Asia/Pacific Public Cloud Services to Reach US$250 Billion by 2025, According to IDC

Building on the strong momentum from previous years, the region is expected to see cloud spending reach new heights, with a projected increase significantly outpacing the previous year's figures. According to the IDC Worldwide Software and Public Cloud Services Spending Guide, the Asia/Pacific market is expected to reach USD $250 Billion by 2025 and grow at a steady pace of 14.2% CAGR by 2028 as generative AI adoption increases and organizations modernize their IT infrastructure.

The Asia/Pacific region's cloud computing market is poised for another year of explosive growth in 2025, driven by the increasing integration of Artificial Intelligence (AI) and a continued focus on digital transformation.

This surge is not simply about migrating workloads to the cloud; it's about leveraging cloud capabilities to unlock new levels of innovation and efficiency. Businesses increasingly look to the cloud as the foundation for their AI initiatives, utilizing cloud-based AI platforms and services to develop and deploy cutting-edge applications.

"Asia/Pacific's cloud journey has entered a new phase," says Mario Allen Clement, associate research manager, Data and Analytics, IDC. "While the fundamental benefits of cloud computing remain important, the real story now is the convergence of cloud and AI. Businesses are recognizing that the cloud is not just a platform for running applications; it's the essential infrastructure for powering the next generation of intelligent solutions. Those who effectively harness this convergence will be the true leaders in the digital economy."

While cloud's trajectory is undeniably upward, challenges remain. Concerns around data sovereignty, regulatory compliance and the need for specialized AI talent are becoming increasingly important considerations for businesses. Cloud providers are responding by investing in localized infrastructure further enhancing compliance certifications and developing training programs to address the skills gap.

Some of the key growth drivers by top 10 fastest growing industries:

The IDC Worldwide Software and Public Cloud Services Spending Guide quantifies public cloud computing purchases by cloud type for up to 28 industries and 8 company sizes across eight regions and 53 countries. Unlike any other research in the industry, this comprehensive spending guide was designed to help IT decision-makers clearly understand the industry-specific scope and direction of public cloud services spending today and over the next five years. The 15 industries and 5 company size bands (28 industries and 8 size bands in the premium version)included in the IDC's new industry taxonomy are: Consumer; Banking; Insurance; Capital Markets; Healthcare Payer; Healthcare Provider; Life Sciences; Telecommunications; Oil and Gas; Utilities; High Tech and Electronics; Aerospace and Defense; Automotive; Industrial and Other Manufacturing; Chemicals; Consumer Goods; Agriculture and Fishing; Mining; Retail; Software and Information Services; Travel and Transportation; Hospitality and Leisure; Media and Entertainment; Engineering, Construction, and Real Estate; Professional and Personal Services; Education; Federal/Central Government; State/Local Government.