Europe Cloud Computing Market Size

Europe Cloud Computing Market Analysis

The Europe Cloud Computing Market size is estimated at USD 173.69 billion in 2024, and is expected to reach USD 368.33 billion by 2029, growing at a CAGR of 16.22% during the forecast period (2024-2029).

The European cloud computing market has been experiencing significant growth, driven by rapid digital transformation across industries, increased adoption of cloud services, and the need for scalable and flexible IT infrastructure. European businesses and governments are increasingly leveraging cloud computing to enhance operational efficiency, ensure business continuity, and support innovation.

• As part of their digital transformation, European firms are swiftly integrating cloud computing. These cloud solutions empower businesses to modernize their IT setups, enhance customer experiences, and swiftly adapt to market shifts. Concurrently, European governments champion digital initiatives, further fueling the cloud's ascent.

• With an increasing emphasis on flexibility, data security, and regulatory compliance, hybrid and multi-cloud solutions are gaining traction in Europe. Organizations are strategically blending public and private cloud environments to optimize workloads, cut costs, and uphold data sovereignty.

• Investments in data center infrastructure are surging within the European cloud computing landscape. In response to escalating demand, major cloud service providers are broadening their data center footprint across Europe, emphasizing data localization and adherence to stringent regulations like GDPR.

• In the European cloud computing arena, sustainability is taking center stage. Cloud service providers are embracing green technologies and practices, aiming to shrink their carbon footprint. This movement resonates with Europe's overarching goal of net-zero emissions and sustainable business ethos.

• Despite the myriad advantages of cloud computing, Europe grapples with regulatory challenges and data sovereignty concerns. Navigating the intricate landscape of data protection regulations like GDPR, coupled with data residency and security apprehensions, presents hurdles for cloud service providers and their clientele, potentially dampening adoption in specific sectors.

• The growing strategic developments in the region are set to boost the market growth rate during the forecast period. In June 2024, Persistent Systems, a global leader in Digital Engineering and Enterprise Modernization, forged a long-term Strategic Partnership Agreement with Google Cloud. This collaboration aims to enhance their presence in the United States, India, the United Kingdom, and Australia. Central to this agreement is the joint go-to-market strategy, which seeks to expedite digital transformation for enterprises worldwide. Leveraging Google Cloud’s Gemini models and other cutting-edge technologies, Persistent Systems is set to craft tailored solutions, championing widespread GenAI adoption. Through this partnership, both Google Cloud and Persistent Systems are poised to offer top-tier solutions, ensuring enterprises modernize their infrastructure and data stack and optimize their ROI from cloud investments.