The global private cloud services market value reached approximately USD 49.37 Billion in 2024. The market is estimated to grow at a CAGR of 15.10% in the forecast period of 2025-2034, reaching a value of around USD 201.47 Billion by 2034.
Global Private Cloud Services Market Growth
Private cloud services refer to cloud computing services and resources offered on a private internal network for an organisation or tenant. These services offer a high level of security and privacy compared to public cloud services, which makes them a preferable option in organisations with sensitive data.
Significant demand in the private cloud services market is increasing for advanced security solutions, particularly in sectors like BFSI and healthcare, where safeguarding data is crucial. Private cloud services offer banking and healthcare companies a high level of protection over their sensitive data and information as compared to a public cloud and curb the risk of security breaches.
Global Private Cloud Services Market Analysis
The rising trend of virtualisation in private cloud services, which enhances scalability and offers hassle-free data transfer while providing virtual firewalls that protect data and applications at a cost-effective price, is another crucial trend aiding the private cloud services industry growth.
The private cloud services market dynamics and trends are being driven by substantial investments from key players in private cloud infrastructures. These investments aim to enhance data storage and performance, further fuelling the growth of the private cloud services industry.
Global Private Cloud Services Industry Outlook
According to the Industry report in, the January 2024 report, global IT spending increased from USD 4,678,847 million in 2023 to USD 4,997,718 million in 2024, showing a 6.8% growth rate. Data Centre Systems spending rose from USD 243,063 million in 2023 to USD 261,332 million in 2024, a 7.5% increase. Device spending grew from USD 699,791 million in 2023 to USD 732,287 million in 2024, which represents a 4.6% increase. Software investment rose from USD 913,334 million in 2023 to USD 1,029,421 million in 2024, a 12.7% increase. IT Services spending grew from USD 1,381,832 million in 2023 to USD 1,501,365 million in 2024, an 8.7% increase. Communications Services spending increased from USD 1,440,827 million in 2023 to USD 1,473,314 million in 2024, reflecting a 2.3% growth. In 2023, overall IT spending increased by 3.3%, with a notable acceleration to 6.8% in 2024. This growth has further boosted the private cloud services industry revenue, which offers improved security, control, and customization compared to public cloud solutions that are shared by multiple organizations.
Moreover, the growth of the private cloud services market is majorly originating from the emerging nations. According to the Reserve Bank of India, India's total export value of software services rose from USD 128.6 billion in 2019-20 to USD 133.7 billion in 2020-21, indicating an 8.8% year-on-year growth. Computer services increased from USD 85.7 billion in 2019-20 to USD 87.3 billion in 2020-21. IT services within this category grew from USD 80.7 billion to USD 82.8 billion. IT-enabled services (ITES) exports climbed from USD 42.9 billion in 2019-20 to USD 46.4 billion in 2020-21, boosting their share of total software exports from 33.4% to 34.7%. Within ITES, Business Process Outsourcing (BPO) services expanded from USD 33.3 billion to USD 37.5 billion, increasing their share from 25.9% to 28.1%.
Private clouds provide customizable resources, allowing businesses to scale their operations efficiently, which in turn boosts the private cloud services demand growth.
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