Cloud Infrastructure Services Market

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Global Cloud Infrastructure Services Market Size

The global cloud infrastructure services market was worth USD 103.24 billion in 2025. The global market is predicted to reach USD 121.82 billion in 2026 and USD 457.92 billion by 2034, growing at a CAGR of 18% during the forecast period.

The growing investment of the state in digital transformation and rising awareness among organizations regarding the benefits of cloud technologies are the main factors driving the expansion within the global cloud infrastructure services market. The growing necessity of the cloud for business continuity is another major factor that has raised the demand for cloud infrastructure services within the global market.  A virtual infrastructure accessed through the web or a network is cloud infrastructure. This refers to the services on demand, in other words, the delivery of the products or services via a model infrastructure as a service (IaaS), a delivery model of cloud computing.

MARKET DRIVERS

The demand for cloud infrastructure services is expected to grow within the forecast period due to the supply of those services at a really low cost, and their scalability, flexibility, and security are a number of the factors driving demand for the market.

The rising pressure due to indefinite economic and business conditions is forcing numerous companies to opt for flexible IT solutions, thus shifting to the OPEX model provided by cloud infrastructure services.

Moreover, companies and organizations of all sizes are gradually choosing cloud infrastructure services to lower the value of server space and enhance efficiency alongside access to knowledge anytime, anywhere. Furthermore, the backup as a service is predicted to grow within the coming years. Enterprises that lack enough funds and have fewer funds to allocate to several department heads are choosing cloud infrastructure services to keep up their storage hardware or infrastructure. The growing maintenance and infrastructure costs push the market's demand because they help lower capital and operational expenditures. The rising demand for the pay-as-you-go model is quickly gaining popularity amongst enterprises and organizations. This model helps enterprises reduce their cost, as they're going only to be charged for what has been used.

The requirement of scalable infrastructure by various enterprises to outspread their business operations and customer base also propels market growth. 

Because the competition among market players is increasing, organizations are trying to find more advanced business models to scale back their time to plug and switch to cloud infrastructure to enhance business agility. The risks of knowledge theft and data leakage hinder enterprises' adoption of cloud solutions. Cloud service providers employ third-party service providers to enable cost-effective and versatile operations. This increases the probability of knowledge being stolen because it is difficult to assess the safety levels of these external servers. Additionally, the adoption of knowledge localization policies across the world is hounding the market growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Service Insights

The Storage as a Service (SaaS) segment holds the most important market share within the cloud infrastructure services market. This is often a business model during which large businesses lend space for storing to smaller companies. Compute as a Service (CaaS) market is expected to grow at a rapid pace. This service is employed to permit access to raw computing resources on demand.

REGIONAL ANALYSIS

North America is expected to lead the global cloud infrastructure services market over the forecast time. The market growth is attributed to major technology players like Amazon, Google, and Microsoft. This region is additionally a major hub for technology start-ups. Favorable business situations and supportive government policies have stimulated businesses to develop advanced cloud platforms. Furthermore, prominent tech players' increasing venture capital within cloud technology has also driven market growth. The Asia Pacific cloud infrastructure services market is anticipated to grow at the fastest pace thanks to the growing demand from developing economies. The supportive government initiatives and policies across the region also indorse the demand for cloud services. For example, in 2017, China launched the Digital China Initiative to rapidly commercialize digital business models on an outsized scale.

KEY MARKET PARTICIPANTS

The major companies operating in the global cloud infrastructure services market include IBM (US), Microsoft (US), AWS (US), Oracle (US), Google (US), Alibaba (China), Fujitsu (Japan), Rackspace (US), VMware (US), CenturyLink (US), Bluelock (US), DigitalOcean (US), Verizon (US), Dimension Data (South Africa), OVH (France), Joyent (US), Skytap (US), Virtuestream (US), ProfitBricks (Germany), Tencent (China), DXC Technology (US), AT&T (US), NEC (Japan), and Navisite (US).

RECENT MARKET HAPPENINGS

• In September 2019, Oracle partnered with VMware to support customers in implementing hybrid cloud strategies. Under this partnership, customers will be ready to execute their hybrid cloud strategies by running VMware Cloud Foundation on Oracle Cloud Infrastructure. This partnership would enable customers to migrate VMware vSphere workloads to Oracle’s Generation 2 Cloud Infrastructure and cash in on consistent infrastructure and operations.

• In August 2019, AWS extended its global presence by opening new data centers in Hong Kong. This data center lets its commercial customers run applications and store their content in data centers in Hong Kong while connecting to the worldwide AWS network.

MARKET SEGMENTATION

This research report on the global cloud infrastructure services market has been segmented and sub-segmented based on the service, deployment model, organization size, vertical, and region.

By Service

• 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

By Deployment model

• Public Cloud

• Private Cloud

• Hybrid Cloud

By Organization Size

• Small and Medium-sized Enterprises (SMEs)

• Large Enterprises

By Vertical

• Banking, Financial Services, and Insurance (BFSI)

• IT and Telecommunications

• Government and Public Sector

• Retail and commodity

• Manufacturing

• Energy and Utilities

• Media and Entertainment

• Healthcare and Life Sciences

• Others (Education and Travel and Hospitality)

By Region

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus