Cloud analytics market seen reaching $174.5B by 2031

A new Allied Market Research report says the global cloud analytics market is set to jump from $25.4 billion in 2021 to $174.5 billion by 2031. The forecast points to strong demand for scalable, lower-cost data tools, with North America leading and Asia Pacific expected to grow fastest.

Why it matters: - Cloud analytics is becoming a core alternative to on-premises data systems because it offers better scalability, a service-based model and lower infrastructure costs. - The market’s projected rise signals continued enterprise demand for tools that can extract and organize insights from large data sets. - The forecast highlights where vendors, investors and enterprise buyers may focus as cloud adoption expands across industries and regions.

What happened: - Allied Market Research said the global cloud analytics market was valued at $25.4 billion in 2021 and is projected to reach $174.5 billion by 2031. - The report pegs market growth at a 21.5% compound annual growth rate from 2022 through 2031. - The report was published June 16, 2026. - The company also made the report available through a sample request page and a purchase options page.

The details: - Cloud analytics uses cloud computing technology to analyze business data and help users retrieve and categorize information from large databases. - The report says cloud analytics is an alternative to on-premises analytics, which requires businesses to buy warehouse capacity and maintain expensive data centers. - The report identifies easy access and connectivity through business intelligence tools, rising demand for analytics solutions, and integration with Software-Defined Networking as key growth drivers. - Privacy and data security concerns, plus limited internal IT experience and resources, are expected to restrain growth. - Greater data connectivity in hybrid cloud environments is expected to create new opportunities. - By enterprise size, large enterprises led the market in 2021 and are expected to keep leading because they want more resilience, stronger security and lower costs. - The report says large enterprises use cloud analytics to speed application development and deployment, while platform-as-a-service tools can simplify development further. - Small and midsize businesses are expected to post the fastest growth because cloud analytics can improve productivity and save time and money. - By solution, analytics solutions held the largest share in 2021. - By deployment mode, public cloud dominated the market. - By industry vertical, BFSI generated the highest revenue in 2021. - By region, North America led revenue in 2021 and is expected to remain the top region. - Asia Pacific is expected to post strong growth as cloud computing and data analytics adoption rises. - The report says the COVID-19 pandemic moderately affected the market by slowing IT infrastructure expansion and creating connectivity, processing and storage challenges. - The report also says cloud-based analytics helped enterprises and governments maintain operational efficiency and reduce costs during the pandemic.

Between the lines: - The report frames cloud analytics as both a cost-saving tool and a response to the need for faster, more flexible data access. - The strongest near-term demand appears to come from large enterprises, but the fastest growth opportunity may be in smaller businesses that need simpler, cheaper analytics. - Regional leadership remains concentrated in North America, but Asia Pacific’s growth outlook suggests the market is still expanding geographically.

What's next: - The report expects hybrid cloud adoption, broader analytics use and ongoing digital transformation to support market growth through 2031. - Asia Pacific’s rise could reshape regional competition if cloud and analytics adoption accelerates as projected. - The report also lists major market players including Amazon Web Services, IBM, Google, Hewlett Packard Enterprise, Oracle, TIBCO Software, Teradata, SAP and Microsoft, suggesting competition will stay concentrated among large platform vendors.

The bottom line: - Cloud analytics is moving from a niche IT option to a major enterprise data strategy, and the market forecast points to sustained demand well into the next decade.