Originally posted on Data Center POST
At the infra/STRUCTURE Summit 2024 in Las Vegas, Philbert (“Phil”) Shih, Managing Director of Structure Research, delivered a powerful opening presentation on the state of the managed infrastructure sector. Phil emphasized the significance of infrastructure in the digital economy and provided a data-driven overview of the current landscape, key trends, and future growth projections.
The Evolving Landscape of Managed Infrastructure
The summit featured multiple tracks of discussions on different aspects of the infrastructure ecosystem, with Shih’s presentation focusing on the broader managed infrastructure sector, which includes categories like public cloud, colocation, and managed services. This year, an 11th category was added to their research: GPU cloud, a fast-growing segment that has seen remarkable traction due to the increasing demand for AI and machine learning workloads. GPU cloud, which barely existed five years ago, is projected to reach 10–11% of the market by 2029, up from just 1% today.
Key Market Growth Data
During his presentation, Shih highlighted a number of important data points:
- Managed Infrastructure CAGR: The managed infrastructure space is expected to grow at a 14.1% compound annual growth rate (CAGR) over the next five years, fueled by trends such as cloud adoption, colocation expansion, and edge computing.
- Public Cloud Growth: Public cloud continues to dominate the infrastructure market, with Shih projecting a 25.9% CAGR for this sector. In 2024, the total market value for public cloud infrastructure is set at $99 billion, which is expected to nearly double by 2029. Despite previous forecasts predicting a higher percentage of the market share, Shih shared that the public cloud will account for two-thirds of the market by 2029—slightly down from earlier estimates but still significant.
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