What Has Been The Evolution of the Cloud Infrastructure Service Market in Recent Years?
The cloud infrastructure service market has seen considerable growth due to a variety of factors.
• The size of the cloud infrastructure service market has witnessed a significant expansion in the recent past. It is projected to rise from a value of $155.68 billion in 2024 to $184.57 billion in 2025, indicating a compound annual growth rate (CAGR) of 18.6%.
Several factors have contributed to this historic growth, such as the surge in usage of mobile and internet-connected devices, escalating requirements for data storage, the rising significance of disaster recovery, the swift adoption of virtualization technologies, and an increased demand for solutions based on the cloud.
How Will the Cloud Infrastructure Service Market Size?
The cloud infrastructure service market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for the cloud infrastructure service market to expand considerably in the upcoming years. Its value is slated to reach $361.22 billion by 2029, with a compound annual growth rate (CAGR) of 18.3%.
Factors contributing to this growth during the forecast period include the surging demand for AI and machine learning, 5G networks expansion, the proliferation of big data analytics, IoT applications' uptake, and an intensified focus on cybersecurity. Trends projected for this period consist of growth in edge computing instances, strengthened emphasis on sustainability and green computing, AI-driven automation advancements, an increase in cloud-native solutions, and the building up of robust cybersecurity measures.
Which Drivers Are Accelerating Growth In The Cloud Infrastructure Service Market?
The growing need for digital transformation is anticipated to boost the cloud infrastructure service market's advancement in the future. This increased need for digital transformation is fuelled by businesses' requirements to boost operational efficiency, enhance customer experiences, and remain competitive in a quickly changing technological environment. Digital transformation is facilitated by cloud infrastructure services, which offer scalable, flexible, and cost-effective resources that promote innovation, manage data, and allow for flawless integration across digital platforms. For instance, in November 2023, a report released by the Central Digital and Data Office, a governmental organization in the UK, indicated that the government's emphasis on digital transformation has led to a 9% growth in the Government Digital and Data profession over the last six months, increasing the total number of professionals in this sector to 28,337. Thus, the burgeoning demand for digital transformation is propelling the expansion of the cloud infrastructure service market.
What Key Areas Define The Segmentation Of The Global Cloud Infrastructure Service Market?
The cloud infrastructure service market covered in this report is segmented –
1) By Service Type: Compute As A Service, Storage As A Service, Networking As A Service, Other Service Types
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Organization Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
4) By End-User Vertical: Banking, Financial Services, And Insurance (BFSI), Information Technology (IT) And Telecommunications, Retail, Healthcare And Life Sciences, Government, Other End-User Verticals
Subsegments:
1) By Compute As A Service (CaaS): Virtual Machines (VMs), Container Services, Serverless Computing, High-Performance Computing (HPC)
2) By Storage As A Service (SaaS): Object Storage, Block Storage, File Storage, Backup And Disaster Recovery Storage
3) By Networking As A Service (NaaS): Virtual Private Networks (VPNs), Load Balancing Services, Firewall And Security Services, Content Delivery Networks (CDNs)
4) By Other Service Types: Database As A Service (DBaaS), Platform As A Service (PaaS), Managed Services, Analytics As A Service (AaaS)
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How Are Emerging Trends Reshaping The Dynamics Of The Cloud Infrastructure Service Market?
Significant companies in the cloud infrastructure service market are emphasizing the creation of a cutting-edge software-defined storage (SDS) platform. This is with the aim of enabling smooth integration with multi-cloud environments, which would, in turn, boost overall performance for enterprise applications. The software-defined storage platform operates by managing storage resources via software, thereby increasing flexibility, automation, and scalability. For example, US-based data storage firm, DataDirect Networks, Inc., unveiled DDN Infinia towards the end of 2023. This versatile platform supports object, file, and block storage for varied applications, offering attributes such as a fast 10-minute setup, rolling upgrades, automated configuration, and seamless expansion to ensure continuous service. Boasting a multi-tenant architecture and a software-based SLA manager, the platform optimizes service quality and resource sharing. The all-QLC flash system of Infinia is designed to be energy-efficient, which serves to elevate storage density and reduce operational costs.
Who Are the Key Players In The Cloud Infrastructure Service Market?
Major companies operating in the cloud infrastructure service market are:
• AT&T Inc.
• Dell Technologies Inc.
• Tencent Holdings Limited
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Fujitsu Limited
• Hewlett Packard Enterprise Development LP
• Salesforce Inc.
• NEC Corporation
• Lumen Technologies
• DXC Technology Company
• Alibaba Cloud US LLC
• Rackspace Technology Inc.
• IONOS Inc.
• Joyent Inc.
• Skytap Inc.
• Zadara Inc.
• Linode LLC
• Cumulus Networks Inc.
What Is The Most Dominant Region In The Cloud Infrastructure Service Market?
North America was the largest region in the cloud infrastructure service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud infrastructure service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
