Global Cloud Sustainability Market Size, Share & Trends Analysis Report By Enterprise Size (Large Enterprises and SMEs), By Solution, By Service Model, By End Use (IT & Telecom and Other End Use), By Regional Outlook and Forecast, 2024 - 2031

Global Cloud Sustainability Market Size, Share & Trends Analysis Report By Enterprise Size (Large Enterprises and SMEs), By Solution, By Service Model, By End Use (IT & Telecom and Other End Use), By Regional Outlook and Forecast, 2024 - 2031

The Global Cloud Sustainability Market size is expected to reach $96.1 billion by 2031, rising at a market growth of 18.9% CAGR during the forecast period.

North America, especially the United States and Canada, has stringent environmental regulations and compliance requirements. Companies are increasingly required to report and manage their environmental impact. Consequently, the North American region would acquire nearly 35% of the total market share by 2031.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, in September, 2024, Dell Technologies Inc. launched new security solutions focused on data protection and Managed Detection and Response (MDR). The primary aim is to bolster enterprise security against evolving cyber threats. Dell’s new offerings are part of a larger trend among tech companies, including competitors like IBM, to enhance their security portfolios to meet increasing demand for robust data protection solutions. Moreover, in September, 2024, Equinix, Inc. updated its corporate sustainability page to provide insights into its ongoing environmental and social initiatives. The updates aim to offer a transparent view of Equinix’s commitment to sustainable practices and corporate responsibility. This approach is part of a wider industry movement, similar to the detailed sustainability updates provided by Dell Technologies, focusing on engaging stakeholders and promoting sustainability.

Market Growth Factors

As awareness of environmental issues grows, individuals and organizations become more conscious of their ecological footprints. Consumers increasingly prefer to engage with companies that demonstrate environmental responsibility. In conclusion, the Growing Demand for Green, Environmentally Friendly IT Solutions drives the market’s growth.

Governments and regulatory entities worldwide are enacting increasingly rigorous environmental regulations to mitigate pollution and address climate change. Similarly, Japan has set ambitious targets for achieving carbon neutrality by 2050 and has introduced energy efficiency standards for data centers. Thus, increasing regulatory requirements for environmental compliance drives the market’s growth.

Market Restraining Factors

Adopting sustainable cloud solutions often requires significant capital investment in new technologies. This can include upgrading data centers with energy-efficient hardware, investing in advanced cooling systems, and integrating renewable energy sources. Transitioning to sustainable cloud solutions can lead to temporary operational disruptions or downtime as new systems are installed and configured. Therefore, the high initial costs of transitioning to sustainable cloud solutions hinder the market’s growth.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.

Enterprise Size Outlook

Based on enterprise size, the market is bifurcated into small & medium enterprises (SMEs) and large enterprises. The small & medium enterprises (SMEs) segment held 28% revenue share in the market in 2023. SMEs are increasingly attracted to sustainable cloud solutions because of the cost benefits associated with energy efficiency. Green cloud technologies can reduce operational costs through optimized energy use and lower carbon footprint, making them appealing to budget-conscious SMEs.

Solution Outlook

On the basis of solution, the market is segmented into energy-efficient infrastructure, sustainable cloud platforms, green software solutions, and carbon management solutions. In 2023, the sustainable cloud platforms segment attained 29% revenue share in the market. Many companies have set ambitious sustainability targets, including achieving carbon neutrality or reducing environmental impact.

Service Model Outlook

Based on service model, the market is categorized into platform as a service (PaaS), infrastructure as a service (IaaS), software as a service (SaaS), and others. The platform as a service (PaaS) segment witnessed 26% revenue share in the market in 2023. PaaS provides a comprehensive development environment that streamlines the development process and includes tools, frameworks, and libraries.

End Use Outlook

By end use, the market is divided into IT & telecom, banking, financial services, & insurance (BFSI), manufacturing, retail and e-commerce, healthcare, and others. The banking, financial services, & insurance (BFSI) segment procured 20% revenue share in the market in 2023. The BFSI sector is heavily regulated, with strict environmental reporting and compliance requirements.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 36% revenue share in the market in 2023. North America, especially the United States and Canada, has stringent environmental regulations and compliance requirements. Companies are increasingly required to report and manage their environmental impact.

Recent Strategies Deployed in the Market

• Sep-2024: Salesforce introduced its Sustainable AI initiative. The aim is to integrate sustainability into artificial intelligence technology, ensuring that AI practices are environmentally responsible and contribute to broader sustainability goals. This initiative is part of Salesforce's broader strategy to drive innovation while maintaining a commitment to sustainability.
• Sep-2024: Salesforce, an American cloud-based software company, announced that its Sustainability Cloud has become generally available. The primary aim is to offer businesses a comprehensive tool to track, manage, and report their sustainability efforts, helping them achieve their environmental goals. Salesforce’s initiative reflects a growing trend among tech companies to provide solutions that support environmental sustainability.
• Sep-2024: Dell Technologies Inc., an American multinational computer technology company, highlighted its commitment to sustainability through its latest social impact initiatives. The primary aim is to advance sustainability practices across its operations and supply chain, promoting environmental stewardship. Dell’s approach mirrors a growing trend among tech giants to embed sustainability into their core business strategies.
• Jun-2024: IBM Corporation introduced new cloud-based sustainability solutions to help clients reduce their carbon footprints and achieve net-zero targets. The initiative includes advanced analytics and AI tools for better environmental impact assessment.
• May-2024: Amazon Web Services launched of the Mergers and Acquisitions (M&A) Lens as part of its Well-Architected Framework. This new tool offers a comprehensive set of design principles, best practices, and guidance for the effective integration of IT systems following mergers and acquisitions. The M&A Lens is designed to assist organizations in optimizing costs, managing technical debt, and ensuring compliance throughout the technical integration process.

List of Key Companies Profiled

• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Microsoft Corporation
• Google LLC
• IBM Corporation
• Oracle Corporation
• SAP SE
• Salesforce, Inc.
• Dell Technologies, Inc.
• Equinix, Inc.
• Nutanix, Inc.

Global Cloud Sustainability Market Report Segmentation

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises (SMEs)

By Solution

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

By Service Model

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

By End Use

• IT & Telecom
• Banking, Financial Services, & Insurance (BFSI)
• Manufacturing
• Retail and E-commerce
• Healthcare
• Other End Use

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA