The South Korea cloud computing market is entering a period of rapid expansion, driven by digital transformation across industries, government initiatives, and increasing cybersecurity needs. Valued at USD 3.9 billion in 2024, the market is projected to reach USD 11.6 billion by 2033, reflecting a strong CAGR of 12.36%. The country’s technological sophistication, coupled with the growing demand for scalable and secure IT infrastructure, is propelling this sector to new heights.
Market Drivers
The rising incidence of cyber threats and data breaches is compelling businesses to adopt cloud computing for its enhanced security features, such as advanced encryption, disaster recovery, and centralized data management. In parallel, South Korea’s booming e-learning, healthcare, and financial sectors are increasingly relying on cloud platforms to handle data-heavy operations. The accelerated adoption of multi-cloud strategies, driven by concerns over vendor lock-in, is allowing businesses to optimize services and improve operational resilience.
Government Initiatives
South Korea’s Ministry of Science and ICT has committed substantial investments to accelerate cloud adoption. In 2024 alone, over USD 91.5 million was allocated, emphasizing the development of cloud-based services and SaaS transformation. Government-backed initiatives aim to modernize digital infrastructure, supporting the establishment of data centers and fostering partnerships between public and private sectors. These measures are expected to catalyze the widespread adoption of cloud computing across verticals.
Market Trends
Integration of artificial intelligence (AI) and machine learning (ML) is enhancing the analytical capabilities and value proposition of cloud platforms. South Korea’s rapid digitalization, boosted by remote work trends, has made cloud adoption indispensable for businesses. With the country ranking among the top global innovation leaders and a robust ecosystem for AI and big data, demand for cloud computing is further amplified.
Market Segmentation
- By Service: Software as a Service (SaaS) dominates the market due to its scalability, cost-effectiveness, and reduced IT infrastructure dependency.
- By Workload: Resource management holds the largest market share as enterprises prioritize efficient allocation and utilization of computing assets.
- By Deployment: Public cloud leads due to affordability and flexibility, with increased adoption in both SMEs and large enterprises.
- By Organization Size: Large enterprises account for the majority of demand, leveraging cloud for complex, data-intensive operations.
- By Vertical: The BFSI sector leads, driven by the need for advanced analytics, risk management, and regulatory compliance.
- By Region: The western region, including Seoul and Incheon, dominates owing to superior IT infrastructure, data center concentration, and the presence of major corporations.
Opportunities and Challenges
Opportunities lie in advancing digitalization, government support, and the evolving needs of sectors like healthcare, education, and financial services. However, data security concerns, regulatory complexity, and the need for continuous infrastructure upgrades pose challenges.
Competitive Landscape
The competitive scenario is marked by rapid innovation, strategic partnerships, and the localization of cloud services. Leading players include domestic giants like Samsung Electronics and global leaders like Google Cloud and IBM, which are expanding their footprints in the country. Recent initiatives include Samsung’s partnership with Google Cloud and Gcore’s launch of its AI public cloud service in Korea, reflecting an intensified focus on AI-driven cloud solutions.
Outlook (2025–2033)
The market is expected to exhibit sustained growth fueled by cloud-based digital transformation across industries, government-led cloud-first policies, and increasing demand for AI-integrated cloud services. Enterprises are likely to prioritize hybrid and multi-cloud deployments to balance security, performance, and cost-efficiency. The rise of SaaS and advanced data management solutions will further shape the competitive landscape.
The South Korean cloud computing market is positioned to play a pivotal role in the Asia-Pacific cloud ecosystem, becoming a model for technologically advanced and resilient cloud adoption.
[Table of Contents]
1 Preface
2 Scope and Methodology
2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.4 Market Estimation
2.4.1 Bottom-Up Approach
2.4.2 Top-Down Approach
2.5 Forecasting Methodology
3 Executive Summary
4 Introduction
4.1 Overview
4.2 Key Industry Trends
5 South Korea Cloud Computing Market
5.1 Market Overview
5.2 Market Performance
5.3 Impact of COVID-19
5.4 Market Forecast
6 Market Breakup by Service
6.1 Infrastructure as a Service (IaaS)
6.1.1 Market Trends
6.1.2 Market Forecast
6.2 Platform as a Service (PaaS)
6.2.1 Market Trends
6.2.2 Market Forecast
6.3 Software as a Service (SaaS)
6.3.1 Market Trends
6.3.2 Market Forecast
7 Market Breakup by Workload
7.1 Application Development and Testing
7.1.1 Market Trends
7.1.2 Market Forecast
7.2 Analytics and Reporting
7.2.1 Market Trends
7.2.2 Market Forecast
7.3 Data Storage and Backup
7.3.1 Market Trends
7.3.2 Market Forecast
7.4 Integration and Orchestration
7.4.1 Market Trends
7.4.2 Market Forecast
7.5 Resource Management
7.5.1 Market Trends
7.5.2 Market Forecast
7.6 Others
7.6.1 Market Trends
7.6.2 Market Forecast
8 Market Breakup by Deployment Mode
8.1 Public
8.1.1 Market Trends
8.1.2 Market Forecast
8.2 Private
8.2.1 Market Trends
8.2.2 Market Forecast
8.3 Hybrid
8.3.1 Market Trends
8.3.2 Market Forecast
9 Market Breakup by Organization Size
9.1 Large Enterprise
9.1.1 Market Trends
9.1.2 Market Forecast
9.2 Small and Medium Enterprise
9.2.1 Market Trends
9.2.2 Market Forecast
10 Market Breakup by Vertical
10.1 BFSI
10.1.1 Market Trends
10.1.2 Market Forecast
10.2 IT and Telecom
10.2.1 Market Trends
10.2.2 Market Forecast
10.3 Retail and Consumer Goods
10.3.1 Market Trends
10.3.2 Market Forecast
10.4 Energy and Utilities
10.4.1 Market Trends
10.4.2 Market Forecast
10.5 Healthcare
10.5.1 Market Trends
10.5.2 Market Forecast
10.6 Media and Entertainment
10.6.1 Market Trends
10.6.2 Market Forecast
10.7 Government and Public Sector
10.7.1 Market Trends
10.7.2 Market Forecast
10.8 Others
10.8.1 Market Trends
10.8.2 Market Forecast
11 Market Breakup by Region
11.1 East
11.1.1 Market Trends
11.1.2 Market Forecast
11.2 West
11.2.1 Market Trends
11.2.2 Market Forecast
11.3 Southwest
11.3.1 Market Trends
11.3.2 Market Forecast
11.4 Southeast
11.4.1 Market Trends
11.4.2 Market Forecast
12 SWOT Analysis
12.1 Overview
12.2 Strengths
12.3 Weaknesses
12.4 Opportunities
12.5 Threats
13 Value Chain Analysis
14 Porters Five Forces Analysis
14.1 Overview
14.2 Bargaining Power of Buyers
14.3 Bargaining Power of Suppliers
14.4 Degree of Competition
14.5 Threat of New Entrants
14.6 Threat of Substitutes
15 Price Analysis
16 Policy and Regulatory Landscape
17 Competitive Landscape
17.1 Market Structure
17.2 Key Players
17.3 Profiles of Key Players
List of Figures
Figure 1: South Korea: Cloud Computing Market: Major Drivers and Challenges
Figure 2: South Korea: Cloud Computing Market: Sales Value (in Billion USD), 2019-2024
Figure 3: South Korea: Cloud Computing Market Forecast: Sales Value (in Billion USD), 2025-2033
Figure 4: South Korea: Cloud Computing Market: Breakup by Service (in %), 2024
Figure 5: South Korea: Cloud Computing Market: Breakup by Workload (in %), 2024
Figure 6: South Korea: Cloud Computing Market: Breakup by Deployment Mode (in %), 2024
Figure 7: South Korea: Cloud Computing Market: Breakup by Organization Size (in %), 2024
Figure 8: South Korea: Cloud Computing Market: Breakup by Vertical (in %), 2024
Figure 9: South Korea: Cloud Computing Market: Breakup by Region (in %), 2024
Figure 10: South Korea: Cloud Computing (Infrastructure as a Service) Market: Sales Value (in Million USD), 2019 & 2024
Figure 11: South Korea: Cloud Computing (Infrastructure as a Service) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 12: South Korea: Cloud Computing (Platform as a Service) Market: Sales Value (in Million USD), 2019 & 2024
Figure 13: South Korea: Cloud Computing (Platform as a Service) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 14: South Korea: Cloud Computing (Software as a Service) Market: Sales Value (in Million USD), 2019 & 2024
Figure 15: South Korea: Cloud Computing (Software as a Service) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 16: South Korea: Cloud Computing (Application Development and Testing) Market: Sales Value (in Million USD), 2019 & 2024
Figure 17: South Korea: Cloud Computing (Application Development and Testing) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 18: South Korea: Cloud Computing (Analytics and Reporting) Market: Sales Value (in Million USD), 2019 & 2024
Figure 19: South Korea: Cloud Computing (Analytics and Reporting) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 20: South Korea: Cloud Computing (Data Storage and Backup) Market: Sales Value (in Million USD), 2019 & 2024
Figure 21: South Korea: Cloud Computing (Data Storage and Backup) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 22: South Korea: Cloud Computing (Integration and Orchestration) Market: Sales Value (in Million USD), 2019 & 2024
Figure 23: South Korea: Cloud Computing (Integration and Orchestration) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 24: South Korea: Cloud Computing (Resource Management) Market: Sales Value (in Million USD), 2019 & 2024
Figure 25: South Korea: Cloud Computing (Resource Management) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 26: South Korea: Cloud Computing (Other Workloads) Market: Sales Value (in Million USD), 2019 & 2024
Figure 27: South Korea: Cloud Computing (Other Workloads) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 28: South Korea: Cloud Computing (Public) Market: Sales Value (in Million USD), 2019 & 2024
Figure 29: South Korea: Cloud Computing (Public) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 30: South Korea: Cloud Computing (Private) Market: Sales Value (in Million USD), 2019 & 2024
Figure 31: South Korea: Cloud Computing (Private) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 32: South Korea: Cloud Computing (Hybrid) Market: Sales Value (in Million USD), 2019 & 2024
Figure 33: South Korea: Cloud Computing (Hybrid) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 34: South Korea: Cloud Computing (Large Enterprise) Market: Sales Value (in Million USD), 2019 & 2024
Figure 35: South Korea: Cloud Computing (Large Enterprise) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 36: South Korea: Cloud Computing (Small and Medium Enterprise) Market: Sales Value (in Million USD), 2019 & 2024
Figure 37: South Korea: Cloud Computing (Small and Medium Enterprise) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 38: South Korea: Cloud Computing (BFSI) Market: Sales Value (in Million USD), 2019 & 2024
Figure 39: South Korea: Cloud Computing (BFSI) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 40: South Korea: Cloud Computing (IT and Telecom) Market: Sales Value (in Million USD), 2019 & 2024
Figure 41: South Korea: Cloud Computing (IT and Telecom) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 42: South Korea: Cloud Computing (Retail and Consumer Goods) Market: Sales Value (in Million USD), 2019 & 2024
Figure 43: South Korea: Cloud Computing (Retail and Consumer Goods) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 44: South Korea: Cloud Computing (Energy and Utilities) Market: Sales Value (in Million USD), 2019 & 2024
Figure 45: South Korea: Cloud Computing (Energy and Utilities) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 46: South Korea: Cloud Computing (Healthcare) Market: Sales Value (in Million USD), 2019 & 2024
Figure 47: South Korea: Cloud Computing (Healthcare) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 48: South Korea: Cloud Computing (Media and Entertainment) Market: Sales Value (in Million USD), 2019 & 2024
Figure 49: South Korea: Cloud Computing (Media and Entertainment) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 50: South Korea: Cloud Computing (Government and Public Sector) Market: Sales Value (in Million USD), 2019 & 2024
Figure 51: South Korea: Cloud Computing (Government and Public Sector) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 52: South Korea: Cloud Computing (Other Verticals) Market: Sales Value (in Million USD), 2019 & 2024
Figure 53: South Korea: Cloud Computing (Other Verticals) Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 54: East: Cloud Computing Market: Sales Value (in Million USD), 2019 & 2024
Figure 55: East: Cloud Computing Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 56: West: Cloud Computing Market: Sales Value (in Million USD), 2019 & 2024
Figure 57: West: Cloud Computing Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 58: Southwest: Cloud Computing Market: Sales Value (in Million USD), 2019 & 2024
Figure 59: Southwest: Cloud Computing Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 60: Southeast: Cloud Computing Market: Sales Value (in Million USD), 2019 & 2024
Figure 61: Southeast: Cloud Computing Market Forecast: Sales Value (in Million USD), 2025-2033
Figure 62: South Korea: Cloud Computing Industry: SWOT Analysis
Figure 63: South Korea: Cloud Computing Industry: Value Chain Analysis
Figure 64: South Korea: Cloud Computing Industry: Porter’s Five Forces Analysis