Cloud Server Hosting Services Global Market Report 2025

The cloud server hosting services market size has grown rapidly in recent years. It will grow from $99.15 billion in 2024 to $114.79 billion in 2025 at a compound annual growth rate (CAGR) of 15.8%. The growth in the historic period can be attributed to increasing dependence on outsourcing information technology (IT) infrastructure, rising adoption of digital transformation initiatives, growing need for uninterrupted online business operations, expansion of global internet accessibility, and heightened demand for data storage capacity.

The cloud server hosting services market size is expected to see rapid growth in the next few years. It will grow to $203.64 billion in 2029 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to rising adoption of hybrid and multi-cloud strategies, expansion of cloud usage among small and medium enterprises, increasing demand for cross-border data localization, growing regulatory pressure on data protection, and rising need for cost optimization in enterprises. Key trends in the forecast period include technological advancements in hybrid and multi-cloud solutions, developments in serverless computing models, innovations in artificial intelligence-driven cloud management, investment in green and sustainable data centers, and advancements in quantum computing for cloud services.

The surge in digital transformation across industries is expected to drive the growth of the cloud server hosting services market in the coming years. Digital transformation refers to the integration of digital technologies into all aspects of business operations, fundamentally changing how organizations function and deliver value to customers. Its adoption is rising due to cloud computing, which provides scalable, flexible, and cost-effective infrastructure that enables businesses to innovate faster, improve efficiency, and adopt new technologies seamlessly. Digital transformation supports cloud server hosting services by promoting the use of scalable, on-demand, and efficient cloud infrastructures, allowing businesses to streamline operations, enhance data management, improve security, and rapidly deploy applications while reducing costs and fostering innovation. For example, in November 2023, according to the Central Digital and Data Office (CDDO), a UK-based government agency, between April 2022 and April 2023, the Government Digital and Data profession expanded by 19 percent, strengthening essential digital skills across the civil service. A total of 32 organizations have now implemented the common Government Digital and Data pay framework, helping to reduce reliance on contractors and generate savings for taxpayers. Therefore, the surge in digital transformation across industries is driving the growth of the cloud server hosting services market.

Key companies operating in the cloud server hosting services market are focusing on leveraging innovative technologies such as artificial intelligence (AI) and machine learning (ML) acceleration to enhance performance, reduce costs, and improve energy efficiency. AI and ML acceleration refers to the use of specialized hardware and software optimizations to speed up the processing of AI/ML workloads, enabling cloud providers to deliver faster model training, real-time inference, lower operational costs, and improved energy efficiency. For instance, in November 2023, Amazon Web Services Inc., a US-based cloud computing company, launched the next generation of its AWS-designed chips Graviton4 and Trainium2, offering significant improvements in price performance and energy efficiency for cloud workloads. Graviton4 delivers up to 30 percent better compute performance for general-purpose applications, while Trainium2 provides up to four times faster training for large AI models, allowing customers to accelerate generative AI and machine learning workloads at lower cost and with reduced energy consumption. The introduction of these processors highlights the growing focus among cloud providers on developing custom silicon to meet rising demand for high-performance computing and AI capabilities.

In August 2025, HostPapa Inc., a Canada-based company offering web hosting services, acquired CloudBlue from Ingram Micro for an undisclosed amount. Through this acquisition, HostPapa aimed to enhance its cloud service automation and subscription management capabilities, enabling it to expand its B2B cloud marketplace and strengthen its position in the global cloud services ecosystem. CloudBlue is a US-based company providing cloud server hosting services.

Major players in the cloud server hosting services market are Amazon.com Inc., Alphabet (Google), Microsoft Corporation, Alibaba Group Holding Limited, Tencent Holdings Ltd., International Business Machines Corporation, Oracle Corporation, SAP SE, Hewlett Packard Enterprise (HPE) Company, Fujitsu Limited, Lumen Technologies Inc., GoDaddy Inc., Akamai Technologies Inc., Tata Communications Limited, Cloudflare Inc., OVHcloud SAS, DigitalOcean Inc., Sify Technologies Limited, NxtGen Datacenter & Cloud Technologies Pvt. Ltd., Hetzner Online GmbH.

North America was the largest region in the cloud server hosting services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in cloud server hosting services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

The cloud server hosting services market research report is one of a series of new reports that provides cloud server hosting services market statistics, including cloud server hosting services industry global market size, regional shares, competitors with the cloud server hosting services market share, cloud server hosting services market segments, market trends, and opportunities, and any further data you may need to thrive in the cloud server hosting services industry. This cloud server hosting services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Cloud server hosting services involve the provision of virtual servers by a third-party provider over the internet, allowing users to run applications, host websites, or store data without depending on physical hardware. These virtual servers utilize a shared pool of computing resources, including central processing unit (CPU), memory, and storage, enabling flexible scaling and efficient resource management. This model ensures improved operational efficiency, consistent reliability, and rapid adaptability to changing computing requirements.

The key types of cloud server hosting services are infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Infrastructure as a service (IaaS) is a cloud model that provides on-demand virtualized computing, storage, and networking resources over the internet, removing the need for physical infrastructure management. These services are deployed through various models, including public cloud, private cloud, and hybrid cloud, and are utilized by organizations of all sizes, including small and medium enterprises (SMEs) and large enterprises. They are applied in enterprise and municipal operations and serve various end-user industries, including banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, healthcare, retail, government, manufacturing, and other users.

The countries covered in the cloud server hosting services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cloud server hosting services market includes revenues earned by entities by providing services such as virtual server management, cloud storage management, backup and disaster recovery services, database hosting, security and compliance management, network management, and cloud migration services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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