Cloud Infrastructure Market

Cloud Infrastructure Market Outlook (2024 to 2034)

Global cloud infrastructure market revenue is estimated at US$ 320.12 billion in 2024 and is projected to increase at a CAGR of 5.6% to reach US$ 553.23 billion by the end of 2034.

Industry-wide use of cloud computing has surged as more businesses realize the scalability, flexibility, and cost-saving advantages of cloud computing. Demand for digital transformation as well as rising data processing and storage needs are the driving forces behind this.

Systems for hybrid cloud computing are becoming more popular as businesses want to take advantage of the benefits offered by both private and public clouds. It integrates on-premises infrastructure and enables enterprises to strike a balance between control, security, and agility needs. This trend will support data transfer between environments and smooth task mobility, contributing to the overall expansion of the cloud infrastructure market size.

• The Canada market is forecasted to reach US$ 20.15 billion by 2034, expanding at a CAGR of 6.4% from 2024 to 2034
• Service providers in East Asia are establishing their business in Japan for future profitable prospects. Demand for cloud infrastructure solutions in the country is forecasted to rise at a CAGR of 6.7% from 2024 to 2034 and reach a value of US$ 46.05 billion by the end of 2034.
• Revenue from business and consulting services are analyzed to increase at 7% CAGR from 2024 to 2034

Edge computing is becoming increasingly important, serving low latency processing and real-time decision making which is becoming quite profitable for business owners who want real-time data of the market, contributing to cloud infrastructure market growth.

Report Attribute	Detail
Cloud Infrastructure Market Size (2024E)	US$ 320.12 Billion
Forecasted Market Value (2034F)	US$ 553.23 Billion
Global Market Growth Rate (2024 to 2034)	5.6% CAGR
East Asia Market Growth Rate (2024 to 2034)	6.1% CAGR
North America Market Value (2034F)	153.8 Billion
Hardware Segment Value (2034F)	US$ 289.89 Billion
Manufacturing Segment Value (2034F)	US$ 113.97 Billion
Key Companies Profiled	Alibaba Cloud; Amazon Web Services, Inc.; CloudHesive; Coastal Cloud; DigitalOcean; Google; GroundCloud; IBM; Microsoft Azure; Oracle Cloud; Rackspace Technology, Inc.; Salesforce, Inc.; Tencent; The Descartes Systems Group Inc.; VMware LLC.

What are the Opportunities Ahead for Cloud Infrastructure Providers?

“High Recognition of Benefits of AI and Machine Learning by Businesses”

One of the significant market factors amplifying revenues is digital transformation, driven by the constant emergence of artificial intelligence (AI) and remote work. Businesses are increasingly recognizing the benefits of AI and machine learning, leading to a shift in working methods and a growing reliance on cloud-based IT infrastructure. This rapid digital transformation enhances flexibility, scalability, and cost savings, as more people prefer online services over traditional ones.

The trend of remote work has globally improved market conditions. It has fueled the demand for cloud-based collaboration and communication technologies, as well as the necessary cloud infrastructure to support remote employees. Cloud infrastructure is also essential for AI and machine learning applications, which require significant data processing and storage for model training.

“Increasing Deployment of Private Cloud Computing Solutions”

Private cloud computing is a cloud computing environment that is dedicated to a single organization or user. Private cloud computing delivers computing capabilities over the internet or a personal network, and these clouds are also available to a very small group of users rather than open to a large audience. Self-service, scalability, and elasticity are a few of the many benefits that are delivered to the organization. On top of this private clouds given a tremendous level of security compared to other traditional services available, the security and privacy for third-party providers by using firewalls and internal hosting to assure a level of data protection.

Business owners have a variety of data that is very crucial and should not be shared with outsiders at any cost, this private cloud computing allows them to function with privacy and give security to work and save data with no outside penetration. This gives fuel to the other factor including data security, as discussed how important it is for business owners to save data with security, cloud infrastructure gives them these facilities that allow them to store sensitive data.

What are the Roadblocks in the Growth Pathway of the Market?

“Network and Bandwidth Limitations and Rigorous Data Privacy & Security Standards”

Organizations and many large business owners are finding it difficult to integrate cloud infrastructure with their current on-premise systems. This condition becomes worse when the systems used by the businesses are more complicated than usual. Especially small organizations are finding it challenging due to a lack of internal resources and knowledge to maintain cloud infrastructure.

Use of cloud infrastructure is also becoming limited in the business workplace due to rigorous rules and standards governing data privacy and security. The adoption of cloud infrastructure in some areas and localities might be more constrained due to the low availability of caliber of network and bandwidth infrastructure in certain areas.

Country-wise Analysis

Digitalization is bringing market growth to a global level with key countries involved the United States, Japan, Canada, and South Korea. The United States holds a significant cloud infrastructure market share of the North American market.

What is Leading to Significant Profits for Companies in the United States?

“Presence of Silicon Valley and Other IT Hubs Supporting IT Revolution”

Attribute	United States
Market Value (2024E)	US$ 59.55 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 112.73 Billion

In the United States, the requirement for cloud computing is fundamentally changing how IT businesses handle, process, and manage their data and applications. On top of all this, the country has many IT hubs, one of which includes the famous Silicon Valley where many IT companies are working together to develop more enhanced and more efficient cloud computing software to further change the market trends.

As the need for disaster recovery, also known as data recovery, rises, businesses are looking to cut their IT expenses. These factors are contributing to cloud infrastructure market trends in the country.

Why Has China Become a Highly Lucrative Market in This Space?

“Significant Investments in Data Centers and Focus on Analysis of Consumer Buying Patterns”

Attribute	China
Market Value (2024E)	US$ 70.64 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 133.41 Billion

China's cloud infrastructure market is primarily dominated by domestic companies such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud. These leading firms are investing substantial funds in constructing data centers to store, manage, and extract valuable information from users. This data is then analyzed to understand consumer buying patterns. Currently, these market leaders are attempting to expand internationally, focusing on establishing a presence in Western countries, including the United States.

Category-wise Evaluation

The market for cloud infrastructure is segmented into various categories based on type, end user, and infrastructure. In terms of end users, the market serves sectors such as banking, financial services, and insurance (BFSI), consumer goods and retail, manufacturing, business and consulting services, and others. The market is divided by infrastructure type into public, private, and hybrid models.

What Do End Users Crucially Rely on for Seamless Operations?

“Strong Demand for Infrastructure with Hardware Components”

Attribute	Hardware
Segment Value (2024E)	US$ 173.19 Billion
Growth Rate (2024 to 2034)	4.4% CAGR
Projected Value (2034F)	US$ 289.89 Billion

Organizations emphasize hardware cloud infrastructure and the ability to tailor it to specific needs, enhancing performance and security. Furthermore, by interacting directly with the hardware layer, end users can optimize resource allocation and achieve better cost-efficiency. This trend highlights a strong demand for infrastructure with tangible, physical components, underscoring the importance of hardware cloud solutions in meeting end-user requirements. Compared to cloud services, hardware services are becoming increasingly prominent among end users.

Why are Companies in the BFSI Sector Seeking Advanced Cloud Infrastructure?

“Requirement for Scalable and Secure Systems to Manage Sensitive Financial Data”

Attribute	Banking, Financial Services, and Insurance
Segment Value (2024E)	US$ 99.56 Billion
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 166.52 Billion

Growing demand for scalable and secure systems to manage sensitive financial data and transactions is driving the increased need. Reliable cloud infrastructure is becoming essential to support the daily operations of firms in the banking and finance sector as they embrace digital transformation. End customers in this industry are driving the need for advanced cloud infrastructure to meet their evolving business requirements, establishing a significant trend in the cloud infrastructure market.

Competition Landscape

Key players in the cloud infrastructure market are thinking of introducing new products to win the competition. A few of the products include cloud computing and cloud-managed services.

• Amazon Connect introduced AWS Cloud Formation Service for management APIs. By connecting Lex bots (and Lex v2), Lambda functions, approved origins, and security keys, to the remainder of their AWS infrastructure, customers can now manage Amazon Connect instances using AWS in February 2022.
• The collaboration agreement was signed by IBM corporation with Amazon Webs Services Inc. to offer a broad software catalog as Software as a Service on AWS. With the help of this arrangement, clients will have simple access to IBM software for automation, data, and AI in May 2022.
• AT&T with Google Cloud has introduced a new solution that spans their edge computing and 5G portfolios. This portfolio includes AT&T's on-site Multi-access Fringe Computing system as well as wired, wireless, and wired LTE capabilities as well as edge capabilities in July 2021.

Fact.MR provides detailed information about the price points of key providers of cloud infrastructure solutions positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Cloud Infrastructure Market Research

• By Type :

  • Hardware
  • Services
    • Infrastructure as a Service (IaaS)
    • Platform as a Service (PaaS)
    • Relational Database as a Service (DBaaS)
    • Container as a Service (CaaS)
    • Software as a Service (SaaS)

• By End User :

  • Banking, Financial Services, and Insurance (BFSI)
  • Consumer Goods & Retail
  • Manufacturing
  • Business & Consulting Services
  • Others

• By Infrastructure :

  • Public
  • Private
  • Hybrid

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa