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IDC Forecasts 22.2% CAGR for Asia/Pacific Whole Cloud Market, Hitting $471.2B by 2028

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According to an IDC Market Forecast titled Asia/Pacific Whole Cloud Services Forecast, 2025 –2028, the Asia/Pacific whole cloud spending is forecasted to grow at a compound annual growth rate (CAGR) of 22.2% and reach US$471.2 billion by 2028. Asia/Pacific whole cloud spending grew at a year-over-year (YoY) rate of 34.6% in 2024, and IDC expects the market to grow at 23.4% in 2025, as cloud-related spending continues to accelerate.

In 2024, the global tech landscape experienced rapid shifts, driven by advances in multicloud, hybrid cloud, and the rise of generative AI (GenAI). The Asia/Pacific (excluding Japan) region saw robust growth in AI adoption, next-generation connectivity, and software engineering, led by markets such as China, Australia, South Korea, and Singapore, alongside high-growth economies like India, Malaysia, and Indonesia. Governments and enterprises are accelerating investments in digital infrastructure—including cloud-native platforms, 5G, edge computing, and green data centers—to enhance innovation and resilience. Despite economic and geopolitical headwinds, demand for cloud infrastructure, as well as managed and professional cloud services, continues to grow as cloud becomes a core enabler of digital transformation and the foundation for AI development.

“Although organizations in Asia/Pacific, excluding Japan, have varying levels of cloud adoption, most aspire to enhance cloud maturity significantly. They increasingly view cloud as a core infrastructure and are leveraging it to unlock business value. This shift is accelerating with the rise of AI and GenAI, marking a new turning point for the cloud ecosystem. As organizations transition to cloud-based operating models and AI-driven services, cloud will solidify its role as a foundational technology platform,” says Shouvik Nag, senior research analyst, IDC Asia/Pacific.

The IDC report “Asia/Pacific (Excluding Japan) Whole Cloud Services Forecast, 2025–202 8”, offers a comprehensive overview of the current state of the Cloud market in APEJ and also presents the forecast of the Asia/Pacific Whole Cloud Market, including key drivers and inhibitors. Furthermore, it explores how the rising significance of AI (propelled by the emergence of GenAI) will influence enterprises’ approaches to consuming and managing cloud resources. IDC defines the whole cloud market as three sub-markets: the cloud-based service market (Public/Dedicated Cloud as a Service), the cloud-related services market, and the software, hardware, and related services market for building a cloud environment (Hardware/Software Support for Cloud).

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