The global hosting infrastructure services market is expected to hold a valuation of USD 16 billion in 2023 and rise at a high CAGR of 8.5% to top a net worth of USD 36.1 billion by the end of 2033.
Report Attributes | Details |
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Hosting Infrastructure Services Market Size (2023) | USD 16 billion |
Predicted Revenue (2033) | USD 36.1 billion |
Global Market Growth Rate (2023 to 2033) | 8.5% CAGR |
Regional Market with Highest Share | North America - 31% |
Hosting infrastructure services contribute 12% to the global cloud services market at present. Hosting services are expected to gain impetus as the need for file hosting and file sharing increases due to rapid digitization across the world.
Deployment of data centers has increased substantially and has subsequently increased the demand for data center hosting services. IaaS hosting is expected to be popular over the coming years as the use of virtual and private cloud data centers increases.
File sharing and file hosting have become crucial aspects of cloud infrastructure and as the use of cloud-based services increases these aspects are expected to become more important and hosting infrastructure service providers would have to focus on these to enhance their operational capabilities.
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In the 21st century, where almost all aspects of everyone’s lives are connected via digital threads of information that govern the world's functioning, the importance of infrastructure that enables this digital world is paramount.
As digitization paces and the demand for cloud-based applications and services increases, there is expected to be a substantial rise in data center hosting services to manage and utilize data. The demand for hosting infrastructure services rose at a CAGR of 7.5% from 2018 to 2022.
Increasing technological proliferation, rise in demand for smart devices, increasing demand from small businesses, rising preference towards cloud services, increase in adoption of BYOD (bring your own device) trend, increasing digitization, and rapid urbanization are some of the major factors driving the hosting infrastructure service demand over the forecast period. Demand for hosting infrastructure services is anticipated to rise at a high CAGR of 8.5% from 2023 to 2033.
The global hosting infrastructure services industry analysis provides detailed insights across multiple geographies such as North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa (MEA).
Accounting for a dominant market share, the North American hosting infrastructure services market is expected to have a bright outlook over the forecast period. High technological proliferation and increasing demand for smart devices are expected to drive the hosting infrastructure services market in this region. An increasing focus on data center consolidation is also expected to influence the market potential in North America.
Demand for hosting infrastructure services in Europe currently accounts for 22% of the global market landscape and is expected to rise at a progressive rate over the forecast period. Increasing adoption of cloud-based services and applications is expected to propel the demand for cloud hosting infrastructure in Europe.
Hosting infrastructure service demand from the South Asian region is expected to be high over the forecast period owing to the rising per capita income of the population in this region from emerging economies like Malaysia and India. The increasing proliferation of smartphones and other technology and rapid urbanization are expected to drive the demand in this region.
The East Asian hosting infrastructure services market currently accounts for 13% of the global industry and is expected to rise at a high CAGR through 2033.
The hosting infrastructure services market in the Middle East and Africa(MEA) region is expected to exhibit slower growth compared to other regions and currently holds a 7.9% market share of the global landscape in 2023. Hosting infrastructure service providers can focus on this region and discover the untapped potential in this region to increase their global market presence.
Data Centre Hosting Services to Have Bright Outlook in the United States
The United States is one of the most lucrative markets for technology and the well-established technological industry is one of the prime factors responsible for this. The presence of key hosting infrastructure service providers and major technological enterprises that avail their services has majorly driven the market for hosting infrastructure services in the United States. The nation is also seeing high deployment for data centres, and this is expected to influence hosting infrastructure service demand over the forecast period.
Data centre consolidation is the trend to watch out for in the United States. Other factors such as increasing adoption of smart devices and smart technologies, the rising proliferation of AI, machine learning, etc., are also expected to guide demand for hosting infrastructure services.
IaaS Cloud Hosting to Gain Immense Popularity in India
India has been making some huge strides in the technological industry and the nation has emerged as one of the most important markets for technology in recent years. The emergence of start-ups and large enterprises shifting towards cloud infrastructure is what majorly influences the demand for cloud hosting infrastructure in India.
As all over the world enterprises are adopting IaaS hosting, this trend is expected to be popular in India as well. The hosting infrastructure services providers can focus their IaaS cloud hosting offerings in India and realize the untapped potential in the nation.
Adoption of IaaS Hosting Services to Increase over the Coming Years
The hosting infrastructure services market is currently governed by the high adoption of software as a service (SaaS) but this is slated to change over the coming years.
The hosting infrastructure service providers are now focusing on diversifying other services such as IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Especially enterprises are focusing on incorporating IaaS hosting in their hybrid IT environments to ensure the efficient functioning of services.
The hosting infrastructure service vendors are also investing in improving the effectiveness and operational efficiency of these services to boost their adoption in large enterprises as well as SMBs.
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Top hosting infrastructure service providers are focusing on delivering standardized solutions and services to increase the operational efficiency of organizations and enterprises. Hosting infrastructure services vendors are also investing in the research and development of new innovative solutions to accommodate and integrate new technologies that are being developed and deployed.
Attributes | Details |
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Forecast Period | 2023 to 2033 |
Historical Data Available for | 2018 to 2022 |
Market Analysis | USD Million for Value |
Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia & Pacific; East Asia; Middle East & Africa |
Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel |
Key Market Segments Covered | Deployment Type, Service, Enterprise Type, Vertical, Cloud Service Type, Region |
Key Companies Profiled | HPE Development LP; AT&T Inc.; Level 3 Communications; CenturyLink Inc.; Microsoft Corporation; Colt Technology Services Group Limited; NetApp Inc.; Equinix Inc.; CoreSite Realty Corporation; Google Inc.; IBM Corporation; Internap Network Services Corporation; Hewlett Packard Enterprise Development LP; Rackspace Inc.; Sungard Availability Services; Zayo Group Holdings Inc. |
Customization & Pricing | Available upon Request |
The net worth of the market is expected to be USD 16 billion in 2023.
The market is calculated to expand at a CAGR of 8.5% through 2033.
The market is forecast to attain USD 36.1 billion by 2033.
Surging demand for cloud-based applications and rapid digitization.
The different deployment types are hybrid, public, and private.
Estimated Market Size in 2024 | USD 624.8 billion |
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Projected Market Value in 2034 | USD 2,686.06 billion |
Value-based CAGR (2024 to 2034) | 15.7% |
Market Estimated Size in 2023 | USD 3,570.70 million |
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Projected Market Value in 2033 | USD 22,527.80 million |
Value-based CAGR from 2023 to 2033 | 20.2% |
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