Global Visual Cloud Market Grows at a Staggering CAGR of 12.45%

Introduction

The global visual cloud market is propelled by increasing demand for video streaming, augmented reality/virtual reality (AR/VR), cloud gaming, and AI-driven video analytics, spurred by the rise of Over-the-Top (OTT) platforms such as Netflix and Disney+.  Improvements in 5G networks and edge computing facilitate low-latency content distribution, while the scalability of cloud infrastructure enables real-time visual processing in media, healthcare, and retail sectors.  Prominent themes encompass the incorporation of AI for tailored content dissemination and the emergence of cloud-based solutions for remote collaboration and e-learning.

Moreover, the transition from conventional cable television to on-demand streaming and rising internet penetration propels market expansion.  Nevertheless, obstacles remain, including elevated infrastructure expenses and data security issues.  North America excels because of its sophisticated cloud infrastructure, whereas Asia-Pacific is the most rapidly expanding area, propelled by 5G implementation in China and India.  The market's development signifies the increasing need for immersive, high-quality visual experiences in a digital-centric environment.

Market Dynamic

Increase in demand for video streaming and over-the-top platforms drives market growth

The rapid expansion of video streaming and Over-the-Top (OTT) platforms is a key catalyst for the worldwide visual cloud market.  In 2024, more than 65% of the worldwide population will engage with OTT content, necessitating platforms like Netflix, Disney+, and Amazon Prime Video to utilise visual cloud infrastructure for high-definition streaming and real-time transcoding.  The expansion of 5G networks, especially in the Asia-Pacific region, where nations such as China and South Korea spearhead development, facilitates ultra-low-latency streaming.

• For instance, in April 2024, Akamai launched a media-optimised cloud service employing Nvidia RTX 4000 GPUs, resulting in 25 times quicker frame processing in video encoding, facilitating smoother 4K and 8K streaming.

The decrease of traditional cable television further drives this increase, as people prefer on-demand alternatives.  The demand for resilient, low-latency cloud infrastructure to provide 4K and 8K content delivery guarantees ongoing market expansion, especially within the media and entertainment sector.

Growth of cloud gaming and augmented/virtual reality applications creates tremendous opportunities

The swift expansion of cloud gaming and AR/VR applications offers a substantial opportunity for the worldwide visual cloud market, propelled by rising consumer demand and technological progress.  The global cloud gaming industry utilises visual cloud infrastructure for low-latency gameplay through services such as Xbox Cloud Gaming and GeForce Now.  AR/VR applications are projected to reach USD 11.0 billion by 2032, with growth occurring in gaming, healthcare, and industrial training, especially in Germany and the Asia-Pacific region.

• For example, in April 2025, AWS showcased substantial generative AI and cloud-native functionalities within the media and entertainment sector.  AWS Elemental MediaConnect was demonstrated, facilitating live 4K e-sports broadcasts with minimal latency and augmented reality overlays with cloud-rendered visuals from Epic Games' Unreal Engine.

The 5G and edge computing breakthroughs facilitate real-time rendering and immersive experiences, preparing the visual cloud market for substantial growth in dynamic, high-demand sectors.

Regional Analysis

North America possesses the greatest share of the worldwide visual cloud market, with 37% of revenue in 2024, propelled by its sophisticated technological infrastructure and significant uptake of cloud-based services.  The region's supremacy is driven by the extensive utilisation of OTT platforms, with more than 65% of consumers participating in streaming services in 2024, alongside the emergence of cloud gaming and AR/VR apps.  Government programs, exemplified by the U.S. Federal Communications Commission’s Broadband Initiative, initiated in 2024, improve high-speed internet accessibility, essential for cloud gaming and streaming, stimulating industry expansion.  The existence of prominent technology companies and substantial research and development investments fosters innovation in real-time video analytics and enterprise solutions.  The region's developed IT environment and early implementation of 5G networks provide low-latency content delivery, especially for media and entertainment.

Key Highlights

• The global visual cloud market size was valued at USD 126.0 billion in 2024 and is projected to grow from USD 143.0 billion in 2025 to USD 365.34 billion by 2033, exhibiting a CAGR of 12.45% during the forecast period (2025–2033).
• By Component, the market is segmented into solutionsand The solution segment, encompassing software platforms, rendering engines, and video processing tools, dominates the visual cloud market with a revenue share of over 59% in 2024.
• By Type, the market is segmented into cloud-basedand on-premises. The cloud-based segment holds the largest market share, accounting for a significant portion in 2024 due to its scalability, cost-effectiveness, and seamless integration capabilities.
• By Application, the market is segmented into media & entertainment, gaming, healthcare, retail & e-commerce, government & public sector, IT & telecom, and others. The media & entertainment segment commands the largest market share, driven by the global surge in video streaming and OTT platforms.
• Based on region, the global market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America dominates the global market.

Competitive Players

1. Amazon Web Services (AWS)
2.  Microsoft Azure
3.  Google Cloud
4.  Alibaba Cloud
5.  Tencent Cloud
6.  IBM Cloud
7.  Oracle Cloud
8.  Cisco Systems
9.  Akamai Technologies
10.  Nvidia Corporation
11.  SAP SE
12.  Salesforce
13.  Adobe Systems
14.  Dell Technologies
15.  Hewlett-Packard Enterprise (HPE)
16.  and others.

Recent Developments

• In April 2025, Google unveiled Veo 2 at Google Cloud Next 2025, a video generation AI model integrated into Vertex Media Studio. Veo 2 enables content creators to add new elements to videos and simulate specific lens models and camera movements, streamlining production for media and entertainment. This development enhances Google Cloud’s position in the visual cloud market by offering advanced AI-driven tools for OTT platforms and content creators, addressing the growing demand for high-quality, personalised visual content.
• In April 2024, Akamai introduced a media-optimised cloud service utilising Nvidia RTX 4000 GPUs, achieving 25 times faster frame processing for video streaming and 3D modelling. This service supports OTT platforms and cloud gaming, enhancing low-latency content delivery for global consumers. By leveraging edge computing and AI, Akamai strengthens its competitive edge in the visual cloud market, particularly in North America and Europe, where demand for high-definition streaming and immersive experiences surges.

Segmentation

1. By Component
   1. Solution
   2. Services
2. By Type
   1. Cloud-Based
   2. On-Premises
3. By Application
   1. Media & Entertainment
   2. Gaming
   3. Healthcare
   4. Retail & E-commerce
   5. Government & Public Sector
   6. IT & Telecom
   7. Others