Cloud Infrastructure Market Size, Share, Growth, and Industry Analysis By Type (Hardware and Software & Service) By Application (Consumer Goods and Retail, Telecommunications, Healthcare, Energy, Government, Manufacturing, and Others), Regional Insights and Forecast From 2025 To 2033

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CLOUD INFRASTRUCTURE MARKET REPORT OVERVIEW

Global cloud infrastructure market size was USD 160.98 billion in 2024 and is projected to touch USD 305.48 billion by 2033, at CAGR of 7.3% during forecast period. North America is dominating the cloud infrastructure market share in 2025.

In the market study, our analysts have considered cloud infrastructure players such as Dell EMC, Cisco Systems, Inc., IBM Corporation, AWS (Amazon Web Services), Alphabet Inc. (Google), Netapp, Inc., Lenovo Group Limited, Rackspace and Others

Online services that offer high-level APIs for referencing numerous low-level aspects of the network infrastructure, such as physical computing resources, location, data partitioning, scaling, security, backup, etc., are referred to as cloud infrastructure. Companies offering cloud services offer cloud computing components such as Platform as a Service (PaaS), Software as a Service (SaaS), or Infrastructure as a Service (IaaS) (PaaS). Small to Medium Sized Businesses (SMBs) have increased their spending by 38% since 2021 on cloud computing platforms like AWS. By 2025, it is anticipated that 100 Zettabytes of data will be stored on cloud servers due to the quick uptake of cloud storage services.

Due to the requirement for additional servers and hardware components, on-premise deployments of Business Management Solutions (BMS) and Enterprise Resource Planning (ERP) are expensive and labor-intensive. Since they don't need any extra hardware and only have a tiny monthly license price, cloud-based platforms have many advantages over on-premise deployment. This enables faster integration and reduces downtime. Additionally, cloud computing is used for a number of applications, including online apps, email, virtual desktops, big data analytics, disaster recovery, and backup of essential data.

COVID 19 IMPACT

Halt on Manufacturing Operations to improve Market Growth

The COVID-19 pandemic has emerged as a major threat to the world economy. cloud infrastructure can assist businesses in overcoming the obstacles to company continuity posed by lockdowns, work-from-home, social isolation, and other market mandates. However, remote working has become the newest trend and is anticipated to last in the long run as companies, managers, and individuals continue to choose it as a result of the pandemic. One of the biggest changes in the workplace and cloud infrastructure market growth is anticipated to result from the pandemic. In order to speed up Industry 4.0, the fourth industrial revolution is changing how companies use smart technologies like mobile supercomputing, IoT, big data, and artificial intelligence.

LATEST TRENDS

Increased Adoption of AI Cloud Services to Facilitate Market Development

Companies are quickly moving toward data-driven decision-making, and the reduced cognitive bias and faster processing speed of AI have sped up the adoption of the technology to address business issues. Due to AI's ability to process massive amounts of data and perform precise analysis, shared infrastructure for AI clouds that serve several AI workloads and projects are becoming more and more popular. In order to deliver AI Software-as-a-Service (SaaS) on hybrid cloud infrastructure, AI cloud includes AI hardware and software, giving businesses access to AI tools and solutions. The above-mentioned factors have a positive impact on cloud infrastructure market expansion.

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CLOUD INFRASTRUCTURE MARKET SEGMENTATION

By Type

As per the type, the market is classified as follows: Hardware and Software & Service. The software and service segment is expected to dominate the cloud infrastructure market share.

By Application

Based on application, the market is segmented as follows: Consumer goods and retail, telecommunications, healthcare, energy, government, manufacturing, and others. The healthcare segment leads the cloud infrastructure market share.

DRIVING FACTORS

Demand for Hybrid Cloud Platforms to Boost Market Growth

Regulations must be followed in order for certain industries, including BFSI, to operate their apps. Organizations can employ private and public clouds while adhering to legal requirements with the aid of hybrid cloud systems. In addition, increasing end-use industry demand for hybrid cloud platforms is anticipated to fuel cloud infrastructure market revenue growth. Reports state that 31% of other businesses view the public cloud as their top priority, while 45% of businesses have prioritized hybrid platforms. Applications or components that network and store data across public and private clouds are included in hybrid cloud systems. Additionally, businesses using the cloud infrastructure have experienced better security features. According to surveys, 94% of companies using the cloud infrastructure have observed an improvement in security, and 91% of companies have acknowledged the value of cloud platforms for adhering to legal requirements.

Increase in Demand for Cloud Computing Among Businesses to Promote Industry Progress

Another important element boosting the cloud infrastructure market's revenue growth over the forecast period is the sharp increase in demand for cloud computing among businesses across a range of industries. The cloud infrastructure market is experiencing rapid revenue growth due to factors such as the rising demand for cloud services globally and the growth of cloud service providers, the rapid rise in cloud computing demand, the rising demand for hybrid cloud platforms and AI cloud, and the rapid adoption of artificial intelligence (AI) to solve business problems. Organizations are being forced by rapid digitization to update their infrastructure and application landscape in order to increase cost-effectiveness and business agility. Organizations may successfully support their core business operations, migrate business workloads to a cloud platform, and reduce network latency by implementing cloud solutions and services.

RESTRAINING FACTORS

Lack of Network Connectivity to Hinder Market Growth

The cloud infrastructure market's ability to grow in terms of revenue is being constrained by issues including the possibility of a data breach and dependence on an internet connection. Numerous firms fail to encrypt their data for protection, and 34% of organizations lose control of their encryption keys while doing so. Research claims that between 2020 and 21, 40% of firms had a hack involving sensitive data from cloud platforms. Additionally, a working internet connection is necessary in order to use cloud platforms. Additionally, a lack of network connectivity may affect the functionality of cloud-based products and services as well as problems with data retrieval or storage.

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CLOUD INFRASTRUCTURE MARKET REGIONAL INSIGHTS

Increase in Demand to Propel Market Progress in North America

Over the forecast period, the North American cloud infrastructure market is expected to contribute the most to revenue. Another important element boosting cloud infrastructure market revenue development is the growing adoption of big data analytics and AI/ML applications by significant financial institutions in the region's nations. New cloud-based solutions have also been developed as a result of growing partnerships between major financial institutions and cloud service providers. For instance, Financial Cloud for Data, a suite of cloud-based data and analytics solutions for financial institutions, was introduced by Goldman Sachs in partnership with Amazon Web Services, Inc. (AWS). This is anticipated to assist cloud infrastructure market revenue growth in the area.

KEY MARKET PLAYERS

Market Players Focus on New Product Launches to Strengthen Market Position

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Top Cloud Infrastructure Companies

• Hewlett Packard Enterprise Co (HPE) (U.S.)
• Dell EMC (U.S.)
• Cisco Systems, Inc. (U.S.)
• IBM Corporation (U.S.)
• AWS (Amazon Web Services) (U.S.)
• Alphabet Inc. (Google) (U.S.)
• Netapp, Inc. (U.S.)
• Lenovo Group Limited (China)
• Rackspace (U.S.)
• Oracle Corporation (U.S.)
• Microsoft (U.S.)
• CenturyLinK (U.S.)
• VMware (U.S.)
• Red Hat (U.S.)
• ECCOM (China)

REPORT COVERAGE

The report covers overall market aspects, including the market segmentation based on its type and application. The report depicts a diverse group of participants, including the market and potential market leaders. Major factors that are expected to drive major growth in the market. The factors anticipated to expand the market share are also included in the report to offer market insights. The estimated growth of the market in the forecast period is also included in the report. The regional analysis is completed to explain the region's dominance in the global market. The factors hindering the growth of the market are discussed in detail. The SWOT analysis of the market is depicted in the report. It contains all-inclusive market details.