Community Cloud Market Size, Share and Trends 2026 to 2035

Revenue, 2025

USD 10.86 Bn

Forecast Year, 2035

USD 142.10 Bn

CAGR, 2026 - 2035

29.32%

Report Coverage

Global

What is Community Cloud Market Size?

The global community cloud market size was calculated at USD 10.86 billion in 2025 and is predicted to increase from USD 14.05 billion in 2026 to approximately USD 142.10 billion by 2035, expanding at a CAGR of 29.32% from 2026 to 2035. The market is expanding due to the growing demand for highly secured, regulatory-compliant, and cost-effective shared infrastructure to support data sovereignty with industry-specific solutions.

Market Highlights

• North America held the largest market share of 37% in 2025.
• By region, Asia Pacific is expected to witness the fastest growth during the foreseeable period.
• By component, the hardware segment held the largest market share of 67% in 2025.
• By component, the software segment is expected to grow at the fastest CAGR during the forecast period.
• By application, the cloud-based storage segment held the largest market share in 2025.
• By application, the cloud security & data privacy segment is expected to expand at the fastest CAGR during the projection period.
• By end-use, the BFSI segment held the largest market share in 2025.
• By end-use, the IT & telecommunication segment is expected to witness the fastest growth during the foreseeable period.

Community Cloud Market: An Innovative Approach to Handling Crucial Data

A community cloud is a cloud computing environment shared by multiple organizations with similar goals, security requirements, and regulatory compliance needs. It provides a collaborative infrastructure where resources, technologies, and services are shared among members, offering many of the benefits of a private cloud while remaining cost-efficient. The market is rapidly expanding due to advantages such as reduced risk of vendor lock-in, collaborative security practices among enterprises, enhanced data privacy and control, and lower exposure to cyber threats through robust safety protocols.

Community Cloud Market Trends

• Leading businesses are increasingly embracing hybrid and multi-cloud environments for proactive monitoring and dynamic scalability.
• Advanced security protocols, including zero-trust models, cloud-native security platforms, and pilot programs for post-quantum encryption, are being widely deployed to address complex IT environments.
• Sustainability initiatives, such as green computing, carbon footprint tracking, and renewable energy adoption, are also influencing market strategies to meet environmental regulations.
• Simplified management and scalability are surging, and companies are widely adopting serverless and cloud-native architectures, fueling the market's growth.
• The increasing adoption of hybrid cloud architectures and interoperability standards is further supporting the seamless integration between community cloud and different cloud models.

How is AI Influencing the Community Cloud Market?

The expansion of Artificial Intelligenceis transforming the cloud computing market, shifting the focus toward AI-first ecosystems over traditional architectures and driving rapid market growth. Leading cloud providers such as AWS, Azure, and Google Cloud offer pre-trained, easily integrated AI models that enable SMEs to leverage advanced AI/ML capabilities cost-effectively, without investing in dedicated hardware or infrastructure. AI is also being used to automate repetitive tasks like provisioning and monitoring, improving resource allocation and operational efficiency. As a result, nearly 70% of organizations are expected to adopt AI-driven cloud management in the foreseeable future.

Industries are looking to work on a secure community cloud, such as Microsoft Sovereign Cloud, which allows organizations to maintain control over sensitive data exchange while utilizing the unmatched capacities of AI/ML models. Data-sensitive sectors like BFSI and healthcare are at the forefront of the adoption of AI technologies to manage cloud platforms collaboratively, aiming to maximize performance and regulatory compliance for data security to avoid unauthorized access. AI-driven real-time data management and continuous threat monitoring are key drivers accelerating the adoption of AI technologies in the community cloud sector.

In a nutshell, the integration of AI into community cloud is driving edge-to-cloud synergy, enabling intelligent automation, and fueling the large-scale adoption of generative AI.

Market Scope

Segment Outlook

ComponentInsights

What Made Hardware the Dominant Segment is the Community Cloud Market?

The hardware segment dominated the market by holding the largest share in 2025. This is mainly due to the critical need for robust, high-performance infrastructure to support multiple organizations sharing the same environment. Organizations tend to use robust, modern, and high-speed hardware to ensure more consistent performance than solely public cloud environments. Dedicated servers, storage systems, and networking equipment ensure reliability, scalability, and low-latency performance, which are essential for mission-critical workloads and AI/ML-driven applications. Additionally, hardware investments help maintain security, data isolation, and regulatory compliance, making it a foundational component for enterprise-grade community cloud deployments.

The software segment is expected to grow at the fastest CAGR during the foreseeable period due to the increasing need for centralized management, automation, and seamless integration of shared resources across multiple organizations. Software provides highly secure and cost-effective solutions, enabling organizations with shared objectives to collaborate on a single infrastructure while ensuring enhanced security, regulatory compliance, and improved scalability. As a core component of community cloud operations, software plays a critical role in maintaining reliability and delivering optimal outcomes. It also offers flexible, on-demand scaling to support a wide range of applications, adapting efficiently to the evolving demands of the community cloud environment.

ApplicationInsights

Why Did the Cloud-Based Storage Segment Lead the Community Cloud Market?

The cloud-based storage segment led the market with the largest share in 2025 due to its ability to provide a secure, shared, and regulatory-compliant environment for enterprises with similar goals and specialized requirements. While community clouds are not open to the public, they can be accessed by authorized organizations, making them highly secure, private, and inherently compliant with data protection regulations such as GDPR and HIPAA. Cloud-based storage also offers benefits like customization, enhanced collaboration among organizations, high flexibility, and efficient resource utilization, driving its widespread adoption.

The cloud security & data privacy segment is expected to witness the fastest growth during the forecast period, as it offers shared yet fully restricted environments, especially curated for organizations with stringent compliance needs and shared business values, making it an ideal choice for data-sensitive industries like finance and healthcare. Community clouds provide stronger security than public clouds through collaborative policy enforcement and risk management. Enhanced data sovereignty is another key driver, ensuring organizations retain control over sensitive information, which is accelerating growth in this segment.

End-Use Insights

How Does the BFSI Segment Dominate the Community Cloud Market?

The BFSI segment dominated the market while holding the largest share in 2025. This is mainly due to the sector's critical need for secure, compliant, and highly reliable IT infrastructure. Financial institutions handle vast amounts of sensitive customer and transaction data, making robust data protection, regulatory compliance, and auditability essential. Community cloud solutions enable secure collaboration among multiple organizations while maintaining data privacy, continuity, and performance, which aligns perfectly with BFSI requirements.

The IT & telecommunications segment is expected to grow at the fastest CAGR during the foreseeable period due to the need to enhance operational efficiency and support cost-effective adoption of emerging technologies such as IoT, AI/ML, and 5G. Community cloud enables these organizations to rapidly test and deploy innovative services, reduce administrative overhead, and improve scalability. Additionally, the platform allows telecom operators and IT companies to perform comprehensive consumer analytics, deliver personalized experiences, and optimize service delivery, driving accelerated adoption in this sector.

Regional Analysis

How Big is the North America Community Cloud Market Size?

The North America community cloud market size is estimated at USD 4.02 billion in 2025 and is projected to reach approximately USD 53.29 billion by 2035, with a 29.49% CAGR from 2026 to 2035.

What Made North America a Leader in the Community Cloud Market?

North America led the community cloud market by capturing the largest share in 2025. The region's dominance in the market is attributed to strong demand for collaborative cloud environments and robust platforms tailored to industry-specific requirements. The region benefits from a well-established digital infrastructure, a proactive regulatory framework, and high adoption of innovative technologies, alongside growing emphasis on sustainability and compliance. Rapid integration of advanced technologies such as 5G, IoT, and AI/ML is further accelerating the growth of the community cloud market in North America, making it a dominant and expanding region globally.

What is the Size of the U.S. Community Cloud Market?

The U.S. community cloud market size is calculated at USD 3.01 billion in 2025 and is expected to reach nearly USD 40.23 billion in 2035, accelerating at a strong CAGR of 29.60% between 2026 to 2035

U.S. Community Cloud Market Analysis

The market in the U.S. is expanding due to the increasing demand for a highly secure, compliant, and collaborative IT environment in sectors like healthcare and finance. Government agencies are also modernizing their traditional systems, supporting the adoption of hybrid, private, and community cloud solutions on a large scale. The area is transitioning from traditionally secured architecture for data storage and sharing to critical infrastructure models while enabling greater collaboration among top industry players like AWS, Microsoft, IBM, and Google.

Why is Asia Pacific Considered the Fastest-Growing Region in the Community Cloud Market?

Asia Pacific is expected to witness the fastest growth during the foreseeable period, owing to factors like rapid digital transformation, stringent local data regulations, and the expansion of specialized, secure infrastructure for data-intensive sectors such as finance, defense, and healthcare. Emerging economies like India and China are at the forefront of community cloud adoption, recognizing its ability to provide localized, compliant, and secure shared infrastructure. This adoption is further accelerating digitalization across industries, making the region a key growth frontier for the community cloud market.

For instance, in January 2026, the leading tech player, AWS, entered into a social impact agreement called MYR 4.3 million along with exabytes to support hundreds of Malaysians from B40 and M40 communities with cloud computing and AI skills, aiming to strengthen the country's technology sector and digital workforce. (Source:https://technode.global)

China Community Cloud Market Analysis

The community cloud market in China is rapidly expanding due to rising demand for industry-specific data hosting that enhances data security and ensures data sovereignty, helping organizations mitigate risks associated with public cloud infrastructure. Initiatives such as “Eastern Data, Western Computing” are driving high-density, specialized workloads on energy-efficient and state-backed, robust infrastructure. Additionally, the area is experiencing significant growth supported by innovations and product launches from key players such as China Telecom, Tencent Cloud, Alibaba Cloud, and Huawei Cloud.

How is the Opportunistic Rise of Europe in the Community Cloud Market?

Europe is expected to grow at a significant rate in the market, driven by strong regulatory frameworks like GDPR and initiatives such as GAIAX, which emphasize data sovereignty and compliance, making local shared cloud solutions attractive. Key sectors like government, healthcare, and financial services are rapidly adopting community clouds to ensure secure, interoperable, and cost-efficient IT infrastructure. While global hyperscalers still dominate, Europe leverages these regulatory and sector-specific opportunities to expand its market share and foster a collaborative, sovereign cloud ecosystem.

Germany Community Cloud Market

Germany is the major contributor to the European market. This is because it has a strong industrial and financial sector, strict data protection regulations (like GDPR) that encourage the use of secure, compliant cloud solutions, and active participation in initiatives such as GAIAX, which promotes European data sovereignty and collaborative cloud infrastructure. Additionally, German enterprises and public institutions prioritize hybrid and community cloud models to balance efficiency, security, and regulatory compliance.

Community Cloud Market Value Chain Analysis

Who are the Major Players in the Global Community Cloud Market?

The major players in the community cloud market include Cisco Systems, Inc., Cloud4C, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft, Salesforce, Inc, CTRLS Datacenters Ltd., phoenixNAP, Akamai Technologies, Amazon Web Services, Inc., Atos SE, Broadcom, Dell, Inc., Google,Inc., and FourNet

Segments Covered in the Report

By Component

• Hardware
  • Networking
  • Storage
  • Server
• Software
  • Enterprise Applications Software
  • Business Intelligence & Dashboard
  • Collaboration Tool Software
• Services

By Application

• Cloud-based Storage
• Cloud Backup and Recovery
• Cloud Security and Data Privacy
• Others

By End-Use

• BFSI
• Healthcare
• Education
• Government