International Data Corporation's (IDC) Worldwide Software and Public Cloud Services Spending Guide has revealed that the public cloud services market in the Asia Pacific region is expected to reach $131 billion by 2029, growing at a compound annual growth rate (CAGR) of 19.8% from 2025 to 2029.
It is expected to expand from $53 billion in 2024 to $131 billion by 2029, driven by the increasing adoption of Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) solutions.
Market drivers
IDC sees strong market momentum in the financial services, retail, and telecommunications industries, driven by network modernisation and the rapid shift to digital banking.
"The accelerating demand for IaaS, PaaS and SaaS, coupled with strategic investments in sovereign cloud solutions, positions Asia Pacific as a pivotal force in the global cloud landscape for years to come," said Mario Allen Clement, research manager, Data and Analytics. "
The market growth in retail, business, personal services, and government is driven by e-commerce expansion, operational efficiencies, and e-governance initiatives in many countries within the region.
Market challenges
Despite the projected growth of public cloud, challenges such as legacy system migration and talent shortages remain.
"While challenges like legacy system migration and skills shortages remain, the strong growth trajectory of the Asia/Pacific public cloud market highlights the region's commitment to cloud-native technologies and data modernisation, "said Clement.
