Global Private Cloud Services Market Report and Forecast 2024-2032

Global Private Cloud Services Market Size

The global private cloud services market value reached approximately USD 49.37 billion in 2023. The market is estimated to grow at a CAGR of 15.1% in the forecast period of 2024-2032, reaching a value of around USD 179.89 billion by 2032.

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.

• With dedicated infrastructure, private clouds provide robust data protection and compliance features.

• Tailored environments can optimize performance, reducing latency and increasing reliability.

Initial setup and ongoing maintenance can be expensive compared to public cloud alternatives.

• Requires specialised skills for configuration and management, potentially leading to resource strain.

• May lag public clouds in adopting cutting-edge technologies and services.

A heightened emphasis on data protection can propel the adoption of private clouds, creating more opportunities within the private cloud services market.

• Potential for growth in hybrid solutions combining private and public cloud benefits.

• Opportunities to develop tailored solutions for industries with stringent regulatory requirements.

Intensifying competition from public and hybrid cloud providers can pressure pricing and innovation.

• Rapid technological advancements may render existing private cloud solutions outdated.

• Economic uncertainties can lead businesses to favour cost-effective public cloud options.

Key Players in the Global Private Cloud Services Market and Their Key Initiatives

Microsoft Corp.

• Launched Azure Arc-enabled servers. 

• Introduced Azure VMware Solution, enabling seamless migration and integration.

Alphabet Inc.

• Launched Google Distributed Cloud to enhance hybrid and multi-cloud capabilities. 

• Introduced new AI and ML services on Google Cloud to capture the private cloud services market opportunities.

Cisco Systems Inc.

• Launched Cisco Intersight Workload Optimizer.

• Introduced Cisco HyperFlex 5.0, providing advanced data protection.

HP Inc.

• HPE expanded the HPE GreenLake private cloud portfolio with HPE GreenLake for private cloud business edition to meet the growing demand of the private cloud services market.

• Expanded its GreenLake platform, integrating advanced private cloud capabilities.

Global Private Cloud Services Industry Segmentation

“Global Private Cloud Services Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• Infrastructure as a Service

• Platform as a Service

• Software as a Service

Market Breakup by Enterprise Size 

• Small and Medium Enterprises

• Large Enterprises

Market Breakup by End-Use

• BFSI

• Government

• IT and Telecom

• Healthcare

• Retail

• Education

• Media and Entertainment

• Manufacturing

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Private Cloud Services Market Share

Large enterprises represent a substantial share of the private cloud services market demand, as these services help them achieve better compliance with regulations and standards related to data security and access. These services also offer the feature of portability to large enterprises, through which an application present in private infrastructure can be reused across a hybrid or multi-cloud environment. Furthermore, large enterprises can utilise private cloud infrastructure to regulate access control of their employees for enhanced data protection.

Leading Companies in the Private Cloud Services Market

The companies offer its services in e-commerce, cloud computing, and artificial intelligence, among others.

• Microsoft Corp.   

• Amazon.com, Inc.   

• Alphabet Inc.   

• Cisco Systems Inc.   

• HP Inc.   

• Dell Technologies Inc.   

• Rackspace Technology, Inc.   

• VMware, Inc.   

• Red Hat, Inc.  

• Nutanix, Inc.

Key Highlights of the Report

Private Cloud Services Market Report Snapshots

Private Cloud Services Market Size

Private Cloud Services Market Growth

Private Cloud Services Market Analysis

Private Cloud Services Market Share

Private Cloud Services Companies