Cloud Infrastructure Services Market Analysis

Cloud Infrastructure Services Market Overview

The Cloud Infrastructure Services Market is projected to grow from USD 143.21 billion in 2024 to USD 446.27 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.27% during the forecast period (2024 - 2032). Additionally, the market size for cloud infrastructure services was valued at USD 121.74 billion in 2023.

The recent infiltration of smartphones, smart devices, and other consumer electronic products has dramatically pushed the need for public cloud services. Public cloud services enable organizations and common individuals to store pertinent information safely and securely without any hassles and are the key market drivers enhancing market growth.

Figure 1: Cloud Infrastructure Services Market Size, 2024-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review 

Latest Industry News of Cloud Infrastructure Services Market

Oracle Cloud Infrastructure (OCI) is introducing new capabilities to enhance the reliability, efficiency, and simplicity of large-scale Kubernetes environments, while reducing costs. The updates aim to simplify operations and reduce the management burden on IT, ultimately increasing the reliability and efficiency of enterprise-grade Kubernetes and delivering cost savings of up to 50% compared to other cloud providers.

The new capabilities offered by Oracle Container Engine for Kubernetes (OKE) include Virtual Nodes, which provide a serverless Kubernetes experience and improve resource utilization by offering pod-level elasticity with usage-based pricing. Add-Ons' Lifecycle Management enables organizations to install and configure auxiliary operational software or related applications, with the service managing the full lifecycle of the software. Workload Identity enhances security and lowers management overhead by providing pod-level identity and access management controls.

Other enhancements include increasing the default setting for newly-provisioned clusters, support for preemptible instances for an additional 50% discount, and financially-backed service level agreements (SLAs) for uptime and availability.

Several global organizations, such as Thomson Reuters, Xactly, GoTo, SoundHound, Wiz, 8x8, and Nomura Research Institute, have adopted Kubernetes to run applications at scale. These organizations have reported benefits such as cost savings, improved performance, and simplified operations by leveraging Oracle Container Engine for Kubernetes and OCI's cloud services.

Overall, Oracle Cloud Infrastructure's new capabilities aim to enable customers to accelerate their cloud-native journeys, simplify modernization efforts, innovate faster, improve developer productivity, and optimize costs across expanding Kubernetes footprints.

Cloud Infrastructure Services Market Trends

Surge in the adoption of the cloud among SMEs is driving the market growth

Legacy businesses are under pressure and lagging because of their inability to cope with the introduction of disruptive business models. To stay ahead with digital transformation, these companies require flexible software to help them adapt and rethink critical business processes. In today's digitalized world, SME businesses focus on adopting a cloud-based application that helps them increase flexibility and scalability in business processes. Therefore, the cloud platform offers deployment of applications without any disruption in the existing software landscape and provides integrated and optimized enterprise solution that helps business in digital transformation and the cost benefits of migration to the cloud. Hence, with the rapidly changing needs due to disruptive technologies, small and medium-sized organizations are adopting agile applications that give access to relevant and real-time business data, which is expected to increase the market CAGR growth of the cloud services industry.

In addition, to provide better and improved cloud services and increase cloud adoption among SMEs, major market players are acquiring cloud service providers to expand the breadth and depth of their cloud offerings to manage complex integrations of technologies, people, and processes. For instance, in December 2020, IBM announced that it had acquired Nordcloud, a European leader in cloud implementation, application transformation, and managed services that further advance IBM's cloud migration and transformation capabilities, an important aspect of its hybrid cloud platform growth strategy.Thus, driving the Cloud Infrastructure Services market revenue.

Cloud Infrastructure Services Market Segment Insights

Cloud Infrastructure Services Insights

Based on services, the Cloud Infrastructure Services Market segmentation includes laaS, PaaS, and SaaS. The SaaS segment dominated the market; this growth is due to its ease of deployment, low maintenance costs, and low cost of ownership. During the forecast period, Infrastructure as a Service (laaS) is expected to grow at the fastest rate. The increase can be attributed to the increasing adoption of hybrid cloud platforms as well as the rising demand for business data storage and security solutions.

December 2022 Microsoft and LSEG announced a 1-year strategic collaboration for next-generation data and analytics and cloud infrastructure solutions by making equity investments in LSEG by acquiring shares. Under the arrangements, LSEG's data platform and other key technology infrastructure will migrate into Microsoft's Azure cloud environment.

October 2022 Oracle announced the expansion of its cloud infrastructure portfolio that will allow partners such as system integrators and telcos to sell and deliver cloud services to their customers. The cloud infrastructure platform will offer the full set of cloud infrastructure and platform services tailored to the needs of specific markets and industries.

Cloud Infrastructure ServicesDeployment Insights

Based on deployment, the Cloud Infrastructure Services Market segmentation includes Public, Private, and Hybrid. The public segment dominated the market;the growth can be attributed to increased penetration of connected devices, digital transformation, and growing automation among small & medium-sized businesses. Furthermore, the hybrid cloud segment is expected to grow fastest over the forecast period due to SMEs' increasing use of cloud-based solutions to increase productivity and reduce operational costs. At the same time, rising demand for scalable, secure, and cost-effective solutions is expected to surge private cloud demand across large enterprises.

Figure 2: Cloud Infrastructure Services Market, By Deployment, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Cloud Infrastructure Services Verticals Insights

Based on verticals, the Cloud Infrastructure Services Market segmentation includes BFSI, manufacturing, retail, energy, logistics, research, and development. The BFSI segment dominated the market; this growth can be attributed to the increased deployment of cloud-based software and mobile applications. Other industries, such as retail, manufacturing and energy, logistics, research, and development, are expected to grow significantly, owing to increased government and cloud provider initiatives and investment plans to support cloud adoption among start-ups.

Cloud Infrastructure Services Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American cloud infrastructure services market area will dominate this market; this is due to due to an escalation in the adoption of cloud-based IT services and huge investments by organizations in IT Infrastructure in the research and development of cloud infrastructure will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CLOUD INFRASTRUCTURE SERVICES MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's cloud infrastructure services market accounts for the second-largest market share due to the recent infiltration of smartphones, smart devices, and other consumer electronic products has dramatically pushed the need for public cloud services. Further, the German cloud infrastructure services market held the largest market share, and the UK cloud infrastructure services market was the fastest-growing market in the European Region.

The Asia-Pacific cloud infrastructure services market is expected to grow at the fastest CAGR from 2023 to 2032. This Region has developed the Asia Cloud Computing Association (ACCA), a member-driven association set up to accelerate the adoption of cloud computing services. Its member includes cloud service providers, governments, and cloud consumers. Moreover, China’s cloud infrastructure services market held the largest market share, and the Indian cloud infrastructure services market was the fastest-growing market in the Asia-Pacific region.

Cloud Infrastructure Services Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the cloud infrastructure servicesmarket, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The cloud infrastructure services industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global cloud infrastructure services industry to benefit clients and increase the market sector. In recent years, the cloud infrastructure services industry has offered some of the most significant advantages to the IT industry. Major players in the cloud infrastructure services market, including Microsoft Corporation (U.S.), Fujitsu Limited (Japan), SaaS, International Business Machines Corporation (U.S.), PaaS, Cisco Systems Inc. (U.S.), VMware Inc. (U.S.), Oracle Corporation (U.S.) Google Inc. (U.S.), Hewlett-Packard Enterprise (U.S.) and others are attempting to increase market demand by investing in research and development operations.

The International Business Machines Corporation, nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York, and is present in over 175 countries. IBM is the seventh-largest technology company by revenue and the 49th-largest overall. It is also consistently ranked among the world's most recognizable, valuable, and admired brands, with a devoted following among many tech enthusiasts and consumers. IBM Corporation introduced IBM Cloud for Telecommunications with more than 35 partners that have committed to joining IBM's ecosystem to drive business transformation. This launch will assist telecommunications providers in addressing fast business change, special challenges to the highly regulated industry, and enhancing agility to leverage the power of 5G and edge computing.

Oracle Corporation is an American multinational computer technology corporation headquartered in Austin, Texas. In 2020, Oracle was the third-largest software company in the world by revenue and market capitalization. Oracle Cloud Infrastructure offers higher performance, security, and cost savings. It is designed so businesses can move workloads easily from on-premises systems to the cloud and between cloud and on-premises and other clouds. Oracle Cloud applications provide business leaders with modern applications that help them innovate, attain sustainable growth, and become more resilient. Oracle announced the expansion of its cloud infrastructure portfolio that will allow partners such as system integrators and telcos to sell and deliver cloud services to their customers. The cloud infrastructure platform will offer the full set of cloud infrastructure and platform services tailored to the needs of specific markets and industries.

Key companies in the cloud infrastructure services market include

• Microsoft Corporation (U.S.)


• Fujitsu Limited (Japan)


• SaaS


• International Business Machines Corporation (U.S.)


• PaaS


• Cisco Systems Inc. (U.S.)


• VMware Inc. (U.S.)


• Oracle Corporation (U.S.)


• Google Inc. (U.S.)


• Hewlett-Packard Enterprise (U.S.)

Cloud Infrastructure Services Industry Developments

Dec 2022 Avalanche announced its partnership with Alibaba Cloud to develop tools that allow users to launch validator nodes on Avalanche's public blockchain platform in Asia. The partnership would let Avalanche developers use Alibaba Cloud's plug-and-play Infrastructure to launch new validators.

June 2022 VMware, Inc. announced the launch of VMware vSAN+ and VMware vSphere+ to support organizations by bringing the benefits of the cloud to their existing on-premises Infrastructure without disrupting their workloads or hosts.

October 2021 Expedient, a cloud computing solution, and data center infrastructure provider, announced an opening of a new data center in Milwaukee, United States. The new data center is expected to help the company to serve better, increasing customer demand for its cloud-based, Infrastructure as a Service (IaaS) offerings in the central United States.

Cloud Infrastructure Services Market Segmentation

Cloud Infrastructure Services Services Outlook

• laaS


• PaaS


• SaaS

Cloud Infrastructure Services Deployment Outlook

• Public


• Private


• Hybrid

Cloud Infrastructure Services Verticals Outlook

• BFSI


• Manufacturing


• Retail


• Energy


• Logistics


• Research


• Development

Cloud Infrastructure Services Regional Outlook

• 
  

  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  

  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  

  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  

  Rest of the World

  
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America