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The cloud infrastructure services market size is forecast to increase by USD 109.2 billion, at a CAGR of 9.4% between 2023 and 2028. The market is experiencing significant growth, driven by the shift from capital expenditure (CAPEX) to operational expenditure (OPEX) models. This trend allows businesses to reduce upfront costs and invest in other areas of their operations. Another key trend is the increasing adoption of hybrid cloud storage systems, which offer the benefits of both public and private clouds. However, challenges remain, including latency in cloud networks, security concerns, and the need for seamless integration between different cloud platforms. To address these challenges, cloud infrastructure service providers are investing in advanced technologies such as artificial intelligence and machine learning to improve network performance and enhance security features. Overall, the market is expected to continue growing as more businesses adopt cloud solutions to optimize their IT infrastructure and improve operational efficiency.
Cloud infrastructure services refer to the hardware and software components required to build, deploy, and manage cloud architectures, including private cloud, public cloud, and hybrid clouds. These services encompass computing resources such as servers and storage devices, as well as networking and management software. Cloud architecture relies on virtualization technologies like hypervisors and virtual machine monitors to create and manage virtual servers and machines. Cloud services offer flexibility and scalability, enabling businesses to quickly deploy and manage resources as needed. Cloud computing resources can be scaled up or down based on demand, while storage can be easily expanded or contracted. Networking is crucial for cloud infrastructure, ensuring seamless communication between servers, virtual machines, and users. Security is a top priority in cloud infrastructure, with intelligent monitoring and management software providing real-time threat detection and response. Deployment software streamlines the process of launching and managing applications in the cloud, while cloud management software provides a centralized interface for managing and monitoring cloud resources. Overall, cloud infrastructure services enable businesses to build and deploy applications and services more efficiently and cost-effectively than traditional on-premises solutions.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The public cloud segment is estimated to witness significant growth during the forecast period. Cloud infrastructure services refer to the delivery of computing, storage, networking resources over the internet. Cloud architecture encompasses hardware, software, server, storage, and networking components. Cloud services offer flexibility and scalability through various deployment models such as private, public, and hybrid clouds. cloud infrastructure includes management software and deployment software for efficient virtualization. Backend technologies like hypervisor and virtual machine monitor facilitate the creation and management of virtual machines. Intelligent monitoring ensures optimal security and performance.
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The public cloud segment was the largest and was valued at USD 99.90 billion in 2018. Cloud infrastructure services also offer software testing, automation, and quality assurance with testing methodologies and automation tools. Practical projects and real-life scenarios help build competence with software products, application integration, and SaaS, and PaaS offerings. Cloud infrastructure solutions provide computing capabilities through server and storage devices. Networking ensures seamless communication between cloud components. Management software and cloud management software enable efficient resource utilization and optimization. Cloud services offer various benefits including on-demand self-service, broad network access, resource pooling, rapid elasticity, measured service, and multi-tenancy. The market continues to grow due to the increasing demand for flexible, cost-effective, and secure it solutions.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Cloud Infrastructure Services refer to the delivery of essential resources and services over the internet, enabling businesses to build, deploy, and manage applications and workloads in a flexible and scalable manner. Cloud architecture encompasses hardware, software, server, storage, and networking components, while management and deployment software facilitates automation and orchestration. Virtualization technologies like hypervisor and virtual machine monitor enable the creation of virtual machines, underpinning private, public, and hybrid cloud solutions. Flexibility and scalability are key benefits, allowing computing resources to be easily provisioned and de-provisioned as needed. Cloud infrastructure services include backend services, security, intelligent monitoring, and application integration offerings, such as software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Cloud infrastructure services also offer storage devices, ensuring data availability and accessibility. Security measures are in place to protect against threats, while network services ensure seamless communication between components. Management software and automation tools enable efficient deployment, testing, and quality assurance through testing methodologies and practical projects, ultimately delivering high-performing software products.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Shift from CAPEX model to OPEX model is notably driving market growth. The market is witnessing significant growth due to the shift from capital expenditure (CAPEX) to operational expenditure (OPEX) models. This trend is particularly prevalent in various industry verticals as businesses seek to mitigate rising cost pressures and respond to unstable business and economic conditions. Traditional on-premise deployment comes with additional costs, including licensing, system design and modification, installation, training, and maintenance. Moreover, the implementation of these solutions requires substantial funds, thereby increasing the overall OPEX. Cloud infrastructure solutions offer three deployment models - public, private, and hybrid - providing organizations with flexibility and cost efficiency.
Further, these services offer advanced capabilities such as infrastructure as a service, service management, data center management, reporting, visibility, reliability, API integration, and agility. Additionally, they provide features like disaster recovery, load balancing, orchestration, user interfaces, admin interfaces, and developer interfaces, ensuring seamless it resource management. Vendor management and connection reliability are also crucial aspects of cloud infrastructure services, ensuring digital transformation initiatives are successful. Thus, such factors are driving the market's growth during the forecast period.
The rise in adoption of hybrid cloud storage systems is the key trend in the market. In today's digital transformation era, Hybrid Infrastructure-as-a-Service (IaaS) solutions have gained significant traction among organizations. These systems offer the flexibility to choose the optimal cloud deployment model for specific workloads or workgroups. Hybrid cloud infrastructure provides three primary benefits: enhanced Data Center Management with improved Service Management, increased Agility and Cost Efficiency, and better Security and Compliance. With the integration of cloud services, business processes, and applications, organizations can achieve better Reliability, Connection Reliability, and Disaster Recovery capabilities.
Furthermore, API Integration, Load Balancing, Orchestration, and User Interfaces for Admin, Developer, and Reporting purposes offer increased IT Resource utilization and flexibility. Company management ensures seamless integration and collaboration between on-premises and cloud environments. Overall, hybrid cloud solutions enable organizations to leverage the power of cloud computing while maintaining control over their IT infrastructure. Thus, such trends will shape the growth of the market during the forecast period.
Latency in cloud network is the major challenge that affects the growth of the market. Infrastructure-as-a-Service (IaaS) is a critical component of digital transformation, enabling businesses to leverage agility, cost efficiency, and scalability. However, managing cloud infrastructure services presents unique challenges, including the need for reliable connection, API integration, and effective service management. Service management tools provide vital functionality, such as reporting, visibility, and orchestration, ensuring optimal performance and user experience. Data center management solutions offer the ability to manage IT resources, including virtual machines (VMs), load balancing, and disaster recovery. Moreover, connection reliability is crucial for ensuring seamless integration with the cloud. Company management is essential for maintaining optimal performance and reducing costs through effective negotiation and contract management. API integration is vital for enabling developers to build applications that leverage cloud services, while user interfaces, admin interfaces, and developer interfaces offer ease of use and streamlined management.
Cloud infrastructure services must be reliable, with minimal latency, to ensure optimal performance. Factors such as distributed computing, virtualization, and network congestion can impact latency, necessitating tools and strategies for measuring and mitigating its effects. In summary, cloud infrastructure services require effective management tools and strategies to ensure reliability, agility, and cost efficiency. These solutions include service management, data center management, API integration, and connection reliability, enabling businesses to fully leverage the benefits of cloud computing. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc. - The company offers cloud infrastructure services under the subsidiary Google Cloud.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Cloud infrastructure services refer to the hardware and software resources offered by cloud service providers for building, deploying, and managing applications and workloads in various cloud architectures, including private, public, and hybrid clouds. These resources include servers, storage devices, networking, management software, deployment software, virtualization technologies like hypervisors and virtual machine monitors, and cloud management software. Cloud infrastructure services enable flexibility and scalability in computing, storage, and networking resources. Further, they offer backend support for Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) offerings. Cloud infrastructure services also provide security features, intelligent monitoring, and automation tools for software testing, quality assurance, testing methodologies, and automation. The use of virtualization and application integration enhances the capabilities of these services. The market continues to grow due to the increasing demand for flexible, scalable, and secure IT solutions.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.4% |
Market Growth 2024-2028 |
USD 109.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.3 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Cisco Systems Inc., Dell Technologies Inc., DigitalOcean Holdings Inc., Fujitsu Ltd., GTT Communications Inc., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., NTT Communications Corp., Oracle Corp., OVH Groupe SA, Rackspace Technology Inc., Salesforce Inc., Samsung Electronics Co. Ltd., SAP SE, Tencent Holdings Ltd., Verizon, and VMware Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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