Cloud Storage Services Market Size - By Deployment mode, By Storage, By Industry Vertical, By End-Use, By Pricing Model, Growth Forecast, 2025 – 2034

Cloud Storage Services Market Size

The global cloud storage services market was valued at USD 43.6 billion in 2024 and is expected to grow at a CAGR of 21.5% between 2025 and 2034.
 

The trend of working remotely has accelerated since the pandemic. The need for cloud storage and file-sharing services has grown since then as these solutions helps teams operating remotely to store and share files without the need to be physically present at the location. Service providers such as Google Drive, Dropbox, And Microsoft OneDrive allow seamless file sharing, provides secure backup of critical data and easy collaboration on documents. Therefore, it ensures that team members can easily access and work on the same files in real-time, despite the location.
 

The amount of data being produced is increasing rapidly due to the expanding usage of social media, digital content, and the Internet of Things which creates rising demand for cloud storage services. Massive volumes of real-time data are produced by IoT devices. Smart home devices for instance collect data on energy consumption. Scalable storage solutions are required due to the large amount of data produced by IoT devices. Businesses can securely save this data in the cloud and have quick access for analytics and decision-making.
 

In January 2025, Amazon declared that it would invest around USD 11 billion in cloud and AI infrastructure in Georgia. The investment is considered to support the development and expansion of Amazon Web Services (AWS). It is expected to also focus on strengthening the infrastructure required for AI technologies, which are crucial for powering various Amazon services like machine learning, data analytics, and automation.
 

The reduced maintenance cost is expected to rise the adoption of cloud-based storage and hence drive the cloud storage services market revenue. Investment in hardware maintenance, technical support, and IT personnel is necessary to maintain an on-premise data storage infrastructure. The expenses of maintaining the infrastructure might rise significantly as storage systems expand. The provider of cloud storage handles maintenance, such as security patches, software upgrades, and hardware repairs. Companies no longer need to recruit specialized personnel for storage-related maintenance.
 

Data recovery and data redundancy are integrated into cloud storage systems. To ensure that organizations can promptly recover data in the event of hardware failure or data loss, most cloud providers replicate data across different regions or data centers. As a result, putting a disaster recovery plan into action is less expensive and complicated.
 

Cloud Storage Services Market Trends

• Hybrid cloud and multi-cloud strategies are gaining traction since businesses seek to enhance performance, and balance workloads between different providers. Hybrid cloud combines both on-premises and cloud storage and helps organizations to maintain sensitive data on-premises while using the cloud for scalability and flexibility. According to Statista 73% of the enterprise respondents indicated that they have deployed a hybrid cloud in their organization. Migration to hybrid cloud solutions is generally at the expense of single private and public clouds.
   
• To ensure redundancy and minimize risks multi-cloud strategies use cloud services from different providers such as Microsoft Azure, Amazon Web Services and Google Cloud.
   
• An increased focus on data security and compliance is anticipated to boost the cloud storage services market revenue in the coming five years. Tools such as multi-factor authentication (MFA), end-to-end encryption, and data loss prevention (DLP) are used for security of data. Before selecting cloud storage provider organizations need to verify compliance with regulatory frameworks such as HIPAA, GDPR, and CCPA. Providers are increasingly offering services and tools to the organizations for ensuring data protection.
   
• The objective storage segment is gaining traction as it provides cost-effectiveness and flexibility for storing unstructured data, including pictures and videos. For instance, when big datasets and applications need quick data retrieval, Amazon S3, Google Cloud Storage, and Azure Blob Storage provide an effective method of data storage. Applications such as big data analytics, artificial intelligence, and the Internet of Things are expected to increase their need for object storage since they need to store and process a large amount of data.
   
• Blockchain technology is projected to enhance cloud storage options, particularly in areas where data security and transparency are necessary, hence, it is expected to generate profitable opportunities. The blockchain technology market was valued at USD 18.3 billion and is expected to grow at a rate of 53.6% to reach USD 1.41 trillion by 2034. This technology provides novel approaches to decentralized storage, which makes data safer and more breach-resistant by encrypting and distributing it among various nodes.
   

Cloud Storage Services Market Analysis

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• Public cloud services serve the workforce around the globe as it provides remote access and collaboration. It helps the users to interact virtually. The public cloud providers invest in security to protect their services. It includes features such as multi-factor authentication (MFA), data encryption, firewalls, and access control. Public cloud providers comply with industry standards and regulatory requirements such as GDPR, HIPAA, ISO 27001.
   
• Public cloud storage is a model where an organization stores data in a service provider's data centers that are also utilized by other companies. Since the cloud service provider handles and maintains the infrastructure, organizations do not need to invest in software patches, hardware malfunctions, or regular systems.
   
• The hybrid cloud combines the private and public cloud. For example, a public cloud such as Microsoft Azure can be combined with an organization’s private cloud on-premises to collaborate the data. It ensures organizations to effortlessly move workloads between the two environments depending on their needs.
   

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• Object storage systems handle vast quantities of unstructured data, including media files, backups and log files. Because of its architecture, businesses are able to scale through adding more storage capacity easily without the need for manual intervention or complex configuration processes. Unlike traditional storage systems, which may require scaling physical hardware, object storage simplifies and automates this process.
   
• The file cloud storage segment is anticipated to hold a considerable share during the forecast period owing to remote accessibility and security. Cloud storage enables the users to access file from remote location by using an internet connection. It is helpful for individuals and teams who need to access data from multiple devices. Cloud providers offer encryption for stored files and in transit files to protect data from unauthorized access. Cloud storage providers also offer MFA to enhance data protection.
   
• Block storage is generally used for database systems or high-performance applications that need direct access to storage at the block level. As applications in industries such as finance, healthcare, and gaming is becoming data intensive, there is a rise in demand for high-performance block storage solutions. Cloud providers are offering high-speed block storage for workloads that need high throughput and low latency.
   
• Cold cloud storage is anticipated to hold a significant share in the coming years as it is less expensive than frequently or occasionally used storage. It is designed for conditions where speed is not a higher priority. Cold cloud providers ensure that data stored is durable and widely available across multiple geographical to prevent data loss.
   

Based on the industry vertical, the cloud storage services market is categorized into BFSI, healthcare, IT and telecommunication, retail and consumer goods, media and entertainment, manufacturing and others. The IT and telecommunication segment dominates the market accounting for market share of over 20% in 2024.
 

• Banking service providers worldwide are adopting cloud storage solutions as it enables banks to synchronize the enterprise, finance and customer support, and allow institutions to combine massive data sets in one place for advanced analytics and integrated insights. In June 2024, Kyndryl declared the collaboration with the National Bank of Canada. This partnership aims to accelerate the bank's digital transformation and migration to the cloud.
   
• The IT and telecommunication industry is growing rapidly since it uses cloud storage for customer records, network data, and service logs to overcome the requirements of hardware. Devices and infrastructure are becoming smarter and more connected, supported by emerging technologies, such as AI and the Internet of Things. Digital transformation within businesses and the wider economy is being supported by advancements in IT service.
   
• Media and entertainment segment is projected to hold a substantial share in the market during the forecast period since the companies deal with large files such as 4K, 8K video content, high-quality audio files, and visual effects. Cloud storage offers unlimited scalability, enabling companies to store and manage huge amounts of data without investing in expensive physical infrastructure.
   

Based on end-use, the cloud storage services market is segmented into SME and large enterprises. The large enterprises segment held a market share of over 55% in 2024.  
 

• The market for cloud services in large enterprises is expected to hold a significant share as it offers services like computing power, storage, networking, security, analytics, and disaster recovery. IaaS provides businesses with virtualized computing resources over the internet. It allows enterprises to rent IT infrastructure (servers, storage, networking) on-demand such as Amazon Web Services (AWS) (EC2, S3, VPC), Microsoft Azure (Azure Virtual Machines, Blob Storage, Virtual Networks), and Google Cloud Platform (GCP) (Compute Engine, Cloud Storage).
   
• Software as a service is widely used in large enterprises. Saas is capable of delivering complete managed applications through the cloud, eliminating the need for enterprises to manage software installations or infrastructure. This service is widely used for customer relationship management (CRM), enterprise resource planning (ERP), and collaboration software.  
   

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• Enterprises in U.S. are employing hybrid cloud and multi-cloud storage services. Nomura Research Institute in February 2025, expanded its multi-cloud strategy to improve their governance, security, and services for customers. The multi-cloud approach allows businesses to leverage the strengths of multiple cloud providers such as Azure, AWS, and Google Cloud for different workloads. This enables greater redundancy, enhanced disaster recovery, and better cost optimization.
   
• The market in North America has a strong foothold of vendors in the market. Some of them include Google LLC, IBM, Microsoft, Oracle, and Amazon Web Services Inc. Through research and development, these prominent players in the region have been able to develop the technology further. This is expected to boost the adoption of cloud storage and reduce the cost of cloud storage throughout the forecast period.
   

Europe holds a significant share of the cloud storage services market with a share of approximately 25% with Germany holding significant share of the market.
 

• Germany has strict data privacy regulations, and the businesses are required to comply with the General Data Protection Regulation (GDPR). This regulation directs businesses to protect the privacy of individual personal data, making data protection a primary concern in the cloud storage services market. Cloud storage providers in Germany are required to ensure that their services comply with GDPR by offering features such as access controls, data encryption, data residency, and audit trails.
   
• The market in Europe is increasingly adopting multi-cloud and hybrid strategies to achieve operational flexibility. These models allow organizations to distribute workloads across private and public cloud, optimizing cost and performance. Hybrid clouds are gaining traction in industries with stringent data security needs, such as healthcare and finance.
   

Asia Pacific holds a substantial share of the cloud storage services market with China holding significant share of this region.
 

• Rise in the adoption of digital data across industries such as education, finance, retail, manufacturing, and healthcare in Asia pacific region is projected to drive the demand for cloud storage services. Companies are increasingly migrating their data to the cloud to improve efficiency and enable data collaboration. In February 2025, Alibaba Group declared to invest more than USD 52 billion in AI and cloud infrastructure for the coming three years. The investment is considered to boost the penetration of company’s AI and cloud computing.
   
• Government of developing countries in the Asia pacific region is investing in smart cities and Industry 4.0 which is further driving the adoption of cloud-based storage solutions. Smart cities have large number of cameras, smart meters, environmental monitoring devices and sensors installed which generate massive amounts of data. Cloud storage provides a centralized platform to manage, securely store, and access the data in real-time.
   

Cloud Storage Services Market Share

Top 7 companies leading the cloud storage services industry in 2024 were Amazon, Microsoft, Google, Dell, IBM, Oracle, and Alibaba. Together, they held around 30% market share.
 

• Amazon and Microsoft hold a significant share of the market for cloud storage, due to their strong infrastructure systems and the advanced service offerings. AWS holds a significant share of the cloud storage market because of its global infrastructure and expansion. AWS possesses various forms of business storage, which are reliable, economical, and flexible for organizations’ increasing and evolving data storage requirements.
   
• Microsoft has Azure which is a prominent provider of cloud storage services because it directly links with Microsoft’s enterprise software. Azure is preferred by many Microsoft system users as it provides highly scalable storage capabilities and strong security components.
   
• Google Cloud holds a substantial share of the market due to its wide cloud storage and advanced infrastructure, data analytics expertise, and connection with other Google services such as BigQuery and TensorFlow. Google launched Google One Lite plan in India, which aims to offer an affordable cloud storage solution to users demanding extra storage without needing advanced features. It is priced lower than Apple’s iCloud+ 50GB plan. This plan was launched in September 2024.
   
• Dell Technologies holds a significant share in the cloud storage market due to its offerings of both hybrid cloud solutions and on-premises storage offerings. As an expert in enterprise hardware, Dell is also highly regarded for its ECS (Elastic Cloud Storage) services, thus maintaining its competitive advantage for companies that value customizable and reliable storage solutions.
   
• IBM holds a significant share of the cloud storage market with its wide offering of hybrid cloud and AI-driven cloud storage solutions. Their cloud services, including IBM Cloud Object Storage, serve security-sensitive industries that deal with data-intensive tasks which qualify them as prime customers for advanced, enterprise-class solutions.
   

Cloud Storage Services Market Companies

Major players operating in the cloud storage services industry include:

• Alibaba
• Amazon
• Backblaze
• Box
• Dell
• DigitalOcean
• Google
• IBM
• Microsoft
• Oracle
   

• Security remains a priority concern in the cloud storage services market because of the data's sensitive nature. Key providers are concentrating on ensuring that data is encrypted at rest and in transit utilizing encryption standards of a higher level.
   
• Pricing is the primary factor of competition in the cloud storage market, and providers deploy different models to win customers. These include pay-as-you-go pricing or subscriptions that charge a flat fee depending on the amount of stored data. This pricing competition is also crucial for small companies and start-ups that need value for their money and cost-effective solutions, forcing vendors to constantly redesign their pricing systems.
   
• Many organizations are now shifting towards hybrid or multi-cloud approaches. This has led to many cloud service providers focusing on interoperability and are offering tools and integrations that would allow businesses to utilize more than one cloud environment.
   

Cloud Storage Services Industry News

• In January 2025, Backblaze announced its Winter Update for the B2 Cloud Storage platform, adding advanced security measures and optimized workflows for enterprise users. This update focuses on aiding over 100,000 businesses currently on the platform with data management, migration, automation, and other features.
   
• In January 2025, Scality added a new pay-as-you-go licensing model under its Cloud & Service Provider Program (SCSP) targeted towards the Veeam Partner Ecosystem. This announcement further integrates Scality's ARTESCA software as a backup target within the Veeam Backup-as-a-Service ecosystem, thus improving the offerings of scalable and cyber-resilient storage solutions.
   
• At Ignite 2024 in November 2024, Microsoft announced the launch of their hybrid cloud and edge infrastructure solution, Azure Local. This service aims to offer computing, networking, and storage services to remote locations with cloud connectivity that allow businesses to control on-premise, edge, and cloud workloads seamlessly.
   
• In August 2024, Mukesh Ambani announced the Jio AI-Cloud Welcome Offer which aims to provide free cloud storage of up to 100GB to Jio users. This step was taken to fulfil their goal of AI Everywhere for Everyone vision.
   

The cloud storage services market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Deployment Mode

• Public
• Private
• Hybrid

Market, By Storage

• Object
• File
• Block
• Cold

Market, By Industry Vertical

• BFSI
• Healthcare
• IT and telecommunication
• Retail and consumer goods
• Media and entertainment
• Manufacturing
• Others

Market, By End use

• SME
• Large enterprises
• Individual

Market, By Pricing Model

• Pay-as-you-go
• Subscription-based
• Freemium

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia