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Cloud Infrastructure Services Market

Cloud Infrastructure Services Market

The market for Cloud Infrastructure Services was estimated at $157 billion in 2024; it is anticipated to increase to $529 billion by 2030, with projections indicating growth to around $1.46 trillion by 2035.

Report ID:DS1102012
Author:Ranjana Pant - Research Analyst
Published Date:February 2025
Datatree
Information Technology
Software & Platforms
Cloud Infrastructure Services
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Report Summary
Table of Contents
Methodology
Market Data

Global Cloud Infrastructure Services Market Outlook

Revenue, 2024

$157B

Forecast, 2034

$1.19T

CAGR, 2024 - 2034

22.5%
The Cloud Infrastructure Services industry revenue is expected to be around $191.7 billion in 2025 and expected to showcase growth with 22.5% CAGR between 2025 and 2034. They provide a foundation for businesses of all sizes enabling them to adapt and grow effectively. These services continue to drive change by offering endless possibilities, for flexibility, scalability and creativity.

In detail Cloud Infrastructure Services comprise options and offerings such as storage, servers, networking elements and a mix of advanced value added services. The market is currently influenced by trends like multi cloud strategies that provide security and flexibility the increase, in data center focused solutions and the expansion of edge computing meant to bring data and applications nearer to users.

Cloud Infrastructure Services market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Cloud Infrastructure Services market is projected to grow from $156.5 billion in 2024 to $1.19 trillion in 2034. This represents a CAGR of 22.5%, reflecting rising demand across Data Storage and Backup, Development and Testing Environment and Compute Power.
  • Amazon Web Services together with Microsoft Azure and Google Cloud Platform lead the market as major competitors which determine its competitive dynamics.
  • U.S. and China are the top markets within the Cloud Infrastructure Services market and are expected to observe the growth CAGR of 21.6% to 31.5% between 2024 and 2030.
  • Emerging markets including Indonesia, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 16.9% to 23.4%.
  • The Cloud Infrastructure Services market will experience a $135.0 billion growth boost through 2030 because of the transition to hybrid cloud solutions.
  • The Cloud Infrastructure Services market is set to add $1.0 trillion between 2024 and 2034, with manufacturer targeting Financial & and Insurance (BFSI) Industry Vertical projected to gain a larger market share.
  • With Rising demand for flexible and scalable solutions, and Adoption of ai and ml, Cloud Infrastructure Services market to expand 661% between 2024 and 2034.
cloud infrastructure services market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Cloud Infrastructure Services

Environmental issues are gaining attention from businesses around the world these days which is leading to a push for energy efficient and sustainable options in the cloud infrastructure services sector—a trend that is fuel, for market growth.

Growth Opportunities in North America and Europe

North America Outlook

In North America's market scenario competition is intense among cloud infrastructure service providers like Amazon Web Services and Google Cloud Platform along with Microsoft Azure stake their claim too! This region boasts adopters of tech innovations and a strong presence of tech savvy enterprises aided by a solid internet backbone that bolsters their market supremacy position here. The driving forces behind the surge in the market are businesses going digital sustainable focus, on business flexibility and stricter laws governing data protection and confidentiality.

Europe Outlook

The cloud infrastructure services market in Europe is experiencing growth with major competitors such as Microsoft Azure and Amazon Web Services expanding their data centers in the region indicating opportunities for market expansion here. Factors, like GDPR regulations growing reliance of businesses And the governments support for transformation are contributing to this market growth.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for Flexible and Scalable Solutions, and Shift to Remote Work and Online Learning

The market for Cloud Infrastructure Services is also experiencing growth due to a rising demand from businesses of all sizes, for adaptable and scalable solutions that can also be easily tailored to meet their evolving requirements​. The widespread transition to work and digital education because of the COVID19 outbreak has also played a major role too in driving this shift towards cloud infrastructure services being essential, in our everyday lives now.
The rapid growth of the market is also fueled by the advancement and widespread use of technologies such, as AI and ML. These cutting edge technologies demand computational resources and extensive data storage capacity which cloud infrastructure services offer efficiently at a cost effective rate.
02

Restraint: Data Security Concerns

Handling data security and privacy poses a hurdle for Cloud Infrastructure Services in the market realm. The risk of cyber assaults, breaches and unauthorized entry is heightened when data is stored in the cloud. Additionally navigating through varying data sovereignty regulations, across countries adds complexity to the global operations of cloud service providers.
03

Opportunity: Mid-Market Cloud Adoption and Leveraging AI in Cloud Infrastructure Services

Big companies have mainly been using cloud infrastructure services far but there is a whole new world waiting to be explored in the mid market sector which consists of small and medium sized businesses that have not yet been fully taken advantage of yet by the big players, in the cloud infrastructure game! These larger cloud service providers usually pay attention to big corporations and tend to overlook the mid market segment altogether! Its time to develop cloud solutions that cater specifically to these smaller businesses who have specific requirements and capabilities that are often overlooked!
AI is transforming a range of industries and the cloud infrastructure sector is no different in this regard. AI powered cloud systems have the potential to bring about benefits, like faster data processing, enhanced cloud security and automated system maintenance. Businesses that integrate AI technology into their services are poised to gain a notable competitive advantage in the market.
04

Challenge: High Initial Investments

Transition to a cloud based setup can come with initial expenses such, as purchasing essential hardware and transferring data to the cloud while also ensuring robust security measures in place – factors that may discourage small and medium sized enterprises from embracing Cloud Infrastructure Services.

Supply Chain Landscape

1
Resource Provisioning

Amazon Web Services

Microsoft Azure

2
Hardware Development

Dell Technologies

Hewlett Packard Enterprise

3
Software Development

Oracle Corporation

Google Cloud

4
Service Distribution

IBM Corporation

Alibaba Cloud

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Cloud Infrastructure Services in Data Storage & Backup, Development & Testing Environment & Compute Power

Data Storage and Backup

Cloud Infrastructure Services offer protected data storage options that guarantee uninterrupted business operations in the event of data loss situations. The services provide access to stored data from anywhere as well as backup and retrieval functions without the need for physical storage devices. This approach enhances efficiency and cost effectiveness by eliminating the dependency on traditional storage methods. Major players, in this industry segment are AWS, GCP and Microsoft Azure.

Compute Power

Businesses have the option to leverage cloud technology for handling demanding tasks that require processing capabilities without the need for extra hardware expenses upfronts. This approach offers flexibility by allowing users to access computing power whenever necessary while only paying for the resources utilized. It enables companies to expand their operations quickly without an initial investment giving them an edge in the market. Some of the players, in serverless computing include Google Cloud IBM Cloud and Azure.

Development and Testing Environment

Cloud Infrastructure Services offer an environment for software application development and testing purposes where developers can leverage cloud platforms to create and modify applications without the need for physical setups This streamlined process saves time and resources, for businesses by enhancing the speed and efficiency of software development tasks.

Recent Developments

December 2024

Microsoft Azure revealed its plans to enhance its cloud infrastructure services in the market. This move aims to provide businesses across the continent with more dependable access, to cloud services.

October 2024

Amazon Web Services a leading cloud provider renowned for its offerings in industries such as healthcare and finance as well, as supply chain management solutions. introduced a suite of AI tools aimed at enhancing data analysis and ML capabilities within its cloud infrastructure services.

September 2024

Google Cloud launched Anthos for VMs—an offering aimed at revitalizing current applications and ensuring seamless management in alignment with cloud services. This move hints at a shift, in its strategy.

In today's Cloud Infrastructure Services market landscape there is a push towards adaptable and economical IT solutions to meet diverse needs Businesses of all types are leveraging cloud services not just for data storage but also for application hosting and to fuel innovation and digital transformation efforts A notable trend, in the market is the rising popularity of hybrid cloud solutions.

Impact of Industry Transitions on the Cloud Infrastructure Services Market

As a core segment of the Software & Platforms industry, the Cloud Infrastructure Services market develops in line with broader industry shifts. Over recent years, transitions such as Shift to Hybrid Cloud Solutions and Rise of AI and ML in Cloud Services have redefined priorities across the Software & Platforms sector, influencing how the Cloud Infrastructure Services market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift to Hybrid Cloud Solutions

The market for cloud infrastructure services has experienced a shift towards hybrid cloud solutions lately. These solutions combine private cloud services to maximize the advantages of both. Businesses are showing interest, in this approach as it offers a mix of computing capacity, speediness, security and cost efficiency. Hybrid cloud setups ensure uniform infrastructure and operations thus giving control and reducing latency problems. Businesses in times are showing a growing need for IT environments that are versatile and adjustable. This shift toward hybrid cloud solutions is evidently, at the forefront of this transition. This industry transition is expected to add $135 billion in the industry revenue between 2024 and 2030.
02

Rise of AI and ML in Cloud Services

The cloud infrastructure services market is undergoing changes due, to the rise of AI and ML .

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