Public Cloud Infrastructure Service Market Size & Analysis for North America, Europe, APAC, South America, Middle East and Africa - US, UK, France, Germany, China – 2025-2029

Public Cloud Infrastructure Service Market Size 2025-2029

The public cloud infrastructure service market size is forecast to increase by USD 350-550 billion at a CAGR of 10%-13% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. The market is experiencing robust growth, driven by several key trends. One of the main drivers is the increasing adoption of cloud infrastructure providers by businesses of all sizes, as companies move their workloads to the public cloud services to benefit from enhanced scalability, cost-effectiveness, and innovation. Another key trend is the shift toward hybrid cloud adoption and multi-cloud strategies, as organizations look to optimize workloads across multiple environments. The growing reliance on cloud computing solutions for applications like AI, machine learning, and data analytics further boosts market expansion.

However, challenges such as cloud security features and regulatory complexities could impact growth. To remain competitive, companies must focus on innovation, improving security measures, and offering customized solutions through infrastructure as a service, platform as a service, and software as a service to meet evolving customer needs. Additionally, a cloud vendor comparison is becoming increasingly important as businesses evaluate which providers align with their needs. As enterprise cloud strategies evolve, the market is expected to grow steadily, driven by these trends and challenges.

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How is this Market Segmented?

The market research report provides comprehensive data, with forecasts and estimates in “USD billion” for the period 2025-2029, as well as historical data for the following segments:

Service Type

• Computing
• Storage
• Networking
• Disaster Recovery
• Others

Deployment Model

• Public Cloud
• Private Cloud
• Hybrid Cloud

Geography

• North America
  • Canada
  • US
• APAC
  • China
  • India
  • Japan
  • South Korea
• Europe
  • Germany
  • UK
  • France
• South America
  • Brazil
• Middle East and Africa

Regional Analysis

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American region is a significant player in the cloud infrastructure market, with the US leading the adoption of cloud services due to its strong IT infrastructure and early cloud technology adoption. The increasing digital transformation across industries like banking, retail, and healthcare in the region fuels demand for scalable, efficient, and secure cloud infrastructure services.

The APAC region, led by China and India, is expected to witness rapid market growth due to the expanding IT sector, increasing internet penetration, and government initiatives to support cloud adoption. The European market is also poised to grow with the increasing focus on data security and compliance, which drives the adoption of hybrid cloud solutions.

Market Dynamics

Our public cloud infrastructure service researchers analyzed the data with 2024 as the base year, along with key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers?

The primary driver of the market is the growing demand for scalable and cost-effective infrastructure solutions. Organizations across industries are increasingly adopting cloud infrastructure to enable digital transformation, streamline operations, and improve business continuity. The adoption of multi-cloud and hybrid cloud strategies is also gaining momentum, as businesses aim to optimize workload distribution across multiple cloud providers to reduce dependency on a single vendor and improve resilience. The proliferation of big data, AI, and machine learning applications also contributes to the rising demand for cloud infrastructure services. Additionally, the rise in mobile device usage and the expanding Internet of Things (IoT) ecosystem further drives the need for cloud services to support real-time data processing and analytics.

What are the market trends shaping the Public Cloud Infrastructure Service Market?

A key trend shaping the market is the increasing use of artificial intelligence (AI) and machine learning (ML) to optimize cloud infrastructure management. Companies are leveraging AI-powered tools for resource optimization, predictive maintenance, and enhanced security. Another trend is the rise of edge computing, where data processing happens closer to the source of data generation, reducing latency and improving performance. This is particularly important in industries like manufacturing, automotive, and healthcare, where real-time data processing is critical. Additionally, businesses are increasingly adopting serverless computing models, where they can execute code without managing servers, further driving demand for efficient cloud infrastructure services.

What challenges does the Public Cloud Infrastructure Service Market face?

One of the key challenges affecting the growth of the market is data security and privacy concerns. With increasing amounts of sensitive data being stored in the cloud, organizations face the challenge of securing their data against cyber threats and ensuring compliance with regulatory standards, such as GDPR. Another challenge is the complexity of managing multi-cloud and hybrid cloud environments, as organizations struggle to ensure smooth integration, interoperability, and consistency across different platforms. Additionally, organizations must also address concerns related to vendor lock-in, where they become overly dependent on a single cloud service provider, limiting their flexibility. The rising costs of cloud services, particularly for high-performance cloud computing and storage, could also impact adoption.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, and technological innovations, to enhance their presence in the market. This market research report includes detailed analyses of the competitive landscape of the market and information on close to 20 key companies, including:

• Amazon Web Services (AWS)
• Microsoft Azure
• Google Cloud Platform (GCP)
• IBM Cloud
• Oracle Cloud
• Alibaba Cloud
• Salesforce
• DigitalOcean
• Tencent Cloud
• VMware

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Scope

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How the Benefits of a Technavio Market Research Report Can Empower Your Business

Technavio’s reports provide a range of market insights, including:

• A detailed analysis of the market, featuring market size, growth rate, segmentation, and regional performance
• In-depth analysis of the drivers, challenges, and other dynamics that will impact the growth of the market
• Predictions about upcoming trends and changes in consumer behavior
• Detailed information on key market players, including market positioning, product offerings, and more