IDC Forecasts Massive Growth for Public Cloud in Europe
Public cloud service revenues in Europe are expected to more than double by 2029, reaching $452 billion – a 19% annual increase – driven largely by AI applications, according to IDC. TL;DR …
Public cloud service revenues in Europe are expected to more than double by 2029, reaching $452 billion – a 19% annual increase – driven largely by AI applications, according to IDC.
TL;DR
- Public cloud revenues in Europe are projected to rise from $229 billion (2025) to $452 billion by 2029.
- This represents a compound annual growth rate (CAGR) of 19% compared to 2024.
- AI applications, especially generative AI, are significantly accelerating cloud investments.
- Platform-as-a-Service (PaaS) investments are growing at an annual rate of 32% through 2026.
- U.S. tariffs and economic uncertainties are expected to have minimal impact on cloud spending in 2025.
Public cloud revenues in Europe are forecast to reach $452 billion by 2029 – AI is a major growth driver. (Image source: Unsplash / Parrish Freeman)
Forecasts from the U.S.-based market research firm IDC carry significant weight in the ICT industry and have often proven reliable. For 2025, analysts expect public cloud revenues in Europe to reach $229 billion. By 2029, this figure is projected to climb to $452 billion – an annual growth rate (CAGR) of 19% compared to 2024.
A key factor behind this surge is the rising interest in both traditional and generative AI applications, which is fueling massive investments in Platform-as-a-Service (PaaS). According to ChannelObserver, IDC forecasts PaaS investments to grow at an annual rate of 32% through 2026.
Positive Outlook for the Public Cloud Sector
Andrea Minonne, Research Manager at IDC UK, sees no major impact on European public cloud spending from U.S. tariffs or other economic uncertainties in the second half of 2025. Most industries, he notes, will continue with “business as usual.”
“While sectors such as automotive, consumer goods, chemicals, and other manufacturing industries remain cautious with their spending, the overall outlook for the sector isn’t alarming, and we don’t foresee any significant effects on cloud investments,” adds the Italian analyst.
Frequently Asked Questions
What are the projected public cloud revenues in Europe by 2029?
According to IDC, public cloud revenues in Europe are expected to reach $452 billion by 2029 – more than double the 2025 level.
What role does AI play in public cloud growth?
Growing interest in both traditional and generative AI applications is driving substantial investment in public cloud infrastructure, with Platform-as-a-Service (PaaS) benefiting particularly strongly.
What is the annual growth rate for PaaS investments?
IDC forecasts PaaS investments to grow at an annual rate of 32% through 2026 – significantly above the broader cloud market average.
How do U.S. tariffs affect European cloud spending?
According to Andrea Minonne of IDC, U.S. tariffs and economic uncertainties are having little to no impact on cloud expenditures. Most companies are continuing with their existing investment plans.
Which industries are showing restraint in cloud investments?
The automotive, consumer goods, chemical, and other manufacturing sectors remain cautious. However, most other industries are sticking to their cloud investment strategies.
Editor's Picks
cloudmagazinAPI-First: Why modern cloud architectures live or die by API designcloudmagazinPretext: Does a new JavaScript library solve a 30-year-old browser problem – or is it just hype?cloudmagazinAWS vs. Azure vs. Google Cloud 2026: An honest comparison for DACH-region businessesMore from the MBF Media Network
SecurityToday | MyBusinessFuture | Digital Chiefs
Header Image Source: Unsplash / Growtika
Translated from the German original using artificial intelligence. The German version is authoritative.
