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The Infrastructure as a Service (IaaS) Market size is estimated to grow at a CAGR of 41.59% between 2022 and 2027. The market size is forecast to increase by USD 548.92 billion. The growth of the market depends on several factors, including a shift from CAPEX model to OPEX model, and the growing need to simplify solutions for backup and colocation service providers. IaaS (IaaS) is one of the categories of cloud computing service offerings, while Software as a Service (SaaS) and Platform as a Service (PaaS) are the other two categories. IaaS provides virtualized computing resources, as a service, over the Internet. Through this service, vendors offer products such as server computing resources, storage capacity, bandwidth, network connections, internet protocol (IP) addresses, and load balancers.
This infrastructure as a service (IaaS) market report extensively covers market segmentation by deployment (public cloud, private cloud, and hybrid cloud), end-user (large enterprises and SMEs), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the infrastructure as a service (IaaS) market growth is the growing need to simplify solutions for backup. There is increasing adoption of infrastructure as a service (IaaS) across enterprises due to its convenience. Even though flash drives or external HDDs can be used to store data or transport it to other devices, it needs manual or physical handling.
However, the main advantage of IaaS is that it enables to access the stored data from anywhere so long as there is Internet connectivity. Additionally, the information or data is automatically saved simultaneously with the streaming. Thus it reduces the effort for enterprises to manually save, label, and track information. Thus such benefits are positively impacting the infrastructure as a service market. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the infrastructure as a service (IaaS) market growth is the increasing demand for low-cost IT infrastructure. There is an increase in expenditure by IT firms on IT infrastructure procurement and maintenance to meet the rising demand for IT usage and to sustain competition in the market. Thus the increased spending has significantly fuelled the operating costs.
However, the advent of cloud backup and recovery has helped several organizations to reduce their functional cost, as huge capital is needed to maintain IT infrastructure. Additionally, the cloud back enables organizations to save the annual OPEX; cloud storage costs nearly 4 cents per gigabyte to store data internally. Therefore, such benefits are positively impacting IaaS market growth. Hence, such factors are expected to drive market growth during the forecast period.
Increasing incidences of data breaches are one of the key challenges hindering the infrastructure as a service (IaaS) market growth. There is an increasing development of cloud-based application software in the global application software industry due to the rising demand for IaaS applications. However, there are growing concerns regarding the data security of such cloud-based applications.
Moreover, the main challenge associated with the application software industry is data breaches. Data breaches due to the XSS, XSRF, and SQL injection can act as a significant threat to software developers, as it enables malicious third parties to access sensitive customer data. Hence, such factors can negatively impact the IaaS market. Thus, it is expected to hinder market growth during the forecast period.
The public cloud segment is estimated to witness significant growth during the forecast period. The cloud computing model in which IT services are delivered over the Internet or through virtualization is termed a public cloud. Several market players in this segment can provide these services free or on a subscription basis based on the computing resources used. The computing functionality of this segment comprises servers, bandwidth, network connections, IP addresses, and storage to the enterprise-grade.
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The public cloud segment was the largest segment and was valued at USD 15.33 billion in 2017. There is increasing adoption of the public cloud segment across enterprises due to the elasticity and scalability of the solution, which is ideal for IT-enabled services. Additionally, the market players in this segment are responsible for managing, maintaining, and developing the pool of computing resources shared among multiple users across the network. Some of the main advantages of the public cloud segment include low investment, high scalability and flexibility, reduced complexity, high reliability, and flexible pricing options. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing demand for IaaS across large enterprise segment increases market growth. There is an increasing adoption of IaaS across large enterprises due to its benefits such as greater flexibility and scalability in protection solutions. In large enterprises, the IaaS equipment is placed in a secure facility with highly available data centers with redundant data storage, servers, power and cooling systems, bandwidth, and network connectivity. The main advantage of IaaS is that it provides a more flexible and scalable alternative, enabling businesses to manage data quickly and easily. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increase in the demand for cloud computing services fuelling the demand for data centers and storage spaces is significantly contributing to the growth of the global infrastructure as a service (IaaS) market in North America. Additioanlly, the IaaS enables users to scale the resources paper their needs, making it an ideal option for the rising number of startups and small and medium enterprises in the region. Furthermore, these are best suited for temporary workloads and for workloads that are experimental or change unexpectedly. Moreover, the increase in adoption of IaaS is fuelled by the ease of virtualization and the dynamic scaling and automation of administrative tasks. Hence, such factors are expected to drive the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global market witnessed significant growth as a large number of enterprises are shifting to work-from-home fuelling the adoption of cloud services and digitization in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in several industries with cloud computing becoming mainstream in several verticals, such as banking and finance, healthcare, public sector, manufacturing, telecommunications, and IT, service companies, and more. Such factors are expected to drive the market during the forecast period.
The infrastructure as a service (IaaS) market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Infrastructure as a Service (IaaS) Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
11 11 Systems Inc: The company offers infrastructure as a service such as 11 11 IaaS.
Alibaba Group Holding Ltd: The company offers infrastructure as a service based on automation and orchestration technologies to on-demand provision and manage virtualized infrastructure resources such as servers, storage, and network over a wide area network.
Alphabet Inc: The company offers infrastructure as a service, which includes benefits such as cost savings, increased efficiency, innovation, and reliability.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The infrastructure as a service (IaaS) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Infrastructure as a Service (IaaS) Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 41.59% |
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Market growth 2023-2027 |
USD 548.92 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
34.1 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
11 11 Systems Inc., Akamai Technologies Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Datacom Group Ltd., Dell Technologies Inc., DigitalOcean Holdings Inc., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Rackspace Technology Inc., Redcentric plc, and VMware Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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