Global Cloud Infrastructure Services Market Size Insights Forecasts to 2032

• The Global Cloud Infrastructure Services Market Size was valued at USD 113.5 Billion in 2022.
• The Market Size is Growing at a CAGR of 17.8% from 2022 to 2032
• The Worldwide Cloud Infrastructure Services Market is expected to reach USD 587.9 Billion by 2032
• Asia Pacific is expected to grow the fastest during the forecast period

The Global Cloud Infrastructure Services Market Size is expected to reach USD 587.9 Billion by 2032, at a CAGR of 17.8% during the forecast period 2022 to 2032.

Cloud Infrastructure Services, often known as Infrastructure as a Service (IaaS), are Internet-based virtualized computing resources. This industry has evolved into an important subset of cloud computing, covering the fundamental physical requirements of IT in a flexible, scalable, and on-demand manner. Previously, companies had to invest considerably in actual hardware such as servers, data centers, networking equipment, and so on. These resources are hosted by a third-party supplier and made available to enterprises via the cloud with IaaS. Customers can supply and scale resources based on their needs, frequently paying only for what they use. Agility is one of the most noticeable advantages of cloud infrastructure services. Without the lead time and financial investment associated with physical infrastructure, businesses can quickly adjust to changing requirements. In addition, the service provider bears the majority of the responsibility for maintenance, upgrades, and security, allowing enterprises to focus more on core operations and innovation. Cloud infrastructure services are also the foundation for developing technologies like Big Data analytics, AI, and the Internet of Things (IoT). Businesses may service clients and users all around the world according to their global reach. Cloud infrastructure services are expected to remain a significant influence in determining the digital future as technology evolves.

Driving Factors

The global cloud infrastructure services market is a rapidly growing industry that includes a wide range of services that allow both businesses and individuals to manage, store, and access data and applications through the internet. Over the projection period, this market has grown at an exponential rate, owing to the increasing usage of cloud-based solutions across sectors and the globe. Several factors are propelling the market's expansion, including digital transformation programs, the growing requirement for scalability and flexibility, cost efficiency, and increased demands from emerging markets like artificial intelligence, big data, and the Internet of Things (IoT). Additionally, enterprises are progressively abandoning traditional on-premises infrastructure to make use of cloud-based solutions that provide flexibility, scalability, and cost-effectiveness. Furthermore, key market players are acquiring cloud service providers to broaden and deepen their cloud offerings to manage complex integrations of technology, people, and processes in order to provide better and improved cloud services and increase cloud adoption among SMEs. As digital transformation accelerates across industries and organizations try to capitalize on the perks of cloud technology, the global cloud infrastructure services market is expected to grow further, offering innovative solutions and driving efficiency in the ever-changing landscape of cutting-edge the information technology industry.

Market Segmentation

By Type Insights

The compute as a service segment is dominating the market with the largest revenue share over the forecast period.

On the basis of type, the global cloud infrastructure services market is segmented into the compute as a service, storage as a service, disaster recovery and backup as a service, networking as a service, desktop as a service, managed hosting, and others. Among these, the compute as a service segment is dominating the market with the largest revenue share of 32.7% over the forecast period. The need for scalable processing capacity without the associated costs of physical infrastructure has fuelled the demand for virtual computing resources, making compute as a service the foundation of the cloud business. This service makes virtualized computer resources available over the internet. It's similar to Infrastructure as a Service (IaaS), except it focuses on computational power. The expansion of data-intensive applications and analytics, as well as the general trend toward digital transformation, has fueled the growth of computation as a service.

By Deployment Insights

The public cloud segment is expected to hold the largest share of the Global Cloud Infrastructure Services Market during the forecast period.

Based on the deployment, the global cloud infrastructure services market is classified into public cloud, private cloud, and hybrid cloud. Among these, the public cloud segment is expected to hold the largest share of the cloud infrastructure services market during the forecast period. Third-party cloud service providers manage and control public cloud infrastructure, which delivers computing resources such as servers and storage over the Internet. Its popularity arises mostly from its low cost, broad scalability, and ability to offload IT management and maintenance. Major providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have spurred public cloud adoption and expansion, catering to a wide spectrum of business and individual demands. The ability to supply and expand resources rapidly, pay only for what is consumed, and access a diverse range of services has made the public cloud an appealing option for enterprises of all sizes.

By Industry Insights

The IT and telecom segment accounted for the largest revenue share of more than 27.4% over the forecast period.

On the basis of end-uses, the global cloud infrastructure services market is segmented into IT and telecom, government, retail & consumer goods, manufacturing, BFSI, energy & utilities, media & entertainment, healthcare & life sciences, and others. Among these, the IT and telecom segment is dominating the market with the largest revenue share of 27.4% over the forecast period. Because of the inherent nature of the IT and telecom industry, which revolves around data, connectivity, and applications, it is the largest consumer of the cloud infrastructure services market. IT and telecommunications rely significantly on cloud services for application hosting, data storage, and efficient computational processes. Their operations are intricately linked to cloud capabilities, ensuring efficient service delivery and innovation. The constant evolution of the IT and telecom landscapes, together with an increase in data usage and storage requirements, ensures its leading position in the cloud infrastructure market.

Regional Insights

North America dominates the market with the largest market share over the forecast period.

North America is dominating the market with more than 43.7% market share over the forecast period. The region's early adoption, the presence of large cloud service providers, and its robust tech industry have all contributed to its market dominance. North America, particularly the United States, has been at the forefront of the cloud revolution, with major cloud service providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform headquartered there. Furthermore, the thriving start-up culture, particularly in hotspots like Silicon Valley, is strongly reliant on cloud infrastructure for scalability and flexibility.

Asia Pacific, on the contrary, is expected to grow the fastest during the forecast period. Over the projected period, the Asia Pacific area is expected to experience remarkable growth in cloud infrastructure services, with nations such as China, India, Japan, and Australia driving the industry. Furthermore, the area is predicted to grow significantly in the market for cloud infrastructure services, owing to increased digitization, expanded e-commerce, and commercial adoption of cloud-based technologies.

The Europe market is expected to register a substantial CAGR growth rate during the forecast period. Europe has a robust and expanding market for cloud infrastructure services, driven by both EU-wide efforts and country-specific requirements. The General Data Protection Regulation (GDPR) has compelled enterprises to use GDPR-compliant cloud infrastructure services.

List of Key Market Players

• Amazon Web Services, Inc.
• Google LLC
• Microsoft Corporation
• IBM Corporation
• Oracle Corporation
• Alibaba
• NEC
• Dimension Data
• Bluelock
• VMware
• Rackspace
• Skytap
• AT&T
• Navisite
• DigitalOcean
• Hewlett-Packard Enterprise

Key Market Developments

• On September 2023, Oracle Corporation and Microsoft Corporation announced the availability of Oracle Database@Azure, which provides clients with direct access to Oracle database services operating on Oracle Cloud Infrastructure (OCI) and deployed in Microsoft Azure datacenters. Oracle Database@Azure combines all of the speed, scale, and workload availability benefits of Oracle Database on OCI with Microsoft Azure's security, flexibility, and best-in-class services, including Azure OpenAI.

• On May 2023, Cloudflare, Inc. announced a partnership with Kyndryl Holdings, Inc. to provide managed WAN-as-a-Service and Cloudflare Zero Trust to organizations to help them modernize and scale their corporate networks. Kyndryl's experienced managed end-to-end networking services are combined with Cloudflare's powerful technology platform, allowing organizations to streamline connectivity to numerous clouds at scale. The collaboration enables organizations to rapidly scale network capacity depending on business needs while lowering expenses and providing cost predictability.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Cloud Infrastructure Services Market based on the below-mentioned segments:

Cloud Infrastructure Services Market, Type Analysis

• Compute as a Service
• Storage as a Service
• Disaster Recovery and Backup as a Service
• Networking as a Service
• Desktop as a Service
• Managed Hosting
• Others

Cloud Infrastructure Services Market, Deployment Analysis

• Public Cloud
• Private Cloud
• Hybrid Cloud

Cloud Infrastructure Services Market, Industry Analysis

• IT and Telecom
• Government
• Retail & Consumer Goods
• Manufacturing
• BFSI
• Energy & Utilities
• Media & Entertainment
• Healthcare & Life Sciences
• Others

Cloud Infrastructure Services Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa