Global Cloud Sustainability Market Insights Forecasts to 2033

• The Global Cloud Sustainability Market Size was Valued at USD 24.19 Billion in 2023
• The Market Size is Growing at a CAGR of 18.57% from 2023 to 2033
• The Worldwide Cloud Sustainability Market Size is Expected to Reach USD 132.85 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Cloud Sustainability Market Size is Anticipated to Exceed USD 132.85 Billion by 2033, Growing at a CAGR of 18.57% from 2023 to 2033. The market includes initiatives to make cloud computing more sustainable and energy-efficient. As more enterprises switch to cloud services, there is increasing need to address the environmental effects of these technologies. The market encompasses solutions, services, and practices for lowering the carbon footprint of cloud operations, increasing energy efficiency, and encouraging overall sustainability.

Market Overview

The term "cloud sustainability" describes the process of using cloud computing resources to maximize resource and energy efficiency while minimizing environmental impact. The incorporation of renewable energy sources in data centers and cloud infrastructure is encouraged, energy efficiency is improved, and carbon emissions are decreased. The aim is to guarantee that cloud services are not only economical and expandable, but also ecologically conscious. Major providers of cloud services are progressively utilizing renewable energy sources including hydropower, solar, and wind to power their data centers. This trend supports global sustainability goals and lowers emissions. To reduce pollution and dispute climate change, governments and regulatory agencies around the world are passing stricter environmental laws.

Opportunity

Increasing Regulatory Assistance for Eco-Friendly Methods

The growing legislative support for sustainable practices throughout industries is one of the main drivers of growth in the cloud sustainability market. Regulations and incentives are being introduced by governments and regulatory agencies worldwide to incentivize companies to embrace eco-friendly solutions.

Report Coverage

This research report categorizes the market for the cloud sustainability market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the cloud sustainability market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the cloud sustainability market.

Driving Factors

The increasing focus on data center energy efficiency is a major factor propelling the cloud sustainability market. Businesses are implementing cloud technologies because they provide a more sustainable infrastructure and improved server usage, which lowers the overall cost.

Restraining Factors

Despite the advantages, the substantial initial expenses associated with changing to greener infrastructure are a significant barrier to the cloud sustainability market.

Market Segmentation

The cloud sustainability market share is classified into solution, enterprise, and service model.

• The energy-efficient infrastructure segment dominates the market with the highest market share through the forecast period.

Based on the solution, the cloud sustainability market is categorized into energy-efficient infrastructure, green software solutions, carbon management solutions, and sustainable cloud platforms. Among these, the energy-efficient infrastructure segment dominates the market with the highest market share through the forecast period. Data centers, which use a lot of energy, are extremely concerned about rising energy prices. High energy use results in significant operating costs for cloud service providers. To combat this, a lot of people are spending money on energy-efficient infrastructure, such as sophisticated cooling systems, low-power servers, and improved power control.

• The large enterprises segment is expected to hold the largest share of the cloud sustainability market during the forecast period.                  

Based on the enterprise, the cloud sustainability market is divided into small & medium enterprises (SMEs) and large enterprises. Among these, the large enterprises segment is expected to hold the largest share of the cloud sustainability market during the forecast period. Large enterprises frequently use data centers to operate substantial cloud operations, which results in high operating expenses and huge energy consumption. They may maximize resource utilization, minimize power consumption, and cut total costs by using green software solutions and energy-efficient cloud infrastructure. Cloud operations are more economical thanks to these sustainability-focused solutions, which also improve operational efficiency and lower energy expenses.                 

• The infrastructure as a service (laaS) segment is anticipated to grow at the highest CAGR during the forecast period.

Based on the service model, the cloud sustainability market is classified into infrastructure as a service (laaS), platform as a service (PaaS), software as a service (SaaS), and others. Among these, the infrastructure as a service (laaS) segment is anticipated to grow at the highest CAGR during the forecast period. This dominance is due to companies are seeking IaaS suppliers that offer low-carbon, energy-efficient infrastructure to help them achieve their environmental objectives. These environmentally friendly cloud solutions help businesses meet legal requirements and lessen their environmental impact while preserving performance and cost-effectiveness.

Regional Segment Analysis of the Cloud Sustainability Market 

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the cloud sustainability market over the predicted timeframe.

North America is projected to hold the largest share of the cloud sustainability market over the predicted timeframe. This dominance is attributed due to many businesses, especially in the technology sector, have set high goals including cutting greenhouse gas emissions or being carbon neutral. Businesses are compelled by these pledges to implement environmentally friendly cloud infrastructure that meets operational requirements. To accomplish their sustainability goals, major tech companies at the forefront of this movement are investing in green software, renewable energy, and energy-efficient storage facilities.

Asia Pacific is expected to grow at the fastest CAGR growth in the cloud sustainability market during the forecast period. The region's fastest growth is due to deal with climate change, numerous nations in the Asia-Pacific area are enacting stronger environmental laws and sustainability programs. By establishing aggressive goals for energy efficiency and carbon reduction, the healthcare industry is aggressively encouraging the adoption of green technologies. To entice companies to invest in environmentally friendly cloud infrastructure, they offer incentives including tax cuts and subsidies. By increasing the accessibility and financial appeal of eco-friendly technologies, these measures propel market expansion in Asia-Pacific.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the cloud sustainability market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud
• IBM Cloud
• Oracle Cloud
• Salesforce
• SAP
• Dell Technologies
• Equinix
• Nutanix
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In September 2024, Oracle launched Oracle Fusion Cloud Sustainability, an app that connects information from Oracle Fusion Cloud ERP and Oracle Fusion Cloud SCM, to enable evaluation and visualization within Oracle Fusion Cloud Enterprise Performance Management (EPM) and Oracle Fusion Data Intelligence applications.

• In August 2024, Hitachi Vantara, Hitachi's subsidiary for data storage, facilities and hybrid cloud management, and Broadcom Inc. have launched a robust private and hybrid cloud solution. The co-engineered offering combines Hitachi Vantara's integrated systems solution of Unified Compute Platform (UCP) RS with VMware Cloud Foundation to aid enterprises in managing the complexity caused by significant data expansion and the rising requirements of AI.

• In July 2024, Soluna Holdings, Inc. an inventor of green data centers for intensive computing applications such as Bitcoin mining and AI, declared that its subsidiary, Soluna Cloud, is now providing AI cloud services to Enterprise customers and Artificial Intelligence Labs. A minimum of 512 H100 SXM GPUs are now accessible in the new service to handle generative AI applications.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the cloud sustainability market based on the below-mentioned segments: 

Global Cloud Sustainability Market, By Solution

• Energy-efficient Infrastructure
• Green Software Solutions
• Carbon Management Solutions
• Sustainable Cloud Platforms

Global Cloud Sustainability Market, By Enterprise

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Global Cloud Sustainability Market, By Service Model

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

Global Cloud Sustainability Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa