Europe IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Continental adoption is increasingly shaped by sovereignty mandates and cross-border data-mobility frameworks, with enterprises shifting toward providers offering region-wide compliance and scalable distributed footprints (Sep-2023). The EU’s continued support for GAIA-X-aligned initiatives has nudged buyers toward architectures where portability and regulated workload isolation take priority. This recalibrates procurement, pushing enterprises to demand multi-region control planes rather than single-region deployments.

Industry Progression: Europe’s progression is marked by expanding hyperscale infrastructure paired with sovereign-cloud partnerships. In Feb-2024, IBM and French cloud provider OVHcloud deepened collaboration to deliver sovereign-compliant services using IBM’s watsonx platform. That move strengthens Europe’s trusted-cloud ecosystem and encourages enterprises in regulated sectors to adopt hybrid operational models, intensifying competition among compliant IaaS providers.

Industry Player Insights: Europe’s competitive environment is driven by Amazon Web Services, Google Cloud, OVHcloud, and Deutsche Telekom. OVHcloud’s Mar-2024 DC expansion in France added additional compute and storage blocks, improving regional service redundancy. The expansion boosts marketplace competitiveness by lowering latency and increasing price flexibility across adjacent EU corridors.