“Global Cloud Sustainability Market to reach a market value of USD 96.1 Billion by 2031 growing at a CAGR of 18.9%”
The Global Cloud Sustainability Market size is expected to reach $96.1 billion by 2031, rising at a market growth of 18.9% CAGR during the forecast period.
North America, especially the United States and Canada, has stringent environmental regulations and compliance requirements. Companies are increasingly required to report and manage their environmental impact. Consequently, the North American region would acquire nearly 35% of the total market share by 2031.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, in September, 2024, Dell Technologies Inc. launched new security solutions focused on data protection and Managed Detection and Response (MDR). The primary aim is to bolster enterprise security against evolving cyber threats. Dell’s new offerings are part of a larger trend among tech companies, including competitors like IBM, to enhance their security portfolios to meet increasing demand for robust data protection solutions. Moreover, in September, 2024, Equinix, Inc. updated its corporate sustainability page to provide insights into its ongoing environmental and social initiatives. The updates aim to offer a transparent view of Equinix’s commitment to sustainable practices and corporate responsibility. This approach is part of a wider industry movement, similar to the detailed sustainability updates provided by Dell Technologies, focusing on engaging stakeholders and promoting sustainability.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation and Google LLC are the forerunners in the Market. In February, 2024, Microsoft Corporation unveiled new data and AI solutions within Microsoft Cloud for Sustainability to advance ESG data analytics, expedite decision-making, and refine reporting. Key offerings include Microsoft Fabric for integrated data management, Copilot for AI-driven insights, and an ESG value chain solution for emissions reduction. Companies such as Amazon.com, Inc. and IBM Corporation and Dell Technologies are some of the key innovators in Market.
As awareness of environmental issues grows, individuals and organizations become more conscious of their ecological footprints. Consumers increasingly prefer to engage with companies that demonstrate environmental responsibility. In conclusion, the Growing Demand for Green, Environmentally Friendly IT Solutions drives the market’s growth.
Governments and regulatory entities worldwide are enacting increasingly rigorous environmental regulations to mitigate pollution and address climate change. Similarly, Japan has set ambitious targets for achieving carbon neutrality by 2050 and has introduced energy efficiency standards for data centers. Thus, increasing regulatory requirements for environmental compliance drives the market’s growth.
Adopting sustainable cloud solutions often requires significant capital investment in new technologies. This can include upgrading data centers with energy-efficient hardware, investing in advanced cooling systems, and integrating renewable energy sources. Transitioning to sustainable cloud solutions can lead to temporary operational disruptions or downtime as new systems are installed and configured. Therefore, the high initial costs of transitioning to sustainable cloud solutions hinder the market’s growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Based on service model, the market is categorized into platform as a service (PaaS), infrastructure as a service (IaaS), software as a service (SaaS), and others. The platform as a service (PaaS) segment witnessed 26% revenue share in the market in 2023. PaaS provides a comprehensive development environment that streamlines the development process and includes tools, frameworks, and libraries.
By end use, the market is divided into IT & telecom, banking, financial services, & insurance (BFSI), manufacturing, retail and e-commerce, healthcare, and others. The banking, financial services, & insurance (BFSI) segment procured 20% revenue share in the market in 2023. The BFSI sector is heavily regulated, with strict environmental reporting and compliance requirements.
Based on enterprise size, the market is bifurcated into small & medium enterprises (SMEs) and large enterprises. The small & medium enterprises (SMEs) segment held 28% revenue share in the market in 2023. SMEs are increasingly attracted to sustainable cloud solutions because of the cost benefits associated with energy efficiency. Green cloud technologies can reduce operational costs through optimized energy use and lower carbon footprint, making them appealing to budget-conscious SMEs.
On the basis of solution, the market is segmented into energy-efficient infrastructure, sustainable cloud platforms, green software solutions, and carbon management solutions. In 2023, the sustainable cloud platforms segment attained 29% revenue share in the market. Many companies have set ambitious sustainability targets, including achieving carbon neutrality or reducing environmental impact.
Free Valuable Insights: Global Cloud Sustainability Market size to reach USD 96.1 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 36% revenue share in the market in 2023. North America, especially the United States and Canada, has stringent environmental regulations and compliance requirements. Companies are increasingly required to report and manage their environmental impact.
The competition in the Market is increasing as businesses prioritize eco-friendly cloud solutions. Major cloud providers focus on energy-efficient infrastructure and carbon-neutral services, while emerging players offer innovative, green technologies. Partnerships and sustainability certifications play a crucial role in differentiating competitors in this evolving market.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 24.4 Billion |
| Market size forecast in 2031 | USD 96.1 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 18.9% from 2024 to 2031 |
| Number of Pages | 339 |
| Number of Tables | 483 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Enterprise Size, Solution, Service Model, End Use, Region |
| Country scope |
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| Companies Included | Amazon Web Services, Inc. (Amazon.com, Inc.), Microsoft Corporation, Google LLC, IBM Corporation, Oracle Corporation, SAP SE, Salesforce, Inc., Dell Technologies, Inc., Equinix, Inc. and Nutanix, Inc. |
By Enterprise Size
By Solution
By Service Model
By End Use
By Geography
This Market size is expected to reach $96.1 billion by 2031.
Growing demand for green environmentally friendly IT solutions are driving the Market in coming years, however, High initial costs of transitioning to sustainable cloud solutions restraints the growth of the Market.
Amazon Web Services, Inc. (Amazon.com, Inc.), Microsoft Corporation, Google LLC, IBM Corporation, Oracle Corporation, SAP SE, Salesforce, Inc., Dell Technologies, Inc., Equinix, Inc. and Nutanix, Inc.
The expected CAGR of this Market is 18.9% from 2024 to 2031.
The Large Enterprises segment generated the highest revenue in the Market by Enterprise Size in 2023; thereby, achieving a market value of $67,579.8 million by 2031.
The Infrastructure as a Service (IaaS) segment led the Market by Service Model in 2023; thereby, achieving a market value of $37.3 billion by 2031.
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