The Cloud IT Infrastructure Hardware Market is estimated to be valued at USD 294.4 billion in 2025 and is projected to reach USD 906.1 billion by 2035, registering a compound annual growth rate (CAGR) of 11.9% over the forecast period.
| Metric | Value |
|---|---|
| Cloud IT Infrastructure Hardware Market Estimated Value in (2025 E) | USD 294.4 billion |
| Cloud IT Infrastructure Hardware Market Forecast Value in (2035 F) | USD 906.1 billion |
| Forecast CAGR (2025 to 2035) | 11.9% |
The Cloud IT Infrastructure Hardware market is experiencing strong expansion, driven by the increasing reliance on cloud-based ecosystems across enterprises and government sectors. The rising adoption of digital transformation strategies, coupled with the growing demand for hybrid and multi-cloud architectures, is fueling investments in advanced hardware infrastructure. Cloud providers and enterprises are investing in scalable, energy-efficient, and high-performance hardware to support big data analytics, artificial intelligence, and machine learning applications.
Enhanced storage and compute capacity are critical in ensuring business continuity, disaster recovery, and real-time processing needs, particularly in sectors such as banking, e-commerce, healthcare, and manufacturing. Furthermore, advancements in next-generation processors, high-speed networking components, and energy-optimized data centers are enabling organizations to enhance performance while reducing operational costs.
The increasing focus on data sovereignty, security compliance, and sustainability initiatives is further influencing hardware adoption strategies As cloud adoption accelerates globally, driven by demand for scalability and reliability, the Cloud IT Infrastructure Hardware market is positioned for long-term growth, with strong opportunities emerging from both established enterprises and fast-growing digital-first companies.
The cloud it infrastructure hardware market is segmented by component, end-user, and geographic regions. By component, cloud it infrastructure hardware market is divided into Server, Storage Systems, and Network Devices. In terms of end-user, cloud it infrastructure hardware market is classified into Cloud Service Provider and Third Party Data Center Provider. Regionally, the cloud it infrastructure hardware industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The server component segment is projected to hold 41.2% of the market revenue in 2025, making it the leading hardware category within the cloud IT infrastructure market. This growth is being fueled by the increasing need for powerful and scalable computing capabilities to support expanding workloads in public, private, and hybrid cloud environments. Servers are fundamental to enabling virtualization, containerization, and AI-driven applications, which are now central to enterprise operations.
The adoption of high-performance servers with enhanced processing power, larger memory capacity, and optimized energy efficiency is driving demand across industries. Cloud service providers and enterprises are prioritizing modular and software-defined server architectures, which offer flexibility, automation, and streamlined resource allocation. Furthermore, the deployment of edge data centers and hyperscale facilities is contributing to higher demand for advanced server systems.
The segment’s growth is also supported by continued innovations in processor technologies and integration with advanced networking solutions As cloud-based workloads intensify, servers are expected to remain the cornerstone of infrastructure investments, consolidating their position as the largest revenue-generating component.
The cloud service provider segment is anticipated to account for 54.1% of the market revenue in 2025, establishing itself as the leading end-user category. Growth in this segment is being driven by the rapid expansion of hyperscale cloud providers and their increasing investments in building advanced global data center networks. Providers are deploying highly efficient and scalable IT infrastructure hardware to meet surging demand for cloud services from enterprises, governments, and consumers.
The segment benefits from growing adoption of digital platforms, AI, IoT, and 5G technologies, all of which require reliable and high-performance infrastructure. Cloud service providers are prioritizing hardware that supports automation, virtualization, and dynamic workload management, enabling cost efficiency and flexibility in service delivery.
Furthermore, sustainability initiatives are prompting investments in energy-efficient hardware and liquid cooling systems to optimize power consumption The continuous push for global cloud adoption, combined with escalating requirements for real-time data processing and secure service delivery, ensures that cloud service providers will remain the dominant end-user group in the market, driving consistent demand for infrastructure hardware.
Cloud IT infrastructure hardware is present in all the three cloud computing models - infrastructure as a service, platform as a service and software as a service. Companies either purchase these cloud IT infrastructure hardware or take them on rent from various cloud infrastructure vendors.
Usually when the cloud IT infrastructure is taken on rent there is a fixed subscription fee that the subscriber needs to pay to the vendor. Whereas, if the business purchases cloud IT infrastructure hardware, they usually purchase it on pay-per-use pricing model.
According to this pricing model the users need to pay only for the services consumed which is calculated on an hourly, weekly or monthly basis.
Enterprises that are technically sound, can even build their own cloud IT infrastructure hardware, rather than purchasing it or taking it on rent from a third-party vendor. This enables companies to take up more ownership of the resources that they are investing in; which is an emerging trend in the cloud IT infrastructure hardware market.
| Country | CAGR |
|---|---|
| China | 16.1% |
| India | 14.9% |
| Germany | 13.7% |
| France | 12.5% |
| UK | 11.3% |
| USA | 10.1% |
| Brazil | 8.9% |
The Cloud IT Infrastructure Hardware Market is expected to register a CAGR of 11.9% during the forecast period, exhibiting varied country level momentum. China leads with the highest CAGR of 16.1%, followed by India at 14.9%. Developed markets such as Germany, France, and the UK continue to expand steadily, while the USA is likely to grow at consistent rates. Brazil posts the lowest CAGR at 8.9%, yet still underscores a broadly positive trajectory for the global Cloud IT Infrastructure Hardware Market. In 2024, Germany held a dominant revenue in the Western Europe market and is expected to grow with a CAGR of 13.7%. The USA Cloud IT Infrastructure Hardware Market is estimated to be valued at USD 108.7 billion in 2025 and is anticipated to reach a valuation of USD 284.8 billion by 2035. Sales are projected to rise at a CAGR of 10.1% over the forecast period between 2025 and 2035. While Japan and South Korea markets are estimated to be valued at USD 15.4 billion and USD 8.9 billion respectively in 2025.
| Item | Value |
|---|---|
| Quantitative Units | USD 294.4 Billion |
| Component | Server, Storage Systems, and Network Devices |
| End-User | Cloud Service Provider and Third Party Data Center Provider |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | Oracle Corporation, IBM Corporation, Intel Corporation, Hewlett Packard Enterprise Development LP, Amazon Web Services, Inc., Cisco Systems, Inc., Dell Inc., Lenovo Group Ltd., NetApp Inc., Microsoft Corporation, Google LLC, and Salesforce, Inc. |
The global cloud it infrastructure hardware market is estimated to be valued at USD 294.4 billion in 2025.
The market size for the cloud it infrastructure hardware market is projected to reach USD 906.1 billion by 2035.
The cloud it infrastructure hardware market is expected to grow at a 11.9% CAGR between 2025 and 2035.
The key product types in cloud it infrastructure hardware market are server, storage systems and network devices.
In terms of end-user, cloud service provider segment to command 54.1% share in the cloud it infrastructure hardware market in 2025.
Explore Similar Insights
Cloud IT Infrastructure Hardware Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
Chat With
MaRIA
