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Home Technology Big Data, Analytics & Intelligence

IDC projects a 22.2% CAGR for the Asia/Pacific whole cloud market, hitting $471.2 by 2028

FutureCIO Editors by FutureCIO Editors
August 8, 2025
Image by Gerd Altmann from Pixabay

Image by Gerd Altmann from Pixabay

The Asia/Pacific whole cloud market is set to experience a significant surge, with a projected compound annual growth rate (CAGR) of 22.2%. This growth is expected to propel the market to a substantial US$471.2 billion by 2028, as revealed by a recent IDC Market Forecast.

The report, titled 'Asia/Pacific Whole Cloud Services Forecast, 2025 – 2028,' highlights the accelerating growth of the market. It is projected to grow at a rate of 23.4% in 2025, following a robust year-over-year (YoY) growth rate of 34.6% in 2024.

Shouvik Nag
Shouvik Nag

Shouvik Nag, senior research analyst at IDC Asia/Pacific, notes a significant trend in the region. He states, "Organisations in Asia/Pacific, excluding Japan, are increasingly viewing cloud as a core infrastructure. This shift is accelerating with the rise of AI and GenAI, marking a new turning point for the cloud ecosystem."

Market drivers

Robust growth in AI adoption, next-generation connectivity, and software engineering, led by markets such as China, Australia, South Korea, and Singapore, alongside high-growth economies like India, Malaysia, and Indonesia, has driven market growth in the region in 2024.

Moreover, governments and enterprises are accelerating investments in digital infrastructure, including cloud-native platforms, 5G, edge computing, and green data centres.

Despite economic and geopolitical headwinds in the region, the cloud market has shown remarkable resilience. There is a growing demand for cloud infrastructure and managed and professional cloud services.

"As organisations 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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Tags: Artificial Intelligencecloud adoptiondigital transformationIDC
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