Europe Cloud Computing Market Size By Service (Software-as-a-Service, Infrastructure-as-a-Service, Platform-as-a-Service), By Organization (Large Enterprises, SME), By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Application, 2023-2032

Europe Cloud Computing Market Size

Europe Cloud Computing Market size was valued at USD 60 billion in 2022 and is projected to exhibit a CAGR of 25% between 2023 and 2032.
 

The growing need for cost-effective IT infrastructure and high return on investment will propel the market growth. Enterprises in the region have witnessed significant setbacks due to the lack of flexibility and scalability of traditional on-premises IT infrastructure. Cloud computing services on the other hand provide cost-effectiveness and higher returns by offering on-demand computing and eliminating the requirement for hardware resources. New investments and initiatives made by government authorities to boost economic growth should promote the use of cloud computing solutions by enterprises.
 

Cloud outages or cloud service unavailability can have a negative impact on the market revenue. Small and medium enterprises (SME) that do not own on-premise backup solutions can face difficulties while incorporating cloud solutions. Performance issues and system downtime due to network outages, data center outages, power outages, and physical damage to data centers can influence the ability to maintain business continuity.
 

Europe Cloud Computing Market Analysis

The software-as-a-service (SaaS) segment held over 60% share of the Europe cloud computing market in 2022. The need to improve consumer experience has fueled the demand for Customer Relationship Management (CRM) software by enterprises. SaaS has emerged as a viable option for SME with limited financial resources because of its low subscription prices and hardware independent operations. Companies that offer SaaS services can handle all software updates, security upgrades, and user additions which consequently allows businesses to lower their IT spending.
 

The Europe cloud computing market share from the manufacturing segment will record a 30% CAGR during the forecast period. Rapid shift towards Industry 4.0 and digitalization trends are influencing the adoption of cloud computing services in the manufacturing sector. Enterprises in this sector are using the public cloud more frequently to manage their core applications like ERP and resource management systems. Expanded analytics capabilities of cloud computing and on-demand availability of data will allow enterprises to respond more quickly to real-time data and identify and resolve issues.
 

Based on the deployment model, the public cloud segment accounted for 55% market share in 2022. Public cloud model is gaining widespread acceptance by enterprises that are looking for cost-effective cloud solutions. This model enables enterprises to virtually host data and apps. It also helps businesses to avoid investment in infrastructure and equipment as compared to private cloud model. Another key advantage of public cloud is its higher flexibility which enables enterprises to pay only for the computing resources that are being used.
 

Italy cloud computing market size will witness 30% CAGR through 2032. Factors like strong presence of several multinational corporations and sizable investments in the manufacturing sector would support the industry expansion. Favorable government initiatives for enabling SME to incorporate smart working, artificial intelligence (AL), and digital skilling to develop skilled workforce should encourage the deployment of cloud computing services.
 

Europe Cloud Computing Market Share

Prominent participants operating across the market include:

• Amazon Web Services Inc
• Alibaba Group Holding Limited
• CenturyLink
• CloudSigma Holding AG
• DigitalOcean LLC
• Fujitsu
• Google LLC
• IBM Corporation
• Microsoft Corporation
• Hewlett Packard Enterprise Development LP
• NTT Communications Corporation
• Oracle Corporation
• OVH
• Rackspace Inc
• Salesforce.com Inc
• SAP SE
• Tencent Holdings Limited
• UpCloud
• VMware

The need to enhance business footprint across the region has led companies to initiate new partnerships, acquisitions and mergers with related firms.
 

Impact of COVID-19 Pandemic

The COVID-19 pandemic had a positive impact on the Europe cloud computing industry. Strict lockdown restriction due to the outbreak forced many enterprises to shift to remote working model to prevent the spread of the virus. Employees were compelled to work from home which increased the dependency on cloud services. These services enabled businesses to streamline conferencing and collaboration between employees and supported continued operations. The sustained trend of remote working posts the pandemic could generate new growth opportunity for the market participants.
 

The Europe cloud computing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

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Europe Market, By Service Type

• Software-as-a-Service (SaaS)
• Infrastructure-as-a-Service (IaaS)
• Platform-as-a-Service (PaaS)

Europe Market, By Organization Type

• Large enterprises
• SME

Europe Market, By Connectivity

• Public Cloud
• Private Cloud
• Hybrid Cloud

Europe Market, By Application

• BFSI
• Government and Public sector
• Healthcare
• IT & Telecom
• Retail
• Manufacturing
• Education
• Others

The above information has been provided for the following countries:

• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Switzerland
  • Nordics