Cloud Computing Banking Market Research Report By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Service Model (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS)), By Application (Core Banking, Internet Banking, Mobile Banking, Risk Management, Compliance, Analytics), By Bank Size (Large Banks, Mid-Sized Banks, Small Banks), By Industry Vertical (Retail Banking, Corporate Banking, Investment Banking, Insurance) and By Regional (North America, Europe, South America, Asia Pacific,

Global Cloud Computing Banking Market Overview

Cloud Computing Banking Market Size was estimated at 41.58 (USD Billion) in 2022. The Cloud Computing Banking Market Industry is expected to grow from 49.2 (USD Billion) in 2023 to 223.45 (USD Billion) by 2032. The Cloud Computing Banking Market CAGR (growth rate) is expected to be around 18.31% during the forecast period (2024 - 2032).

Key Cloud Computing Banking Market Trends Highlighted

The Cloud Computing Banking Market is rapidly expanding and is projected to reach substantial growth in the coming years. This market is driven by several key factors, including the increasing adoption of cloud-based services by banks to improve operational efficiency, reduce costs, and enhance customer experience. Additionally, the growing need for data security and compliance, along with the advancements in cloud technologies, are boosting the market growth. Cloud computing offers significant opportunities for banks to explore. These include the ability to provide personalized banking experiences, enhance data analytics capabilities, and improve risk management.

Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) with cloud services is creating new avenues for growth. Recent trends in the Cloud Computing Banking Market include the adoption of multi-cloud strategies, the rise of hybrid cloud models, and the increasing focus on data privacy and security. Banks are increasingly leveraging the benefits of multiple cloud providers to enhance flexibility, reduce vendor lock-in, and optimize costs. Hybrid cloud models combine on-premises and cloud infrastructure, allowing banks to maintain control over sensitive data while leveraging the scalability and agility of the cloud.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cloud Computing Banking Market Drivers

Increasing Adoption of Cloud-based Services in Banking

The banking sector is a rapidly growing arena deploying cloud services for the sake of improving performance, decreasing operating costs, and making customer services more effective. This is not surprising, given that cloud-based solutions offer a variety of benefits to banks in terms of scalability, flexibility, and ability to use advanced technology. As banks continue developing and modernizing their internal IT services, the demand for cloud computing solutions is likely to rise excessively. Therefore, the implementation of such services is expected to be one of the key drivers of the Cloud Computing Banking Market Industry, with Banks adopting cloud computing to remain competitive.

Growing Need for Data Analytics and Security

The data being generated by the banking industry is vast. The growth in volume is being driven by an increasing number of banks and bank customers each year. Cloud Computing cannot be stopped. Instead, banks must leverage cloud infrastructure and tools to manage and analyze data. Banks are seeking to provide better customer service, manage risk, and detect fraud through data analysis. Cloud computing offers a secure environment for financial data by providing strong security safeguards against cyber threats. Data analytics and security needs are seeing strong demand for cloud computing solutions in the Cloud Computing Banking Market Industry.

Regulatory Compliance and Cost Optimization

Banks are always under the control of strict regulatory requirements and need to use secure and compliant IT. They can do it by using cloud computing solutions which provide secure infrastructure and measures of data protection. Another benefit of using cloud computing by banks is that they can optimize IT costs and avoid spending additional money on hardware purchases and ongoing maintenance. The increased focus on regulatory compliance and cost optimization is contributing to the development of the Cloud Computing Banking Market Industry.

Cloud Computing Banking Market Segment Insights

Cloud Computing Banking Market Deployment Model Insights

Forecasts The Cloud Computing Banking Market is projected to cross USD 88.34 billion by 2029, at a CAGR of 19.4% between 2023 and 2029. The increasing uptake of cloud-based solutions by banks and other financial institutions to drive operational efficiency, reduce costs, and enhance customer service is expected to be the primary factor driving the market. Market Analysis The market has been divided based on the deployment model into: Public, Private, and Hybrid Clouds.

The segment is expected to dominate the market during the forecast period owing to the inexpensive nature of public clouds compared to the other models. In addition, banks and other financial institutions can use public cloud platforms to access a broad range of computing resources, storage, and applications as and when required. They do not need to own resources, thereby sparing banks and other financial institutions from making large upfront capital investments. Public clouds have emerged as the preferred mode of deployment for medium-sized banks and financial institutions, thereby amplifying the uptake.

The private cloud segment is also expected to offer considerable opportunities for growth. Gross profits will expand over the forecast period, prompted by greater customization opportunities, maximum control, and data security provided by private models. The segment is targeted at larger banks and financial institutions, which require a greater degree of security and regulatory compliance. Hybrid Cloud, the third and final segment, combines the attributes of private and public clouds in an attempt to leverage their benefits. Banks and financial institutions can split their applications and data between the two to optimize costs and boost flexibility and security between the two. This segment also promises significant growth as it attracts banks and financial institutions who want to reap the benefits of both systems.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cloud Computing Banking Market Service Model Insights

The Cloud Computing Banking Market has been segmented based on the Service Model into Infrastructure as a Service, Platform as a Service, and Software as a Service. Among these, the SaaS segment held the largest market share in 2023 and is expected to lead the market throughout the forecast period. The SaaS segment is growing due to its flexibility, scalability, and cost-effectiveness. SaaS providers offer a wide range of applications that can be accessed over the internet rather than being installed on a customer’s computer.

It eliminates the need for businesses to purchase and maintain their own hardware and software, which makes great economic sense for banks and other financial institutions that keep a very close eye on their IT budgets and look to improve efficiencies whenever they can. The IaaS segment is also expected to witness significant growth due to the increasing demand for cloud-based infrastructure services. IaaS providers offer a broad set of services, such as storage, computing power, and networking, that can be used to run a variety of workloads, including applications, software, and e-commerce sites, in the cloud without having to worry about hardware.

The PaaS segment is also expected to witness a considerable rise due to the increasing demand for cloud-based platforms to develop and deploy applications. PaaS providers offer online application development with features such as development tools, runtime environments, and databases, which makes it easy for businesses to build and deploy applications in the cloud.

Cloud Computing Banking Market Application Insights

The Application segment of the Cloud Computing Banking Market offers a comprehensive suite of solutions tailored to specific banking operations. Core Banking, with a revenue projection of $12.3 billion by 2024, takes the lead in this segment, empowering banks with centralized platforms for managing customer accounts, transactions, and core banking processes. Internet Banking, valued at $10.6 billion in 2024, enables customers to conduct banking activities remotely through online portals.

Mobile Banking, expected to reach $9.8 billion by 2024, extends banking services to mobile devices, providing convenient access to account information and transactions. Risk Management, with a market size of $8.7 billion in 2024, plays a crucial role in identifying, assessing, and mitigating financial risks. Compliance, valued at $7.9 billion in 2024, ensures that banks adhere to regulatory requirements and industry standards. Analytics, projected to reach $6.5 billion by 2024, leverages data analysis to drive decision-making, improve customer experiences, and optimize banking operations.

These application segments contribute significantly to the growth of the Cloud Computing Banking Market, meeting the evolving needs of banks and their customers.

Cloud Computing Banking Market Bank Size Insights

The Cloud Computing Banking Market is segmented by bank size into large banks, mid-sized banks, and small banks. Large banks are expected to account for the largest share of the market in 2023, with a market size of USD 22.5 billion. This is due to the fact that large banks have the resources to invest in cloud computing solutions and are more likely to have the in-house expertise to manage these solutions.

Mid-sized banks are expected to be the fastest-growing segment of the market, with a CAGR of 19.5% over the forecast period. This is due to the fact that mid-sized banks are increasingly recognizing the benefits of cloud computing and are looking to adopt these solutions to improve their efficiency and competitiveness.

Small banks are expected to have the smallest share of the market in 2023, with a market size of USD 6.2 billion. However, small banks are expected to experience strong growth over the forecast period, with a CAGR of 18.7%. This is due to the fact that small banks are increasingly looking to cloud computing to reduce their costs and improve their agility.

Cloud Computing Banking Market Industry Vertical Insights

The Cloud Computing Banking Market is segmented by Industry Vertical into Retail Banking, Corporate Banking, Investment Banking, and Insurance. Among these segments, Retail Banking held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of Retail Banking can be attributed to the increasing adoption of cloud-based solutions by retail banks to improve customer experience, reduce operating costs, and enhance security.

Corporate Banking is also expected to witness significant growth due to the rising need for efficient and secure financial services by corporates. Investment Banking and Insurance segments are expected to grow at a steady pace, driven by the adoption of cloud-based platforms for data analytics, risk management, and customer relationship management.

Cloud Computing Banking Market Regional Insights

Regionally, North America is expected to account for the largest market share, owing to the presence of a large number of technology companies and financial institutions in the region. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness the highest growth rate during the forecast period due to the increasing adoption of cloud computing in the banking sector in countries such as China and India. South America and MEA are expected to account for a smaller share of the global market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Cloud Computing Banking Market Key Players And Competitive Insights

Main Cloud Computing Banking Market competitors are investing heavily in developing their cloud-based services. They are major players in the cloud computing market, and there is a growing demand for their services among banks and other financial institutions. These companies are some of the leading competitors in the Cloud Computing Banking Market, and they have an opportunity to expand their customer base and increase their market share in the coming years. Amazon Web Services, or AWS, is one of the leading competitors in the Cloud Computing Banking Market.

AWS offers a wide range of cloud computing services and solutions that can be used by banks and financial institutions to improve their operations. AWS is a leading player in the cloud computing market, and it has a strong track record of providing innovative solutions to its customers. Another major competitor in the Cloud Computing Banking Market is Microsoft Azure. Azure offers a comprehensive suite of cloud computing services and solutions that can be used by banks and financial institutions to modernize their IT infrastructure. Azure is also a strong player in the cloud computing market, and it has a growing number of customers in the banking sector. Finally, Google Cloud Platform, or GCP, is another major competitor in the Cloud Computing Banking Market.

GCP can be used by banks and financial institutions to address their operational needs. There is a growing demand for these solutions among banks and financial institutions, and GCP has an opportunity to expand its customer base and increase its market share. Thus, these companies are some of the key competitors in the Cloud Computing Banking Market. The competitive landscape will likely remain significantly fragmented in the upcoming years, though it is expected that a few large players will become the dominant ones.

Key Companies in the Cloud Computing Banking Market Include

• Oracle


• Dell Technologies


• Alibaba Cloud


• IBM Cloud


• Google Cloud Platform


• Salesforce


• Amazon Web Services


• Infosys


• Huawei


• SAP


• VMware


• Microsoft Azure


• Cisco


• HPE

Cloud Computing Banking Industry Developments

The Cloud Computing Banking Market is poised to witness significant growth in the coming years. In 2023, the market was valued at $49.2 billion, and it is projected to reach $223.45 billion by 2032, exhibiting a CAGR of 18.31%. The market growth is primarily driven by the increasing adoption of cloud computing services by banks and financial institutions.

Cloud computing offers several advantages to banks, including cost savings, scalability, flexibility, and security. Recent market developments include the launch of new cloud-based banking platforms and services by major players such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

These platforms provide banks with a comprehensive suite of cloud-based services, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Additionally, the increasing adoption of cloud-based artificial intelligence (AI) and machine learning (ML) technologies is further driving market growth. AI and ML can be used to automate tasks, improve customer service, and detect fraud.

Cloud Computing Banking Market Segmentation Insights

Cloud Computing Banking Market Deployment Model Outlook

• Public Cloud


• Private Cloud


• Hybrid Cloud

Cloud Computing Banking Market Service Model Outlook

• Infrastructure as a Service (IaaS)


• Platform as a Service (PaaS)


• Software as a Service (SaaS)

Cloud Computing Banking Market Application Outlook

• Core Banking


• Internet Banking


• Mobile Banking


• Risk Management


• Compliance


• Analytics

Cloud Computing Banking Market Bank Size Outlook

• Large Banks


• Mid-Sized Banks


• Small Banks

Cloud Computing Banking Market Industry Vertical Outlook

• Retail Banking


• Corporate Banking


• Investment Banking


• Insurance

Cloud Computing Banking Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa