Sovereign cloud market in APeJ to grow at CAGR of 31.5 per cent and reach $36.7 by 2027

According to a report by International Data Corporation (IDC), Asia/Pacific excluding Japan (APeJ) sovereign cloud market is forecasted to grow at a compound annual growth rate (CAGR) of 31.5 per cent and reach $ 36.7 billion by 2027.

APeJ sovereign cloud spending grew at a year-on-year (YoY) and is expected to grow at 34.3 per cent in 2024 as organisations in the region ramp up investments in sovereign cloud solutions as part of the growing deployment of their hybrid cloud strategy.

Commenting on the report, Daphne Chung, research director, cloud services and software, IDC Asia/Pacific, said, “Sovereign clouds are increasingly becoming essential in hybrid cloud environments. Growing concerns about digital sovereignty with data privacy, security, and regulatory compliance, particularly around data privacy, security, and regulatory compliance, are driving organisations to adopt cloud capabilities and solutions to address digital sovereignty requirements.”