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Global Hosting Infrastructure Services Market Growth Accelerates: Strategic Forecast Predicts $25.21 Billion by 2029
Hosting Infrastructure Services
What Will the Hosting Infrastructure Services Industry Market Size Be by 2025?
The market size for hosting infrastructure services has seen considerable expansion in the past few years. The market is projected to rise from $16.28 billion in 2024 to $17.5 billion in 2025, showing a compound annual growth rate (CAGR) of 7.5%. This growth during the historical period is due to the expansion of the internet and e-commerce, escalating demand for web hosting, the proliferation of online businesses, and an increase in data storage requirements.
What's the Long-Term Growth Forecast for the Hosting Infrastructure Services Market Size Through 2029?
The market size for hosting infrastructure services is predicted to undergo substantial growth in the upcoming years, escalating to $25.21 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 9.6%. The anticipated growth during this forecast period is mainly due to the surge in edge computing, the implementation of hybrid and multi-cloud strategies, and the heightened demand for managed hosting services. Additionally, there is an increased focus on cybersecurity for hosting infrastructure. Notable trends expected during the forecast period are the incorporation of artificial intelligence in hosting services, a shift towards containerization, and microservices architecture. Other developments include the rise of eco-friendly hosting solutions, construction of low-latidity and high-performance hosting infrastructure, and a growing utilization of software-defined networking (sdn) in hosting situations.
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What Are the Key Growth Drivers Fueling the Hosting Infrastructure Services Market Expansion?
The exponential rise in the E-commerce sector is set to stimulate the expansion of the hosted infrastructure services market in the future. The term E-commerce pertains to online commerce involving the exchange of goods and services. Hosted infrastructure services manage myriad server tasks involved in running an e-commerce business. Such tasks include traffic control, system security, and software updates. For example, data published by the U.S. Census Bureau, a branch of the United States Department of Commerce, in August 2023, indicated that during the initial quarter of 2023, retail e-commerce sales in the USA reached around $277.6 billion. This translates to a growth rate of 2.1%, compared to the same period in 2023. Hence, the e-commerce field is propelling the expansion of the hosting infrastructure services market.
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What Are the Key Trends Driving Hosting Infrastructure Services Market Growth?
Product innovation has emerged as a significant trend in the hosted infrastructure services market, which is seeing a surge in popularity. To maintain their market presence, leading companies in the sector are prioritizing the creation of novel solutions. An example of such innovation occurred in May 2023 when the American technology corporation, International Business Machines Corporation, introduced the IBM Hybrid Cloud Mesh to help businesses manage their multi-cloud infrastructure more efficiently. This tool allows modern organizations to manage their infrastructure across a combination of multi-cloud and heterogeneous environments by automating application connectivity's workflow, management, and observability in both public and private clouds. IBM Hybrid Cloud Mesh facilitates the deployment of hybrid and multi-cloud applications by providing an accessible, secure, scalable, and trouble-free entry point for apps and services across diverse environments.
How Is the Hosting Infrastructure Services Market Segmented?
The hosting infrastructure servicesmarket 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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Which Companies Are Leading the Charge in Hosting Infrastructure Services Market Innovation?
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
Which Regions Are Leading the Global Hosting Infrastructure Services Market in Revenue?
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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