Distributed Cloud Global Market Report 2025

Distributed cloud refers to an architecture where multiple clouds are used to satisfy performance requirements, compliance needs, and edge computing concerns while being centrally managed from the public cloud provider. In a distributed cloud, services are situated or distributed to certain places to minimize latency, and these services benefit from a single, standardized command post across public and private cloud environments.

The main types of distributed cloud are public-resource computing and volunteer cloud computing. Public-resource computing is a combination or compromise of cloud computing and distributed computing that associates computers in geographically scattered locations linked to collaborating on computer-intensive tasks. The different types of services include data security, data storage, networking, autonomy, and others that are offered for large enterprises and small and medium enterprises for edge computing, content delivery, intelligent transportation, and other applications. The several end users include banking, financial services, and insurance, government, and defense, retail, and e-commerce, healthcare, it and telecom, manufacturing, media and entertainment, others.

The distributed cloud market research report is one of a series of new reports from The Business Research Company that provides distributed cloud market statistics, including distributed cloud industry global market size, regional shares, competitors with distributed cloud market share, detailed distributed cloud market segments, market trends, and opportunities, and any further data you may need to thrive in the distributed cloud industry. This distributed cloud market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The distributed cloud market size has grown rapidly in recent years. It will grow from $4.88 billion in 2024 to $5.78 billion in 2025 at a compound annual growth rate (CAGR) of 18.4%. The growth in the historic period can be attributed to growth in edge computing and IoT applications, demand for low latency and high-performance computing, expansion of 5g networks, adoption of hybrid and multi-cloud strategies, emphasis on data sovereignty and regulatory compliance.

The distributed cloud market size is expected to see exponential growth in the next few years. It will grow to $13.48 billion in 2029 at a compound annual growth rate (CAGR) of 23.6%. The growth in the forecast period can be attributed to increasing integration of artificial intelligence in distributed cloud, increased adoption in edge computing environments, growth in remote work and decentralized operations, expansion of distributed cloud for augmented reality (AR) and virtual reality (VR), emphasis on edge security and privacy in distributed cloud. Major trends in the forecast period include development of edge-native and cloud-native applications, integration of containerization and orchestration technologies, rise of decentralized cloud marketplaces and ecosystems, adoption of serverless computing in distributed cloud environments, focus on sustainability and green computing in distributed cloud solutions.

The adoption of distributed cloud by end-user industries is expected to boost the growth of the distributed cloud market going forward. A distributed cloud service is a public cloud that operates in multiple locations. This distribution of services enables an organization to satisfy extreme specific requirements for response time and performance, regulatory or governance compliance mandate, or other demands requiring cloud infrastructure to be situated anywhere other than the cloud provider's typical availability zones. It offers benefits including increased compliance and uptime, scalability & flexibility, and faster processing, and performance. These advantages encourage organizations to adopt distributed cloud computing. For instance, in January 2023, according the data released by Google Cloud Platform a US-based provider of cloud platform for enterprises, 26% of enterprises reported using multiple public clouds in 2022, up from 21% in 2021. Therefore, the adoption of distributed cloud by end-user industries will drive the distributed cloud market.

Growing 5G network rollout is significantly contributing to the growth of the distributed cloud market going forward. 5G networks refer to fifth generation of wireless cellular technology, offering higher upload and download speeds, more consistent connections, and improved capacity. The deployment of 5G networks enables faster and more reliable connectivity, which in turn supports the growth of distributed cloud services, especially at the edge of the network. For instance, in December 2022, according to the data released by Ericsson a Sweden-based internet broadband company, global 5G population coverage reached around 35% at the end of 2022 and is projected to increase to about 85% in 2028. Therefore, growing 5G network is expected to propel the growth of the distributed cloud market.

Technological innovation is a key trend gaining popularity in the distributed cloud market. Major companies operating in the distributed cloud market are focused on providing innovative solutions to strengthen their position. For instance, in February 2022, F5, Inc., a US-based company specializing in application security, multi-cloud management, online fraud prevention, and application delivery networking (ADN) launched a Distributed Cloud Web Application and API Protection (WAAP), an innovative software as a service (SaaS) offering that safeguards apps and APIs distributed across clouds and edge sites. Distributed Cloud WAAP is a multi-layered solution that offers web application firewall (WAF) capabilities with distributed denial-of-service (DDoS) mitigation, bot defense, and API protection. It provides strong security capabilities and a streamlined set of controls to manage the capabilities to protect apps and APIs from a variety of threats and fraud by merging formerly disparate features into a conveniently deployed as-a-service solution. Customers can deploy, protect, and run their applications in a cloud-native environment wherever it is required in a data center, across several clouds, in a hybrid cloud, or at the enterprise edge, using the F5 Distributed Cloud Platform.

Major companies operating in the distributed cloud market are focusing on developing edge computing for enterprises for increasing efficiency and make the services of the enterprises to be continuously available to customers while being innovative. Edge computing refers to a distributed information technology (IT) architecture in which client data is processed at the periphery of the network, as close to the originating source as possible. For instance, in February 2023, Akamai a US-based cloud infrastructure services provider, launched platform for cloud and edge computing designed to facilitate content delivery and security while bringing data closer to the source. Through the development of its compliance protocols, Akamai enables users to easily move their workloads between public clouds and Akamai.

In July 2024, Sharon AI, Inc., a US-based company specializing in High-Performance Computing (HPC) with a focus on Artificial Intelligence (AI), acquired Distributed Storage Solutions Ltd (DSS) for $25 million. This acquisition is aimed at enhancing Sharon AI's capabilities in AI cloud GPU compute infrastructure and storage solutions. Distributed Storage Solutions Ltd (DSS), a US-based service provider, offers a range of cloud storage and computing solutions.

Major companies operating in the distributed cloud market include Alibaba Cloud, Amazon Web Services Inc., CloudSigma AG, DigitalOcean LLC, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Rackspace Technology, Salesforce Inc., VMware Inc., Google Inc., SAP SE, Verizon Communications Inc., F5 Inc., Axway Inc., Accenture plc, Akamai Technologies Inc., Atos SE, BT Group plc, Capgemini SE, Lumen Technologies Inc., Cisco Systems Inc., Citrix Systems Inc., Cloudflare Inc., Cognizant Technology Solutions India Pvt Ltd., DXC Technology Company, Fujitsu Ltd., Hewlett Packard Enterprise, Infosys Limited, NEC Corporation, NTT Communications Corporation, OpenText Corporation, Red Hat Inc., ServiceNow Inc., Siemens AG, Tata Consultancy Services, Tech Mahindra Limited, Telefonaktiebolaget LM Ericsson, Unisys Corporation, Wipro Limited, Workday Inc., Zoho Corporation., Zscaler Inc., Zuora Inc.

North America was the largest region in the distributed cloud market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the distributed cloud market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the distributed cloud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The distributed cloud market consists of revenue earned by offering services to achieve performance and extremely specific requirements for response time, legal or governance compliance needs, or other demands requiring cloud infrastructure to be situated anywhere other than the cloud provider's typical availability zones. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Distributed Cloud Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on distributed cloud market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for distributed cloud ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The distributed cloud market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Public-Resource Computing; Volunteer Cloud Computing
• 2) By Service Type: Data Security; Data Storage; Networking; Autonomy; Other Service Types
• 3) By Enterprise Size: Large Enterprises; Small and Medium-Sized Enterprises
• 4) By Application: Edge Computing; Content Delivery; Intelligent Transportation; Other Applications
• 5) By Industry Vertical: Banking, Financial Services and Insurance; Government and Defense; Retail and E-Commerce; Healthcare; IT and Telecom; Manufacturing; Media and Entertainment; Other Industry Verticals
• Subsegments:
• 1) By Public-Resource Computing: Public Cloud Infrastructure; Resource Pooling Services; Cloud Storage Solutions
• 2) By Volunteer Cloud Computing: Community-Based Resource Sharing; Distributed Computing Projects; Grid Computing Initiatives
• Companies Mentioned: Alibaba Cloud; Amazon Web Services Inc.; CloudSigma AG; DigitalOcean LLC; International Business Machines Corporation
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.