Europe has established itself as a stable and resilient market for cloud services with robust growth. This growth is due to strong demand from public services, energy and utilities, and manufacturing sectors, alongside sustained contributions from BFSI and technology-related industries. The demand outlook remains positive despite macroeconomic pressures and geopolitical tensions affecting large contracts due to enterprise needs for complex workload migration, cloud-native development, and automation.

European enterprises are increasingly adopting hybrid and multi-cloud strategies to address stringent regulatory requirements in BFSI, healthcare, and logistics while balancing performance and scalability. Moreover, with a growing focus on sustainability, businesses emphasize energy-efficient infrastructure and tools to meet EU climate objectives.

Security and compliance demand is rising, with GDPR and the Digital Operational Resilience Act (DORA) regulations shaping cloud adoption. Enterprises also seek strategic partnerships with providers offering robust cost management, innovation, and compliance solutions to maximize value from cloud engagements and gain a competitive edge. Europe is also witnessing accelerated generative AI adoption amid fragmentation and governance challenges. In the future, Europe’s cloud landscape will prioritize sustainable, secure, and sovereign solutions tailored to its unique regulatory and operational requirements.

In this report, we offer an overview of the European cloud services market, including trends, demand drivers, and key enterprise concerns. The report also outlines cloud services engagement characteristics in Europe and examines the market outlook for 2025.

Scope

• All industries
• Geography: Europe
• This analysis is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading cloud service providers, client reference checks, enterprise interactions, and an ongoing analysis of the cloud services market in Europe

Contents

In this report, we examine:

• Trends, demand drivers, and key enterprise concerns in the Europe cloud services market
• Enterprises’ top demands on cloud services and enterprise strategies to maximize their Google Cloud adoption value realization
• The future outlook for 2025

Membership(s)

Cloud and Infrastructure Services

Sourcing and Vendor Management