Hosting Infrastructure Services Market Report 2025

The hosting infrastructure services market size has grown strongly in recent years. It will grow from $16.28 billion in 2024 to $17.61 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period can be attributed to growth of the internet and e-commerce, increased demand for web hosting, expansion of online businesses, rising data storage needs.

The hosting infrastructure services market size is expected to see strong growth in the next few years. It will grow to $25.63 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to proliferation of edge computing, adoption of hybrid and multi-cloud strategies, increased demand for managed hosting services, rising focus on cybersecurity for hosting infrastructure. Major trends in the forecast period include integration of artificial intelligence in hosting services, shift towards containerization and microservices architecture, rise of green hosting solutions for sustainability, development of low-latency and high-performance hosting infrastructure, increasing use of software-defined networking (sdn) in hosting environments.

The growth of the hosting infrastructure services market is anticipated to be propelled by the surging E-commerce sector. E-commerce, denoting the online trade of goods and services, relies heavily on hosted infrastructure services to manage various server-related tasks essential for the smooth operation of an e-commerce business, including traffic control, system security, and software updates. For example, in August 2023, the U.S. Census Bureau, a division of the United States Department of Commerce, published a report indicating that retail e-commerce sales in the United States for the first quarter of 2023 amounted to approximately $277.6 billion. This represented a 2.1% growth compared to the first quarter of the preceding year. The data underscores the ongoing momentum and expansion of the retail e-commerce sector, highlighting its continued significance in the marketplace and the growing trend of online consumer transactions. Thus, the hosting infrastructure services market is experiencing growth driven by the flourishing E-commerce sector.

The growth of the hosted infrastructure services market is further expected to be boosted by the ongoing digital transformation. Digital transformation involves the strategic integration of digital technologies into various organizational aspects. Hosted infrastructure services play a foundational role in supporting organizations in successful digital transformation initiatives. According to GOV.UK in October 2022, the UK has achieved significant progress in digital infrastructure, with a notable increase in superfast broadband coverage from 58% in 2011 to over 97%. Additionally, gigabit-capable broadband accessibility has surged to 67% of UK premises, reflecting substantial advancements in enhancing nationwide digital connectivity. Hence, the hosted infrastructure services market is thriving due to the impact of digital transformation.

A key trend gaining prominence in the hosted infrastructure services market is product innovation, with major companies focusing on developing inventive solutions to maintain their market position. For example, in May 2023, International Business Machines Corporation (IBM), a US-based technology corporation, launched IBM Hybrid Cloud Mesh. This innovation assists enterprises in regaining control of their multi-cloud infrastructure by automating the workflow, management, and observability of application connectivity across various public and private clouds. IBM Hybrid Cloud Mesh provides a secure, scalable, and seamless on-ramp for applications and services across hybrid multi-cloud and heterogeneous environments.

Major companies in the hosted infrastructure services market are also prioritizing collaborations to sustain their market standing. Collaboration involves working together or cooperating to create or achieve something. In March 2023, Amazon Web Services, Inc., a US-based provider of on-demand cloud computing platforms, collaborated with Nvidia, a US-based multinational technology company. This collaboration aims to develop advanced AI infrastructure with next-gen Amazon EC2 P5 instances powered by NVIDIA H100 GPUs. These instances deliver up to 20 exaFLOPS of compute performance, providing on-demand access to supercomputer-class AI performance and scalability for enterprises and startups.

In April 2024, Colohouse, a technology solutions and services provider based in the US, acquired Hivelocity for an undisclosed sum. This acquisition is intended to bolster Colohouse's infrastructure offerings by enhancing its capabilities in delivering a wider array of cloud, colocation, and managed services. This expansion will enable Colohouse to provide customers with more robust and scalable solutions. Hivelocity is also a US-based company specializing in infrastructure solutions.

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.

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. The countries covered in the hosting infrastructure services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Hosting infrastructure service refers to a type of service where a server is located off-site in a data center, exclusively dedicated to a specific company. This service is employed to host secure, scalable, and fully customizable high-performance web applications tailored to meet the specific content delivery needs of users.

The primary offerings within hosting infrastructure services include solutions and services. Hosting infrastructure solutions constitute a set of concepts designed to support an organization in achieving its goals, providing enhanced security, cost-effectiveness, and operational efficiency. These solutions are deployed through both cloud and on-premises models, catering to small enterprises, medium enterprises, and large enterprises. They serve diverse end-users, including energy and utilities, defense and government, manufacturing, transportation and logistics, telecom, information technology (IT), information technology-enabled services (ITES), and others.

The hosting infrastructure services market research report is one of a series of new reports that provides hosting infrastructure services market statistics, including hosting infrastructure services industry global market size, regional shares, competitors with a hosting infrastructure services market share, detailed hosting infrastructure services market segments, market trends and opportunities, and any further data you may need to thrive in the hosting infrastructure services industry. This hosting infrastructure services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hosting infrastructure services market includes revenues earned by entities by the platform as a service (PaaS), infrastructure as a service (IaaS), software as a service (SaaS), and related services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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