Computing Infrastructure Market Trends and Forecast
The future of the global computing infrastructure market looks promising with opportunities in the AI, big data analysis, cloud computing, and blockchain markets. The global computing infrastructure market is expected to grow with a CAGR of 20.1% from 2025 to 2031. The major drivers for this market are the increasing demand for cloud-based services & data storage solutions and the rising adoption of AI, machine learning, & big data analytics.
Lucintel forecasts that, within the type category, the central processing unit is expected to witness the highest growth over the forecast period.
Within the application category, AI is expected to witness the highest growth.
In terms of region, APAC is expected to witness the highest growth over the forecast period.
Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.
Emerging Trends in the Computing Infrastructure Market
The computing infrastructure market is undergoing rapid transformation driven by technological advancements, evolving business needs, and the rise of data-intensive applications. Organizations seek more agile, scalable, and cost-effective IT solutions to support their digital transformation initiatives. This has led to the emergence of several key trends, including the growth of hybrid cloud, the rise of edge computing, the increasing adoption of serverless computing, the focus on AI and machine learning infrastructure, and the growing importance of sustainable computing. These trends are collectively reshaping the computing landscape.
• Hybrid Cloud Dominance: Hybrid cloud, combining on-premises infrastructure with public cloud services, is becoming the dominant IT strategy. Organizations are seeking the flexibility to run workloads in the most appropriate environment, balancing cost, security, and performance. This trend is driving demand for solutions that enable seamless integration and management across hybrid environments. The impact is improved agility, cost optimization, and enhanced control over sensitive data.
• Edge Computing Expansion: Edge computing, processing data closer to the source, is rapidly expanding. Driven by IoT, AI, and real-time applications, edge computing reduces latency, improves bandwidth utilization, and enables new use cases. This trend is driving demand for distributed computing infrastructure and edge-optimized hardware and software. The impact is faster data processing, improved responsiveness, and support for new edge-based applications.
• Serverless Computing Adoption: Serverless computing, where the cloud provider manages the underlying infrastructure, is gaining traction. This model allows developers to focus solely on code, improving agility and reducing operational overhead. This trend drives the adoption of Function-as-a-Service (FaaS) and other serverless technologies. The impact is faster application development, improved scalability, and reduced IT management burden.
• AI/ML Infrastructure Focus: Artificial intelligence and machine learning workloads require specialized computing infrastructure, including GPUs and high-performance networking. Organizations are investing heavily in building AI/ML infrastructure to support training and inference. This trend is driving demand for specialized hardware and software platforms. The impact is accelerated AI innovation, faster model training, and enhanced AI-powered applications.
• Sustainable Computing Imperative: With increasing concerns about environmental impact, sustainable computing is becoming a priority. Organizations are seeking energy-efficient hardware, optimizing resource utilization, and adopting green cloud practices. This trend is driving demand for energy-efficient data centers and sustainable IT solutions. The impact is reduced carbon footprint, lower energy costs, and enhanced corporate social responsibility.
These trends are collectively reshaping the computing infrastructure market, creating a more dynamic and competitive landscape. Organizations are embracing new technologies to improve agility, reduce costs, and support their digital transformation initiatives. The future of computing lies in the ability to adapt to these changes and leverage the power of new technologies in a sustainable and responsible manner.
Recent Development in the Computing Infrastructure Market
The market for computing infrastructure is evolving at a very fast pace, fueled by innovations in artificial intelligence (AI), the spread of edge computing, and increased emphasis on sustainability. As companies compete to address the needs of real-time data processing and environmental stewardship, new technologies and methodologies are transforming how computing resources are utilized and controlled. These advancements are not only improving performance and efficiency but also addressing the increasing concern regarding power usage and carbon footprint. The following are major advancements that are greatly influencing the computing infrastructure market.
• AI Supercomputers and Power Needs: The advent of AI supercomputers has resulted in record power usage levels. This growth is driven by the rising complexity and size of AI models, which require enormous computational power. Firms such as OpenAI and Nvidia are investing billions in AI infrastructure, highlighting the economic importance of such machines. However, the growth in computational power is not accompanied by similar improvements in energy efficiency. As a result, technology companies are exploring alternative sources of energy, such as nuclear power, to meet these demands.
• Expansion of Edge Computing: Edge computing is emerging as a solution to process data near its source, reducing latency and bandwidth usage. By 2025, more than 75 percent of data generated by enterprises will be generated and processed at the edge, rather than in centralized data centers. This is especially valuable for industries that require real-time data processing, including healthcare, manufacturing, and transportation. Edge computing provides increased performance, lower data transfer costs, and enhanced security by limiting data exposure during transmission.
• Green Data Centers and Green Practices: The environmental footprint of data centers is encouraging a shift toward greener practices. Green data centers use energy-efficient technologies, renewable energy sources, and advanced cooling mechanisms to reduce their carbon footprint. Power Usage Effectiveness (PUE) and Carbon Usage Effectiveness (CUE) are being used to measure and enhance energy efficiency. Companies are also exploring the use of low-power servers and modular data centers to further promote sustainability. Investments in green data center technologies are expected to increase, indicating the sector’s commitment to environmental responsibility.
• Adoption of AIOps for IT Operations: Artificial Intelligence for IT Operations (AIOps) is transforming how organizations manage complex IT systems. By using machine learning and big data analytics, AIOps platforms can automatically identify, diagnose, and resolve issues in real time. This automation improves operational efficiency, reduces downtime, and enables IT staff to focus on strategic initiatives. As IT infrastructures become more complex, the adoption of AIOps is becoming essential for ensuring system reliability and performance.
• Shift to Multi-Cloud Environments: Firms are increasingly adopting multi-cloud models to take advantage of the best features offered by different cloud service providers. This approach offers more flexibility, cost-effectiveness, and improved disaster recovery capabilities. By distributing workloads across multiple clouds, companies can avoid vendor lock-in and tailor cloud solutions to specific needs. The multi-cloud model also enhances resilience, ensuring continuity of services even if one provider experiences issues.
The market for computing infrastructure is changing at a fast pace, driven by the growing demands of AI, real-time data processing, and environmental considerations. The convergence of edge computing, green practices, AIOps, and multi-cloud strategies is transforming the way organizations deploy and manage their IT infrastructure. These trends are not only boosting performance and efficiency but also addressing key challenges related to energy consumption and system complexity, paving the way for a more sustainable and adaptable future.
Strategic Growth Opportunities in the Computing Infrastructure Market
The computing infrastructure market is experiencing rapid growth and transformation, driven by increasing demand for digital services, data-intensive applications, and cloud computing. This creates significant strategic growth opportunities across various application domains. Key areas of focus include artificial intelligence and machine learning, edge computing deployments, high-performance computing, data analytics and business intelligence, and cloud-native application development. These applications are pushing the boundaries of computing infrastructure, driving innovation, and shaping the future of the market.
• AI/ML Workloads: The rapid growth of AI and machine learning is creating a surge in demand for specialized computing infrastructure. Growth opportunities exist in providing optimized hardware and software platforms for training and deploying AI models, including GPUs, FPGAs, and AI-specific cloud services. The impact is accelerated AI innovation, faster model training, and enhanced AI-powered applications across various industries.
• Edge Computing Deployments: The rise of edge computing, driven by IoT and real-time applications, presents significant growth opportunities. Demand is increasing for distributed computing infrastructure, edge servers, and edge-optimized software solutions. The impact is reduced latency, improved bandwidth utilization, and enabling new edge-based applications and services, such as smart cities and industrial automation.
• High-Performance Computing (HPC): Scientific research, financial modeling, and other computationally intensive workloads require high-performance computing infrastructure. Growth opportunities exist in providing powerful servers, high-speed networking, and specialized software for HPC applications. The impact is faster scientific discoveries, improved research and development, and enhanced computational capabilities for various industries.
• Data Analytics and Business Intelligence: Organizations are increasingly relying on data analytics and business intelligence to gain insights from their data. This creates growth opportunities for providing scalable and efficient infrastructure for data storage, processing, and analysis, including data lakes, data warehouses, and analytics platforms. The impact is improved decision-making, enhanced business insights, and new revenue opportunities.
• Cloud-Native Application Development: The shift towards cloud-native application development, using microservices and containers, is driving demand for cloud-native infrastructure and platforms. Growth opportunities exist in providing container orchestration platforms, serverless computing services, and other cloud-native tools. The impact is faster application development cycles, improved scalability, and enhanced agility for organizations.
These growth opportunities are significantly impacting the computing infrastructure market, driving innovation and investment. Vendors are developing specialized hardware and software solutions to meet the evolving needs of these key application domains. The future of computing infrastructure lies in its ability to support these diverse and demanding workloads, enabling organizations to innovate and compete in the digital age.
Computing Infrastructure Market Driver and Challenges
The computing infrastructure market is a dynamic and rapidly evolving landscape shaped by a complex interplay of technological, economic, and regulatory factors. Advancements in cloud computing, artificial intelligence, and edge computing are creating new opportunities while shifting market dynamics. Simultaneously, challenges such as security concerns, integration complexities, and the increasing emphasis on sustainability impact how organizations design and manage their IT infrastructure. Understanding these drivers and challenges is crucial for businesses and vendors to navigate this evolving market and capitalize on emerging opportunities. The future of computing infrastructure depends on how effectively these factors are addressed.
The factors responsible for driving the computing infrastructure market include:
1. Digital Transformation: Organizations across all industries are undergoing digital transformation initiatives, driving the need for modern and agile IT infrastructure. Computing infrastructure serves as the foundation for these transformations, enabling businesses to adopt new technologies and deliver innovative services. This fuels the demand for scalable and flexible computing solutions.
2. Cloud Computing Growth: The continued growth of cloud computing, particularly hybrid and multi-cloud models, is a major driver. Organizations are leveraging cloud services for their scalability, cost-effectiveness, and flexibility, driving demand for cloud-native infrastructure and management tools. This trend is reshaping data center architectures and IT operations.
3. Data Explosion: The exponential growth of data is putting immense pressure on existing IT infrastructure. Organizations require robust and scalable computing infrastructure to store, process, and analyze vast amounts of data, driving demand for high-performance computing and data analytics platforms.
4. AI/ML Advancements: The rapid advancements in artificial intelligence and machine learning are creating a surge in demand for specialized computing infrastructure. AI/ML workloads require powerful processors, high-speed networking, and large memory capacity, driving demand for GPUs, FPGAs, and AI-optimized cloud services.
5. Edge Computing Expansion: The rise of edge computing, driven by IoT and real-time applications, is creating new opportunities for distributed computing infrastructure. Processing data closer to the source reduces latency and improves bandwidth utilization, driving demand for edge servers and edge-optimized software.
Challenges in the computing infrastructure market are:
1. Security Concerns: Security remains a major concern, especially with the increasing reliance on cloud computing and interconnected systems. Protecting sensitive data and infrastructure from cyber threats requires robust security measures and continuous monitoring, posing a significant challenge.
2. Integration Complexities: Integrating new computing infrastructure with existing IT systems can be complex and challenging. Ensuring seamless interoperability, data migration, and consistent management across hybrid and multi-cloud environments requires careful planning and execution.
3. Sustainability Imperative: The increasing focus on sustainability is driving demand for energy-efficient computing infrastructure. Organizations are seeking ways to reduce their carbon footprint and optimize resource utilization, posing a challenge to vendors to develop more sustainable solutions.
The computing infrastructure market is experiencing significant growth, driven by digital transformation, cloud adoption, data explosion, AI/ML advancements, and edge computing expansion. However, challenges related to security, integration, and sustainability need to be addressed. The future of computing infrastructure depends on effectively navigating these complexities and developing solutions that are secure, scalable, sustainable, and capable of supporting the evolving needs of businesses and society.
List of Computing Infrastructure Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies computing infrastructure companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the computing infrastructure companies profiled in this report include-
• Runhe Software
• Inspur information
• Tuowei Information
• Bowland
• Surveying and mapping shares
• Loongson Zhongke
• Intel Corporation
• NVIDIA Corporation
• Advanced Micro Devices
• Samsung Electronics
Computing Infrastructure Market by Segment
The study includes a forecast for the global computing infrastructure market by type, application, and region.
Computing Infrastructure Market by Type [Value from 2019 to 2031]:
• Central Processing Units (CPU)
• Graphics Processing Units (GPU)
• Storage Devices
• Internet Equipments
Computing Infrastructure Market by Application [Value from 2019 to 2031]:
• AI
• Big Data Analysis
• Cloud Computing
• Blockchain
• Others
Computing Infrastructure Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Computing Infrastructure Market
The computing infrastructure market is transforming rapidly, fueled by advancements in cloud computing, artificial intelligence, and edge computing. Organizations seek more agile, scalable, and cost-effective IT solutions to support their digital transformation initiatives. This has led to significant developments in computing infrastructure, including the rise of hyperscale data centers, the growth of hybrid cloud deployments, and the increasing adoption of serverless computing. Furthermore, the market is witnessing a surge in demand for specialized hardware, such as GPUs and FPGAs, to accelerate AI and high-performance computing workloads. These trends are reshaping how businesses build and manage their IT infrastructure.
• United States: The US is a mature and highly competitive market for computing infrastructure. Recent developments include the dominance of hyperscale cloud providers like AWS, Azure, and Google Cloud, who are continuously expanding their data center footprints. There is also a strong focus on hybrid cloud solutions, with many organizations adopting a combination of public cloud and on-premises infrastructure. Furthermore, the US market is witnessing significant investment in edge computing infrastructure to support IoT and other latency-sensitive applications.
• China: The Chinese computing infrastructure market is characterized by rapid growth and innovation. Domestic cloud providers like Alibaba Cloud and Tencent Cloud are expanding their market share, competing with global players. The Chinese government is also heavily investing in developing a national cloud infrastructure. Furthermore, a strong focus on AI and high-performance computing drives demand for specialized hardware and advanced data center technologies.
• Germany: The German computing infrastructure market is driven by its strong industrial sector and focus on data privacy and security. German businesses are increasingly adopting hybrid cloud strategies, seeking to balance the benefits of public cloud with the security and control of on-premises infrastructure. There is also a growing emphasis on edge computing to support Industry 4.0 initiatives and other industrial applications.
• India: The Indian computing infrastructure market is experiencing rapid growth, driven by the countryÄX%$%Xs expanding digital economy and increasing adoption of cloud computing. Both global and domestic cloud providers are investing heavily in building data centers in India. There is also a significant focus on providing affordable computing solutions to small and medium-sized businesses.
• Japan: The Japanese computing infrastructure market is characterized by a strong focus on reliability and quality. Japanese businesses are known for their meticulous approach to IT infrastructure, placing a high value on stability and security. Recent developments include the increasing adoption of hybrid cloud and multi-cloud strategies and a growing interest in serverless computing and other cloud-native technologies.
Features of the Global Computing Infrastructure Market
Market Size Estimates: Computing infrastructure market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Computing infrastructure market size by type, application, and region in terms of value ($B).
Regional Analysis: Computing infrastructure market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the computing infrastructure market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the computing infrastructure market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for computing infrastructure market?
Answer: The global computing infrastructure market is expected to grow with a CAGR of 20.1% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the computing infrastructure market?
Answer: The major drivers for this market are the increasing demand for cloud-based services & data storage solutions and the rising adoption of AI, machine learning, & big data analytics.
Q3. What are the major segments for computing infrastructure market?
Answer: The future of the computing infrastructure market looks promising with opportunities in the AI, big data analysis, cloud computing, and blockchain markets.
Q4. Who are the key computing infrastructure market companies?
Answer: Some of the key computing infrastructure companies are as follows:
• Runhe Software
• Inspur information
• Tuowei Information
• Bowland
• Surveying and mapping shares
• Loongson Zhongke
• Intel Corporation
• NVIDIA Corporation
• Advanced Micro Devices
• Samsung Electronics
Q5. Which computing infrastructure market segment will be the largest in future?
Answer: Lucintel forecasts that the central processing unit is expected to witness the highest growth over the forecast period.
Q6. In computing infrastructure market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the computing infrastructure market by type (central processing unit (CPU), graphics processing unit (GPU), storage device, and internet equipment), application (AI, big data analysis, cloud computing, blockchain, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Computing Infrastructure Market, Computing Infrastructure Market Size, Computing Infrastructure Market Growth, Computing Infrastructure Market Analysis, Computing Infrastructure Market Report, Computing Infrastructure Market Share, Computing Infrastructure Market Trends, Computing Infrastructure Market Forecast, Computing Infrastructure Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.