated the cloud computing market. US companies strongly emphasize digital transformation, frequently emerging as early adopters of advanced technologies. These include the Internet of Things, additive manufacturing, big data analytics, connected industries, artificial intelligence, machine learning, virtual reality, and the latest telecommunications advancements.
- US businesses are joining forces to broaden their operations and bolster their global footprint. As companies ramp up IT infrastructure and cloud services investments, the U.S. stands poised to seize even greater opportunities. Various industries are transforming digitally, with businesses increasingly turning to cloud services. This shift aims to modernize IT infrastructure, boost agility, and enhance customer experiences. The urgency of this transformation was underscored by the community panoramic, which hastened the transition to remote work and digital operations.
- The rise of data-intensive technologies, including artificial intelligence, machine learning, and analytics, is driving a surge in demand for cloud computing. These technologies necessitate significant computing power and scalable storage solutions, both efficiently provided by cloud platforms. Furthermore, the growing adoption of Software as a Service (SaaS) solutions is bolstering the market, especially as it benefits small and medium-sized businesses.
- In July 2024, Humana Inc., a health and well-being player, inked a multi-year deal with Google Cloud. This partnership aims to modernize Humana's cloud infrastructure and harness advanced AI capabilities, propelling innovation in healthcare. This agreement is an extension of the existing collaboration between Google Health and Humana, which centers on co-developing solutions for population health and integrating Google's premier AI technologies to benefit Humana's members and patients.
- In June 2024, CME Group, in collaboration with Google Cloud, is set to establish a new private cloud region and co-location facility in Illinois. This initiative aims to strengthen CME Group's futures and options markets offerings. Terry Duffy emphasized that the new private Google Cloud region will enhance CME Group's global trading capabilities, providing derivatives traders with access to "cloud-based, ultra-low-latency networking and high-performance computing."
North America Cloud Computing Industry Overview
The North American cloud computing market is fragmented due to numerous players competing for market share. Many of these companies are forging strategic partnerships and venturing into new markets to bolster their positions. Key players include Amazon.com Inc. (AWS), Google LLC, Microsoft Corporation, and Salesforce Inc.
- June 2024: Oracle and Google Cloud unveiled a partnership, enabling customers to seamlessly integrate Oracle Cloud Infrastructure (OCI) with Google Cloud technologies, thereby expediting their application migrations and modernization efforts. Oracle Interconnect for Google Cloud would launch customer onboarding across 11 global regions, enabling customers to deploy general-purpose workloads without incurring cross-cloud data transfer fees.
- April 2024: Cloud Software Group Inc. and Microsoft Corp. unveiled an eight-year strategic partnership agreement, marking a significant deepening of their collaboration. This agreement bolsters the go-to-market efforts for the Citrix virtual application and desktop platform. It paves the way for creating innovative cloud and AI solutions, all under a unified product roadmap.
North America Cloud Computing Market Leaders
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Amazon.com Inc. (AWS)
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Google LLC
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Microsoft Corporation
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Salesforce Inc
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Adobe Group
*Disclaimer: Major Players sorted in no particular order
North America Cloud Computing Market News
- June 2024: Apple unveiled its cloud intelligence system, Private Cloud Compute (PCC), tailored for cloud-based artificial intelligence (AI) tasks, prioritizing privacy preservation. PCC aims to transfer complex, power-intensive requests to the cloud while guaranteeing that data remains confidential and is never exposed to any third party, including Apple.
- May 2024: VPS AI unveiled its decentralized cloud computing solutions. The launch of VPS AI marks a significant shift in the cloud computing landscape. VPS AI provides a decentralized solution for establishing virtual private servers and containerized nodes, enabling individuals and enterprises to liberate themselves from the dominance of major tech corporations.
North America Cloud Computing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions? and Market Definition?
1.2 Study Scope
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Robust Shift Towards Digital Transformation Across North America
4.2.2 Advancement of AI and Big Data Analytics
4.3 Market Challenges
4.3.1 Regulatory Compliance and Data Breaching Risk
4.4 Market Opportunities
4.5 Industry Ecosystem Analysis
4.6 Assessment of Macro Economic Trends on the Cloud Computing Landscape
4.7 Industry Attractiveness - Porter?s Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers/Consumers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
4.8 Pricing Model Analysis
4.9 Specific Trends related to the North America
4.9.1 Sustainibility and Green Cloud Initiatives
4.9.2 Multi-cloud and Hybrid Cloud Adoption
4.10 Number of data centres for North America
4.11 Industry Regulations and Standards
4.12 Case Study Analysis
4.13 Technology Landscape (Cloud AI)
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Public Cloud
5.1.1.1 IaaS
5.1.1.2 PaaS
5.1.1.3 SaaS
5.1.2 Private Cloud
5.1.3 Hybrid Cloud
5.2 Organization Size
5.2.1 SMEs
5.2.2 Large Enterprises
5.3 End-user Verticals
5.3.1 Manufacturing
5.3.2 Education
5.3.3 Retail
5.3.4 Transportation and Logistics
5.3.5 Healthcare
5.3.6 BFSI
5.3.7 Telecom and IT
5.3.8 Government and Public Sector
5.3.9 Others (Utilities, Media & Entertainment etc)
5.4 Geography
5.4.1 United States
5.4.2 Canada
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles*
6.1.1 Amazon.com Inc. (AWS)
6.1.2 Google LLC
6.1.3 Microsoft Corporation
6.1.4 Salesforce Inc
6.1.5 Adobe Group
6.1.6 Oracle Corporation
6.1.7 IBM Corporation
6.1.8 DXC Group
6.1.9 SAS Institute Inc.
6.1.10 SAP SE
7. INVESTMENT SCENARIO
8. MARKET OUTLOOK
North America Cloud Computing Industry Segmentation
Cloud computing provides computing services via the Internet. These services encompass servers, storage, databases, networking, software, analytics, and intelligence. The primary benefits include accelerated innovation, flexible resources, and economies of scale. Typically, customers pay solely for the cloud services they utilize. This model reduces operational costs, enhances infrastructure efficiency, and allows for scaling in response to evolving business needs.
The North American cloud computing market is segmented by type (public cloud [IaaS, PaaS, SaaS], private cloud, and hybrid cloud), by organization size (SMEs, and large enterprises), end-user verticals (manufacturing, education, retail, transportation, and logistics, healthcare, BFSI, telecom, and IT, Government and public sector, others (utilities, media & entertainment, etc.), and geography (United States and Canada). The market size and forecasts regarding value (USD) for all the above segments are provided.
| By Type | |||||
| |||||
| Private Cloud | |||||
| Hybrid Cloud |
| Organization Size | |
| SMEs | |
| Large Enterprises |
| End-user Verticals | |
| Manufacturing | |
| Education | |
| Retail | |
| Transportation and Logistics | |
| Healthcare | |
| BFSI | |
| Telecom and IT | |
| Government and Public Sector | |
| Others (Utilities, Media & Entertainment etc) |
| Geography | |
| United States | |
| Canada |
North America Cloud Computing Market Research FAQs
How big is the North America Cloud Computing Market?
The North America Cloud Computing Market size is expected to reach USD 248.07 billion in 2024 and grow at a CAGR of 15.23% to reach USD 504.14 billion by 2029.
What is the current North America Cloud Computing Market size?
In 2024, the North America Cloud Computing Market size is expected to reach USD 248.07 billion.
Who are the key players in North America Cloud Computing Market?
Amazon.com Inc. (AWS), Google LLC, Microsoft Corporation, Salesforce Inc and Adobe Group are the major companies operating in the North America Cloud Computing Market.
What years does this North America Cloud Computing Market cover, and what was the market size in 2023?
In 2023, the North America Cloud Computing Market size was estimated at USD 210.29 billion. The report covers the North America Cloud Computing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Cloud Computing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Cloud Computing Industry Report
Statistics for the 2024 North America Cloud Computing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Cloud Computing analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
