The Asia Pacific whole cloud market is expected to grow at a 22.2% compound annual growth rate (CAGR) and reach $471.2 billion by 2028, according to market intelligence firm International Data Corp. (IDC).
IDC reported that whole cloud spending in the region grew by 34.6% year over year in 2024, and the market is projected to grow another 23.4% in 2025 as cloud-related investments continue to rise.
“Although organizations in Asia Pacific, excluding Japan, have varying levels of cloud adoption, most aspire to enhance cloud maturity significantly,” said Shouvik Nag, senior research analyst at IDC Asia Pacific. “They increasingly view cloud as a core infrastructure and are leveraging it to unlock business value. This shift is accelerating with the rise of AI and GenAI, marking a new turning point for the cloud ecosystem.”
IDC noted that in 2024, advances in multicloud, hybrid cloud, and generative AI (GenAI) reshaped the global tech landscape. The Asia Pacific region (excluding Japan) saw strong growth in AI use, next-generation connectivity, and software engineering, particularly in China, Australia, South Korea, and Singapore, as well as fast-growing economies such as India, Malaysia, and Indonesia.
Governments and businesses are increasing spending on digital infrastructure, including cloud-native platforms, 5G, edge computing, and green data centers, to support innovation and improve resilience. Despite economic and geopolitical challenges, demand for cloud infrastructure, managed services, and professional cloud services continues to grow as cloud becomes central to digital transformation and AI development.
“As organizations transition to cloud-based operating models and AI-driven services, cloud will solidify its role as a foundational technology platform,” Nag said.
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