Sovereign Cloud Market 2025-2029: Unveiling Growth Developments with the Latest Updates

The Business Research Company

The Business Research Company's Sovereign Cloud Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, October 7, 2025 /EINPresswire.com/ -- "Get 30% Off All Global Market Reports With Code ONLINE30 – Stay Ahead Of Trade Shifts, Macroeconomic Trends, And Industry Disruptors

What Is The Expected Cagr For The Sovereign Cloud Market Through 2025?
The size of the sovereign cloud market has witnessed rapid growth in the past few years. The current market value of $83.93 billion in 2024 is predicted to escalate to $103.97 billion in 2025, illustrating a compound annual growth rate (CAGR) of 23.9%. Factors contributing to this growth trajectory in the historic time frame include the escalating demand for data sovereignty, the increase in adherence to Government regulations, the efforts to counteract growing cyber threats, the expansion of cloud adoption, and the surge in artificial intelligence (AI) workload deployments.

The market size of the sovereign cloud is anticipated to experience a significant increase in the coming years. By 2029, it is projected to expand to $242.03 billion with a compound annual growth rate (CAGR) of 23.5%. This evolution in the predicted period could be ascribed to factors like escalating geopolitical strains, burgeoning initiatives in digital transformation, growing investments in the public sector, increased data localisation amongst enterprises, and intensified requirements for risk management. Noticeable developments in the forecast period comprise enhancements in cloud security procedures, amalgamating with artificial intelligence (AI) and analytics, adoption of technology in hybrid clouds, progression in data residency solutions, as well as advancements in encryption and key management.

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What Are The Driving Factors Impacting The Sovereign Cloud Market?
The growth of the sovereign cloud market is expected to be driven by increasing concerns about cybersecurity and national security. These concerns relate to risks and threats associated with cyberattacks, data breaches, and electronic espionage that can threaten important national infrastructure, defense systems, and confidential information. As geopolitical tensions escalate, resulting in more conflicts between nations, there is an upsurge in cyberattacks, spying, and attempts to disrupt crucial infrastructure, thus escalating cybersecurity and national security concerns. By guaranteeing that critical data is stored and managed under the legal framework of a country, the sovereign cloud helps to alleviate these concerns, reducing the risk of foreign access and cyber threats. For example, the Australian Signals Directorate, a government body based in Australia, reported in November 2023 that approximately 94,000 cybercrime reports were filed in the fiscal year 2022-23. This represented a 23% rise from the previous year with an average of one report being received every six minutes. Hence, the mounting concerns about cybersecurity and national security are fueling the expansion of the sovereign cloud market.

Which Players Dominate The Sovereign Cloud Industry Landscape?
Major players in the Sovereign Cloud Global Market Report 2025 include:
• Amazon.com Inc.
• Google LLC
• Microsoft Corporation
• Huawei Technologies Co. Ltd.
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• SAP SE
• NTT DATA Corporation
• Hewlett Packard Enterprise Company.

What Are The Prominent Trends In The Sovereign Cloud Market?
Prominent businesses active in the sovereign cloud market are concentrating on the creation of cutting-edge solutions such as telco-grade cloud platforms. These platforms secure data sovereignty, boost security, and uphold scalability. A telco-grade cloud platform is essentially a robust, dependable cloud infrastructure specifically designed for telecommunications, delivering secure, scalable, low-latency services, supporting AI-based operations, and improving customer interaction. An example from August 2025 is Xtelify Ltd., a wholly-owned digital subsidiary of India-based telecommunication firm Bharti Airtel, launching Airtel Cloud. This sovereign, telco-grade cloud platform has been engineered to ensure data sovereignty, strong reliability, and scalable performance for commercial ventures and telecommunication operations. It has the capacity to withstand huge transaction volumes, originally designed to handle up to 140 crore transactions per minute just for Airtel's internal operations. It is now being expanded to businesses and telecommunication providers all over India and other countries. The platform is hosted on future-ready sustainable data centres and fuelled by GenAI-based provisions. It provides infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and sophisticated connectivity solutions, while facilitating AI-driven operations, real-time analysis, improved customer interaction, fraud and spam protection, and secure, low-latency services to fulfil the rigorous requirements of modern telecom and enterprise settings.

Global Sovereign Cloud Market Segmentation By Type, Application, And Region
The sovereign cloud market covered in this report is segmented
1) By Component: Solutions, Services
2) By Deployment Mode: Fully Managed Sovereign Cloud, Hybrid Sovereign Cloud, On-Premises Sovereign Cloud
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises
4) By Applications: Operational Sovereignty, Technical Soverignty, Data Sovereignty
5) By End User: Government And Public Sector, Banking, Financial Services, And Insurance (BFSI), Healthcare And Life Sciences, Media And Entertainment, Telecommunications, Manufacturing, Energy And Utilities, Other End Users

Subsegments:
1) By Solution: Infrastructure As A Service, Platform As A Service, Software As A Service, Security And Compliance Solutions, Data Management Solutions
2) By Services: Consulting Services, Implementation Services, Managed Services, Support And Maintenance Services, Training And Advisory Services

View the full sovereign cloud market report:
https://www.thebusinessresearchcompany.com/report/sovereign-cloud-global-market-report

Which Region Holds The Largest Market Share In The Sovereign Cloud Market?
In the 2025 Sovereign Cloud Global Market Report, North America dominated as the leading region in 2024 for the sovereign cloud market. It is anticipated that the Asia-Pacific region will display the quickest growth throughout the forecast period. The report provides coverage for regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa.

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