Digital Infrastructure Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[225+ Pages Report] According to the report published by Facts and Factors, the global digital infrastructure market size was worth around USD 120.14 billion in 2022 and is predicted to grow to around USD 655 billion by 2030 with a compound annual growth rate (CAGR) of roughly 23.61% between 2023 and 2030. The report analyzes the global digital infrastructure market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the digital infrastructure market.

Market Overview

The global industry revolves around the underlying networking and technological systems that are required for communications and services conducted with the help of digital applied science. It is inclusive of all the software, hardware, and networking infrastructure that work together to create a cohesive eco-system allowing seamless adoption of technological systems. The networking devices include data centers, servers, telecommunication networks, and cloud computing devices.

The global market is gaining tremendous growth opportunities as individuals and businesses, including small, medium, and large, rely heavily on digital systems for everyday functions. Currently, massive revenue is generated in new-age businesses like e-commerce, social media, cloud computing, and others where the core of functionality depends on the access and quality of digital systems.

Key Insights

• As per the analysis shared by our research analyst, the global digital infrastructure market is estimated to grow annually at a CAGR of around 23.61% over the forecast period (2022-2030)
• In terms of revenue, the global digital infrastructure market size was valued at around USD 120.14 billion in 2022 and is projected to reach USD 655 billion, by 2030.
• The market is projected to grow at a significant rate due to the growing demand for high-grade digital services
• Based on type segmentation, the solution was predicted to show maximum market share in the year 2022
• Based on deployment type segmentation, the cloud was the leading type in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Growth Drivers

• Growing demand for high-grade digital services to propel market growth

The global digital infrastructure market is projected to grow owing to the increasing demand for digital services. Individuals and businesses have become extremely dependent on services like online entertainment, e-commerce, and cloud computing to carry out basic everyday functions. With the growth in digitization on a personal level, the business segment has managed to grow even further with companies across sizes becoming heavily reliant on technological systems to function in every aspect of business operations. As the population is on the rise, the awareness surrounding digital infrastructure and its demand will witness tremendous growth in the coming years and hence there is a critical need of developing scalable and reliable technological systems that can meet the changing demands of the population along with higher advancements to meet the expectations of the corporate world. All of these factors have also caused a massive rise in data generation and usage causing a crucial need for devices that can either store the data generated or process the information for further use in the digital ecosystem. It is an important driving factor for the global market.

Restraints

• The high initial investment restricts the market growth

Building and maintenance of digital infrastructure mandate high initial investment since there are significant costs involved in the purchase and deployment of assistive tools that are necessary for the accurate functioning of digital systems. These costs include expenditures on software, hardware, and networking equipment. Furthermore, the expenses associated with training employees, managing change, and building assets that can support the use of digital systems lead to a further increase in the total expenditure.

Opportunities

• Growing adoption of cloud services to provide growth opportunities

One of the key sub-segments in the global digital infrastructure market is the increasing popularity of cloud services since businesses are rapidly moving toward cloud-based products and services. With the rate at which corporations are adopting and moving toward advanced systems, higher growth opportunities can be expected as companies invest in integrated systems that deploy cloud technology in association with other new-age systems like machine learning, artificial intelligence, and data centers.

Challenges

• High-security risks to challenge market growth

As almost all companies, including private corporations and government entities, become heavily reliant on digital infrastructure for business operations and data moves from paper to these systems, the risk surrounding cyber security is expected to grow which can already be witnessed in the growing digital crime rates. Every year, multiple companies are subject to cyber attacks using a virus, malware, or hacking causing data breaches and loss of customer data. This is a major challenge for the global industry players to overcome as it negatively reflects on the integrity of the entire system.

Segmentation Analysis

The global digital infrastructure market is segmented based on deployment type, solution, end-user, enterprise size, and region

Based on deployment type, the global market divisions are on-premise and cloud

• 2022 witnessed the highest growth in cloud-based systems due to several advantages associated with these technologies including cost-effectiveness, flexibility, and scalability
• Cloud-based systems provide companies with measures to access technology over the internet without worrying about building their infrastructure and spending million on its maintenance annually
• Cloud-based service providers offer customization depending on client needs along with a variety of deployment models like a hybrid, private, or public cloud
• In 2022, Amazon Web Services (AWS) generated more than USD 80 billion in revenue from cloud-based services

Based on type, the global market is divided into solution and service

• Both segments are expected to excel during the forecast period since they are equally important. However, 2022 marked the highest CAGR in the solution segment due to a high number of new businesses opting for solution programs
• This segment includes software and hardware that is required to build the necessary digital infrastructure whereas the services segment includes consulting or managed services that are generally provided by third-party companies.
• The services segment includes cybersecurity, cloud migration, infrastructure management, and other support services
• The price of AWS support plans generally starts at USD 29 per month

Based on end-user, the global market is segmented into IT and telecom, BFSI, retail, government, manufacturing, healthcare, and others

Based on enterprise size, the global market is divided into small & medium, and large.

Recent Developments:

• In January 2023, India showcased its digital infrastructure strength at the recent G-20 summit where the country held the presidency. The nation-leaders called for the international adoption of ‘India Stack’ which includes the largest ID platform ever seen by the world. To support digital innovation in the country, it also launched a pair of digital global programs
• In February 2023, the Telecom Regulatory Authority of India (TRAI) announced that it will start rating buildings depending on the digital infrastructure that they are capable of providing. The agency has proposed creating a regulatory framework to promote digital connectivity
• In November 2022, Atos and AWS entered a strategic collaboration. With these, the companies will direct their efforts toward the transformation of the infrastructure outsourcing industry

Report Scope

Regional Analysis

• North America to act as an important contributor to the market

The global digital infrastructure market is projected to witness the highest results in North America as it is currently, the most significant market contributing to global growth. The countries of the US and Canada have an existing digital infrastructure that is highly advanced and acts as a source of inspiration for developing economies. Silicon Valley in the US fosters innovation and development and has already given birth to companies making breakthrough contributions in the global market. The growing investments along with the rising number of players encouraged by supportive government initiatives and a higher product adoption rate are the major causes of regional market growth. End-user verticals like healthcare, retail, and finance are crucial sectors for the regional market. The Middle East is projected to grow at a significant CAGR due to the massive transformation observed in the countries of the United Arab Emirates, Abu Dhabi, and Saudi Arabia.

Competitive Analysis

• Oracle Corporation 
• CA Technologies 
• Equinix Inc. 
• Yash Technologies 
• Accenture 
• Cognizant 
• KELLTON TECH 
• Dell Technologies Inc. 
• Hewlett Packard Enterprise 
• TIBCO Software Inc. 
• Alcor Solutions Inc. 
• HCL Technologies 
• Google Inc. 
• Marlabs 
• Microsoft Corp 
• Adobe 
• International Business Machines Corp. 
• Smartstream 
• SAP Company 
• Broadcom Inc 
• Apple Inc.

The global digital infrastructure market is segmented as follows:

By Deployment Type Segment Analysis

• On-Premise
• Cloud

By Type Segment Analysis

• Solution
• Service

By End-User Segment Analysis

• IT & Telecom
• BFSI
• Retail
• Government
• Manufacturing
• Healthcare
• Others

By Enterprise Size Segment Analysis

• Small & Medium
• Large

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America