Cloud Sustainability Market Size, Share & Trends Analysis Report By Solution (Energy-efficient Infrastructure, Green Software Solutions), By Enterprise Size, By Service Model, By End Use, By Region, And Segment Forecasts, 2024 - 2030

Cloud Sustainability Market Trends

The global cloud sustainability market size was estimated at USD 25.20 billion in 2023 and is expected to grow at a CAGR of 19.2% from 2024 to 2030. The market encompasses efforts to make cloud computing more environmentally friendly and energy-efficient. As organizations increasingly migrate to cloud services, there is growing pressure to address the environmental impact of these technologies. The market includes solutions, services, and practices aimed at reducing the carbon footprint of cloud operations, enhancing energy efficiency, and promoting overall sustainability.

Many organizations are setting ambitious targets to reduce greenhouse gas emissions, enhance energy efficiency, and achieve carbon neutrality. As part of these goals, companies are transitioning to more sustainable cloud solutions. This involves adopting cloud services that use energy-efficient data centers, leverage renewable energy sources, and implement green technologies. By aligning their IT infrastructure with sustainability objectives, businesses comply with regulations and enhance their corporate reputation and operational efficiency.

Innovations in data center technology, such as improved cooling systems and energy-efficient hardware, help reduce the environmental footprint of cloud operations. Advances in energy management technologies enable better power usage optimization and integration of renewable energy sources. In addition, green software development focuses on creating applications that consume less computational power, thus reducing overall energy consumption. These technological advancements make it feasible for organizations to adopt and benefit from sustainable cloud practices.

As organizations embed sustainability into their core strategies, they strongly push toward adopting eco-friendly cloud solutions. Innovations in green technologies, such as energy-efficient data centers and renewable energy integration, are set to enhance the environmental performance of cloud services. Supportive regulatory frameworks are crucial as Healthcare implements stricter environmental regulations and reporting requirements, compelling businesses to prioritize sustainability.

Consumer demand for sustainable practices is rising, with businesses and end-users increasingly favoring companies demonstrating environmental stewardship. This shift is encouraging cloud providers to invest in and develop greener solutions. As sustainability becomes integral to corporate strategies, cloud computing is expected to transform significantly. Companies will increasingly seek solutions offering performance and scalability that align with their environmental goals. This trend will reshape cloud computing, leading to more widespread adoption of sustainable practices and technologies. Overall, the market is anticipated to grow rapidly, with eco-friendly cloud solutions becoming a standard expectation rather than a competitive advantage.

Solution Insights

The energy-efficient infrastructure segment accounted for the largest market share of over 34% in 2023. Rising energy costs are a critical concern for data centers, major energy consumers. For cloud service providers, high energy usage translates to substantial operational expenses. Many are investing in energy-efficient infrastructure, including advanced cooling systems, low-power servers, and optimized power management to address this. These technologies reduce energy consumption, lower operational costs, and enhance profitability. By improving energy efficiency, cloud providers can meet sustainability goals, comply with regulations, and remain competitive in an increasingly eco-conscious market while mitigating the financial impact of fluctuating energy prices.

The green software solutions segment is expected to grow at a CAGR of 20.2% during the forecast period. Consumer demand for sustainable products is rising as individuals and businesses prioritize environmental responsibility. Green software solutions, which consume less energy and optimize resource usage, appeal to this eco-conscious market. Companies that adopt these solutions reduce their environmental impact and gain a competitive edge by aligning with consumer values. As sustainability becomes a key factor in purchasing decisions, businesses offering green software can differentiate themselves, attract more customers, and enhance their brand reputation, making sustainability a strategic advantage in the increasingly eco-focused marketplace.  

Enterprise Size Insights

The large enterprises held a market share of over 73% in 2023 and is expected to dominate the market by 2030. Large enterprises often have extensive cloud operations and large-scale data center usage, leading to significant energy consumption and high operational costs. By adopting energy-efficient cloud infrastructure and green software solutions, they can optimize resource usage, reduce power consumption, and lower overall expenses. These sustainability-focused technologies decrease energy costs and enhance operational efficiency, making cloud operations more cost-effective. Given their scale, these savings are particularly impactful for large enterprises, providing a strong incentive to invest in sustainable cloud solutions that align with environmental and financial goals.

The SMEs segment is expected to grow at a CAGR of 20.1% over the forecast period.By adopting sustainable cloud practices, small and medium-sized enterprises (SMEs) can stand out in the competitive market. Sustainability is increasingly important to customers and business partners, who often prefer to engage with companies that prioritize environmental responsibility. For SMEs, embracing green cloud solutions reduces their environmental impact, strengthens their brand image, and appeals to eco-conscious clients. This differentiation provides a competitive edge, helping SMEs attract new business, enhance customer loyalty, and build strong partnerships with like-minded organizations, positioning them as leaders in sustainability within their industries.

Service Model Insights

The Infrastructure as a Service (IaaS) held a market share of over 42% in 2023 and is expected to dominate by 2030.As companies increasingly integrate sustainability into their corporate strategies, demand for green IaaS solutions is rising. Businesses seek IaaS providers offering energy-efficient, low-carbon infrastructure to support their environmental goals. These sustainable cloud solutions help companies reduce their carbon footprints and align with regulatory requirements, all while maintaining cost-effectiveness and performance. By adopting green IaaS solutions, companies can enhance their sustainability efforts, appeal to eco-conscious customers, and strengthen their brand reputation, making sustainable cloud infrastructure a crucial component of modern business strategies.

The green data centers segment is expected to grow at a CAGR of 19.9% over the forecast period.Traditional data centers are energy-intensive, resulting in high operational costs due to their vast energy consumption. Green data centers address this challenge by utilizing energy-efficient technologies, such as advanced cooling systems and low-power hardware, alongside renewable energy sources like solar and wind. These sustainable practices significantly reduce energy consumption and lower operational costs, making green data centers attractive for businesses aiming to optimize expenses. As energy costs continue to rise, the demand for green data centers grows, driven by companies seeking cost-effective and environmentally responsible solutions for their cloud infrastructure.

End Use Insights

The IT & Telecom segment accounted for the largest market share of over 28% in 2023. Due to the growing demand for data and cloud services, the IT and Telecom sectors are major energy consumers. As this demand increases, so does energy consumption, leading to higher operational costs. To mitigate these challenges, companies invest in energy-efficient cloud infrastructure and green data centers that use advanced technologies to optimize power usage. By adopting these sustainable solutions, IT and Telecom firms can significantly reduce their energy consumption, lower costs, and meet sustainability goals while continuing to scale their services in response to increasing data demands. This shift is essential for long-term operational efficiency and environmental responsibility.

The manufacturing segment is expected to grow at a CAGR of 20.8% over the forecast period. Industry 4.0 technologies, including IoT, AI, and automation, are transforming Retail and E-commerce by enhancing efficiency, data analysis, and process automation. As these technologies rely heavily on cloud infrastructure, manufacturers increasingly adopt sustainable cloud solutions to support digital transformation. Green cloud infrastructure optimizes energy consumption, reducing the environmental impact of smart Retail and E-commerce operations. By leveraging sustainable cloud technology, manufacturers can meet their operational needs and sustainability goals, achieving greater efficiency while minimizing carbon footprints and energy costs, making Industry 4.0 advancements more environmentally responsible.

Regional Insights

North America held the largest market share of over 37% in the cloud sustainability market in 2023.Many companies, particularly in the tech industry, have set ambitious goals such as achieving carbon neutrality or reducing greenhouse gas emissions. These commitments push businesses to adopt sustainable cloud infrastructure that minimizes environmental impact while supporting operational needs. Major tech firms leading this charge are investing in energy-efficient data centers, renewable energy, and green software solutions to meet their sustainability targets. As these corporate initiatives gain momentum, the demand for sustainable cloud solutions grows, helping companies align their digital transformation efforts with their environmental objectives and improving their overall corporate social responsibility (CSR) and brand reputation.

U.S. Cloud Sustainability Market Trends

The cloud sustainability market in the U.S. is growing significantly at a CAGR of 18.5% from 2024 to 2030. The U.S. is a global leader in technological innovation, particularly in cloud computing, data center design, and energy-efficient technologies. This leadership drives the development and adoption of advanced, sustainable cloud solutions. Cutting-edge innovations, such as efficient cooling systems, energy-saving hardware, and green software, support the growth of eco-friendly cloud infrastructure. As U.S. companies leverage these technologies, they can reduce energy consumption, lower operational costs, and meet sustainability goals. This environment of continuous technological advancement encourages businesses to integrate sustainable practices, further propelling the market growth in the region.

Asia Pacific Cloud Sustainability Market Trends

The cloud sustainability market in Asia Pacific is growing significantly at a CAGR of 20.5% from 2024 to 2030. Many countries in the Asia Pacific region are implementing stricter environmental regulations and sustainability initiatives to address climate change. Healthcare is actively promoting the adoption of green technologies by setting ambitious targets for carbon reduction and energy efficiency. They provide incentives, such as tax breaks and subsidies, to encourage businesses to invest in sustainable cloud infrastructure. These initiatives drive market growth in APAC by making eco-friendly technologies more accessible and financially attractive. As a result, companies are increasingly adopting green cloud solutions to comply with regulations and support broader environmental goals.

Europe Cloud Sustainability Market Trends

The cloud sustainability market in Europe is growing significantly at a CAGR of 19.1% from 2024 to 2030. Europe's stringent environmental regulations, including the European Union's Green Deal and the Climate Law, mandate significant reductions in carbon emissions and the adoption of eco-friendly technologies. These regulations set ambitious targets for companies to lower their environmental impact and enhance sustainability. As a result, businesses are increasingly seeking sustainable cloud solutions to comply with these requirements. Green cloud technologies help companies meet regulatory standards by reducing energy consumption and carbon footprints, making them essential for compliance in a region with some of the world's most rigorous environmental mandates. This regulatory environment drives market growth.

Key Cloud Sustainability Company Insights

Key players operating in the market include Amazon Web Services (AWS), Microsoft Azure, Google Cloud, IBM Cloud, Oracle Cloud, Salesforce, SAP, Dell Technologies, Equinix, Soluna Holdings, Inc., and Nutanix. The companies focus on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals.

Recent Development

• In July 2024, Soluna announced the launch of its Sustainable AI Cloud Services, offering environmentally friendly solutions for artificial intelligence workloads. These services emphasize energy efficiency and lower carbon emissions, aligning with sustainability goals. Using renewable energy and advanced cooling technologies, Soluna's new offerings aim to help businesses reduce their environmental impact while leveraging AI capabilities. This launch marks a significant step in promoting green cloud solutions.

• In May 2024, CP Foods chose SAP solutions to advance its cloud sustainability efforts. By integrating SAP's cloud technologies, CP Foods aims to enhance its environmental sustainability practices and achieve its carbon reduction targets. SAP’s solutions will help the company optimize energy use, improve resource efficiency, and align with global sustainability standards. This strategic move supports CP Foods' commitment to environmental responsibility and sustainable operations.

• In February 2024, Microsoft introduced new AI tools to enhance business cloud sustainability. These tools leverage artificial intelligence to optimize energy usage and reduce carbon footprints in cloud operations. By integrating these AI solutions, businesses can improve their environmental impact, achieve sustainability goals, and operate more efficiently. Microsoft's initiative underscores its commitment to advancing green technology and supporting companies in their efforts to embrace sustainable cloud practices.

Cloud Sustainability Market Report Scope

Global Cloud Sustainability Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2018 to 2030 in each of the sub-segments. For this study, Grand View Research has segmented the global cloud sustainability market report based on solution, enterprise size, service model, end use, and region:

• Solution Outlook (Revenue; USD Billion; 2018 - 2030)

  • Energy-efficient Infrastructure

  • Green Software Solutions

  • Carbon Management Solutions

  • Sustainable Cloud Platforms

• Enterprise Size Outlook (Revenue; USD Billion; 2018 - 2030)

  • Small & Medium Enterprises (SMEs)

  • Large Enterprises

• Service Model Outlook (Revenue; USD Billion; 2018 - 2030)

  • Infrastructure as a Service (IaaS)

  • Platform as a Service (PaaS)

  • Software as a Service (SaaS)

  • Others

• End Use Outlook (Revenue; USD Billion; 2018 - 2030)

  • IT and Telecom

  • Banking, Financial Services, and Insurance (BFSI)

  • Healthcare

  • Retail and E-commerce

  • Manufacturing

  • Others

• Regional Outlook (Revenue: USD Billion; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)

    • UAE

    • Saudi Arabia

    • South Africa