Europe Cloud Computing Market Size

Europe Cloud Computing Market Size

The Europe cloud computing market size was valued at USD 80.8 billion in 2024 and is projected to grow at a CAGR of 17.1% between 2025 and 2034. Digital transformation has become a strategic priority for enterprises and governments across Europe. Organizations are increasingly leveraging cloud computing to modernize legacy systems, improve operational efficiency, and achieve agility in service delivery. The cloud enables scalable IT infrastructure, fostering innovation in sectors like manufacturing, healthcare, and education. Furthermore, technologies such as AI, IoT, and big data analytics, which rely heavily on cloud platforms, are being widely adopted to enhance business intelligence and decision-making.

The General Data Protection Regulation (GDPR) mandates robust data protection and enhances user trust, making cloud services compliant with stringent data security standards. Additionally, initiatives like Gaia-X, which promote a Europe-centric cloud ecosystem, aim to establish data sovereignty and foster secure cross-border data sharing. These regulations encourage businesses to adopt cloud solutions tailored to comply with European legal requirements. Furthermore, government-backed investments in cloud technologies to support smart city projects and public sector digitization add momentum.

Hybrid cloud models allow businesses to combine on-premises infrastructure with public cloud platforms, ensuring flexibility and control. This approach is particularly beneficial for industries with sensitive data requirements, such as healthcare and banking. Multi-cloud strategies, which involve using multiple cloud providers, help businesses avoid vendor lock-in, improve disaster recovery capabilities, and optimize costs. These solutions enable organizations to distribute workloads based on specific needs, ensuring operational continuity and efficiency.