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Future of the Hosting Infrastructure Services Market: Trends, Innovations, and Key Forecasts Through 2034
Hosting Infrastructure Services
Hosting Infrastructure Services Market Size Growth Forecast: What to Expect by 2025?
The market size for hosting infrastructure services has seen a substantial growth in the past few years. It is projected to escalate from $16.28 billion in 2024 to $17.61 billion in 2025, with a compound annual growth rate (CAGR) of 8.2%. The significant expansion during the historic period is due to factors such as the growth of the internet and e-commerce, rising demand for web hosting, growth of online businesses and increasing necessities for data storage.
How Will the Hosting Infrastructure Services Market Size Evolve and Grow by 2029?
The market size for hosting infrastructure services is set to experience considerable growth in coming years, predicting to expand to $25.63 billion in 2029, with a compound annual growth rate (CAGR) of 9.8%. This projected growth over the forecast period can be linked to the escalating presence of edge computing, implementation of hybrid and multi-cloud strategies, a surge in the need for managed hosting services, and an intensified focus on cybersecurity for hosting infrastructure. Key trends to watch over the forecast period include the integration of artificial intelligence into hosting services, the shift towards containerization and microservices architecture, the emergence of eco-friendly hosting solutions for sustainability, improvement of low-latency and high-performing hosting infrastructure, and the growing application of software-defined networking (sdn) in hosting environments.
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What Drivers Are Propelling the Growth of Hosting Infrastructure Services Market Forward?
The booming e-commerce industry is anticipated to propel the expansion of the hosted infrastructure services market in the future. E-commerce involves the online trading of products and services. These hosted services aid in managing numerous server tasks related to operating an e-commerce business, such as regulating traffic, ensuring system security, and software updates. For instance, as per a study by the U.S. Census Bureau, a part of the United States Department of Commerce, retail e-commerce sales in the U.S. during the first quarter of 2023 attained nearly $277.6 billion, marking a 2.1% rise compared to the first quarter of the same year. Hence, the e-commerce industry is fuelling the growth of the hosted infrastructure services market.
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Which Emerging Trends Are Transforming the Hosting Infrastructure Services Market in 2025?
Product innovation is emerging as an influential trend in the hosted infrastructure services arena. Major companies active in this market are centering their efforts on creating innovative solutions to solidify their market standing. For instance, International Business Machines Corporation (IBM), a leading technology firm based in the U.S., unveiled IBM Hybrid Cloud Mesh in May 2023. This product was designed to help businesses regain command over their multi-cloud infrastructure. IBM Hybrid Cloud Mesh empowers contemporary businesses to manage their infrastructure across hybrid multi-cloud and disparate settings, by automating various elements, such as workflow, management, and the observability of application connectivity inside and outside public and private clouds. With this, it facilitates the deployment of hybrid and multi-cloud applications by offering a simple, secure, streamlined, and unbroken pathway for applications and services across diverse environments.
What Are the Key Segments in the Hosting Infrastructure Services Market?
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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Who Are the Key Players Shaping the Hosting Infrastructure Services Market's Competitive Landscape?
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
What Geographic Markets Are Powering Growth in the Hosting Infrastructure Services Market?
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.
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