The global cloud infrastructure services market is anticipated to grow at a significant CAGR of 10.7% during the forecast period. Cloud infrastructure services are a type of computing service in which the provider provides on-demand access to computer resources such as networking, storage, and servers. Clients run their platforms and apps on the providers' infrastructure. This creates a scalable hardware resource based on storage and processing requirements. The rapid adoption of geographically diverse cloud services and the growing need to automate operational processes tend to drive the global cloud infrastructure services market. Moreover, increasing investment in new digital transformation initiatives by the governments and increased awareness among enterprises about the benefits of cloud technologies are other factors driving the growth of the market. Furthermore, business continuity requirements are creating a high demand for cloud storage, disaster recovery, and backup services. Demand for cloud services increased by 18% in 2019, according to SysGroup.

However, certain factors are restraining the growth of the market. Data safety and security concern is estimated to be the major constraint to the growth of the market. Additionally, the high cost of initial investment is estimated to be the major challenge in the growth of the cloud infrastructure services market. Besides these petty constraints, the cloud infrastructure services market is yet to explore its full potential. The high adoption rate among SMEs and the rising trend of bringing your own device (BYOD) and mobility are developing numerous expansion opportunities for the growth of the market.

Impact of COVID-19 Pandemic on Global Cloud Infrastructure Services Market

Cloud infrastructure services and support services have been impacted internationally as a result of COVD-19. The pandemic problems had resulted in an increase in work volume for many contracts in the short term, as companies are forced to engage service partners to support home working arrangements, which could enhance the market over the forecast period.

Segmental Outlook 

The global cloud infrastructure services market is segmented based on the deployment model and end-user. Based on the deployment model, the market is segmented into the public cloud, private cloud, and hybrid cloud deployment of cloud infrastructure services. Among these, the public cloud is expected to contribute significantly to market growth. Further, based on end-user, the market is segmented into BFSI, healthcare, government & defense, retail, IT & telecommunication, and others. The IT & telecommunication sector is expected to showcase the major growth in the end-user segment.

Global Cloud Infrastructure Services Market Share by Deployment, 2021 (%)

The Hybrid Cloud Sub-Segment is Anticipated to Hold Prominent Share in the Global Cloud Infrastructure Services Market

The hybrid cloud deployment mode is expected to hold a prominent share as it offers the benefits of both private and public deployment models. Enterprises need a solution to exploit their data centers that are spread over multiple environments to address their increasing business demands. The hybrid cloud facilitates organizations to respond to fluctuating demands. Increased user and resource mobility, ongoing transfer of applications over the cloud, and the emergence of more sophisticated threats are propelling organizations to adopt the hybrid cloud deployment model. 

Regional Outlooks

The global cloud infrastructure services market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among these, the North American regional market is expected to cater to considerable growth during the forecast period, owing to the presence of major cloud players such as Amazon, Google LLC, and Microsoft Corp. Additionally, this region is a major hub for several technology start-ups. Moreover, favorable business condition along with supporting government policies has encouraged enterprises to develop advanced cloud platforms to leverage cloud technologies. Besides, raising venture capital in cloud technology by major tech players is again driving the market growth in this region. 

Global Cloud Infrastructure Services Market Growth, by Region 2022-2028

The Asia-Pacific Region is Expected to Hold Prominent Share in the Global Cloud infrastructure services Market

The Asia-Pacific region is expected to hold a prominent share in the global cloud infrastructure services market. In Asia-Pacific, the growing availability of skilled labor, and the rising focus of SMEs and large enterprises entering the service industry are the key driving factors of the market. The public cloud is witnessing a major rate of adoption in this region owing to its low cost, on-demand availability, and better security.

Market Players Outlook

The major companies serving the global cloud infrastructure services market include Microsoft Corp., Google LLC, Amazon Web Services Inc., IBM Corp., and Oracle Corp., among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in June 2019, IBM and Cisco, Inc. collaborated to provide a hybrid cloud for modern enterprises. Through this collaboration, both companies worked together to deliver a more secure and common Kubernetes experience across on-premises and public cloud environments.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global cloud infrastructure sfervices market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.