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Hosting Infrastructure Services Market Forecast 2025-2034: Analysing Major Trends, Opportunities, and Growth Drivers
Hosting Infrastructure Services Market Share
The hosted infrastructure services market is anticipated to grow due to the rapidly expanding E-commerce sector. In the realm of buying and selling goods and services online, hosted infrastructure services play a pivotal role. They manage numerous server tasks integral to the functioning of an e-commerce enterprise, including traffic control, system security, and software updates. As of August 2023, based on a study by the U.S. Census Bureau, a branch of the United States Department of Commerce, the retail e-commerce sales in the United States for the first quarter of 2023 amassed about $277.6 billion. This represents a 2.1% increase from the same period in 2023. As a result, the e-Commerce industry is propelling the expansion of the hosted infrastructure services market.
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What is the future CAGR of the hosting infrastructure services market, and how will it impact industry expansion?
The market size for hosting infrastructure services has been exhibiting substantial growth over the recent years. The market, which is predicted to surge from $16.28 billion in 2024 to $17.61 billion in 2025, is expected to witness a compound annual growth rate (CAGR) of 8.2%. Factors such as internet and e-commerce development, soaring demand for web-hosting, enlargement of online businesses, and escalation of data storage requirements have all contributed to the notable growth in the historic period.
There is a projection for a robust increase in the market size of hosting infrastructure services in the upcoming years. It is forecasted to inflate to $25.63 billion by 2029 with a 9.8% Compound Annual Growth Rate (CAGR). This surge in the future years can be credited to the escalation of edge computing, the implementation of hybrid and multi-cloud tactics, the amplified need for managed hosting services and the amplified concentration on cybersecurity for hosting infrastructure. Key trends during this predicted period comprise the incorporation of artificial intelligence into hosting services, the movement towards containerization and microservices structure, the emergence of green hosting solutions for sustainability, and the advancement of low-latency and high-performance hosting infrastructure. There's also an escalating utilization of software-defined networking (SDN) in hosting environments.
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What are the most significant trends transforming the hosting infrastructure services market today?
In the hosted infrastructure services market, product innovation is becoming a central trend. Companies leading the market are placing emphasis on the creation of inventive solutions to maintain their market stance. For example, IBM (International Business Machines Corporation), a technology corporation based in the US, introduced the IBM Hybrid Cloud Mesh in May 2023 to help businesses gain control over their multi-cloud infrastructure. This tool allows contemporary companies to manage their infrastructure across a hybrid multi-cloud and mixed environments by automating application connectivity's workflow, management, and observability in both public and private clouds. The IBM Hybrid Cloud Mesh not only provides a simple and secure route for apps and services across diverse environments, but also scales up seamlessly, encouraging hybrid and multi-cloud application deployment.
Which key market segments comprise the hosting infrastructure services market and drive its revenue growth?
The hosting infrastructure services market covered in this report is segmented -
1) By Offering: Solution, Services
2) By Deployment Mode: Cloud, On Premises
3) By Enterprises: Small Enterprises And Medium Enterprises, Large Enterprises
4) By End User: Energy And Utilities, Defense And Government, Manufacturing, Transportation And Logistics, Telecom, Information Technology (IT) And Information Technology Enabled Services (ITES), Other End Users
Subsegments:
1) By Solution: Infrastructure As A Service (IaaS), Platform As A Service (PaaS), Software As A Service (SaaS)
2) By Services: Managed Hosting Services, Colocation Services, Backup And Disaster Recovery Services, Security Services
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What regions are at the forefront of hosting infrastructure services market expansion?
North America was the largest region in the hosting infrastructure services market in 2024. The regions covered in the hosting infrastructure services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the leading players fueling growth in the hosting infrastructure services market?
Major companies operating in the hosting infrastructure services market include Google LLC, Microsoft Corporation, AT&T Inc., Dell Inc., Amazon Web Services Inc., The International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Hewlett Packard Enterprise Development LP, Equinix Inc., NetApp Inc., GoDaddy Operating Company LLC, Rackspace Technology Inc., Aruba Networks, Nutanix Inc., IONOS Group SE, DigitalOcean Holdings Inc., HostGator, Namecheap Inc, Bluehost Inc., HostMonster, Liquid Web, Hetzner Online GmbH , InMotion Hosting Inc., Linode LLC, GreenGeeks, Scaleway, FastComet Inc., A2 Hosting Inc., Vultr
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What Is Covered In The Hosting Infrastructure Services Global Market Report?
• Market Size Forecast: Examine the hosting infrastructure services market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the hosting infrastructure services market for a structured understanding.
• Key Players Overview: Analyze major players in the hosting infrastructure services market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the hosting infrastructure services market.
• Segment Contributions: Evaluate how different segments drive overall growth in the hosting infrastructure services market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the hosting infrastructure services market.
• Industry Challenges: Identify potential risks and obstacles affecting the hosting infrastructure services market.
• Competitive Landscape: Review strategic developments in the hosting infrastructure services market, including expansions, agreements, and new product launches.
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