Product Code: RP-ID-10084760 |
Published Date: 21 Mar 2025 |
Region: Global |
Category: ICT & Telecom |
Report ID: 10084760
Market Overview:
Infrastructure as a Service (IaaS) Market Analysis by Deployment (Private, Public, and Hybrid); by Component (Network, Storage, Compute, and Others); by Enterprise Size (Large Enterprise, and Small Enterprise); and by End User (Government, Healthcare, IT & Telecom, Media & Entertainment, Education Manufacturing and Others)-Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
Definition of Infrastructure as a Service (IaaS)
Infrastructure as a Service (IaaS) is a cloud computing service that is mostly used by businesses to rent servers in the cloud for storage and computing. These web services provide high-level APIs which can be used to dereference various features of network infrastructure at a low level such as physical computer resources, scaling, data partitioning, location, backup, security, and so on. IaaS allows users to run any operating system or application on leased servers without having to pay for the upkeep and operation of servers.
Global Infrastructure as a Service (IaaS) Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~25% |
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Base Year Market Size (2022) |
~ USD 52 Billion |
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Forecast Year Market Size (2033) |
~ USD 489 Billion |
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Regional Scope |
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Global Infrastructure as a Service (IaaS) Market Highlights Over 2023 - 2033
The global infrastructure as a service (IaaS) market is estimated to garner a revenue of USD 489 Billion by the end of 2033 by growing at a CAGR of ~25% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 52 Million in the year 2023. Further, the market generated a modest revenue in the year 2022. Rising need to save the cost by the deployment of cloud services. Cloud has become widespread among enterprises owing to its cost saving by removing unusable resources and downsizing overused resources. Approximately 95% of people believe that cloud computing can eliminate setup and maintenance costs
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The popularity of advanced technology such as the Internet of Things (IoT) is anticipated to fuel the market growth of infrastructure as a service. There were nearly 980 million worldwide IoT installations in 2018 and it increased to around 1 billion in 2020. The rising pervasiveness of digitization of the economy is anticipated to boost the market growth. Further, the 5G innovation has accelerated digital transformation. In the United States, nearly 218 million 5G connections are expected to be installed by 2024.
Global Infrastructure as a Service (IaaS) Market: Growth Drivers and Challenges
Growth Drivers
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Increasing Demand for Reducing Overall expenditures of Company
IaaS save nearly 70% by the right utilization of on-premise servers. It facilitates the automatic shutdown of unproductive servers even on weekends which saves approximately 60% of the cost.
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Rapid Migration of Organization to Cloud-Based Services
Companies are shifting to cloud services so their employees can easily work from anywhere and the scattered network can be organized. It reduces the investment in developing and maintaining the physical infrastructures. Cloud is known to reduce IT infrastructure expenditures by 40%.
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Elevated Digitization among the Companies
Owing to COVID-19, enterprises all around the world went through a massive digital transformation, and still a huge number of companies dynamically adapting to digitization. By 2023, the digitally transformed organization is expected to contribute to more than half of the global GDP.
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The popularity of Hybrid Cloud Among the Organizations
The usage flexibility between the public and private cloud is the main reason companies are driven towards hybrid cloud solutions. About 20% of IT experts are interested in hybrid cloud owing to its cross-functionality between different clouds and nearly 60% of users consider hybrid cloud as an imperative solution for security concerns.
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Rise in Demand for Artificial Intelligence (AI) & Internet of Things (IoT) Associated Technology
AI reduces the service cost by detecting the consumer behavioral pattern which usually requires lots of time and labor. Many operators have reduced about 35% of service costs by the use of AI. Furthermore, advanced technology such as IoT is rapidly been used by companies to connect their data from the vast network and to utilize its autonomous capabilities of performing a task. By 2025, approximately 31 billion devices are forecasted to be connected with IoT.
Challenges
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Concerns of Security Associated with Private Cloud Deployment
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High Dependency on Broadband Internet Service
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Service Provider Many Times Do Not Upgrade the Software After Deployment
Due to a large amount of data, data in the cloud becomes a captivating target for attackers. Any sort of data leak can emerge as agony for IT companies and IaaS providers. A weak interface is more prone to hacking and data theft.
The infrastructure as a service (IaaS) market is segmented and analyzed for demand and supply by deployment into public, private, and hybrid clouds. Among these mention the factors why the sub-segment is expected to hold the largest market size. Various features such as the scalability of the company, data encryption in hybrid, and flexibility between private and public clouds are propelling companies to enable hybrid cloud solutions. As of 2022, approximately 80% of enterprises have enabled hybrid cloud architecture for the functioning of the company.
Global Infrastructure as a Service (IaaS) Market Regional Synopsis
Regionally, the global infrastructure as a service (IaaS) market is studied into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by the end of 2033. The presence of key players in infrastructure as a service market in the North American Region is the primary factor for its growth. The IaaS market is expected to project the highest market revenue of approximately 47,000 million USD in the United States. An American company is leading with a hold of around 41% worldwide shares of the IaaS market.
Market Segmentation
Our in-depth analysis of the global infrastructure as a service (IaaS) market includes the following segments:
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By Deployment |
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By Component |
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By Enterprise Size |
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By End User |
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Key Companies Dominating the Global Infrastructure as a Service (IaaS) Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global infrastructure as a service (IaaS) market that are included in our report are Microsoft Corporation, Fujitsu Ltd., Amazon Web Services, IBM Corporation, Cisco Systems Inc., Datacom Group Ltd., Oracle Corp., VMware Inc., Hewlett Packard Enterprise Co., HCL Technologies Ltd., and others.
Global Infrastructure as a Service (IaaS) Market: Latest Developments
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August 2022: Google Cloud, announced the launch of three new cloud regions in the Asia Pacific in Malaysia, New Zealand, and Thailand. The new regions are introduced to suffice the growing need for the cloud in Asia-Pacific and to open more windows for digital transformation.
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July 2022: Amazon Web Services, Inc., announces its multi-year cloud service agreement with Delta Airlines. By this agreement, AWS is to enhance the experience of Delta Airlines for customers from the point of booking to the flight experience.
- Microsoft Corporation
- Fujistu Ltd.
- Amazon Web Services
- IBM Corporation
- Cisco Systems Inc.
- Datacom Group Ltd.
- Oracle Corp.
- VMware Inc.
- Hewlett Packard Enterprise Co.
- HCL Technologies Ltd.
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