In the fourth quarter of 2024, Amazon Web Services (AWS), held around ** percent market share of the cloud infrastructure services market. AWS's share of the cloud infrastructure services market has remained steady at around a ***** of the total market since at least 2017. Microsoft Azure and Google Cloud take ** percent and ** percent market share, respectively. The next ****** cloud providers held a combined ** percent of market share. The main types of cloud computing Infrastructure as a service (IaaS) or cloud infrastructure services form one of the three core service models of the

In the fourth quarter of 2024, the most popular vendor in the cloud infrastructure services market, Amazon Web Services (AWS), controlled ** percent of the entire market. Microsoft Azure takes second place with ** percent market share, followed by Google Cloud with ** percent market share. Together, these three cloud vendors account for ** percent of total spend in the fourth quarter of 2024. Organizations use cloud services from these vendors for machine learning, data analytics, cloud native development, application migration, and other services. AWS Services Amazon Web Services is used by many organizations because it offers a wide variety of services and products to its customers that improve business agility while being secure and reliable. One of AWS’s most used services is Amazon EC2, which lets customers create virtual machines for their strategic projects while spending less time on maintaining servers. Another important service is Amazon Simple Storage Service (S3), which offers a secure file storage service. In addition, Amazon also offers security, website infrastructure management, and identity and access management solutions. Cloud infrastructure services Vendors offering cloud services to a global customer base do so through different types of cloud computing, which include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Further, there are different cloud computing deployment models available for customers, namely private cloud and public cloud, as well as community cloud and hybrid cloud. A cloud deployment model is defined based on the location where the deployment resides, and who has access to and control over the infrastructure.

The Cloud Infrastructure Services Market report segments the industry into By Service Type (Compute as a Service, Storage as a Service, and more), By Deployment Model (Public Cloud, Private Cloud, and more), By Organization Size (Small and Medium-Sized Enterprises (SMEs), and more), By End-user Vertical (BFSI, IT & Telecommunications, and more), and By Geography (North America, Europe, and more).

Snapshot img

Cloud Infrastructure Services Market Size 2024-2028

The cloud infrastructure services market size is forecast to increase by USD 109.2 billion at a CAGR of 9.4% between 2023 and 2028. The market is experiencing significant growth, driven by the shift from capital expenditure (CAPEX) to operational expenditure (OPEX) models. This trend allows businesses to reduce upfront costs and invest in other areas of their operations. Another key trend is the increasing adoption of hybrid cloud storage systems, which offer the benefits of both public and private clouds. However, challenges remain, including latency in cloud networks, security concerns, and the need for seamless integration between different cloud platforms. To address these challenges, cloud infrastructure service providers are investing in advanced technologies such as artificial intelligence and machine learning to improve network performance and enhance security features. Overall, the market is expected to continue growing as more businesses adopt cloud solutions to optimize their IT infrastructure and improve operational efficiency.

What will be the Size of the Market During the Forecast Period?

Request Free Sample

Cloud infrastructure services refer to the hardware and software components required to build, deploy, and manage cloud architectures, including private cloud, public cloud, and hybrid clouds. These services encompass computing resources such as servers and storage devices, as well as networking and management software. Cloud architecture relies on virtualization technologies like hypervisors and virtual machine monitors to create and manage virtual servers and machines. Cloud services offer flexibility and scalability, enabling businesses to quickly deploy and manage resources as needed.

Moreover, cloud computing resources can be scaled up or down based on demand, while storage can be easily expanded or contracted. Networking is crucial for cloud infrastructure, ensuring seamless communication between servers, virtual machines, and users. Security is a top priority in cloud infrastructure, with intelligent monitoring and management software providing real-time threat detection and response. Deployment software streamlines the process of launching and managing applications in the cloud, while cloud management software provides a centralized interface for managing and monitoring cloud resources. Overall, cloud infrastructure services enable businesses to build and deploy applications and services more efficiently and cost-effectively than traditional on-premises solutions.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Deployment

  Public cloud
  Private cloud
  Hybrid cloud


Geography

  North America

    US


  APAC

    China
    Japan


  Europe

    Germany
    UK


  South America



  Middle East and Africa

By Deployment Insights

The public cloud segment is estimated to witness significant growth during the forecast period. In the dynamic business landscape of 2023, the public cloud segment holds a significant share of The market. This dominance can be attributed to the expanding IT, BFSI, education, healthcare, and retail sectors, which require cloud infrastructure for valuable business insights. The increasing number of Small and Medium Enterprises (SMEs) in emerging economies, such as China, India, Brazil, Indonesia, and Mexico, is driving the demand for public cloud services. These organizations seek cost-effective solutions for their business needs. Cloud infrastructure service providers offer virtualization technology, enabling organizations to deploy software applications on a shared backend infrastructure, ensuring flexibility and scalability. Public cloud computing and storage devices are accessible via the internet, making it a preferred choice for businesses seeking to reduce capital expenditures and focus on their core competencies.

Get a glance at the market share of various segments Request Free Sample

The public cloud segment was valued at USD 99.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions Request Free Sample

In the global market for cloud infrastructure services, North America held the largest market share in 2023. The region's dominance can be attributed to the rising demand for computing services, leading to an expansion of data centers and storage spaces. Clou

In the fourth quarter of 2023, enterprise spending on cloud infrastructure services reached approximately ** billion U.S. dollars. The market has seen a steady increase in quarter-over-quarter revenue over the past years and passed the ** billion U.S. dollars mark for the first time in the fourth quarter of 2021. The cloud infrastructure services market includes revenue from infrastructure as a service (IaaS), platform as a service (PaaS), and hosted private cloud services.

The global cloud infrastructure services market is projected to grow from $143.21 billion in 2025 to $449.25 billion by 2033, at a CAGR of 15.27% during the forecast period. The market is primarily driven by the increasing adoption of cloud computing services across various industries and the growing need for efficient and cost-effective infrastructure solutions. Additionally, the market is witnessing significant growth due to the proliferation of mobile devices, the Internet of Things (IoT), and big data applications. Key trends in the market include the adoption of hybrid and multi-cloud strategies, the rise of serverless computing, and the growing importance of data security and compliance. The key segments of the cloud infrastructure services market are services, deployment, and verticals. In terms of services, the market is divided into infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). In terms of deployment, the market is divided into public, private, and hybrid cloud deployments. In terms of verticals, the market is divided into banking, financial services, and insurance (BFSI), manufacturing, retail, energy, logistics, and research and development. The major companies operating in the global cloud infrastructure services market are Microsoft Corporation, Fujitsu Limited, International Business Machines Corporation, Cisco Systems Inc., VMware Inc., Oracle Corporation, Google Inc., and Hewlett-Packard Enterprise. The market is highly competitive, with key players focusing on innovation, partnerships, and strategic acquisitions to gain market share. Recent developments include: 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..

Discover Market Research Intellect's Cloud Infrastructure Service Market Report, worth USD 70 billion in 2024 and projected to hit USD 130 billion by 2033, registering a CAGR of 7.5% between 2026 and 2033.Gain in-depth knowledge of emerging trends, growth drivers, and leading companies.

According to Cognitive Market Research, the global Infrastructure Services market size will be USD 159842.5 million in 2025. It will expand at a compound annual growth rate (CAGR) of 22.50% from 2025 to 2033.

North America held the major market share of 37% of the global revenue with a market size of USD 59141.73 million in 2025 and will grow at a compound annual growth rate (CAGR) of 20.8% from 2025 to 2033.
Europe accounted for a market share of 29% of the global revenue with a market size of USD 46354.33 million.
APAC held the market share of 24% of the global revenue with a market size of USD 38362.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 25.6% from 2025 to 2033.
South America has a market share of 4% of the global revenue with a market size of USD 6074.02 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.3% from 2025 to 2033.
Middle East had a market share of 4% of the global revenue and was estimated at a market size of USD 6393.70 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.0% from 2025 to 2033.
Africa had a market share of 2.20% of the global revenue and was estimated at a market size of USD 3516.54 million in 2025 and will grow at a compound annual growth rate (CAGR) of 22.8% from 2025 to 2033.
Disaster Recovery as a Service (DRaaS) category is the fastest growing Solution segment of the Infrastructure Services industry

Market Dynamics of Infrastructure Services Market

Key Drivers for Infrastructure Services Market

Increasing demand for cloud computing and digital transformation solutions drive the market

The growing need for scalable and flexible IT infrastructure solutions is driving the demand for cloud computing and digital transformation. As per the McKinsey & Company, digital transformation is widespread, with 89% of large companies undertaking it, but only realizing about 30% of the expected financial benefits. Research in the banking sector reveals that digital leaders significantly outperform laggards, achieving higher shareholder returns (8.1% vs 4.9%) and better return on equity thus drives demand for end-to-end infrastructure services, emphasizing strategic talent and operational models for better financial performance. Businesses are increasingly adopting cloud services to enhance operational efficiency, reduce costs, and ensure remote work capabilities. Cloud computing enables organizations to access data and applications from anywhere, facilitating digital transformation initiatives. Additionally, industries such as retail, healthcare, and banking are leveraging cloud solutions to offer personalized customer experiences and improve service delivery. The rise of Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) further accelerates market growth. As more businesses undergo digital transformation, the demand for advanced infrastructure services continues to expand.

https://hbr.org/2023/07/the-value-of-digital-transformation

Growing adoption of IoT and smart technologies in various sectors boost market growth

The widespread adoption of Internet of Things (IoT) and smart technologies is significantly boosting the Infrastructure Services industry. The global number of connected IoT devices is expected to grow by 13% to 18.8 billion by the end of 2024 and reach 40 billion by 2030, driven by increased adoption of Wi-Fi, Bluetooth, and cellular IoT technologies – reported by IoT Analytics. Industries such as manufacturing, healthcare, retail, and transportation are increasingly utilizing IoT solutions to enhance operational efficiency, monitor assets, and improve customer experiences. IoT devices generate massive amounts of data, driving the need for advanced storage solutions, data centers, and robust network management systems. Smart technologies, including artificial intelligence and machine learning, require high-performance computing and scalable infrastructure services for data processing and analysis. The continuous development of smart cities, connected vehicles, and industrial automation further propels market growth. As IoT adoption expands, the demand for reliable and secure infrastructure services intensifies.

https://iot-analytics.com/wp/wp-content/uploads/2024/09/INSIGHTS-RELEASE-Number-of-connected-IoT-devices-vf.pdf

Restraint Factor for the Infrastructure Services Market

High ini...

The Healthcare Cloud Infrastructure Market is estimated to be valued at USD 84.6 billion in 2025 and is projected to reach USD 721.1 billion by 2035, registering a compound annual growth rate (CAGR) of 23.9% over the forecast period.

Explore insights from Market Research Intellect's Cloud Infrastructure Services Market Report, valued at USD 100 billion in 2024, expected to reach USD 200 billion by 2033 with a CAGR of 8.5% during 2026–2033.Uncover opportunities across demand patterns, technological innovations, and market leaders.

The Infrastructure As A Service Market is Segmented by Deployment Mode (Public Cloud, Private Cloud and Hybrid Cloud), Service Type(Compute As A Service (CaaS), Storage As A Service (STaaS), Database / Analytics As A Service (DBaaS) and More), End-User Industry(BFSI, IT and Telecom, Healthcare and Life Sciences) and Geography.

According to Cognitive Market Research, the global cloud infrastructure market size will be USD 605142.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 22.30% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 242057.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 20.5% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 181542.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 139182.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.3% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 30257.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 21.7% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 12102.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 22.0% from 2024 to 2031.
The services held the highest cloud infrastructure market revenue share in 2024.

Market Dynamics of Cloud Infrastructure Market

Key Drivers for Cloud Infrastructure Market

Rise in the Technological Advancements to Increase the Demand Globally

Technological advancements are significantly propelling the cloud infrastructure market. Innovations in artificial intelligence, machine learning, and automation are enhancing cloud services' efficiency, scalability, and cost-effectiveness. The advent of edge computing and 5G technology is enabling faster data processing and reducing latency, further driving cloud adoption. Additionally, advancements in security technologies are making cloud environments more secure, encouraging more businesses to migrate to the cloud. These technological developments are transforming how companies operate, fueling the growth and expansion of the cloud infrastructure market.

Growing Number of Connected Devices to Propel Market Growth

The growing number of connected devices, particularly through the Internet of Things (IoT), significantly impacts the cloud infrastructure market. As IoT devices proliferate, they generate massive volumes of data that require robust processing, storage, and management capabilities. Cloud infrastructure provides the scalable and flexible environment needed to handle this influx of data, enabling real-time analytics, efficient data processing, and seamless connectivity across devices. This demand for enhanced cloud services drives the expansion of the cloud infrastructure market as businesses seek to leverage IoT-driven insights and efficiencies.

Restraint Factor for the Cloud Infrastructure Market

Data Privacy & Security Concerns Related to Cloud Solution to Limit the Sales

Data privacy and security concerns are critical in the cloud infrastructure market as organizations store sensitive data in cloud environments. Risks include data breaches, unauthorized access, and compliance with data protection regulations. Cloud providers must implement robust security measures, such as encryption, access controls, and regular audits, to protect customer data. Additionally, concerns about data sovereignty and cross-border data transfer further complicate security in the cloud. Addressing these concerns is essential for building trust and ensuring the continued growth of cloud adoption.

Impact of Covid-19 on the Cloud Infrastructure Market

The COVID-19 pandemic significantly accelerated the growth of the cloud infrastructure market. As businesses rapidly transitioned to remote work, the demand for cloud services surged, enabling companies to maintain operations and collaboration. The pandemic highlighted the need for scalable, flexible, and resilient IT infrastructure, driving widespread cloud adoption across industries. Additionally, the crisis spurred digital transformation initiatives, pushing organizations to invest in cloud-based solutions for business continuity, disaster recovery, and remote access, further fueling the expansion of the cloud infrastructure market. Introduction of the Cloud Infrastructure Market

Cloud infrastructure refers to the virtualized IT resources and services, including servers, storage, networking, and software, delivered over t...

Global Cloud Infrastructure Services Market size was valued USD 19.87 Billion in 2023 and is expected to rise to USD 61.62 Billion by 2032 at a CAGR of 13.4%.

Cloud Infrastructure Service Market size was valued at USD 322.56 Billion in 2024 and is projected to reach USD 713.09 Billion by 2032, growing at a CAGR of 11.50% during the forecasted period 2026 to 2032.

The cloud infrastructure services market is driven by the increasing demand for scalable and cost-effective IT solutions across various industries, as businesses shift from traditional on-premises systems to cloud-based models. Factors such as digital transformation, the rise of remote work, and the need for business continuity have accelerated the adoption of cloud services. Additionally, the growing use of big data analytics, artificial intelligence (AI), and the Internet of Things (IoT) require robust cloud infrastructure for data storage and processing. The flexibility, scalability, and enhanced security features offered by cloud service providers further attract enterprises to migrate their workloads to the cloud. Moreover, advancements in cloud computing technologies, hybrid cloud models, and government support for digital infrastructure development also drive market growth.

The global Cloud Infrastructure Services market is experiencing robust growth, driven by the increasing adoption of cloud computing across various industries. The market's expansion is fueled by several key factors, including the rising demand for scalability and flexibility in IT infrastructure, the need for cost optimization through pay-as-you-go models, and the increasing adoption of digital transformation initiatives. Major players like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are dominating the market, offering a wide range of services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). However, the market also faces challenges, such as security concerns, vendor lock-in, and the need for skilled professionals to manage and maintain cloud infrastructure. Despite these challenges, the market is projected to maintain a healthy Compound Annual Growth Rate (CAGR) throughout the forecast period (2025-2033), driven by continued technological advancements and increasing digitalization across all sectors. The segmentation of the Cloud Infrastructure Services market reveals significant opportunities across different service models and geographic regions. While North America and Europe currently hold a substantial market share, the Asia-Pacific region is expected to witness significant growth due to rapid economic development and increasing internet penetration. The competitive landscape is intense, with established players constantly innovating and introducing new services to maintain their market position. Smaller, niche players are also emerging, focusing on specialized cloud solutions and addressing specific industry needs. The market's future trajectory hinges on continued technological innovation, the development of robust security measures, and the ability of providers to meet the evolving demands of businesses across diverse sectors. This includes expanding into emerging technologies such as edge computing, serverless computing, and AI-powered cloud solutions.

The Public Cloud System Infrastructure Services market is experiencing robust growth, projected to reach $67,480 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 14.4%. This expansion is fueled by several key drivers. The increasing adoption of cloud-based solutions by enterprises across various sectors, driven by the need for enhanced scalability, flexibility, and cost optimization, is a primary factor. Furthermore, the proliferation of big data analytics and the increasing demand for robust data storage and processing capabilities are significantly contributing to market growth. The rise of IoT devices and the need for efficient management of the resulting data further accelerates this expansion. Competition is fierce, with major players like Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and others constantly innovating and expanding their service offerings to maintain a competitive edge. This competitive landscape fosters continuous improvement in technology and service offerings, benefiting end-users. While specific restraints are not provided, potential challenges could include data security concerns, regulatory compliance issues, and the need for skilled professionals to manage cloud infrastructure effectively. Looking ahead to 2033, the market is poised for continued expansion, driven by ongoing technological advancements, such as the growing adoption of serverless computing, edge computing, and artificial intelligence (AI) integrations within cloud infrastructure. The market's regional distribution is likely diverse, with North America and Europe dominating initially, followed by a gradual increase in market share from the Asia-Pacific region driven by growing digitalization and technological adoption in developing economies. Strategic partnerships, mergers, and acquisitions are expected to continue shaping the competitive landscape, with companies focusing on delivering innovative solutions and expanding their global reach. The market's future trajectory depends heavily on ongoing technological innovation, regulatory environments, and the evolving needs of businesses across various industries.

The Global Cloud Infrastructure Services Market was valued at USD 77.15 Billion in 2024 and is expected to reach USD 142.17 Billion by 2030 with a CAGR of 10.72% through 2030.

In the first quarter of 2021, Amazon Web Services (AWS) took ** percent of market share of the cloud infrastructure services in the United States. Microsoft Azure takes the second place with ** percent, and Google Cloud the third with * percent market share. Collectively, these cloud service providers account for ** percent of total cloud infrastructure services spend in the United States market.

Cloud Infrastructure Services Market Outlook

According to our latest research, the Cloud Infrastructure Services market size reached USD 176.2 billion in 2024 globally, driven by increased enterprise digitalization, rapid cloud adoption, and growing demand for scalable IT resources. The market is expected to expand at a robust CAGR of 16.4% from 2025 to 2033, reaching a forecasted value of USD 495.7 billion by 2033. This strong growth is primarily fueled by the proliferation of cloud-native applications, enhanced security solutions, and the ongoing shift from traditional on-premises infrastructure to cloud-based models across all major industries.

The primary growth factors for the Cloud Infrastructure Services market are rooted in the accelerating pace of digital transformation initiatives among enterprises of all sizes. Organizations are increasingly migrating their workloads to the cloud to benefit from cost efficiencies, improved scalability, and greater flexibility. The surge in remote work and the need for seamless, secure access to corporate resources have further propelled cloud adoption. Additionally, the growing reliance on advanced technologies such as artificial intelligence, machine learning, and big data analytics has made robust cloud infrastructure a foundational requirement. These drivers are expected to sustain high demand for cloud infrastructure services, particularly as businesses prioritize agility and innovation in highly competitive markets.

Another significant growth catalyst is the expanding ecosystem of cloud service providers offering tailored solutions for diverse industry verticals. Vendors are investing heavily in expanding their global data center footprints, enhancing network connectivity, and developing specialized services such as managed hosting, disaster recovery, and content delivery networks. This competitive landscape is fostering continuous innovation and price optimization, making cloud infrastructure services more accessible to small and medium enterprises as well as large organizations. Moreover, the introduction of hybrid and multi-cloud strategies is enabling enterprises to optimize workloads, improve compliance, and manage risk more effectively, further accelerating market expansion.

Security and compliance requirements are also shaping the trajectory of the Cloud Infrastructure Services market. As regulatory frameworks around data privacy and sovereignty become more stringent, enterprises are seeking cloud providers with advanced security capabilities and robust disaster recovery solutions. The integration of encryption, identity management, and threat detection features into cloud offerings has helped alleviate many security concerns, thereby encouraging wider adoption. Additionally, the evolution of edge computing and the Internet of Things (IoT) is generating new use cases for cloud infrastructure, supporting real-time data processing and low-latency applications across various sectors.

From a regional perspective, North America continues to dominate the Cloud Infrastructure Services market in 2024, accounting for the largest revenue share due to the presence of major cloud providers, advanced IT infrastructure, and high levels of technology adoption. However, Asia Pacific is emerging as the fastest-growing region, with a rapidly expanding digital economy and increasing investments in cloud technologies by both public and private sectors. Europe is also witnessing steady growth, driven by digital transformation initiatives and strong regulatory frameworks. Meanwhile, Latin America and the Middle East & Africa are gradually catching up, supported by improving connectivity and rising awareness of cloud benefits. These regional dynamics are expected to shape the competitive landscape and innovation trends in the years ahead.

Service Type Analysis

The Cloud Infrastructure Services market is segmented by service type into Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Content Delivery Network (CDN), Managed Hos