Description
This report provides an update to our total Internet infrastructure services market projection for the period 2025-30. The sector continues to see shifting currents brought on by macroeconomic uncertainty and geopolitical instability. But there has been a tangible shift in the environment as demand signals are healthy and exceeding supply, organisations are spending again and there is rising interest and uptake in AI services and the raw infrastructure that supports it. The Internet infrastructure sector is home to a bevy of moving parts, and the mix can be volatile, with different currents and dynamics in motion simultaneously. The Internet infrastructure services market currently lies at such a crossroads.
Back in 2022, coming out of the pandemic, there was a period of sluggish growth and our projections came down. Moving into 2024, the sector saw stabilisation emerge as wider conditions improved, and momentum has progressed to the point where there are now signs that growth acceleration may start to kick in. Interest and demand for AI technologies has ratcheted up demand for GPU-based infrastructure, and almost overnight, seeded a new ecosystem of infrastructure providers that are delivering GPU cloud or neocloud infrastructure services. Neoclouds are at the forefront of the sector’s growth, but it is important not to lose sight of the fact that hyperscale is still what is pushing the needle. Hyperscale cloud is a natural delivery vehicle for AI and GPU-based infrastructure and it is showing in the numbers. In fact, the growth is healthy and widespread enough that the Chinese clouds have rapidly recovered after years of sluggish growth.
The sector has worked through a period of recalibration and stabilisation, but is now on the cusp of another growth wave. The outsourced infrastructure services sector is projected to be worth $536.7b in 2025 and grow at a five-year CAGR of 26.9% through 2030. Last year, we refreshed our taxonomy to include new granular splits across both the managed infrastructure and colocation categories, while also adding a few more segments to account for the emergence of AI and GPU-oriented cloud infrastructure. All these new splits are reflected in the numbers presented in this report. Outsourced infrastructure, managed by third party service providers and housed on hyperscale, neocloud, webscale and service provider platforms, continues to solidify itself as the dominant computing model, and the IT infrastructure TAM is set to get closer to two trillion dollars in value at the end of this five-year projection.
