Europe Cloud Computing Market Size & Share Analysis - Growth Trends & Forecast (2025 - 2030)

The Europe Cloud Computing Market Report is Segmented by Deployment Type (Public Cloud, Private Cloud, Hybrid Cloud), Service Model (IaaS, Paas, Saas), Organization Size (SMEs, Large Enterprises), End-User Industry (Manufacturing, Education, Healthcare, BFSI, Telecom, Government, and More), and Geography (UK, Germany, France, Italy, Spain, Netherlands, Rest of Europe). The Market Forecasts are Provided in Terms of Value (USD).

Europe Cloud Computing Market Size and Share

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Europe Cloud Computing Market Analysis by Mordor Intelligence

The Europe Cloud Computing Market size is estimated at USD 220.90 billion in 2025, and is expected to reach USD 467.97 billion by 2030, at a CAGR of 16.20% during the forecast period (2025-2030). This solid growth rests on escalating digital-sovereignty priorities, rising geopolitical tensions and an intricate regulatory environment that compels data to stay within European borders. A wave of sovereign-cloud programs ranging from Germany’s EUR 7.8 billion AWS European Sovereign Cloud build-out to France’s Bleu platform launch has altered infrastructure deployment models across the region. Measured energy-efficiency targets, developer demand for compliant platforms and public–private funding mechanisms continue to lift service uptake, while mounting antitrust inquiries signal future adjustments in competitive conduct. Energy-supply constraints and cyber-risk exposures act as counterweights yet also spur innovation in greener architectures and advanced security controls, keeping the Europe cloud computing market on an innovation-led trajectory.

Key Report Takeaways

  • By deployment type, Public Cloud led with 47.0% revenue share in 2024, while Hybrid Cloud is projected to expand at 19.2% CAGR through 2030.  
  • By service model, Software-as-a-Service held 41.2% of the Europe cloud computing market share in 2024, whereas Platform-as-a-Service is expected to post the fastest CAGR of 19.8% to 2030.  
  • By organization size, Large Enterprises commanded 63.0% of spend in 2024; the SME segment is accelerating at an 18.0% CAGR amid EU-backed skilling programs.  
  • By end-user industry, BFSI contributed 21.9% of demand in 2024, while Healthcare is on track to register a 19.7% CAGR to 2030.  
  • By geography, the United Kingdom retained 28.0% market share in 2024; Spain is forecast to lead growth at an 18.5% CAGR through 2030.  

Segment Analysis

By Deployment Type: Hybrid Architectures Gain Sovereignty Edge

Hybrid Cloud adoption grew at 19.2% CAGR through 2030, outpacing other models as enterprises blended private control with public scale. Hybrid’s momentum became visible when AWS revealed a EUR 7.8 billion European Sovereign Cloud initiative designed to deliver isolated control planes and customer-chosen data locations.[4]About Amazon Team, “AWS plans to invest €7.8 billion into the AWS European Sovereign Cloud,” About Amazon, aboutamazon.eu In parallel, Deutsche Bank migrated 260 applications to Google Cloud while retaining sensitive workloads on-premises, confirming that risk-heavy sectors can modernize without surrendering regulatory compliance.  

Enterprises increasingly view hybrid architectures as a hedge against jurisdictional volatility, sustaining the Europe cloud computing market’s resilience. Energy-aware workload placement—processing low-latency AI inference near users while running archives in Nordic megasites—has widened the deployment palette. As a result, the Europe cloud computing market size attributed to hybrid solutions is expected to expand faster than the overall baseline, underscoring hybrid’s pivotal role in sovereign compliance strategies.

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Note: Segment shares of all individual segments available upon report purchase

By Service Model: Platform Services Drive Developer Sovereignty

Platform-as-a-Service revenue registers the highest trajectory at 19.8% CAGR to 2030, signalling a developer push for managed runtimes located entirely within EU borders. Hopsworks and OVHcloud launched an AI PaaS that emphasises energy efficiency without exporting data, strengthening the Europe cloud computing market’s local value chain. Software-as-a-Service continues to dominate absolute spend thanks to office productivity and CRM suites, yet platform services introduce stickier developer ecosystems that anchor workloads regionally.  

This narrative suggests a gradual pivot from application-only adoption to deeper platform loyalty. Companies integrating PaaS enjoy shorter innovation cycles, bolstering competitiveness while meeting complex compliance tests. Strong governance tooling embedded in local platforms limits legal exposures from extraterritorial demands, reinforcing demand intensity across the Europe cloud computing industry.

By Organization Size: SMEs Accelerate OpEx Transition

Large Enterprises still capture 63.0% of spend, but SMEs post an 18.0% CAGR as funding and training programs narrow the skills gap. CloudCamp4SMEs aims to qualify 1,000 professionals, lifting adoption in manufacturing and retail micro-segments. The resulting surge is reshaping procurement models: leasing cloud resources removes upfront server outlays, freeing cash for core operations and compliance upgrades.  

The Europe cloud computing market size tied to SMEs could reach double-digit USD billion scale by the end of the period, though persistent talent shortages remain a risk. Country-level stimulus—such as voucher schemes in Eastern Europe—helps offset skill deficits, ensuring that smaller firms are no longer sidelined in the digital-sovereignty landscape. The transition also heightens demand for managed security services tailored to small budgets.

Europe Cloud Computing Market: Market Share by Organization Size
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By End-User Industry: Healthcare Leads Digital Transformation

Healthcare’s 19.7% projected CAGR reflects the European Health Data Space mandate that requires interoperable yet sovereign-compliant data flows. Funding of EUR 810 million and anticipated EUR 11 billion savings provide both carrot and stick for hospital systems moving clinical records to cloud services. BFSI remains the largest single vertical at 21.9%, leveraging cloud for real-time risk analytics and secure document processing.  

Manufacturing’s uptake accelerates through Industry 4.0 proofs such as Palantir Foundry, which delivers production data into regulatory dashboards. Education, telecom and public administration follow, each constrained by sector-specific rules yet drawn by efficiency gains. Collectively, these verticals diversify demand, cushioning the Europe cloud computing market against cyclical shocks in any one industry.

Geography Analysis

The United Kingdom accounted for 28.0% of the Europe cloud computing market in 2024, supported by AWS’s GBP 8 billion infrastructure infusion scheduled through 2028. Potential remedies arising from the Competition and Markets Authority probe into Amazon and Microsoft could diversify supplier options over the forecast horizon. Germany follows, anchored by the Brandenburg sovereign-cloud region and ongoing Gaia-X leadership. France benefits from the Bleu platform’s SecNumCloud accreditation, positioning Paris as a public-sector cloud hub, while Italy secures EUR 1.2 billion AWS expansion that may inject USD 880 million into GDP and create 5,500 jobs.

Spain epitomises the market’s fastest ascent, recording an 18.5% CAGR to 2030 on the back of EUR 33 billion hyperscale pledges and favourable renewable-energy economics. Madrid remains the primary colocation city, yet Aragon hosts five new AWS sites drawing 10,800 GWh—a figure surpassing regional electricity use in 2023. The Netherlands, historically part of the FLAP-D core, wrestles with zoning caps and parliamentary calls for reduced reliance on U.S. vendors, prompting some providers to redirect builds to neighbouring countries.

Nordic nations capture AI-centric workloads through low-carbon grids and natural cooling, while Eastern Europe’s cost-effective labour and high-growth SME base broaden adoption. Luxembourg’s sovereign-cloud rollout exemplifies small-state strategy to punch above weight in digital autonomy. Ireland faces grid bottlenecks after data centers reached 21% of national power draw, driving policy reassessment. Collectively, the geographic mosaic underlines how energy policy, land-use planning and sovereignty considerations now dictate the evolution path of the Europe cloud computing market.

Competitive Landscape

A concentrated structure defines the Europe cloud computing market, with AWS and Microsoft Azure each approaching 40% share, followed by Google at low-double digits. OVHcloud leads indigenous providers, posting EUR 993 million FY2024 revenue and capitalising on water-cooling plus local-data promises. Sovereign-cloud ventures like EuroStack and Virt8ra seek to erode hyperscaler hegemony by pooling European capacity and aligning with Gaia-X standards.

Strategic moves reveal a bifurcated playbook: hyperscalers embed locally segregated controls, while European vendors emphasise compliance and sustainable operations. Vodafone’s USD 1.5 billion, 10-year partnership will shutter its own data centers and migrate estates to Azure, illustrating a partnership-over-parity approach. Schwarz Group’s sovereign workplace partnership with Google shows demand for hybrid models that mix global scale and client-side encryption. 

Regulatory oversight intensifies competition. The UK Digital Markets Act could impose conduct codes and functional-separation requirements once AWS and Microsoft gain “Strategic Market Status”. Parallel parliamentary inquiries in the Netherlands advocate favouring EU-origin software in public procurement. Such interventions aim to temper market lock-in and encourage home-grown alternatives, making compliance aptitude and sustainability metrics critical differentiators inside the Europe cloud computing market.

Europe Cloud Computing Industry Leaders

  1. Alibaba Group Holding Limited

  2. Amazon Web Services (AWS)

  3. Google LLC

  4. IBM Corporation

  5. Microsoft Corporation

  6. *Disclaimer: Major Players sorted in no particular order
Europe Cloud Computing Market Concentration
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Recent Industry Developments

  • June 2025: AWS established its European Sovereign Cloud as a separate company, strengthening regulatory independence.
  • June 2025: Virt8ra Sovereign Cloud expanded with six new European providers.
  • May 2025: BSO introduced DataOne, a 15 MW French AI hosting center scaling to 400 MW by 2028.
  • May 2025: AWS planned EUR 15.7 billion Spain investment through 2033.

Table of Contents for Europe Cloud Computing Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Strong government incentives for cloud-first digital agendas
    • 4.2.2 Rapid hyperscaler data-center build-out across FLAP-D hubs
    • 4.2.3 SME shift from CapEx to OpEx for IT infrastructure
    • 4.2.4 EU Gaia-X and sovereign-cloud programs catalyzing local ecosystems
    • 4.2.5 Green-cloud mandates driving migration to energy-efficient architectures
    • 4.2.6 Schrems-II-driven demand for in-region data-residency and edge clouds
  • 4.3 Market Restraints
    • 4.3.1 Heightened cyber-attack surface and headline data-breach incidents
    • 4.3.2 Complex multi-jurisdictional compliance (GDPR and country add-ons)
    • 4.3.3 Volatile European electricity prices inflating cloud TCO
    • 4.3.4 Shortage of cloud-native engineering talent outside tier-1 hubs
  • 4.4 Regulatory Landscape
  • 4.5 Technology Outlook
  • 4.6 Number of Data Centers by Country
  • 4.7 Case-Study Analysis
  • 4.8 Pricing Model Analysis
  • 4.9 Investment Analysis
  • 4.10 Porter's Five Forces Analysis
    • 4.10.1 Bargaining Power of Suppliers
    • 4.10.2 Bargaining Power of Buyers
    • 4.10.3 Threat of New Entrants
    • 4.10.4 Threat of Substitutes
    • 4.10.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Deployment Type
    • 5.1.1 Public Cloud
    • 5.1.2 Private Cloud
    • 5.1.3 Hybrid Cloud
  • 5.2 By Service Model
    • 5.2.1 Infrastructure-as-a-Service (IaaS)
    • 5.2.2 Platform-as-a-Service (PaaS)
    • 5.2.3 Software-as-a-Service (SaaS)
  • 5.3 By Organization Size
    • 5.3.1 Small and Medium-sized Enterprises (SMEs)
    • 5.3.2 Large Enterprises
  • 5.4 By End-user Industry
    • 5.4.1 Manufacturing
    • 5.4.2 Education
    • 5.4.3 Healthcare and Life Sciences
    • 5.4.4 Banking, Financial Services and Insurance (BFSI)
    • 5.4.5 Telecom and IT Services
    • 5.4.6 Government and Public Sector
    • 5.4.7 Utilities, Media and Entertainment, Others
    • 5.4.8 Others
  • 5.5 By Country
    • 5.5.1 United Kingdom
    • 5.5.2 Germany
    • 5.5.3 France
    • 5.5.4 Italy
    • 5.5.5 Spain
    • 5.5.6 Netherlands
    • 5.5.7 Rest of Europe

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Amazon Web Services (AWS)
    • 6.4.2 Microsoft Corporation (Azure)
    • 6.4.3 Google LLC (Google Cloud)
    • 6.4.4 IBM Corporation
    • 6.4.5 Alibaba Group Holding Ltd.
    • 6.4.6 Oracle Corporation
    • 6.4.7 Salesforce Inc.
    • 6.4.8 SAP SE
    • 6.4.9 OVHcloud
    • 6.4.10 Deutsche Telekom AG (T-Systems)
    • 6.4.11 Orange Business Services
    • 6.4.12 Atos SE
    • 6.4.13 Capgemini SE
    • 6.4.14 Rackspace Technology
    • 6.4.15 VMware Inc.
    • 6.4.16 Fujitsu Ltd.
    • 6.4.17 Tencent Cloud Europe
    • 6.4.18 Hetzner Online GmbH
    • 6.4.19 Cisco Systems Inc.
    • 6.4.20 Accenture plc

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-Need Assessment
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Europe Cloud Computing Market Report Scope

Cloud computing provides on-demand access to computer resources, particularly data storage and processing power, without requiring direct management by the user. Computing resources, including physical and virtual servers, data storage, networking capabilities, application development tools, software, and AI-powered analytics, are accessible over the Internet with a pay-per-use pricing model.

The report covers European cloud computing companies, and the market is segmented by type (public cloud, private cloud, and hybrid cloud), organization type (SMEs and large enterprises), end-user industries (manufacturing, education, retail, transportation, and logistics, healthcare, BFSI, telecom, and IT, government and public sector), and country (the United Kingdom, Germany, France, Italy, and the Rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Deployment Type Public Cloud
Private Cloud
Hybrid Cloud
By Service Model Infrastructure-as-a-Service (IaaS)
Platform-as-a-Service (PaaS)
Software-as-a-Service (SaaS)
By Organization Size Small and Medium-sized Enterprises (SMEs)
Large Enterprises
By End-user Industry Manufacturing
Education
Healthcare and Life Sciences
Banking, Financial Services and Insurance (BFSI)
Telecom and IT Services
Government and Public Sector
Utilities, Media and Entertainment, Others
Others
By Country United Kingdom
Germany
France
Italy
Spain
Netherlands
Rest of Europe
By Deployment Type
Public Cloud
Private Cloud
Hybrid Cloud
By Service Model
Infrastructure-as-a-Service (IaaS)
Platform-as-a-Service (PaaS)
Software-as-a-Service (SaaS)
By Organization Size
Small and Medium-sized Enterprises (SMEs)
Large Enterprises
By End-user Industry
Manufacturing
Education
Healthcare and Life Sciences
Banking, Financial Services and Insurance (BFSI)
Telecom and IT Services
Government and Public Sector
Utilities, Media and Entertainment, Others
Others
By Country
United Kingdom
Germany
France
Italy
Spain
Netherlands
Rest of Europe
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Key Questions Answered in the Report

What is the projected value of the Europe cloud computing market by 2030?

The Europe cloud computing market is expected to reach USD 467.97 billion by 2030.

Which deployment model is growing fastest in Europe?

Hybrid Cloud is forecast to advance at 19.2% CAGR as firms combine on-premises control with public scalability.

Why is Spain considered a rising cloud hub?

Spain has attracted EUR 33 billion in hyperscale commitments and offers renewable-energy access, low land costs and supportive regulation.

How will new EU regulations affect healthcare cloud adoption?

The European Health Data Space rules require sovereign storage of patient records, driving a 19.7% CAGR in healthcare cloud spending.

Which providers dominate the European market today?

AWS and Microsoft Azure each hold near-40% share, while OVHcloud leads indigenous competitors.

What role does energy sustainability play in future capacity planning?

EU mandates for carbon-neutral data centers by 2030 and grid congestion in key cities are pushing operators toward renewable-rich Nordic and Southern regions, shaping site selection.

Europe Cloud Computing Market Report Snapshots