Cloud Sustainability Market Highlights

• Global cloud sustainability market revenue is poised to garner USD 117.2 billion by 2032 with a CAGR of 19.1% from 2024 to 2032
• North America cloud sustainability market value occupied around USD 8.9 billion in 2023
• Asia-Pacific cloud sustainability market growth will record a CAGR of more than 20.3% from 2024 to 2032
• Among solution, the energy-efficient infrastructure sub-segment generated more than USD 8.4 billion revenue in 2023
• Based on service model, the infrastructure as a service (IaaS) sub-segment generated around 42% cloud sustainability market share in 2023
• Provides expert consulting services to assist enterprises in implementing sustainable cloud practices and measuring their environmental impact is a popular cloud sustainability market trend that fuels the industry demand

Cloud sustainability is the practice of employing cloud services in an environmentally responsible way. It refers to the sustainable operation and delivery of cloud services by providers, as well as the sustainable consumption and usage of cloud services by businesses and people. Cloud providers are increasingly concentrating on reducing their carbon footprint by employing renewable energy, enhancing data center efficiency, and implementing energy-saving technologies. Cloud services enable enterprises to optimize resource utilization, save energy, and avoid costly hardware expenditures. Furthermore, cloud-based solutions can encourage sustainable business practices by enabling remote work, reducing travel, and optimizing operations.

Organizations can help to ensure cloud sustainability by selecting sustainable cloud providers, optimizing resource usage, using energy-efficient cloud services, monitoring and measuring environmental impact, and working with cloud providers to develop and implement sustainable cloud solutions.

By implementing cloud sustainability practices, enterprises may contribute to a more sustainable future while reaping the benefits of cloud technology.

Global Cloud Sustainability Market Dynamics

Market Drivers

• The growing awareness of climate change and sustainability is driving demand for eco-friendly cloud solutions
• Global laws on carbon emissions and energy consumption encourage enterprises to adopt sustainable cloud operations
• Efficient cloud resource usage and energy-saving technology can significantly reduce costs for enterprises
• Adopting sustainable cloud practices can boost brand reputation and attract eco-conscious customers

Market Restraints

• Implementing sustainable cloud solutions may necessitate considerable initial investments in energy-efficient infrastructure and technologies
• Many firms remain unaware of the benefits and practices of cloud sustainability
• Implementing long-term cloud solutions can be difficult and require specialist knowledge

Market Opportunities

• Creating energy-efficient data centers that use innovative cooling technologies and renewable energy sources
• Using AI and machine learning to improve resource utilization and energy consumption in cloud environments
• Offers cloud services that promote sustainability, such as carbon-neutral hosting and renewable energy-powered infrastructure

Cloud Sustainability Market Report Coverage

Cloud Sustainability Market Insights

The cloud sustainability industry is rapidly expanding for a variety of reasons, including growing environmental concerns, stronger legislation, cost-cutting strategies, and improved brand reputation. As climate change becomes a big worldwide issue, organizations and consumers are encouraging businesses to adopt more environmentally friendly practices. Cloud providers are addressing this requirement by investing in renewable energy, increasing data center efficiency, and implementing energy-saving solutions. According to a Greenpeace investigation, data centers consume a lot of electricity, which contributes to greenhouse gas emissions. Cloud service providers can reduce their carbon footprint and environmental impact by using sustainable practices.

Governments around the world are passing more stringent policies to combat climate change and encourage sustainable lifestyles. These policies typically compel firms to track and minimize their carbon emissions, particularly those related to cloud computing. For example, the European Union's Sustainable Finance Disclosure Regulation (SFDR) requires firms to disclose their environmental, social, and governance (ESG) implications. Cloud providers must follow these standards to avoid penalties and maintain their market position.

Cloud sustainability initiatives can result in significant cost reductions for enterprises. Organizations can cut cloud spending by optimizing resource consumption, such as rightsizing instances and auto-scaling. Furthermore, energy-efficient data centers and cloud services can reduce operating costs. The Environmental Protection Agency (EPA) discovered that energy-efficient data centers can reduce energy use by up to 40%.

Implementing sustainable cloud practices can help a company's reputation and attract environmentally sensitive clients. Consumers are increasingly opting to do business with companies that value sustainability. Cloud providers can stand out from the crowd and gain customer loyalty by demonstrating a commitment to sustainability.

Cloud Sustainability Market Segmentation

The worldwide market for cloud sustainability is split based on solution, enterprise size, service model, end use, and geography.

Cloud Sustainability Market By Solution

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

The energy-efficient infrastructure category leads the cloud sustainability market, indicating greater need for long-term data solutions in the face of rising energy prices and environmental concerns. According to current industry statistics, data centers consume more than 1% of global electricity, making energy efficiency a critical factor for cloud service providers. This market is predicted to develop at a rapid CAGR as firms strive to reduce their carbon footprint through efficient infrastructure. According to projections, energy-efficient infrastructures will account for more than 35% of the cloud sustainability solutions market by 2030. The growing use of low-power servers, renewable energy sources, and cooling technologies, particularly by major cloud providers such as Amazon Web Services, Google Cloud, and Microsoft Azure, highlights the need of environmentally friendly cloud operations.

Cloud Sustainability Market By Enterprise Size

• SMEs
• Large Enterprises

Large enterprises dominate the cloud sustainability market because of their ability and commitment to implementing long-term cloud solutions at scale. As businesses confront increased regulatory challenges and stakeholder demands for environmental accountability, many are shifting to greener cloud infrastructure to achieve their sustainability goals. Indeed, more than 90% of Fortune 500 organizations have pledged to reduce their carbon footprint, typically working with major cloud providers such as Amazon Web Services, Google Cloud, and Microsoft Azure. Large corporations typically have the resources to invest in energy-efficient infrastructure and carbon management systems, resulting in segment domination, with forecasts indicating that it will account for over 70% of the market by 2030. These companies pursue sustainable practices in order to achieve long-term ESG objectives.

Cloud Sustainability Market By Service Model

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

In terms of cloud sustainability industry analysis, the infrastructure as a service (IaaS) has emerged as the most important section of the market, owing to the demand for scalable, energy-efficient infrastructure solutions. IaaS providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud invest heavily in sustainability, such as using renewable energy to power data centers. AWS, for example, intends to operate fully on renewable energy by 2025, making it appealing to businesses looking to reduce their carbon footprint. The IaaS category is expected to grow rapidly, capturing more than 45% of the cloud sustainability market by 2030. Its attractiveness originates from its adaptable, efficient infrastructure, which allows firms to meet sustainability norms and environmental objectives.

Cloud Sustainability Market By End Use

• BFSI
• Healthcare
• IT and Telecom
• Manufacturing
• Retail and E-commerce
• Others

The IT and telecom sector dominates the cloud sustainability market due to its reliance on cloud infrastructure and data centers. With the growing demand for high-performance computing and storage, organizations in this area are putting sustainability first by implementing energy-efficient cloud solutions. Major players, such as Microsoft Azure and Google Cloud, have made substantial efforts toward using renewable energy to power their data centers. The IT and telecom industries are estimated to account for more than 30% of the market share by 2030. As this sector increases, so does the demand for sustainable cloud solutions, particularly as telecom corporations and IT behemoths strive to cut carbon emissions and achieve environmental targets.

Cloud Sustainability Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Cloud Sustainability Market Regional Analysis

North America has the largest cloud sustainability market share, comprising more than 36% of the global total. This owes in part to the presence of major cloud service providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, all of whom have made great progress in implementing renewable energy sources and energy-efficient infrastructure. Companies in North America are increasingly addressing sustainability in response to both legal requirements and consumer demand for ecologically responsible operations. The region's robust legislative frameworks, such as the Paris Agreement and the Green New Deal, are accelerating the expansion of cloud sustainability. North America is likely to maintain its leadership by 2030, with a cloud sustainability market share as businesses continue to invest in sustainable cloud solutions to satisfy carbon neutrality and environmental objectives.

Europe is another important region for the cloud sustainability market, with Germany and the United Kingdom leading the trend. The region's rigorous environmental regulations, along with a strong emphasis on digital transformation, have fueled the demand for sustainable cloud solutions.

Asia-Pacific is quickly rising during the cloud sustainability market forecast period, cloud technologies were widely adopted, particularly in China, India, and Japan. The region's expanding population and digital economy are driving up demand for long-term cloud sustainability market.

Cloud Sustainability Market Players

Some of the top cloud sustainability market companies offered in our report includes IBM Cloud, Nutanix, Google Cloud, Amazon Web Services (AWS), Equinix, SAP, Oracle Cloud, Dell Technologies, Salesforce, and Microsoft Azure.