Significant increase in cloud services in Europe is expected in 2025. According to the latest IDC expenditure guide, the relevant investment will move strongly upward, reaching $ 221 billion in 2025, to be raised to $ 373 billion by 2028. This It represents an annual growth rate (CAGR) 20% for the five years 2023-2028.

IDC analysts comment that the rapid adoption of Platform-A-A-Service (PAAS) supplies the development of cloud services, with increasing demand for AI applications. However, despite the optimistic perspective, the challenges remain.

Banks are driving the development of cloud spending in Europe while industry is slowing down

“The pressures of 2024 continue to affect European markets, while new uncertainties threaten the stability of the economy. Factors such as possible trade tensions between the US and the EU, economic stagnation in Germany and increasing competition from China may affect business investment strategies and project budgets cloud“, notes IDC.

The analysis of the research company shows that the industrial sector, and in particular the automakers and the chemical industry, are facing challenges due to prolonged supply chain disorders, reduced demand, lack of skills and harsh international competition. These pressures slow down the development of cloud spending in the field. However, companies continue to invest in automation and AI solutions to improve effectiveness and durability.

Starring Banks

On the contrary, bank, software, IT, and insurance services sectors are expected to increase the highest increase in cloud costs in 2025. Banks use artificial intelligence tools to detect threats, requiring a strong cloud infrastructure.

In addition, strong investment in Europe’s data centers enhance the use of cloud for risk assessment, customer service optimization and back-office automation.

Looking towards the future, analysts note that the software and IT sector is expected to score the highest CAGR (24%) from 2023 to 2028. This development is supported by increased demand for AI and AI genetic solutions (Genai ), expansion of investment in research and development for cyber security and the adoption of scalable SAAS platforms.

The industries of insurance and bio -science also move quickly towards the adoption of the public cloud. Insurance companies are investing in cloud to modernize their basic systems, automate their functions and integrate AI-Driven risk management.

At the same time, bio -science companies focus on discoveries of artificial intelligence, increased production capacity and enhancing the durability of digital supply chains.

“By accelerating expenditure for cloud and the growing application of AIthe European market offers enormous opportunities for businesses that seek to escalate their activities, optimize their functions and enhance their safety through technologies cloud“, The study ends.