Enjoy complimentary customisation on priority with our Enterprise License!
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.
Moreover, 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. In the dynamic business landscape of 2023, the public cloud segment holds a significant share of The market. This dominance can be attributed to the expanding IT, BFSI, education, healthcare, and retail sectors, which require cloud infrastructure for valuable business insights. The increasing number of Small and Medium Enterprises (SMEs) in emerging economies, such as China, India, Brazil, Indonesia, and Mexico, is driving the demand for public cloud services. These organizations seek cost-effective solutions for their business needs. Cloud infrastructure service providers offer virtualization technology, enabling organizations to deploy software applications on a shared backend infrastructure, ensuring flexibility and scalability. Public cloud computing and storage devices are accessible via the internet, making it a preferred choice for businesses seeking to reduce capital expenditures and focus on their core competencies.
Get a glance at the market share of various segments Request Free Sample
The public cloud segment was valued at USD 99.90 billion in 2018 and showed a gradual increase during the forecast period.
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.
For more insights on the market share of various regions Request Free Sample
In the global market for cloud infrastructure services, North America held the largest market share in 2023. The region's dominance can be attributed to the rising demand for computing services, leading to an expansion of data centers and storage spaces. Cloud infrastructure services enable users to scale resources according to their needs, making it an attractive choice for the burgeoning number of startups and small and medium enterprises (SMEs) in the region. The flexibility of cloud infrastructure services is particularly beneficial for temporary workloads and those that are subject to unexpected changes. Quality assurance plays a crucial role in the adoption of cloud infrastructure services.
Moreover, testing methodologies, such as automation tools, are essential for ensuring the reliability and efficiency of software products. Application integration is another key consideration, as cloud infrastructure services must seamlessly connect with various software applications. Cloud infrastructure services are offered through various delivery models, including software as a service (SaaS) and Platform as a Service (PaaS). These models provide users with the flexibility to choose the best fit for their specific needs. As the use of cloud infrastructure services continues to grow, competence in this area will be increasingly important for businesses seeking to remain competitive. To stay informed about the latest trends and developments in the market, it is essential to follow
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 the CAPEX model to the OPEX model is the key driver of the market. The transition from capital expenditures (Capex) to operational expenditures (Opex) is fueling the demand for cloud infrastructure services across various industries. Economic instability and escalating business costs have compelled organizations to seek flexible IT solutions. Traditional on-premise deployments entail expenses for licensing, design and customization, installation, staff training, and ongoing maintenance. In addition to the solution cost, implementing these systems requires significant financial investment. Cloud infrastructure offerings, available in public, private, and hybrid deployment models, provide businesses with cost efficiency and agility. Service management, data center management, reporting, visibility, reliability, API integration, and company management are integral components of these solutions. By adopting cloud infrastructure, organizations can streamline their IT operations, reduce costs, and enhance their overall business agility.
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 networks is a key challenge affecting the market growth. Cloud infrastructure services have become essential for businesses undergoing digital transformation. However, one challenge that arises with public cloud networks is the unpredictability of connection reliability, particularly in terms of data transfer latency. Measuring this latency can be complex due to factors like distributed computing, virtualization, and prioritized traffic. In larger cloud environments, service delivery can become less predictable, leading to high variability. For instance, in the case of virtual machines (VMs), separate networks may cause packet delays. Additionally, a congested wide area network (WAN) on the customer's side can significantly impact latency. To mitigate these issues, businesses can leverage tools like load balancing, orchestration, and user, admin, and developer interfaces to manage IT resources efficiently. Ensuring a reliable connection is crucial for maintaining optimal performance and delivering a seamless user experience.
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 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.
Moreover, cloud infrastructure services cater to various deployment models, including private, public, and hybrid clouds, offering businesses the flexibility to choose the best fit for their needs. Cloud infrastructure services provide numerous benefits, such as cost efficiency, agility, reliability, and security. They enable digital transformation by offering intelligent monitoring, automation, and integration capabilities. Additionally, they provide various testing methodologies, reporting, and visibility features, ensuring high-quality software products and applications. Cloud infrastructure services cater to various industries and use cases, offering API integration, data center management, and disaster recovery solutions. company management, connection reliability, and load balancing are other essential features, ensure optimal performance and uptime.
|
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, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Get the report (PDF) sent to your email within minutes.
Complimentary full Excel data with your report purchase.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
