According to a new report published by Allied Market Research, titled, “Infrastructure as a Service Market,” The infrastructure as a service market was valued at $51.3 billion in 2020, and is estimated to reach $481.8 billion by 2030, growing at a CAGR of 25.3% from 2021 to 2030.
Infrastructure as a service (IaaS) refers to online services that provide high-level APIs for accessing different low-level features of underlying network infrastructure, such as physical computer resources, location, data partitioning, scaling, security, and backup. Increase in knowledge of various cloud computing services, such as public, private, and hybrid cloud services, as well as increase in internet penetration in emerging nations and desire for cost-effective and flexible computing services propel the infrastructure as a service market growth.
Furthermore, infrastructure as a service market expansion is expected to be aided by integration of artificial intelligence and demand for IaaS from SMEs. Furthermore, growth in demand for low-cost IT infrastructure and faster data accessibility propels growth of the global infrastructure as a service market. In addition, increase in cloud adoption across several industry verticals is also positively impacting growth of the market. However, security concerns over private cloud deployment hampers the market growth. On the contrary, growth in cloud adoption among SMEs is expected to offer remunerative opportunities for expansion of the market during the forecast period.
Covid-19 Scenario
- Owing to the Covid-19 pandemic, the adoption of the remote working culture and cloud services led to increased implementation of IaaS. The closure of commercial activities and lockdown measures presented challenges in daily operations of businesses and increased implementation of IaaS.
- According to a survey conducted by Manage Engine, nearly 97% of Indian enterprises raised their reliance on the cloud technology and raised deployment of hybrid cloud.
- The need to process the data at high speed, share huge amount of information over cloud, and lowering overall operational costs led to adoption of IaaS during the pandemic.
Infrastructure as a Service (IaaS) Market Segmentation:
Based on deployment model, the hybrid segment held the highest market share in 2020, accounting for more than two-thirds of the global infrastructure as a service market, and is projected to continue its leadership status during the forecast period. Moreover, this segment is projected to witness the highest CAGR of 25.5% from 2021 to 2030. This is due to rise in generation of data from social media, big data, internet of things (IoT), and other applications, that led to the need for data storage and cost saving through the hybrid environment. The research also analyzes the segments including private and public.
Based on industry vertical, the telecom and IT segment accounted for the highest market share in 2020, contributing to nearly one-fifths of the global infrastructure as a service market. This is attributed to complex network and computing requirements. However, the government and education segment is estimated to manifest the largest CAGR of 26.7% from 2021 to 2030. This is due to rise in investments by government and public sector companies.
Based on region, North America contributed to the largest infrastructure as a service market share in terms of revenue in 2020, accounting for nearly two-fifths of the global infrastructure as a service industry, and is expected to maintain its dominance in terms of revenue by 2030. This is due to presence of huge number of specialized IaaS vendors in the region. However, Asia-Pacific is projected to portray the fastest CAGR of 27.5% during the forecast period, owing to ongoing digital transformation in the region.
Leading Infrastructure as a Service Market Players
- Alibaba Group Holding Limited
- Amazon Web Services, Inc.
- Dell Technologies, Inc.
- Google Corporation
- Hewlett Packard Enterprise Development LP
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- Rackspace Technology, Inc.
- Redcentric Plc.
Top Impacting Factors:
Scalability and Cost Efficiency
Businesses increasingly adopt IaaS solutions due to their ability to scale resources on demand while avoiding heavy upfront capital expenditures. This flexibility allows companies to pay only for what they use, making it ideal for startups and enterprises managing fluctuating workloads. The shift from traditional on-premise infrastructure to cloud-based models significantly reduces IT overhead, driving IaaS adoption globally.Digital Transformation and Remote Work Trends
The global push toward digital transformation, accelerated by the rise of remote work, has intensified demand for cloud-based infrastructure. Organizations are migrating critical applications and services to the cloud to improve accessibility, resilience, and operational agility. IaaS enables faster deployment of digital services, supporting innovation and competitiveness in various industries such as finance, healthcare, and retail.
Key Benefits for Stakeholders:
- The study provides an in-depth analysis of the global infrastructure as a service market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global infrastructure as a service market trend is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2021 to 2030 is provided to determine the market potential.
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