USD 131.2 billion
Infrastructure as a Service Market Size, Share, and Growth Analysis
Infrastructure as a Service Market By Solution (Managed hosting, Disaster Recovery as a Service), By Deployment Type (Public cloud, Private cloud), By End User (SMBs, Enterprises), By Vertical, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45A2401 |
Region:
Global |
Published Date: December, 2024
Pages:
177
|Tables:
0
|Figures:
0
Format -
Infrastructure as a Service Market Insights
Global Infrastructure as a Service Market size was valued at USD 131.2 billion in 2023 and is poised to grow from USD 164.13 billion in 2024 to USD 984.58 billion by 2032, growing at a CAGR of 25.1% during the forecast period (2025-2032).
One of the main drivers pushing the infrastructure as a service (IaaS) market growth forward is the growing need for backup solutions to be made easier. IaaS is increasingly being adopted in firms due to its effectiveness and simplicity. External hard drives and flash drives can store and transfer the data, but due to their manual handling, they are not very useful for large companies, whereas IaaS benefits with the facilities of available cloud storage making data accessible from anywhere using an internet connection. IaaS systems, besides that, do not require human involvement because they automatically preserve and backup data through streaming. This reduces the burden on firms to collect, classify, and store massive amounts of data. Due to its user-friendly backup and data management capabilities, IaaS is fast becoming the favorite for companies seeking scalability and reliability. Moreover, IaaS assists companies in different situations, especially those where scalability and rapid deployment are a must. The IaaS model presents a financially viable alternative to rapidly growing organizations with very little money to invest in hardware. IaaS also assists companies with continued application workloads by not burdening them with the need to manage their infrastructure day to day and thus freeing them up to concentrate on core competencies. These are expected to drive the infrastructure as a service industry expansion very significantly over the course of the projected period.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Hybird
Fastest Growth
Public
Growth Rate
25.1% CAGR
Global Infrastructure as a Service Market ($ Bn)
Country Share for North America (%)
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Infrastructure as a Service Market Segments Analysis
Global Infrastructure as a Service Market is segmented by Solution, Deployment Type, End User, Vertical and region. Based on Solution, the market is segmented into Managed hosting, Disaster Recovery as a Service, Storage as a Service, Colocation, Network management, Content delivery and High Performance Computing as a Service. Based on Deployment Type, the market is segmented into Public cloud, Private cloud and Hybrid cloud. Based on End User, the market is segmented into SMBs and Enterprises. Based on Vertical, the market is segmented into IT & Telecom, BFSI, Healthcare, Retail and E-commerce, Government & Defense, Energy & Utilities, Manufacturing and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Deployment
Based on infrastructure as a service market analysis, the hybrid model segment is gaining popularity amongst businesses and possesses the largest market share. This model offers a flexible approach through which businesses can utilize public clouds for less sensitive activities while keeping the sensitive or important data on private clouds. Businesses avoid the risks of a huge central repository by spreading all their data into one place, which could be vulnerable to unexpected mistakes, security breaches, or theft, through hybrid cloud services. Many firms find hybrid architectures to be an attractive choice since they transfer data efficiently across many environments, reducing such risks and offering more security and flexibility.
However, the public cloud category will gain at a tremendous pace, mainly due to the increased demand from start-ups and small and medium-sized businesses (SMBs). Since these organizations often have scarce resources and finances, public cloud services are an attractive option for them. The high operational efficiency, scalability, and lower upfront infrastructure costs make public cloud solutions ideal for concentrating on core business activities without requiring large hardware investments by SMBs. For expanding businesses that want to streamline their IT operations, the public cloud is a wonderful place to scale resources when needed and only pay for what they consume.
Analysis By Industry
Since many businesses are shifting part of their infrastructure to the clouds, the healthcare industry dominated the market. Businesses may access the newest technology without having to install, buy, or maintain the equipment in their buildings due to infrastructure that is provided as a service, which can also drastically save expenses. It also enables evidence-based care and more rapid and accurate diagnoses for treatments, avoiding the unnecessary cycling through of tests. EHRs also enable the market through strong analytics for better health practices. However, IaaS is an excellent tool for handling large databases since it means that control over access to patient data still lies with the healthcare organization.
Contrariwise, while service use in infrastructures is increasing on a day-to-day basis, the retail and e-commerce business is predicted to face limited market growth, as per the infrastructure as a service market forecast. These industries are opting for IaaS solutions to manage their new online presence and customer needs; however, due to their relatively developed IT systems and mature infrastructure, the growth rate is slow. However, the global IaaS market is anticipated to be highly influenced by the rising data traffic from the manufacturing, telecommunication, and healthcare sectors. The industry puts together a huge amount of data, and it requires cloud solutions that are highly scalable, safe, and efficient. Thus, growth in the IaaS solution will fuel the growth of the market in such industries.
Global Infrastructure as a Service Market By Deployment
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Infrastructure as a Service Market Regional Insights
North America is the global hub of innovation for cloud technology and is way ahead in the market share for infrastructure as a service market. Within its geographical boundaries, leading businesses that offer wide IaaS solutions, such as IBM Corporation, VMware, Inc., and Amazon Web Services (AWS), exist. These businesses host, manage, and maintain a variety of IT infrastructures for public and private data centers. Organizations can have access to scalable and secure infrastructure solutions through the Internet due to the presence of data centers in multiple countries, which enhances the smooth flow of business operations. In addition, developments are encouraged by competitive pressure in North America.
Due to its enormous population, fierce rivalry between IT and telecoms service providers, and growing GDP, the Asia Pacific region leads the way in adopting faster internet connections such as 4G. The emerging regions for digitization nowadays are countries such as China and India. Some of the reasons attributed to its growth are noticeable advancements in internet usage, increased smart gadget distributions, and growth in digitization in most industries that require the utilization of information technologies. IaaS solutions are also gaining popularity in these countries since SMEs seek computing capabilities on par with enterprises at affordable prices. Therefore, IaaS usage is witnessing a boom across the region that is aiding rapid digital development in this area.
Global Infrastructure as a Service Market By Geography
- Largest
- Fastest
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Infrastructure as a Service Market Dynamics
Drivers
Scalability and Cost Effectiveness
- In this mode of IaaS, companies pay only for what they use, and so they scale up their IT resources as required. SMEs can now have enterprise-level computing capacity without investing significantly in such huge capital due to this pay-as-you go approach that also reduces one-time infrastructure costs. Enterprises can scale up their infrastructure instantly to match demand as they expand, and this is driving popularity in IaaS.
Remote Access and Flexibility
- IaaS makes data accessible locally and remotely from anywhere with an internet connection. This provision of IaaS creates emergent remote workplaces and increases the productivity of business processes. Enterprises can rapidly deploy services, enhance teamwork, and ensure company continuity using IaaS, and those are some of the reasons why its market witnessed exponential growth.
Restraints
Problems with Data Security
- IaaS has several benefits but concerns about private information being stored in third-party data centers persist. In this regard, companies are concerned with unlawful access, data breaches, and GDPR compliance. For instance, some firms would struggle fully to embrace IaaS in high-regulated industries. As such, organizations need to implement strong data protection systems and improve encryption.
Downtime and Reliability Risks
- With IaaS, one advantage is flexibility and scalability; however, such infrastructure is more susceptible to outages or service interruptions where there are issues in the provider's infrastructure. This may affect business continuity depending on the level of IaaS importance for functions that are at the heart of the enterprise. While some providers may struggle to ensure high availability and robust SLAs, this may limit adoption in specific sectors.
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Infrastructure as a Service Market Competitive Landscape
Major players, including Amazon Web Services (AWS), Microsoft Azure, Google Cloud, IBM, and VMware are leading a very competitive landscape in the infrastructure as a service industry. Companies operate with different services: processing ability, storage, and cloud hosting. To attract the attention of businesses, suppliers within this highly competitive industry focus on innovation, scalability, security, and cost. Emerging regional players that are also small-scale companies also contribute to competition and market diversity.
Top Players in Infrastructure as a Service Market
- Amazon Web Services (AWS) (USA)
- Microsoft Azure (USA)
- Google Cloud Platform (GCP) (USA)
- IBM Cloud (USA)
- Oracle Cloud Infrastructure (OCI) (USA)
- Alibaba Cloud (China)
- DigitalOcean (USA)
- Rackspace Technology (USA)
- NTT Communications (Japan)
- Fujitsu Limited (Japan)
- SAP SE (Germany)
- Huawei Technologies Co., Ltd. (China)
- OVHcloud (France)
- CenturyLink (now Lumen Technologies) (USA)
- Verizon Communications Inc. (USA)
- AT&T Inc. (USA)
- Tencent Cloud (China)
Recent Developments
- December 2023: ZKTeco, along with Amazon Web Services, recently unveiled the advanced IoT platform, Minerva, and an expansion of its cloud capabilities. Drawing on the power of AWS's robust cloud infrastructure, the companies will enable the building of a secure, scalable, and sophisticated IoT platform.
- November 2023: Netherlands-based cloud services and Infrastructure as a Service (IaaS) supplier Leaseweb Global has launched a new Channel Partner Program in the United Kingdom. The application was targeted specifically at managed service providers. It provides a framework for building long-term sales relationships, allowing managed service providers to deliver exceptional cloud services and strategic guidance to their customers.
- December 2022: F5 announced the availability of Distributed Cloud App infrastructure protection. The solution enhances cloud-native infrastructures' application security and observability.
Infrastructure as a Service Key Market Trends
- Hybrid and Multi-Cloud Adoption: Hybrid and multi-cloud systems are increasingly implemented by organizations for utmost utilization of IT infrastructure. This trend provides flexibility, higher security, and the reduction of risks as organizations can combine both public and private clouds to meet specific business requirements. Thereby, the demand to integrate various cloud platforms into smooth interaction is developing in the IaaS sector.
- Automation and AI Integration: One of the growing infrastructure as a service market trends is automatic and integrated AI in the IaaS platforms. Technological products that involve AI are enhanced with efficiency in operations by automating repetitive work such as resource allocation, performance monitoring, and troubleshooting. For organizations working to innovate and simplify, this makes IaaS solutions more appealing because they can decrease the amount of manual involvement, maximize resource usage, and generally improve system performance.
Infrastructure as a Service Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the infrastructure as a service market will experience significant growth through a variety of factors, such as an increasingly growing need for scalable and affordable cloud solutions, accelerating digital transformation, and demand for better data management and backup solutions. The major firms, including AWS, Microsoft Azure, and Google Cloud, are in control of the market, while key areas such as North America and Asia Pacific are driving its adoption. Despite difficulties such as data security and outage threats, this industry already observes trends such as the deployment of hybrid clouds and the combination of automation and AI. The IaaS market has further scope to grow because companies look for more operational efficiency and flexibility. This provides the market with innumerable opportunities for innovation and expansion across the industry.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 131.2 billion |
| Market size value in 2032 | USD 984.58 billion |
| Growth Rate | 25.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Infrastructure as a Service Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Infrastructure as a Service Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Infrastructure as a Service Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Infrastructure as a Service Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Infrastructure as a Service Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Infrastructure as a Service Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Infrastructure as a Service Market Report Snapshots
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