Italy Cloud Computing Market Size

Italy Cloud Computing Market Analysis

The Italy Cloud Computing Market size is estimated at USD 10.32 billion in 2024, and is expected to reach USD 26.34 billion by 2029, growing at a CAGR of 20.60% during the forecast period (2024-2029).

• Italy's digital transformation paves the way for economic growth and job creation and solidifies the nation's standing in Europe's digital landscape. The heightened demand for cloud computing services in Italy, fueled by rapid digital transformation and the adoption of advanced technologies, is driving the growth of the country's cloud computing market. This surge is further bolstered by the expansion of data centers across Italy.
• Moreover, Italy has taken the lead in launching initiatives centered on a European sovereign cloud, thus further bolstering the adoption of cloud computing services in public sector organizations. Notably, the Triennial Plan for IT in Public Administration serves as a roadmap for the digital transformation of public services. In addition, the Cloud Italia Strategy outlines the framework for transitioning the Public Administration to a qualified cloud.
• Moreover, Italy's cloud computing market is growing, partly due to the increasing importance of regional cloud providers. These providers meet specific customer needs that hyperscalers often overlook. With flexible offerings, customized services, and attention to local details, regional cloud providers effectively address the demands of businesses seeking tailored cloud solutions. By moving away from a 'one size fits all' approach, these local providers offer tailor-made services for companies transitioning to the cloud and play a crucial role in establishing Italy as a leading European hub for cloud services and data centers.
• The country is making significant investments to bolster its cloud computing ecosystem and drive innovation in the cloud computing sector, thereby fueling the market’s growth. For instance, in December 2023, the European Commission approved, under EU State aid rules, an Important Project of Common European Interest (IPCEI) aimed at enhancing cloud and edge computing technologies. Named the IPCEI Next Generation Cloud Infrastructure and Services (IPCEI CIS), this initiative is a joint endeavor by seven EU Member States: France, Germany, Hungary, Italy, the Netherlands, Poland, and Spain.
• In the coming years, a heightened focus on digital transformation among enterprises, along with substantial investments from leading cloud computing vendors in Italy, will drive the growth of the cloud computing market. Moreover, the supportive government initiatives to bolster the adoption of advanced technologies in public sector organizations will further support this trend over the forecast period.