Hosting Infrastructure Services Market Overview
Hosting Infrastructure Services Market Size was valued at USD 14.9 billion in 2022. The hosting infrastructure services market is projected to grow from USD 16.2 billion in 2023 to USD 31.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2023 - 2032). Major market drivers fueling the growth of the worldwide hosting infrastructure services market include an increase in demand for low-cost IT infrastructure, faster data access, and an increase in the number of small and medium-sized organisations.
Figure1: Hosting Infrastructure Services Market, 2018 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Hosting Infrastructure Services Market Trends
Demand for more affordable IT infrastructure and easier access to data will increase, driving market growth
Businesses all around the world are focusing on developing mobile workforces, where employees may access data from remote locations through internet services, necessitating virtual sets of IT offerings including servers, storage, networks, and others. Due to widespread IT infrastructure installation, infrastructure services provide faster data access regardless of the location of the data centre. Infrastructure services also have a cheap investment cost because they do not require an on-site data centre, extra services, or maintenance expenses. As part of their integrated cloud service offering, managed service providers like Amazon Web Services, Inc., Microsoft Corporation, and IBM Corporation offer constantly accessible cloud service all year long. The end users regard hosting infrastructure services to be a substantial cost saving solution where a client pay only for what they use thanks to the most responsive scalability feature of shared cloud servers. Furthermore, end users save money by not having to pay the setup fees associated with setting up individual servers. The growth of the market CAGR is anticipated to be significantly influenced by this during the projection period.
Furthermore, small and medium-sized businesses (SMEs) are multiplying quickly as a result of better funding and investments. Small and medium-sized businesses are being supported by governments worldwide through growth opportunities and company expansion policies. For instance, the G-20 nations are placing a lot of emphasis on expanding small and medium-sized business possibilities since they aid in the development of the national economy and the creation of new jobs. The G-20 nations are encouraging trade and investment opportunities for small and medium-sized firms as a result. For instance, the Start-up India programme was introduced by the Indian government to increase the number of new businesses in the nation. Thus, in the years to come, the demand for domain names and hosting infrastructure services will be driven by the rising number of SMEs. Additionally, SMEs are concentrating on their online presence and activities due to the growing competition and challenges. These companies are utilizing various online expansion techniques to broaden their consumer base and improve customer experiences. Having a domain name and website is crucial for improving internet presence. Because of this, the demand for hosting infrastructure services is projected to increase as small and medium-sized organisations proliferate. Thus, driving the hosting infrastructure services market revenue.
Hosting Infrastructure Services Market Segment Insights
Hosting Infrastructure Services Offering Insights
The Hosting Infrastructure Services Market segmentation, based on offering includes Solution and Services. The services segment dominated the market. The increasing adoption of software as a service (SaaS), which now dominates the market for hosting infrastructure services, is expected to alter over the next several years. The providers of hosting infrastructure services are currently concentrating on diversifying additional offerings like PaaS (Platform as a Service) and laaS (Infrastructure as a Service). Businesses in particular are concentrating on integrating laas hosting in their hybrid IT infrastructures to guarantee the effective operation of services.
Hosting Infrastructure Services Deployment Model Insights
The Hosting Infrastructure Services Market segmentation, based on deployment model, includes Cloud and On premises. The cloud category generated the most income. The increase in global data volumes is one of the main drivers of the market for cloud host infrastructure services. Customers' increased use of cloud-based technologies to enhance data security, integrity, and service delivery, as well as rising internet usage and smartphone adoption rates globally, all contribute to the market's expansion.
Figure 2: Hosting Infrastructure Services Market, by Deployment Model, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Hosting Infrastructure Services End User Insights
The Hosting Infrastructure Services Market segmentation, based on end user includes Energy and Utilities, Defense and Government, Manufacturing, Transportation and Logistics, Telecom, IT and ITeS and Others. The energy and utilities segment dominated the market. There is a significant shift towards automated systems in the energy and utilities sector, replacing outdated systems that depend on human interaction. Additionally, the sector's increased use of hosting infrastructure services is driven by the growth in demand for web applications. The energy and utilities sector is experiencing a boom in demand for networking infrastructure, which in turn stimulates demand for hosting infrastructure services.
Hosting Infrastructure Services Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American hosting infrastructure services market area will dominate this market. The infrastructure in North America is developed enough to support the adoption of hosting infrastructure services. Leading vendors also prioritize the creation of unique solutions, strategic partnerships, and regional growth to increase their market position globally. Faster network accessibility and rising need for low-cost cloud infrastructure development are the main drivers propelling the North American market.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: HOSTING INFRASTRUCTURE SERVICES MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe hosting infrastructure services market accounts for the second-largest market share due to the huge market prospects for hosting infrastructure services across many industries, including the government sector. The need for hosting infrastructure services is rising as data centre consolidation is becoming more and more of a focus. The majority of firms are utilizing cloud-based services, which raises the demand for safe servers and expands the market for hosting infrastructure services. Further, the German hosting infrastructure services market held the largest market share, and the UK hosting infrastructure services market was the fastest growing market in the European region
The Asia-Pacific Hosting infrastructure services Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the development in the use of high-speed internet connections, particularly 4G connections, a big population, increased competition among telecom and IT service providers. The need for hosting infrastructure services in the region is rising as smartphone use and internet usage increase in developing nations like China and India. Moreover, China’s hosting infrastructure services market held the largest market share, and the Indian hosting infrastructure services market was the fastest growing market in the Asia-Pacific region.
Hosting 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 hosting infrastructure services market, grow even more. Market participants are also undertaking a variety of 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. To expand and survive in a more competitive and rising market climate, hosting infrastructure services industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global hosting infrastructure services industry to benefit clients and increase the market sector. In recent years, the hosting infrastructure services industry has offered some of the most significant advantages to medicine. Major players in the hosting infrastructure services market attempting to increase market demand by investing in research and development operations include AT&T Inc., International Business Machines Corporation, Microsoft Corporation, HPE, Google, NetApp, Inc., Equinix Inc., GoDaddy Operating Company, LLC, CoreSite, and Rackspace Inc.
A worldwide corporation, IBM Corporation produces and markets software, middleware, and computer hardware in addition to offering hosting and IT consulting services. The five business segments that make up IBM Corporation's operations are gaming, media & entertainment, government, healthcare, retail, and telecommunications. The company provides a range of services in the market for hosting infrastructure services, including web hosting for small and medium-sized organisations, cloud hosting, infrastructure management, colocation hosting services, utility hosting services, and remote infrastructure management.
Microsoft Corp creates, licenses, and maintains software-related goods, services, and hardware. The company provides a wide selection of operating systems, cross-device productivity apps, server applications, software development tools, business solution programmes, video games, desktop and server administration tools, and training and certification services. Additionally, it creates, produces, and markets hardware items like PCs, tablets, gaming consoles, and other sophisticated gadgets. The business offers a wide range of services, such as consulting, cloud-based solutions, and solution support.
Key Companies in the hosting infrastructure services market include
- AT&T Inc.
- International Business Machines Corporation
- Microsoft Corporation
- HPE
- Google
- NetApp, Inc.
- Equinix Inc.
- GoDaddy Operating Company, LLC
- CoreSite
- Rackspace Inc.
Hosting Infrastructure Services Industry Developments
December 2021 To hasten Brunei's digital transformation, Unified National Networks Sdn Bhd (UNN) has announced the launch of a new cloud-hosting IaaS. Brunei will be one step closer to attaining its Smart Nation objectives with this new programme.
September 2021 In order to increase operational speed and agility for clients and employees, Wells Fargo & Company unveiled its new digital infrastructure plan. This new method would include both third-party data centers and a multi-cloud architecture.
Hosting Infrastructure Services Market Segmentation
Hosting Infrastructure Services Offering Outlook (USD Billion, 2018-2032)
Hosting Infrastructure Services Deployment Model Outlook (USD Billion, 2018-2032)
Hosting Infrastructure Services End User Outlook (USD Billion, 2018-2032)
- Energy and Utilities
- Defense and Government
- Manufacturing
- Transportation and Logistics
- Telecom
- IT and ITeS
- Others
Hosting Infrastructure Services Regional Outlook (USD Billion, 2018-2032)
-
North America
-
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
Report Attribute/Metric |
Details |
Market Size 2022 |
USD 14.9 billion |
Market Size 2023 |
USD 16.2 billion |
Market Size 2032 |
USD 31.8 billion |
Compound Annual Growth Rate (CAGR) |
8.80% (2023-2032) |
Base Year |
2022 |
Market Forecast Period |
2023-2032 |
Historical Data |
2018- 2022 |
Market Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Offering, Deployment Model, End User, and Region |
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
Key Companies Profiled |
AT&T Inc., International Business Machines Corporation, Microsoft Corporation, HPE, Google, NetApp, Inc., Equinix Inc., GoDaddy Operating Company, LLC, CoreSite, Rackspace Inc. |
Key Market Opportunities |
Server virtualization and infrastructure as a service solutions are becoming more and more popular |
Key Market Dynamics |
More and more innovative IT business solutions Adoption of cutting-edge services and software |
Hosting Infrastructure Services Market Highlights:
Frequently Asked Questions (FAQ) :
The Hosting Infrastructure Services Market size was valued at USD 14.9 Billion in 2022.
The global market is projected to grow at a CAGR of 8.80% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are AT&T Inc., International Business Machines Corporation, Microsoft Corporation, HPE, Google, NetApp, Inc., Equinix Inc., GoDaddy Operating Company, LLC, CoreSite, Rackspace Inc..
The services category dominated the market in 2022.
The cloud category had the largest share in the global market.