Hosting Infrastructure Services Market

‘Pay-as-you-go Pricing’ Emerging as a Key Strategy of Hosting Infrastructure Service Providers

Global Hosting Infrastructure Services Market – Key Research Findings

  1. Global hosting infrastructure services market value in 2019 – ~US$ 13 Bn. 
  2. The hosting infrastructure services market is estimated to generate a CAGR of ~8% over 2019-2029. 
  3. North America, Europe, and East Asia hosting infrastructure services markets are projected to remain prominent regional markets for hosting infrastructure services. 
  4. The ever-rising procurement of automation-enabling solutions, such as software, connected IoT devices, and continuous launches of new ICT solutions & services drives the hosting infrastructure services market at a global level. 
  5. The increasing number of Internet users is generating heavy demand for efficient hosting infrastructure services in the global marketplace. 
  6. The hosting infrastructure services market in South Asia is estimated to hold the highest growth potential among all the regional markets.
    • The hosting infrastructure services market in South Asian nations, such as India and Malaysia, is recording significant Internet penetration, along with heavy demand for smartphones and other smart mobile devices. The increasing per capita income and GDP, together with the high demand for efficient hosting infrastructure services, is estimated to drive the growth of the South Asian hosting infrastructure services market during the forecast period. 

Top Factors Shaping the Hosting Infrastructure Services Market

  1. Strengthening distribution channel and enhancing market presence

    To gain a competitive advantage in the hosting infrastructure services marketplace, companies are relying on stronger sales and distribution channels, such as the retailers of hosting infrastructure services and multi-brand distributors. This improves the availability of their products in the global hosting infrastructure services market, boosting the market revenues. 

  2. Increasing penetration of smartphones and other smart mobile devices

    There has been noteworthy growth in the global sales of smartphones and other smart mobile devices since the past few years, which has bolstered the the demand for hosting infrastructure services. Moreover, the spectacularly rising adoption of BYOD (Bring Your Own Device) policy by organizations is being touted as an important factor pushing the demand for hosting infrastructure services. 

  3. Demand from SMBs set to outpace that from large enterprises

    Although 50% of the demand for hosting infrastructure services is raised by large enterprises, currently, it is highly possible that the demand from small- and medium-sized businesses (SMBs) will outpace that from large companies in the next couple of years.

    A dramatic rise in the number of SMBs and start-ups, increasing shift towards cloud hosting infrastructure, and the growing preference for outsourcing, are collectively offering a strong impetus to the hosting infrastructure services market. 

Hosting Infrastructure Services Market Structure Analysis

  1. Some of the top market competitors in the global hosting infrastructure services market include HPE Development LP; AT&T, Inc.; Level 3 Communications; CenturyLink, Inc.; Microsoft Corporation; Colt Technology Services Group Limited; NetApp, Inc.; Equinix Inc.; CoreSite Realty Corporation; and NTT Communications Corporation, among other vendors hosting infrastructure services and solutions. 
  2. While most of the key players are focused on maintaining a strong market presence in the North American, European, and South Asian hosting infrastructure services markets, the report underscores that technology assessment will be an important developmental strategy for companies. 
  3. Technology assessment and strategic product launches will be important developmental strategies for hosting infrastructure services and solution providers. Most key competitors are striving to maintain their strong market presence in the European, South Asia, and North American hosting infrastructure services markets.

Hosting Infrastructure Services: Computing the Future of Cloud Infrastructure

With companies finding new ways to process and organize data, cloud is becoming one of their integral business components. The ubiquity of cloud has grown in tandem with the rapid adoption of hosting infrastructure services. Enterprises typically prefer outsourcing of hosting infrastructure services to streamline their transformation into a cloud-first, resilient, and ready-for-change organization.

Technological advancement has brought more focus on services and solutions that enable enterprises to minimize their operating costs while improving business functionalities. However, concerns do remain about the security of these services, especially for industry verticals which are migrating their data and systems to multiple cloud platforms.

Big Gains in Small and Medium-sized Enterprises

Small and mid-sized enterprises have lagged larger enterprises in terms of financing, production capabilities, and exploiting new technologies. However, in recent times, several government initiatives to improve productivity and technology base of SMEs have been revolutionizing the existing scenario.

As a sizeable number of SMEs are already embracing a shift from on-premise to cloud-based business model for enhanced global reach, cost benefit, agility, and scalability, it is highly likely that opportunities will continue to spring up for cloud hosting infrastructure service providers. Recognizing an increasing adoption of cloud-based services, market stakeholders are targeting lucrative opportunities in these enterprises. Focus has also been placed towards offering customized services and solutions for specific platforms.

Tracking End Users’ Evolving Requirements as Market Matures

The future of hosting infrastructure services landscape is convergence – convergence with increasingly growing hybrid IT environments; convergence with IaaS, and convergence with the overall objectives of end users. As flexibility and optimization remain the key unmet need of businesses, vendors are focusing their efforts on offering services which are less rigid and more personalized in nature.

While the U.S. and EU5 offer greater opportunities due to the sheer scale of digital transformation, market consolidation in Asia Pacific will remain the key to gaining a distinct competitive edge.

The Broader Perspective

The future of hosting infrastructure services landscape is convergence – convergence with increasingly growing hybrid IT environments; convergence with IaaS, and convergence with the overall objectives of end users. As flexibility and optimization remain the key unmet need of businesses, vendors are focusing their efforts on offering services which are less rigid and more personalized in nature.

While the U.S. and EU5 offer greater opportunities due to the sheer scale of digital transformation, market consolidation in Asia Pacific will remain the key to gaining a distinct competitive edge.

How the Growth Will Unfold

Considering the rapidly evolving nature of services being offered, market players are directing their investment towards R&D activities and new-age skills to stay relevant and ahead of the pack. Acquiring startups and local players are also likely to give the added advantage of gaining new customers.

As adoption of cloud has been growing at a spectacular rate, it has been strongly complementing the advancements in cloud security. A heap of opportunities is likely to be generated by cloud service providers, in terms of their cost effectiveness. The growth of market will be prominently assisted by the increasing number of SMEs, and a majority of opportunities will remain concentrated within developing regions.

Key Segment

By Deployment

  • Optical Hosting Infrastructure Services Deployments
  • Non-optical Hosting Infrastructure Services Deployments

By Service

  • Hardware
  • Software
  • Services

By Enterprise Size

  • SMEs
  • Large Enterprises

By Vertical

  • Healthcare and Life Science
  • Energy and Utilities
  • Retail and Consumer Goods
  • IT and Telecommunication
  • BFSI
  • Government and Public Sector
  • Manufacturing
  • Media and Entertainment
  • Others

By Cloud service type

  • IaaS
  • PaaS
  • SaaS

By Region

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East and Africa

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Hosting Infrastructure Services Market