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Rising Demand For Automation Driving Growth Of The Market Due To Need For Enhanced Connectivity And Efficiency: Transformative Forces Shaping the Digital Infrastructure Market Landscape in 2025
Digital Infrastructure
Digital Infrastructure Market Size Growth Forecast: What to Expect by 2025?
Over the recent years, there has been a significant surge in the size of the digital infrastructure market. It is projected to expand from a market value of $348.59 billion in 2024 to an impressive $438.89 billion in 2025, corresponding to a compound annual growth rate (CAGR) of 25.9%. The substantial growth over the historic period owes to a variety of factors including an upswing in investments in fiber-optic networks, an increase in the demand for data centers due to the trend towards cloud adoption, enhanced penetration of mobile internet, escalating installation of 4G networks, and the increased acceptance of virtualization technologies.
How Will the Digital Infrastructure Market Size Evolve and Grow by 2029?
In the upcoming years, the digital infrastructure market is projected to undergo substantial growth, expected to increase to $1103.2 billion by 2029 with a CAGR of 25.9%. Key contributing factors to this surge during the forecast period include heightened demand for quantum computing infrastructure, increased investments in software-defined infrastructure, expansion of autonomous data centers, and a growing demand for ultra-low-latency connectivity, as well as an escalating reliance on decentralized cloud computing. Major trends to watch during this period involve advancements in AI-powered autonomous data centers, the integration of edge AI computing for real-time analytics, progress in multi-access edge computing, improvements in zero-trust security frameworks, and the roll-out of space-based internet infrastructure.
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What Drivers Are Propelling the Growth of Digital Infrastructure Market Forward?
The growth of the digital infrastructure market is anticipated to surge with the escalating demand for automation. Automation employs technology to automate tasks, diminishing the necessity for human intervention, and increasing efficiency and accuracy. As firms strive to amplify productivity, minimize operational costs, and heighten scalability in this competitive digital environment, the need for automation rises. Digital infrastructure backs automation by facilitating smooth connectivity, data management, and command via innovative technologies such as artificial intelligence (AI) and cloud computing. For instance, a report issued in July 2024 by the US-based workflow automation firm, Cflow, stated that the workflow automation sector was ballooning at a rate of 20% annually and was projected to reach $5 billion by 2024. Robotic process automation (RPA) was leading the pack with 31% adoption, and AI adoption was at 18%. As a result, the growing demand for automation is fueling the digital infrastructure market's expansion.
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Which Emerging Trends Are Transforming the Digital Infrastructure Market in 2025?
Major corporations in the digital infrastructure sector are prioritizing the development of innovative technologies like digital orchestration platforms that boost network automation, simplify the execution of hybrid architectures, and better the accessibility of data across various infrastructures. These types of platforms automate and consolidate the administration of networks, cloud systems, and different applications, guaranteeing effective functioning within different infrastructures. For example, in July 2022, Digital Realty Trust Inc., a company from the US providing IT services and consulting, introduced ServiceFabric Connect, a connectivity orchestration platform developed to simplify the fusion of corporate networks throughout different infrastructures. With the aim of supporting hybrid infrastructures, the platform has been released in 61 locations spread across 32 global metropolitan areas, with plans for future expansion. ServiceFabric differs from exclusive proprietary systems since it adopts an ecosystem-focused model, incorporating services from partners to present a seamless, scalable answer for businesses concentrated on data.
What Are the Key Segments in the Digital Infrastructure Market?
The digital infrastructuremarket covered in this report is segmented -
1) By Component: Hardware, Software, Services
2) By Deployment Type: On-Premise, Cloud
3) By Enterprise Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Application: Healthcare, Banking, Financial Services, And Insurance (BFSI), Information Technology And Telecommunications, Retail And E-Commerce, Government And Defense, Manufacturing, Energy And Utilities
Subsegments:
1) By Hardware: Servers, Storage Devices, Networking Equipment, Data Center Equipment
2) By Software: Cloud Management Software, Virtualization Software, Network Security Software, Data Analytics Software
3) By Services: Cloud Services, Colocation Services, Network Services, Managed Services, Professional Services
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Who Are the Key Players Shaping the Digital Infrastructure Market's Competitive Landscape?
Major companies operating in the digital infrastructure market are Amazon Inc., Google LLC, Microsoft Corporation, Alibaba Group Holding Limited, AT&T Inc., Dell Technologies Inc., Intel Corporation, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Broadcom Inc., Fujitsu Limited, Micron Technology Inc., Hewlett Packard Enterprise Company, NVIDIA Corporation, Western Digital Corporation, Lumen Technologies Inc., Equinix Inc., NetApp Inc., Juniper Networks Inc., Digital Realty Trust Inc., Arista Networks Inc., Akamai Technologies Inc., Hitachi Vantara LLC.
What Geographic Markets Are Powering Growth in the Digital Infrastructure Market?
North America was the largest region in the digital infrastructure market in 2024. The regions covered in the digital infrastructure market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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