U.S. Cloud Computing Market (By Service: SaaS, IaaS; By Deployment: Public, Private, Hybrid; By Enterprise Size: Small & Medium-enterprise, Large Enterprise; By End-use) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. cloud computing market size was estimated at USD 216.93 billion in 2023 and it is expected to surpass around USD 1,380.57 billion by 2033, poised to grow at a CAGR of 20.33% from 2024 to 2033.

Key Pointers

• By Service, the Software as a Service (SaaS) category held the largest revenue share of 56% in 2023.
• By Service, the Infrastructure as a Service (IaaS) segment is expected to expand at the highest CAGR of 20.9% from 2024 to 2033.
• By Deployment. the hybrid cloud segment is predicted to grow at the remarkable CAGR of 20.43% from 2024 to 2033.
• By Enterprise Size, the large enterprises segment took the lead in the market, accounting for the highest revenue at USD 109.05 billion in 2023.
• By Enterprise Size, the Small and Medium Enterprises (SMEs) are expected to expand at the highest CAGR of 21.44% from 2024 to 2033
• By End-use, the IT & Telecom segment secured the largest market revenue share of 16% in 2023.
• By End-use, the Manufacturing segment is anticipated to exhibit the fastest CAGR of 22.41% during the forecast period

U.S. Cloud Computing Market Overview

Cloud computing has become an integral part of the technology landscape, revolutionizing the way businesses operate and manage data. In the United States, the cloud computing market has experienced substantial growth, driven by advancements in technology, evolving business needs, and a shift towards digital transformation.

U.S. Cloud Computing Market Growth

The robust growth of the U.S. cloud computing market can be attributed to several key factors. Firstly, the increasing demand for scalable and cost-effective solutions has driven widespread adoption across industries, allowing businesses to optimize their IT infrastructure efficiently. Secondly, the flexibility offered by cloud computing services enables organizations to adapt swiftly to changing business environments, fostering innovation and agility. Additionally, the trend towards digital transformation has propelled the need for advanced computing capabilities, further fueling the expansion of the cloud market. The integration of cutting-edge technologies, such as artificial intelligence and edge computing, has also contributed to the sector's growth by enhancing the performance and capabilities of cloud-based services. Furthermore, the emphasis on data security and compliance has instilled confidence among businesses, encouraging them to migrate critical operations to the cloud. As these growth factors continue to intertwine, the U.S. cloud computing market is poised for sustained expansion and evolution.

U.S. Cloud Computing Market Trends:

• Hybrid Cloud Adoption: The U.S. cloud computing market is witnessing a notable trend towards hybrid cloud adoption. Businesses are increasingly leveraging a combination of on-premises infrastructure and cloud services. This approach allows for greater flexibility, enabling organizations to balance performance and control by integrating both environments seamlessly.
• Edge Computing Integration: A prominent trend in the U.S. cloud computing landscape is the integration of edge computing. This involves processing data closer to its source, reducing latency and enhancing real-time capabilities for applications and services. The synergy between cloud services and edge computing is becoming crucial for meeting the demands of emerging technologies and applications.
• Security and Compliance Emphasis: With the growing reliance on cloud services, there is a heightened focus on security and compliance. Cloud service providers are investing significantly in advanced security features to address concerns related to data protection and regulatory compliance. This trend reflects the industry's commitment to ensuring robust security measures in an evolving digital landscape.
• Artificial Intelligence Integration: Integration of artificial intelligence (AI) with cloud computing services is a key trend shaping the U.S. market. Cloud platforms are increasingly offering AI-driven capabilities, enabling businesses to harness the power of machine learning and data analytics. This integration enhances the performance and intelligence of cloud-based solutions, catering to diverse industry needs.
• Multi-Cloud Strategies: Many organizations are adopting multi-cloud strategies, utilizing services from multiple cloud providers simultaneously. This approach mitigates risks associated with vendor lock-in and provides businesses with greater flexibility and resilience. The trend towards multi-cloud architectures reflects a strategic approach to optimizing performance and reducing dependency on a single provider.

Service Insights

The Software as a Service (SaaS) category emerged as the dominant force in the market, securing the highest revenue share at 56% in 2023. SaaS is experiencing widespread popularity due to its diverse range of software offerings featuring rich functionalities and remote accessibility. The surge in remote working has fueled substantial demand for SaaS services in the U.S. market, facilitating collaborative work by providing access to previously centralized data and intelligence. Additionally, the pay-as-you-go model offered by SaaS enhances business flexibility and provides web-based subscriptions for remote software access.

In the U.S. cloud computing market, the Infrastructure as a Service (IaaS) segment is projected to witness a noteworthy Compound Annual Growth Rate (CAGR) of 20.9% from 2024 to 2033. This segment is undergoing substantial growth, presenting numerous opportunities across various businesses. The increasing demand to simplify IT structures, engage skilled personnel for effective IT infrastructure management, and reduce deployment costs for data centers are driving factors behind the rising adoption of IaaS. Furthermore, the imperative to eliminate operational downtime errors, streamline IT processes, and bolster technology ecosystem flexibility is a prominent trend, allowing businesses to embrace advanced IaaS cloud solutions.

Deployment Insights

The private cloud segment emerged as the market leader, achieving the highest revenue at USD 116.12 billion in 2023. This growth is attributed to the private cloud's provision of end-user services, including complete control over hardware and software, client development, customizable server add-ons, heightened visibility into security and access control, and strict adherence to regulatory compliance. Consequently, the private segment is expected to continue expanding its market share throughout the forecasted period.

In the market, the hybrid cloud segment is poised for substantial growth, anticipating a significant Compound Annual Growth Rate (CAGR) of 20.43% from 2024 to 2033. Hybrid deployment models, integrating both public and private deployment environments, have gained popularity. Many U.S. businesses are actively developing hybrid cloud models to optimize benefits, enhancing business operations, resource utilization, cost efficiency, user experience, and application modernization. Notably, the rising importance of edge computing is expected to further drive the adoption of hybrid cloud models among businesses in the United States.

Enterprise Size Insights

The large enterprises segment took the lead in the market, accounting for the highest global revenue at USD 109.05 billion in 2023. In the U.S., major corporations are increasingly embracing cloud solutions to enhance security compliance, improve efficiency, reduce operating costs and downtime, and expedite time-to-market. Cloud computing proves instrumental for large businesses, allowing them to delegate routine tasks to technology and streamline overall operations. Consequently, the demand for cloud computing services is expected to remain robust over the forecast period, driven by the growing number of large firms in the United States.

Small and Medium Enterprises (SMEs) are poised for substantial growth, anticipating a significant Compound Annual Growth Rate (CAGR) of 21.44% from 2024 to 2033 in the U.S. cloud computing market. SMEs in the U.S. are increasingly turning to cloud solutions to address their IT infrastructure and data storage requirements. Facing challenges and intense competition in securing technical expertise and funding for on-premise IT infrastructure, SMEs are adopting a pay-as-you-go approach. This flexible model allows them to manage IT infrastructure as needed, overcoming obstacles and contributing to the significant projected growth in the adoption of cloud computing services among SMEs over the forecast period.

End-use Insights

In 2023, the IT & Telecom segment secured the largest market revenue share at 16%. Organizations within the U.S. IT & telecom industry extensively utilize software-as-a-service products, infrastructure-as-a-service, and platform-as-a-service hosting services for diverse business applications. The IT ecosystem incorporates various cloud vendors, prompting companies to adopt hybrid or multi-cloud approaches. These strategies empower organizations to harness optimal capabilities from distinct cloud vendors, facilitating the efficient execution of their workloads across multiple cloud environments. The adoption of cloud computing is poised to enhance resilience and financial liquidity in the business operations of these organizations, leading to significant growth in this segment over the forecast period.

The Manufacturing segment is anticipated to exhibit the fastest Compound Annual Growth Rate (CAGR) of 22.41% during the forecast period. Notably, the manufacturing industry is making substantial investments in advanced technologies, including cloud computing, to fortify its digital transformation journey and recuperate losses incurred during the pandemic. U.S. manufacturing enterprises are actively pursuing hybrid, private-cloud, and multi-cloud solutions to imbue their business processes with agility, resiliency, and flexibility. Moreover, the imperative to achieve comprehensive visibility into the supply chain and enhance revenue forecasting accuracy is driving the deployment of cloud computing solutions across U.S. manufacturing organizations

U.S. Cloud Computing Market Key Companies

• Ace Cloud
• Adobe Inc.
• Alibaba Group Holding Limited
• Amazon.com Inc.
• Broadcom
• Digital Ocean
• Google LLC
• International Business Machines Corporation
• Microsoft Corporation
• Navisite
• Oracle Corporation
• Rackspace
• Salesforce.com Inc.
• SAP SE
• Verizon Cloud
• Workday, Inc.

U.S. Cloud Computing Market Segmentations:

By Service

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

By Deployment

• Public
• Private
• Hybrid

By Enterprise Size

• Small & Medium-enterprise (SME)
• Large Enterprise

By End-use

• BFSI
• IT & Telecom
• Retail & Consumer Goods
• Manufacturing
• Energy & Utilities
• Healthcare
• Media & Entertainment
• Government & Public Sector
• Others