Infrastructure-as-a-Service Market (2024-2031)
The Infrastructure-as-a-Service Market is expected to reach $512.4 billion by 2031, at a CAGR of 23.1% from 2024 to 2031.
- Published
- Jul 2024
- Pages
- 211
- Format
- PDF + Excel
- Report ID
- MRICT - 104764
- Base year
- 2023
- 2031 · FORECAST
- $512.4B
- 2031
- $512.4B
- CAGR 2024–2031
- 23.1%
2023 baseline · 2024–2031 forecast at 23.1% CAGR · hover a bar for the value
Key highlights
By Offering: In 2024, the Compute Segment to Dominate the Infrastructure-as-a-Service Market
By Deployment Mode: In 2024, the Public Cloud Segment to Dominate the Infrastructure-as-a-Service Market
By Organization Size: In 2024, the Large Enterprises Segment to Dominate the Infrastructure-as-a-Service Market
By Application: In 2024, the Storage, Backup, And Recovery Segment to Dominate the Infrastructure-as-a-Service Market
By Sector: In 2024, the IT & Telecommunications Segment to Dominate the Infrastructure-as-a-Service Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 211 |
| Format | |
| Forecast Period | 2024–2031 |
| Base Year | 2023 |
| CAGR (Value) | 23.1% |
| Market Size (Value) | USD 512.4 Billion by 2031 |
| Segments Covered | By Offering · Storage · Compute · Network · Other Offerings · By Deployment Mode · Public Cloud · Private Cloud · Hybrid Cloud · By Organization Size · Large Enterprises · Small & Medium-sized Enterprises · By Application · Storage, Backup, and Recovery · High Performance Computing · Hosting · Testing and Development · Other Applications · By Sector · IT & Telecommunications · Retail & E-commerce · BFSI · Manufacturing · Healthcare · Transportation & Logistics · Government & Defense · Other Sectors |
| Countries Covered | North America (U.S., Canada), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Europe (U.K., Germany, Italy, Spain, France, Rest of Europe), Latin America and the Middle East & Africa |
| Key Companies | Amazon Web Services, Inc. (U.S.), Microsoft Corporation (U.S.), Alibaba Cloud (China), Google LLC (U.S.), Huawei Technologies Co., Ltd. (China), Oracle Corporation (U.S.), IBM Corporation (U.S.), Cisco Systems, Inc. (U.S.), SAP SE (Germany), VMware, Inc. (U.S.), Rackspace Technology, Inc. (U.S.), DigitalOcean LLC (U.S.), Hewlett Packard Enterprise Company (U.S.), Tencent Cloud (China), Linode LLC (U.S.), NTT Communications Corporation (Japan), Utho (India), and Vultr (U.S.) |
Report overview
Segments covered: offering, deployment, organization size, application, sector. Regions: North America, Asia-Pacific, Europe.
The growth of this market is attributed to the growing adoption of cloud infrastructure in the BFSI sector and enterprises’ increasing preference for IaaS over conventional on-premise services. Moreover, the growing adoption of cloud technologies among SMEs and the increasing focus on customized and managed cloud services are expected to offer growth opportunities for the players operating in this market.
Report infographic
Market dynamics
4 factors across 3 forcesIncreasing Adoption of Cloud Infrastructure in the BFSI Sector to Reduce Hardware Installation & Maintenance Costs
Cloud technology is being increasingly adopted across the BFSI sector as modern-day banks and financial institutions are exploring innovative ways to reduce costs and increase operational efficiencies. According to a survey by IBM Corporation (U.S.), in 2020, 91% of financial institutions actively used cloud services. Additionally, the COVID-19 pandemic highlighted the fact that banks could no longer rely on their existing legacy systems to fulfill consumer expectations.
According to a survey conducted by Google Cloud (a cloud platform developed by Google LLC, U.S.) and The Harris Poll, LLC. (U.S.), 83% of respondents associated with the BFSI sector stated that their companies used cloud services in some capacity. Most BFSI organizations (38%) preferred a hybrid approach, as it combines the superior security and control of private clouds and the flexibility and scalability of public clouds. Cloud infrastructure is becoming increasingly important in migrating existing IT systems to the cloud to gain actionable insights, drive business growth, and focus on infrastructure and digital banking application modernization. Cloud infrastructure helps reduce hardware installation & maintenance costs and offers cloud services that can be accessed from anywhere. All these benefits are boosting the adoption of the IaaS model in the BFSI sector, driving the growth of this market.
Enterprises’ Increasing Preference for IaaS over Conventional On-premise Services Due to the Benefits Offered
Cloud computing is a disruptive technology that offers the ability to remotely process, transmit, and store data, making it increasingly important in the delivery of public and private services. Cloud IaaS provides access to cloud service providers’ infrastructure resources, such as servers, virtual machines, networking resources, and storage. IaaS helps to eliminate the complexity and costs associated with building and maintaining physical infrastructure in on-premise data centers.
In the IaaS model, the cloud service provider (CSP) manages and maintains the infrastructure, allowing enterprises to concentrate on software installation, configuration, management, and data security. IaaS providers also offer additional services, such as detailed billing management, logging, monitoring, storage resiliency, and security. The IaaS model works on a pay-as-you-go basis, allowing customers to only pay for the services or resources required. Also, consumers can easily increase or decrease resources, allowing them to pay less when needed or instantly provision and scale out resources to meet new demands. Such advantages are boosting the adoption of IaaS, driving the growth of this market.
Table of contents
13 chapters · 119 sections · 211 pages · click to expandSegmental analysis
| Segment | Largest share (2024) | Fastest growth (2024–2031) |
|---|---|---|
| By Offering | Compute | Storage |
| By Deployment Mode | Public Cloud | Hybrid cloud |
| By Organization Size | Large Enterprises | Small & medium-sized enterprises |
| By Application | Storage, Backup, And Recovery | Recovery |
| By Sector | Large market share of this | Retail & e-commerce |
By Offering
- The Compute Segment to Dominate the Infrastructure-as-a-Service Market
- The compute segment is expected to account for the largest share of above 42% of the infrastructure-as-a-service market.
- The large market share of this segment is attributed to the increasing use of virtualized computing resources by SMEs due to limited IT budgets and increasing digital transformation by various sectors to transfer their workload to the cloud.
- However, the storage segment is projected to register the highest CAGR during the period.
- This segment's growth is driven by the increasing volume of data in large enterprises and the increasing demand for storage solutions to reduce the installation and maintenance costs of data centers.
By Deployment Mode
- The Public Cloud Segment to Dominate the Infrastructure-as-a-Service Market
- The public cloud segment is expected to account for the largest share of above 50% of the infrastructure-as-a-service market.
- The large market share of this segment is attributed to the increasing use of the public cloud by small and medium-sized enterprises due to the lower cost of subscription-based or pay-per-usage pricing models in the public cloud.
- However, the hybrid cloud segment is projected to register the highest CAGR during the period.
- This segment's growth is driven by organizations' increasing deployment of hybrid cloud to improve performance and security, modernize existing infrastructure, reduce cost, and use both public and private clouds according to company requirements.
By Organization Size
- The large enterprises segment is expected to account for the larger share of above 55% of the infrastructure-as-a-service market.
- The large market share of this segment is attributed to the growing adoption of advanced technologies such as cloud computing, AI, and blockchain, and the rapid migration of IT infrastructure in the cloud.
- However, the small & medium-sized enterprises segment is projected to register the highest CAGR during the period.
- The growth of this segment is driven by the growing digital transformation, growing adoption of public cloud services, and benefits related to IaaS solutions such as low cost, security, and better computing processes.
By Application
- The storage, backup, and recovery segment is expected to account for the largest share of above 38% of the infrastructure-as-a-service market.
- The large market share of this segment is attributed to the increasing use of cloud storage applications in large enterprises due to the increasing volume of data and growing demand across SMEs to avoid the complexity of storage management, the lack of skilled professionals, and reduce cost.
- Moreover, the storage, backup, and recovery segment is also projected to register the highest CAGR during the period.
- This segment's growth is driven by the increasing digital transformation and migration of workloads to the cloud and the increasing volume of data in large enterprises.
By Sector
- The IT & telecommunications segment is expected to account for the largest share of above 32% of the infrastructure-as-a-service market.
- The large market share of this segment is attributed to the increasing adoption of advanced technologies, including cloud computing, and the increasing use of the IaaS model to reduce data centers and increase storage capacity.
- Telecommunications operators are migrating to cloud infrastructure to decrease operational costs and increase deployment times.
- For instance, Deutsche Telekom AG (Germany) is using Amazon Web Services, Inc. (U.S.) and Microsoft Corporation (U.S.) cloud infrastructure to reduce its data centers from 89 to 13 across the globe and increase computing and storage capacity by around 25%.
- However, the retail & e-commerce segment is projected to register the highest CAGR during the period.
- The growth of this segment is driven by the increasing need to automate workflows and online transactions, the need for data integrity in the retail & e-commerce industry, and the increasing use of cloud infrastructure to store data and offer insights regarding customer preferences.
Geographic analysis
North America
Largest shareIn 2024, North America is expected to account for the largest share of above 46% of the infrastructure-as-a-service market. The market growth in North America is driven by the increasing government initiatives for the implementation of cloud computing technologies, the presence of major technology companies in the region, the high acceptance & extensive adoption of cutting-edge technologies in the region, and growing cloud adoption to manage security, infrastructure, network, business continuity, mobility, and regulatory standards within the cloud infrastructure. Companies are increasingly adopting cloud infrastructure to improve business productivity and decision-making capabilities by migrating their on-premise workload to the cloud. For instance, in April 2022, Amazon Web Services, Inc. (U.S.) extended its partnership with Boeing (U.S.), the leading manufacturer of airplanes, rotorcraft, rockets, satellites, and telecommunications equipment, to migrate Boeing’s applications from on-premises data centers to AWS cloud to strengthen their engineering and manufacturing processes. In 2024, North America to Dominate the Infrastructure-as-a-Service Market
Asia-Pacific
Fastest growthHowever, Asia-Pacific is projected to record the highest CAGR of above 24.5% during the forecast period. The region’s growth is attributed to the growing adoption of IaaS by small and medium-sized enterprises to reduce maintenance costs, the increasing proliferation of cloud computing services in China and Japan, and the presence of well-established IaaS providers in China. Increasing investments by major players, such as IBM Corporation (U.S.) and Google LLC (U.S.), to strengthen cloud computing services and the growing adoption of managed cloud data center services in China, Japan, and India are supporting the growth of the IaaS market in Asia-Pacific.
Competitive landscape
- November 2022
Amazon Web Services, Inc. (U.S.) partnered with Atos SE (France), a global leader in digital transformation, high-performance computing, and information technology infrastructure, to help Atos migrate its workload to AWS cloud to improve customer experience. IaaS enables large organizations to reduce infrastructure costs, secure the infrastructure, and provide cloud applications.
- November 2021
Siemens AG (Germany) extended its collaboration with (U.S.) to accelerate digital transformation in the cloud. This collaboration will help gain new manufacturing insights, automate processes, and deploy connected services.
- October 2021
Alibaba Cloud (China) launched its first local data center in South Korea to offer consumers more secure, reliable, and scalable cloud services and empower South Korean businesses with their digital transformation.
- Amazon Web Services, Inc. (U.S.)
- Microsoft Corporation (U.S.)
- Alibaba Cloud · China
- Google LLC (U.S.)
- Huawei Technologies Co., Ltd. · China
- Oracle Corporation (U.S.)
- IBM Corporation (U.S.)
- Cisco Systems, Inc. (U.S.)
- SAP SE · Germany
- VMware, Inc. (U.S.)
- Rackspace Technology, Inc. (U.S.)
- DigitalOcean LLC (U.S.)
- Hewlett Packard Enterprise Company (U.S.)
- Tencent Cloud · China
- Linode LLC (U.S.)
- NTT Communications Corporation · Japan
- Utho · India
- Vultr (U.S.)
Frequently asked questions
The infrastructure-as-a-service market study focuses on market assessment and opportunity analysis through the sales of infrastructure-as-a-service solutions across different regions and market segmentations. This study is also focused on competitive analysis for infrastructure-as-a-service based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies.
Cite this report
Meticulous Research. (2024). Infrastructure-as-a-Service Market - Global Opportunity Analysis and Industry Forecast (2024-2031) (Report No. MRICT - 104764). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/infrastructure-as-a-service-market-5448