Dublin, Nov. 10, 2025 (GLOBE NEWSWIRE) -- The "United States Cloud Computing Market Report by Service, Enterprise Size, Industry, States and Company Analysis, 2025-2033" report has been added to ResearchAndMarkets.com's offering.
The United States Cloud Computing Market is predicted to grow from US$ 221.69 Billion in 2024 to US$ 871.61 Billion by 2033. This growth reflects a robust Compound Annual Growth Rate (CAGR) of 16.43% from 2025 to 2033
Key drivers are the increasing need for elastic storage, enhanced security, and the digital transformation of businesses across various industries, which establish cloud computing as a crucial pillar for future success.
Cloud computing is used most extensively in industries in the US. It is utilized by businesses to store and back up data so that it can be accessed safely for critical data. SaaS solutions like Salesforce and Google Workspace enable enhanced collaboration and productivity without having to deploy locally. Infrastructure-as-a-Service (IaaS) is also being used by businesses for flexible computing resources.
Cloud computing is also a major driver for big data analytics, which allows organizations to analyze vast amounts of data in real-time. Along with the rise in work-from-home, cloud solutions also provide employees with ease of access to core tools and documents from anywhere, resulting in improved efficiency and connectivity across the organization.
Growth Driver in United States Cloud Computing Market
Rapid Digital Transformation Across Sectors
One of the key growth drivers of the United States cloud computing market is ongoing digital transformation in sectors such as manufacturing, retail, finance, and healthcare. Organizations are shifting from traditional IT infrastructure to cloud infrastructure to improve efficiency, scalability, and flexibility. Cloud computing enables businesses to adopt emerging technologies such as artificial intelligence (AI), machine learning (ML), and big data analytics, which are key to decision-making and competitiveness.
Microsoft and Cloud Software Group entered into an eight-year strategic collaboration in April 2024 to accelerate cloud adoption and generative AI innovation. With its investment of US$1.65 billion in Microsoft Cloud, the deal reaffirms Citrix as the go-to Azure partner, which will reach more than 100 million users with converged digital products.
Robust Adoption of SaaS and Subscription-Based Models
Widespread adoption of Software as a Service (SaaS) and subscription models meaningfully contributes to United States cloud computing growth. Organizations increasingly turn towards SaaS solutions for business software such as customer relationship management (CRM), enterprise resource planning (ERP), and human resource management (HRM). SaaS solutions are cost-efficient, easy to update, and require less maintenance, hence they are very popular with small and big enterprises both.
Subscription-based economics provides predictable expenses and scalable flexibility, just what demanding business needs require. American firms like Microsoft, Salesforce, and Google dominate the SaaS space, driving the trend. May 2025, ServiceNow's upgraded CRM product, announced at Knowledge 2025, signals a shift in enterprise software towards an AI-first age. Its foundation is built on the concept of the System of Execution, which ServiceNow is playing up more and more.
Government Initiatives and Cloud-First Policies
Government initiatives and cloud-first strategies are a major growth driver for the U.S. cloud computing industry. Federal and state governments are increasingly adopting cloud technology to revamp their infrastructure, optimize service delivery, and reinforce data security. Programs such as the Federal Cloud Computing Strategy are encouraging government agencies to shift legacy applications to cloud environments, which is creating demand for secure and elastic platforms.
Partnerships with major cloud providers enable public sector hybrid and multi-cloud adoption, delivering agility while offering regulatory compliance. Feb 2024, The federal government is prioritizing migrating to cloud computing as part of its IT modernization approach. The 2021 Executive Order on Improving the Nation's Cybersecurity (EO 14028) reiterates the necessity of secure cloud technology in the transition.
Challenge in the United States Cloud Computing Market
Data Security and Compliance Problems
Despite growing adoption, data security and compliance problems are still robust hindrances to cloud growth in the United States. Organizations worry about data breaches, unauthorized access, and cyberattacks, particularly those dealing with sensitive information such as healthcare, banking, and government. Cloud vendors must comply with rigorous policies such as HIPAA, GDPR, and FedRAMP, adding complexity and expense.
Firms are also worried about data location, vendor lock-in, and preserving control over valuable assets. These factors will deter cloud adoption, especially in firms handling very confidential or mission-critical data. While vendors invest a lot of money into advanced encryption, identity management, and compliance certifications, there are still residual trust concerns. Good mitigation of these issues is vital for sustaining market growth and consumer confidence in cloud services.
Rising Costs and Vendor Lock-In Risk
Increased cost of cloud services and vendor lock-in risks are another threat in the United States cloud computing sector. Even though cloud computing reduces initial capital expenditure, long-term subscription fees, data transfer fees, and usage fees may grow exponentially, especially for large enterprises with heavy workloads.
Vendor lock-in occurs when businesses become heavily dependent upon a single provider's environment, and it becomes nearly impossible to move applications or data to other platforms. That denies flexibility and negotiating leverage as well as increasing switching costs. Multi-cloud and hybrid approaches are becoming more widely recognized as solutions to reverse lock-in, but it introduces additional management complexity. Keeping cost-effectiveness at the sacrifice of flexibility remains the priority for enterprises seeking to get the best out of their cloud investments in the U.S. market.
Key Attributes:
Report AttributeDetailsNo. of Pages200Forecast Period2024 - 2033Estimated Market Value (USD) in 2024$221.69 BillionForecasted Market Value (USD) by 2033$871.61 BillionCompound Annual Growth Rate16.4%Regions CoveredUnited States
Company Analysis: Overview, Key Persons, Recent Developments, SWOT Analysis, Revenue Analysis
Amazon.com Inc. (AWS)Google LLCMicrosoft CorporationAlibaba CloudSalesforce IncAdobe GroupOracle CorporationIBM Corporation
Market Segmentations
Service
Software As A Service (SaaS)Infrastructure As A Service (IaaS)Platform As A Service (PaaS)
Enterprise Size
Large EnterprisesSmall & Medium Enterprises
Industry
BFSIIT & TelecomRetail & Consumer GoodsMedia & entertainmentManufacturingEnergy & UtilitiesHealthcareGovernment & Public SectorOthers
Top States
CaliforniaTexasNew YorkFloridaIllinoisPennsylvaniaOhioGeorgiaNew JerseyWashingtonNorth CarolinaMassachusettsVirginiaMichiganMarylandColoradoTennesseeIndianaArizonaMinnesotaWisconsinMissouriConnecticutSouth CarolinaOregonLouisianaAlabamaKentuckyRest of United States
For more information about this report visit https://www.researchandmarkets.com/r/q0fovt
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Attachment
U.S. Cloud Computing Market
United States Cloud Computing Market Analysis Report 2025-2033 Featuring Amazon, Google, Microsoft, Alibaba, Salesforce, Adobe, Oracle, and IBM
Published 4 hours ago
Nov 10, 2025 at 4:50 PM
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