SINGAPORE, 08 July 2025 – According to the IDC report, Asia/Pacific Managed Cloud Services Market Forecast, 2024–2028, the managed cloud services (MCS) market in Asia/Pacific* is projected to grow from US$10.8 billion in 2023 to US$22.6 billion by 2028, representing a compound annual growth rate (CAGR) of 15.8%. This growth is being driven by increasing enterprise adoption of hybrid and multicloud environments, as organizations prioritize IT resilience, digital transformation, and AI-led modernization.
Key Highlights
- Managed public cloud services will see the fastest growth, with a CAGR of 22.1%, followed by hybrid cloud at 16.2%.
- 89% of Asia/Pacific enterprises deploy workloads across multiple public clouds; 72% operate in true hybrid cloud models.
- Enterprises cite cloud skills gaps (44%), performance shortfalls, and vendor complexity as top challenges.
The rapid adoption of GenAI is accelerating the shift to cloud-centric architectures, with public cloud emerging as the preferred environment for early GenAI experimentation, pilots, and proofs-of-concept (PoCs). This trend is driving renewed growth in public cloud usage, with managed public cloud services projected to grow at a CAGR of 22.1% through 2028, the fastest among all MCS segments.
IDC research also highlights strong regional interest in hybrid cloud adoption and related services. According to IDC’s Asia/Pacific IT and Business Services Sourcing Survey, 2024, 46% of enterprises identified hyperscalers and public cloud providers as most relevant to their cloud strategy, closely followed by system software and infrastructure vendors at 45%—indicating significant investment in both public and hybrid cloud environments.
As enterprises manage increasingly complex environments spanning public cloud, private cloud, on-premises infrastructure, and edge, the role of professional and managed cloud service providers becomes more critical. The same survey shows that key cloud skill gaps and project execution challenges—including cost overruns and schedule delays—are the top obstacles to cloud adoption, and key areas where enterprises seek external support.
“Multicloud and hybrid cloud have become foundational to digital infrastructure. Enterprises need MCS providers capable of orchestrating these environments to ensure secure, scalable, and AI-ready operations,” said Pushkaraksh Shanbhag, associate director, IDC Asia/Pacific Digital Infrastructure and IT Services.
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About IDC
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