Cloud Infrastructure Services Market Size, Share, Growth, and Industry Analysis, By Type (PaaS, IaaS, CDN/AND, Managed Hosting, Colocation Services, and DRaaS), By Application (BFSI, Telecommunications and IT, Manufacturing, Retail and E-Commerce, and Others), Regional Insights, and Forecast From 2024 To 2031

Updated On: 22 April 2024

Cloud Infrastructure Services Market Report Overview

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The global cloud infrastructure services market size was 50420 million in 2022 and is expected to reach USD 199701.41 million by 2031, at a CAGR of 16.5% during the forecast period. 

Cloud infrastructure services, also known as Infrastructure-as-a-Service (IaaS), are a type of cloud computing service that provides virtualized computing resources over the internet. With IaaS, users can access and manage virtualized hardware resources, such as virtual machines, storage, and networking components, without the need for physical infrastructure on-premises. IaaS providers offer virtualized resources that allow users to create and manage virtual machines, storage, and networks. This provides flexibility and scalability, as resources can be easily provisioned or scaled up/down based on demand.

Cloud infrastructure services provide the ability to scale resources up or down quickly and easily. This is particularly useful for businesses with fluctuating workloads or seasonal demands, as they can adjust their infrastructure to match their needs. Cloud infrastructure services often include built-in security measures to protect data and infrastructure. This may include firewalls, encryption, identity and access management, and regular security updates. However, it's important for users to implement proper security practices and configurations to ensure data protection.

COVID-19 IMPACT : Accelerated Digital Transformation to Boost Demand Significantly

The COVID-19 pandemic has been unprecedented and staggering, with cloud infrastructure services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

COVID-19 had a life changing impact globally. The cloud infrastructure services market was significantly affected. The virus had various impacts on different markets. Lockdowns were imposed in several nations. This erratic pandemic caused disruptions on all sorts of businesses. Restrictions tightened during the pandemic due to increasing number of cases. Numerous Industries were affected. However, the market for cloud infrastructure services experienced an increased demand.

The pandemic raised new security and compliance challenges as organizations dealt with an increased number of remote endpoints and potential vulnerabilities. Cloud infrastructure services offered robust security features, such as encryption, access controls, and threat detection, to help organizations secure their data and infrastructure in a remote work environment.

The pandemic forced many organizations to accelerate their digital transformation initiatives. Companies that previously relied on traditional on-premises infrastructure quickly realized the limitations of their setup in a remote work environment. Cloud infrastructure services provided an agile and scalable solution for businesses to quickly adapt and enable remote access to critical applications and data. The market is anticipated to boost the cloud infrastructure services market share following the pandemic.

LATEST TRENDS

"Serverless Computing to Broaden Market Growth"

Serverless computing, also known as Function-as-a-Service (FaaS), has gained popularity due to its ability to abstract away infrastructure management and scale automatically. Cloud infrastructure providers are enhancing their serverless offerings, providing more programming language support, improved performance, and integration with other cloud services. This allows developers to focus on writing code without the need to manage underlying infrastructure.

Containers, along with orchestration frameworks like Kubernetes, have become widely adopted for application deployment and management. Cloud infrastructure providers are expanding their container services and managed Kubernetes offerings, providing scalable and efficient ways to run containerized applications. These services often include features like automatic scaling, load balancing, and integration with other cloud services. These latest developments are anticipated to boost the cloud infrastructure services market share.

Cloud Infrastructure Services Market Segmentation

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• By Type

Based on type, the market is divided into PaaS, IaaS, CDN/AND, Managed Hosting, Colocation Services, and DRaaS.

PaaS holds a major share of the global market.

• By Application

Based on application, the market is bifurcated into BFSI, telecommunications and IT, manufacturing, retail and e-commerce, and others.

BFSI as application holds a major share of the global market.

DRIVING FACTORS

"Business Continuity and Disaster Recovery to Boost Market Share"

Cloud infrastructure services offer built-in redundancy and disaster recovery capabilities. Data is replicated across multiple data centers, ensuring high availability and reducing the risk of data loss. In the event of a disaster or hardware failure, organizations can quickly recover their systems and data, minimizing downtime and business disruption. Cloud infrastructure services offer unparalleled scalability and flexibility. Organizations can quickly scale up or down their resources based on demand, allowing them to efficiently handle varying workloads without the need for upfront investment in physical infrastructure. This flexibility is particularly beneficial for businesses with seasonal or unpredictable workloads.

"Technological Advancements to Boost Market Size"

Advancements in technologies such as virtualization, containerization, and software-defined networking have significantly contributed to the growth of cloud infrastructure services. These technologies allow for efficient resource utilization, isolation of workloads, and dynamic provisioning, making cloud infrastructure services more robust and reliable. Cloud infrastructure services play a crucial role in enabling digital transformation initiatives. As businesses embrace digital technologies and modernize their operations, cloud infrastructure provides the necessary foundation to support agile development, data analytics, artificial intelligence, and internet of things (IoT) initiatives. These factors are anticipated to drive the cloud infrastructure services market share.

RESTRAINING FACTORS

"Legacy Systems and Vendor Lock-In to Hamper Market Share"

Organizations that have substantial investments in legacy systems and infrastructure may face challenges in transitioning to the cloud. The process of migrating existing applications and systems to the cloud can be complex, requiring significant time, effort, and cost. Additionally, concerns about vendor lock-in, where organizations become heavily dependent on a single cloud provider, can be a restraining factor. Despite advancements in cloud security, concerns around data breaches, unauthorized access, and data privacy persist. Some organizations may hesitate to move sensitive data and critical applications to the cloud due to these security concerns. The factors are anticipated to hinder the growth of the cloud infrastructure services market share.

Cloud Infrastructure Services Market Regional Insights

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"North America Dominates the Cloud Infrastructure Services Market "

North America is the major shareholder for the cloud infrastructure services market share. The region has a robust ecosystem of technology companies, research institutions, and startups that contribute to the development and evolution of cloud infrastructure services. This environment fosters innovation, attracts investment, and drives the growth of the cloud infrastructure market. It has been an early adopter of cloud infrastructure services. Many organizations, ranging from startups to large enterprises, have embraced cloud technologies to drive digital transformation and enhance business agility. This early adoption has contributed to the maturity of the cloud infrastructure market in the region, making it an attractive destination for cloud investments. Europe is the second major shareholder for the cloud infrastructure services market share.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Amazon [U.S.]
• Cisco Systems [U.S.]
• IBM [U.S.]
• Alphabet [U.S.]
• Microsoft [U.S.]
• Akamai Technologies [U.S.]
• Google [U.S.]
• Hewlett Packard Enterprise [U.S.]
• Microsoft Corp. [U.S.]
• VMware [U.S.]
• Yahoo Inc. [U.S.]
• Injazat Data Systems [United Arab Emirates]
• Malomatia [Qatar]

REPORT COVERAGE

This research profiles a report with extensive studies that take into description of the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics changes.