Cloud Infrastructure Services Market

Global Digital Transformation Accelerates Market Growth

The Cloud Infrastructure Services Market is valued at USD 126.5  Bn in 2026 and is projected to reach USD 344.8  Bn,  growing at a CAGR of 15% by 2033.  Cloud computing, a model, or network in which a programme, or applications run, and can be accessed by multiple devices, or servers at the same time, represents a shift in computing history. It allows the emergence of newer, and faster methods of providing computing solutions, infrastructure solutions, and application layers. Increased demand for cloud services is a critical factor driving the cloud infrastructure services market growth. Rising inclination towards reaping the Infrastructure as a Service (IaaS) benefits, increasing cloud adoption by small and medium enterprises (SMEs), and rising demand for agility, flexibility, and control, are among the other factors driving the cloud infrastructure services market. Furthermore, an increase in cloud services adoption in developing regions, as well as the notable rise in the number of SMEs, will create new opportunities for cloud infrastructure service providers during the forecast period. However, employee reluctance to upgrade existing skills, and prevalent concerns over data loss are the major factors acting as restraints to rapid adoption, and will further challenge the cloud infrastructure services market during the forecast period.

Increased Return on Investments with Lower Infrastructure and Storage Costs

Enterprises are concerned about the upfront, and ongoing costs of hosting data on-premises. Furthermore, staff costs, and downtime issues are two additional concerns for businesses. The current competitive environment, and global economic conditions have hastened the adoption of cost-effective measures to restructure business models. Another factor driving the adoption of cloud infrastructure services is the increasing shift of enterprises toward digital transformation, and the acceleration of customer experience, both of which tend to lower the overall enterprise costs. Furthermore, the cloud provides the benefit of a pay-as-you-go model that allows enterprises to pay for cloud services based on their usage without paying for additional standard charges, thereby resulting in lower costs. The global COVID-19 pandemic, although has hit hard a majority of industries worldwide, it has brought in some flourishing opportunities to cloud industry operators. With the growing significance of online, and a greater number of businesses seeking continuity as well as resilience amid the challenges driven by the pandemic situation, cloud adoption has been on an upswing, which also is fueling the demand for cloud infrastructure services. 

Disaster Recovery and BaaS: Top Cloud Infrastructure Services in Demand

The cloud infrastructure services have now become a central part of business processes owing to their ease of use, low operating costs, and flexibility. Cloud infrastructure services market is segmented on the basis of service, deployment, organisation size, and vertical. On the basis of service, there can be four key segments, viz. storage as a service (STaaS), compute as a service (CaaS), backup as a service (BaaS), and desktop as a service (DaaS), networking as a service (NaaS), and managed hosting. Demand for disaster recovery and BaaS is expected to grow at the highest CAGR during the forecast period, whereas SaaS is estimated to remain dominant over other services in the market.

Public Cloud Deployment Remains Sought-after for its Multiple Benefits

The deployment of cloud infrastructure can be of three types - public cloud, private cloud, and hybrid cloud. Among deployment models, the public cloud deployment model continues to register the maximum preference, attributable to its simplicity, and ease of deployment. The initial investment required for the deployment is minimum, and there are no responsibilities involved in managing the infrastructure. The public cloud offers scalability, reliability, flexibility, utility-style costing, and location-independence services. The companies across all size and industries are leveraging cloud infrastructure services for improving efficiency, lowering the cost of server space, and achieving data access from anywhere. Large enterprises, and SMEs remain the key consumer companies, whereas IT and telecommunications, banking, financial services and insurance (BFSI), retail, energy, manufacturing, healthcare, and media and entertainment represent the prominent verticals generating demand for cloud infrastructure services.

China Surging Ahead of All in Global Cloud Infrastructure Market

Among regions, the market in North America is estimated to hold the largest market share, whereas that in Asia Pacific is expected to grow at the highest CAGR during the forecast period. The increasing need for speedy, and low-cost service delivery processes, and complete security while operating in cloud environments is expected to drive the global cloud infrastructure services market within the key regions. Chinese cloud infrastructure service providers like Alibaba, and Huawei have been particularly thriving amid the pandemic, the prime reason being their excellent strategies that go beyond selling services. These companies have been zooming in on e-government services along with augmenting investments in hard infrastructure. The US however lags behind in terms of considering cloud infrastructure as a strategic priority by the policymakers themselves. Intense competition from dynamic Chinese players is thus likely to challenge the global market position of the US unless the latter witnesses desired policy revisions in favour of cloud infrastructure adoption.

Cloud Infrastructure Services Market Competition

Some of the major players profiled in the global cloud infrastructure services market report are

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud Platform (GCP)
• Alibaba Cloud
• IBM Cloud
• Oracle Cloud
• Tencent Cloud
• VMware
• Salesforce
• SAP SE
• Huawei Cloud
• Rackspace Technology
• Cisco Systems, Inc.
• Dell Technologies
• Red Hat (IBM)

Global Cloud Infrastructure Services Market Segmentation is Listed Below:

By Deployment

• Public Cloud
• Private Cloud
• Hybrid Cloud

By Service Type

• Compute as a Service
• Storage as a Service
• Network as a Service
• Others

By Enterprise Type

• Large Enterprises
• SMEs

By Industry

• BFSI
• IT & Telecom
• Retail
• Healthcare
• Government
• Others

Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa