North America Cloud Computing Market Outlook to 2030

North America Cloud Computing Market Overview

• The North America Cloud Computing market is valued at USD 162.5 billion in 2023, reflecting the rapid expansion in cloud services driven by large-scale digital transformation initiatives. This growth is propelled by widespread enterprise adoption of cloud computing technologies, with businesses seeking operational agility, scalability, and cost-efficiency. Furthermore, hybrid and multi-cloud deployments have gained popularity, enabling organizations to manage complex workloads and optimize IT resource utilization.
• Key cities and countries dominating the North America Cloud Computing market include the United States, particularly tech hubs such as San Francisco, Seattle, and New York. The U.S. remains the global leader in cloud adoption due to its concentration of leading cloud providers (Amazon Web Services, Microsoft Azure, and Google Cloud), substantial IT budgets, and a highly developed data center ecosystem. Canada's cloud market is also growing, driven by supportive government policies promoting digital transformation and data security regulations, particularly in cities like Toronto and Vancouver.
• In August 2022, IBM announced a partnership with VMware to offer hybrid cloud solutions. The partnership will provide co-engineered cloud solutions aimed at helping companies in industries such as financial services, healthcare, and the public sector reduce the cost and risk of placing mission-critical workloads in a hybrid environment. The partnership is designed to assist organizations in navigating the challenges of migrating and managing their IT workloads across hybrid environments. This is particularly crucial for industries that face stringent regulatory requirements.

North America Cloud Computing Market Segmentation

By Deployment Model: The North America Cloud Computing market is segmented by deployment model into Public Cloud, Private Cloud, and Hybrid Cloud. In 2023, the Public Cloud segment holds the dominant market share, driven by its cost-effectiveness, flexibility, and the increasing trend of remote working. Major enterprises and SMEs alike are migrating workloads to public cloud platforms such as Amazon Web Services (AWS) and Microsoft Azure due to their scalability, low maintenance costs, and access to a wide array of services without heavy infrastructure investments. On the other hand, private cloud is preferred by industries with stringent compliance needs, such as banking and healthcare, while hybrid cloud serves as a bridge for organizations aiming for flexibility and control over sensitive data.

By Service Model: The market is segmented by service model into Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). Software-as-a-Service (SaaS) continues to dominate the market due to its ease of deployment, low upfront costs, and wide applications across industries. Companies increasingly rely on SaaS solutions for CRM, ERP, and collaboration tools, with players like Salesforce, Adobe, and Microsoft leading this segment. IaaS, while accounting for a smaller portion of the market, is growing rapidly as businesses seek scalable cloud infrastructure to run dynamic workloads, reduce hardware costs, and improve disaster recovery capabilities.

North America Cloud Computing Market Competitive Landscape

The North America Cloud Computing market is highly consolidated, with a few major players dominating the landscape. The market's top players include well-established tech giants and cloud-native service providers. Their influence stems from the breadth of their offerings, continuous innovation, and strategic acquisitions.

The competitive landscape is defined by several key players, including:

North America Cloud Computing Market Analysis

Growth Drivers

• Digital Transformation: Digital transformation is driving cloud adoption as over 87 million U.S. workers were in jobs requiring digital skills by 2023. This reflects a significant shift in the job market towards roles that necessitate proficiency in digital technologies, which is a crucial factor driving companies to adopt cloud solutions for enhanced operational efficiency and data management. It is reported that cloud services manage over80% of national digital storage. This statistic highlights the central role of cloud computing in modern data management practices, as organizations increasingly rely on cloud infrastructure to handle their data needs efficiently.
• Hybrid Cloud Demand: Hybrid cloud adoption is growing, with nearly 60% of Fortune 500 companies utilizing hybrid infrastructure by 2024, driven by the need for flexibility, especially in industries like healthcare and finance, contributing to the $25 trillion U.S. GDP in 2023. Additionally, the broader context of cloud computing indicates that the market is rapidly expanding, with significant growth projected in the coming years. For instance,end-user spending on public cloud services is expected to reach nearly $600 billion, indicating a robust shift towards cloud solutions across industries.
• Government Policies: U.S. federal policies, such as Cloud Smart, are accelerating cloud adoption, with 90% of federal agencies expected to have cloud strategies by 2024. The U.S. allocated $90 billion in 2023 toward IT modernization, reflecting cloud-first initiatives focused on scalability and security. TheCloud Smartpolicy was introduced by the Office of Management and Budget (OMB) to enhance cloud adoption across federal agencies. It focuses on three critical components:security,procurement, andworkforcedevelopment, aiming to address barriers that agencies face in transitioning to cloud technologies.

Market Challenges:

• Data Security Concerns: In 2023, data security continues to pose a significant challenge, with 1,700 breaches exposing 100 million records. This has prompted enterprises to allocate $68 billion to cybersecurity measures, focusing on compliance with regulations like HIPAA and CCPA for securing cloud-stored data. These investments aim to strengthen data protection protocols and mitigate growing cybersecurity threats in North America.
• Legacy Systems: As of 2023, over 45% of medium to large enterprises in North America, particularly in banking, still depend on legacy systems. The high costs, risks, and potential downtime associated with migrating to cloud environments hinder progress. Despite cloud benefits, enterprises struggle to modernize infrastructure, creating challenges for seamless integration and operational efficiency in the evolving cloud computing landscape.

North America Cloud Computing Market Future Outlook

The North America Cloud Computing market is expected to witness substantial growth over the next five years. This growth will be driven by several factors, including the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies, which are being integrated into cloud services to enhance operational efficiencies and decision-making processes. The growing need for edge computing, 5G integration, and real-time data analytics will further expand the cloud market, particularly in industries such as healthcare, retail, and finance.

Market Opportunities:

• AI and ML Integration: Over 65% of North American companies in 2024 are integrating AI/ML into cloud infrastructures, especially in healthcare and retail, where predictive analytics improve decision-making. U.S. investments in AI cloud technologies surpassed $110 billion in 2023.
• Edge Computing: With over 50 million edge devices expected in North America by 2024, edge computing reduces latency, vital for real-time data processing in sectors like manufacturing, fueled by 5G networks projected to cover 70% of the U.S. population by 2024.