The Infrastructure As A Service Market size is expected to grow from USD 130.92 billion in 2023 to USD 325.91 billion by 2028, at a CAGR of 20.01% during the forecast period (2023-2028).
IaaS, or Infrastructure as a service, is a cloud computing paradigm that allows businesses to rent servers for remote computing and storage applications while allocating virtualized computing resources to users over the Internet.
- More enterprises are expected to embrace IaaS due to the growth in financial, business, and other vital data across various IT sectors. The IaaS market may expand due to the rising demand for quick data access, real-time query processing, and high-speed network communication.
- Serverless computing's expanding popularity, cloud services' growing demand for hybrid clouds, and more people using the Internet. As the leading cloud service providers transition to hybrid environments, integrated IaaS services are anticipated to drive the next wave of cloud infrastructure adoption.
- End users consider IaaS a substantial cost-saving service where clients pay only for what they use because cluster cloud servers have the fastest scalability. Also, the end user saves on the installation costs of adding individual servers to the network.
- However, security worries regarding the deployment of private clouds and a lack of IT infrastructure in developing nations are also anticipated to restrain market expansion somewhat.
- The COVID-19 pandemic impacted the Infrastructure as a Service (IaaS) market, which showed significant growth then. This was because of the restrictive containment measures, such as social isolation, remote work, and the suspension of commercial activities, which created operational difficulties for businesses and encouraged cloud services.
Infrastructure-as-a-Service Market Trends
IT & Telecom Expected to Hold Significant Growth
- Due to the industry's increased acceptance of cloud-based services, the IT and telecommunications sector is predicted to experience a strong growth rate for the IaaS market. This sector is one of the most important verticals, producing a vast amount of financial, healthcare, and personal data. Numerous telecom companies want to offer cloud infrastructure as a service.
- The IT and telecom industries produce a lot of data. Consequently, managed hosting, DRaaS, and STaaS solutions give companies access to affordable compute and storage resources. Cloud technology has allowed telecoms to go online, where organizations can now stay linked to the rest of the world without the need for expensive gear.
- One cloud application may handle numerous operational demands, including document storage, network security, virtual data centers, and many others, so it is anticipated that IaaS will have global potential.
- The global market for infrastructure as a service is expanding as a result of rising demand for low-cost IT infrastructure and quicker data accessibility. Moreover, increased cloud use in the IT and telecommunications sectors is helping the IaaS industry expand.
- However, due to an increase in the use of high-speed internet connections, such as 5G connections, a sizable population, increased competition among telecom and IT service providers, and an increase in global GDP.
- Governments in many countries are pushing information and communication technologies that increase the use of cloud systems, which in turn is fueling market expansion. Digitilazation, along with increasing data center demand from various IT companies, is creating opportunities for major players.
Asia-Pacific Expected to Hold Significant Growth
- Over the projection period, Asia-Pacific will likely have considerable expansion and take the lead in the IaaS market. High growth in this region can be due to rising internet usage and improving technology in several economies, including China, India, and South Korea.
- Due to the strengthening economy, nations like Japan, China, and India are developing, which will foster the expansion of the regional market. Also, the region's rapid industrialization is a crucial factor in developing the IaaS market there. The government in this area is spending more money on IT, creating more market opportunities.
- Rapid urbanization, global digitization, and the increasing use of digital commerce in the region will all drive to contribute to the market's enormous potential.
- The expansion of the Infrastructure as a Service market in this area throughout the projection period is also aided by the rising acceptance of digital trends, the increasing penetration of smart devices, and the rising number of SMEs. Moreover, the highest market share in the Asia-Pacific area for Infrastructure as a service was held by China, and the fastest-growing market was India.
Infrastructure-as-a-Service Industry Overview
The infrastructure-as-a-service market is fragmented and highly competitive due to the presence of various players and increasing demand for IaaS software models. Ongoing research and technological advancements are expected to be the key trends in the global market.
- February 2023 - Oracle Corporation and Uber Technologies have collaborated strategic cloud partnership to accelerate Uber's innovation, help deliver new products to market, and drive increased profitability, where migrating some of the company's most critical workloads to Oracle Cloud Infrastructure (OCI), Uber will be in a position to modernize its infrastructure while also accelerating its path to profitability.
- December 2022 - Amazon Web Services (AWS) has announced that Yahoo has selected AWS as its preferred public cloud provider for its advertising technology business Yahoo Ad Tech; using Amazon simple storage solutions (Amazon S3), Yahoo Ad Tech will build a centralized data lake to store hundreds of petabytes of data using Amazon simple storage solutions (Amazon S3). With the data lake, Yahoo Ad Tech will eliminate data silos and access AWS analytics services like Amazon EMR and Amazon Athena, two of the significant cloud extensive data services available. This would enable quick analysis of data from many sources to comprehend advertising patterns, and target consumers, and provide ad performance insights across its operations.
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