Data Sovereignty Cloud Market Trends and Analysis by Application, Vertical, Region, and Segment Forecast to 2029
The Business Research Company
The Business Research Company’s Data Sovereignty Cloud Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 13, 2025 /EINPresswire.com/ -- What Is The Estimated Industry Size Of Data Sovereignty Cloud Market?
The size of the data sovereignty cloud market has experienced a significant upsurge in the last few years. An increase from $20.04 billion in 2024 to $24.14 billion by 2025, with a compound annual growth rate (CAGR) of 20.5% is expected. The historical growth has been driven by factors such as rising data localization laws imposed by governments, increasing restrictions on cross-border data transfer, mounting regulatory compliance pressure, growing apprehensions regarding overseas surveillance, and the escalating demand from regulated sectors.
The projection for the market size of data sovereignty cloud indicates significant escalation in the coming years. By 2029, it's anticipated to reach $50.22 billion, with a compound annual growth rate (CAGR) of 20.1%. The predicted upward trend during the forecast period can be linked to various factors including the increasing emphasis on digital sovereignty by governments, amplified cloud uptake in the public sector in line with sovereignty regulations and wider presence of multinational corporations necessitating local storage. Other contributory factors are the rising threat of geopolitically-charged data disputes and an increase in penalties for non-adherence to data protection regulations. The major trends likely to be seen within the forecast period involve progress in sovereign cloud infrastructure, the creation of autonomous AI governance models in line with sovereignty, the integration of hybrid sovereign cloud landing zones, investment in expanding local data centers and advancements in compliance automation tools.
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What Are The Major Factors Driving The Data Sovereignty Cloud Global Market Growth?
The surging frequency of cyber threats is predicted to fuel the expansion of the data sovereignty cloud market going onwards. Cyber threats encompass harmful activities like phishing, ransomware, identity fraud, and additional assaults that aim for digital systems and confidential information. The escalation of these threats can be ascribed to the expanding digitalization of industries, as a higher dependence on digital systems and online platforms leaves more room for cybercriminals to take advantage of vulnerabilities, which can subsequently result in data breaches, financial implications, and damage to reputation. Data sovereignty cloud aids in alleviating these cyber threats by ensuring that data is conserved, processed, and managed in line with local regulations and jurisdictional prerequisites, which ultimately cuts down the risk of unauthorized access, transboundary breaches, and legal fines while elevating overall data security and trust. For example, in April 2024, as stated by the Federal Bureau of Investigation (FBI) - a national security organization in the US, more than 880,418 complaints related to cybercrime were reported in 2023, with total losses surpassing $12.5 billion, indicating about a 10% surge in complaint volume and a 22% hike in financial losses compared to 2022. Consequently, the mounting frequency of cyber threats is stimulating the demand for the data sovereignty cloud market.
Who Are The Leading Companies In The Data Sovereignty Cloud Market?
Major players in the Data Sovereignty Cloud Global Market Report 2025 include:
• Amazon.com Inc.
• Alphabet Inc.
• Microsoft Corporation
• Alibaba Group Holding Limited
• Dell Technologies Inc.
• Deutsche Telekom AG
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Salesforce Inc.
What Are The Future Trends Of The Data Sovereignty Cloud Market?
Leading businesses in the data-sovereignty cloud sector are intent on developing creative solutions like AI-powered secure cloud platforms. Their goal is to assist governments and regulated fields in storing and managing sensitive information within national boundaries, while still maintaining compliance and operational proficiency. AI-powered secure cloud platforms are cloud computing systems that utilize artificial intelligence to boost data protection, streamline the detection of threats, and refine compliance and operational efficiency for the management of sensitive data. For example, in April 2025, Tata Consultancy Services, an IT services and consulting firm based in India, introduced Sovereign Secure Cloud. This is a unique sovereign cloud platform tailor-made to keep sensitive information within the confines of India. The platform is devised to help government organizations, public sector entities, and regulated sectors conform to India’s data sovereignty and privacy rules. It includes superior AI and analytics capabilities to improve automation, data handling, and decision-making, all while maintaining top-tier security and performance. With this introduction, TCS aims to fortify India’s digital framework and advocate for independence in cloud computing technologies.
What Are The Primary Segments Covered In The Global Data Sovereignty Cloud Market Report?
The data sovereignty cloudmarket covered in this report is segmented –
1) By Component: Software, Hardware, Services
2) By Deployment Mode: Public Cloud, Private Cloud, Hybrid Cloud
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Data Storage, Compliance Management, Risk Management, Data Security, Other Applications
5) By End-User: Banking, Financial Services, And Insurance (BFSI), Healthcare, Government, Information Technology (IT) And Telecommunications, Retail, Manufacturing, Other End-Users
Subsegments:
1) By Software: Data Management Software, Compliance Management Software, Risk Management Software, Security Management Software
2) By Hardware: Servers, Storage Devices, Networking Equipment, Data Center Infrastructure
3) By Services: Deployment Services, Maintenance Services, Consulting Services, Training Services
View the full data sovereignty cloud market report:
https://www.thebusinessresearchcompany.com/report/data-sovereignty-cloud-global-market-report
Which Region Is Forecasted To Grow The Fastest In The Data Sovereignty Cloud Industry?
In 2024, North America held the dominant position in the data sovereignty cloud market. However, it's anticipated that the Asia-Pacific will experience the most rapid growth in the coming period. The Data Sovereignty Cloud Global Market Report 2025 includes a discussion on a variety of regions which consist of North America, Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa.
Browse Through More Reports Similar to the Global Data Sovereignty Cloud Market 2025, By The Business Research Company
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