Distributed Cloud Market Segmentation:
End user Segment Analysis
Under the end user segment, the enterprises are dominating in the market and are forecast to hold the largest share of 75.4% by 2035. This reflects enterprises' urgent need to digitally transform legacy infrastructure and their substantial capital to invest in the complex distributed architecture. A digital key driver is the mandate for robust cybersecurity frameworks. The report from the Cloud Industry Forum in 2022 has noted that 93% of businesses have indicated that cloud is important for their company’s digital transformation strategy, and 72% of businesses are considering it either very important or vital. This data shows that enterprise-wide prioritization of secure modern IT platforms, which the distributed cloud inherently provides. This robust adoption trajectory is further accelerated by the need for data sovereignty and low-latency edge computing to power real-time applications and AI inferencing across global operations.
Organization Size Segment Analysis
Within the organization size segment, large enterprises are projected to hold a dominant share in the market. These organizations possess the scale, geographic spread, and complex operational requirements that make distributed cloud, with its ability to deploy consistent services across data centers, edge locations, and public clouds, a strategic necessity rather than an option. Their adoption is fueled by initiatives such as zero-trust architecture. The report from Eurostat in December 2023 has depicted that cloud adoption is witnessing a high rate, mainly among the large enterprises, with 77.6% reported purchasing cloud services in 2023. This trend sets the distributed cloud as the foundational architecture for the large-scale digital transformation, enabling it to meet robust compliance and performance demands across diverse jurisdictions.
Enterprises Buying Cloud Services
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Enterprises |
2021 |
2023 |
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Small Enterprises |
37.9 |
41.7 |
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Medium Enterprises |
53.0 |
59.0 |
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Large Enterprises |
71.6 |
77.6 |
Source: Eurostat, December 2023
Deployment Model Segment Analysis
The deployment model segment, led by the hybrid cloud, is expected to hold the greatest share in the market. This model’s supremacy stems from its ability to balance performance, compliance, and cost efficiency by allowing workloads and data to move seamlessly among the private infrastructure and public cloud services. Its flexibility provides a strategic pathway for organizations undergoing digital transformation, allowing them to monetize incrementally without abandoning existing investments. Further, it serves as a vital enabler for meeting region-specific data residency laws while still leveraging the innovation and scale of public hyperscalers. This positions hybrid cloud not merely as a technical model but as an essential business strategy for operational resilience and competitive advantage.
Our in-depth analysis of the market includes the following segments:
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Segment |
Subsegments |
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Service Type |
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Deployment Model |
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Organization Size |
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Application |
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Workload |
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End user |
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