The Infrastructure-as-a-Service Market is projected to reach $411.9 billion by 2030, at a CAGR of 22.6% from 2023 to 2030. The growth of the infrastructure-as-a-service market is driven by the growing adoption of cloud infrastructure in the BFSI sector and enterprises’ increasing preference for IaaS over conventional on-premise services. However, data privacy & security concerns may restrain the market's growth.
Furthermore, the growing adoption of cloud technologies among SMEs and the increasing focus on customized and managed cloud services are expected to offer significant growth opportunities for the infrastructure-as-a-service market. However, the shortage of skilled IT professionals may hinder the growth of this market.
Growing Adoption of Cloud Infrastructure in the BFSI Sector Drive the Growth for the Infrastructure-as-a-Service Market
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 that banks could no longer rely on their 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, combining 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.
Key Findings in the Infrastructure-as-a-Service Market Study:
In 2023, the Compute Segment is Expected to Dominate the Infrastructure-as-a-Service Market
Based on offering, the global infrastructure-as-a-service market is segmented into compute, network, storage, and other offerings. In 2023, the compute segment is expected to account for the largest share 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.
The Hybrid Cloud Segment to Register the Highest CAGR During the Forecast Period
Based on deployment mode, the global infrastructure-as-a-service market is segmented into public cloud, private cloud, and hybrid cloud. The hybrid cloud segment is slated to register the highest CAGR during the forecast period. The growth of this segment is driven by the increasing deployment of hybrid cloud by organizations to improve performance and increase security, modernize existing infrastructure, reduce cost, and use both public & private cloud according to the company requirements.
In 2023, the Large Enterprises Segment is Expected to Dominate the Infrastructure-as-a-Service Market
Based on organization size, the global infrastructure-as-a-service market is segmented into large enterprises and small & medium-sized enterprises. In 2023, the large enterprises segment is expected to account for the larger share 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. For instance, in 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.
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The Storage, Backup, and Recovery Segment to Register the Highest CAGR During the Forecast Period
Based on application, the global infrastructure-as-a-service market is segmented into testing and development, hosting, storage, backup and recovery, high-performance computing, and other applications. The storage, backup, and recovery segment is slated to register the highest CAGR during the forecast period. The growth of this segment is driven by the increasing digital transformation and migration of workload in the cloud and increasing volume of data in large enterprises.
In 2023, the IT & Telecommunications Segment is Expected to Dominate the Infrastructure-as-a-Service Market
Based on sector, the global infrastructure-as-a-service market is segmented into IT & telecommunications, BFSI, healthcare, retail & e-commerce, government & defense, manufacturing, transportation & logistics, and other sectors. In 2023, the IT & telecommunications segment is expected to account for the largest share 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. 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%.
Asia-Pacific to Register the Highest CAGR During the Forecast Period
Based on geography, the global infrastructure-as-a-service market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific is slated to register the highest CAGR during the forecast period. The growth of this market 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. For instance, in November 2022, Amazon Web Services, Inc. (AWS) (U.S.) (a subsidiary of Amazon.com, Inc.) launched its second AWS infrastructure Region in India—the AWS Asia-Pacific (Hyderabad) Region. This infrastructure aims to allow developers, startups, entrepreneurs, enterprises, government, education, and non-profit organizations to migrate their workloads to data centers located in India.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by major market players in the last three to four years. The key players profiled in the infrastructure-as-a-service market study are Google LLC (U.S.), Amazon Web Services, Inc. (U.S.), Microsoft Corporation (U.S.), Oracle Corporation (U.S.), IBM Corporation (U.S.), Cisco Systems, Inc. (U.S.), Alibaba Cloud (China), Huawei Technologies Co., Ltd. (China), 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.).
Scope of the Report:
Infrastructure-as-a-Service Market Assessment, by Offering
- Compute
- Network
- Storage
- Other Offerings
Infrastructure-as-a-Service Market Assessment, by Deployment Mode
- Public Cloud
- Private Cloud
- Hybrid Cloud
Infrastructure-as-a-Service Market Assessment, by Organization Size
- Large Enterprises
- Small & Medium-sized Enterprises
Infrastructure-as-a-Service Market Assessment, by Application
- Testing and Development
- Hosting
- Storage, Backup, and Recovery
- High-Performance Computing
- Other Applications
Infrastructure-as-a-Service Market Assessment, by Sector
- IT & Telecommunications
- BFSI
- Healthcare
- Retail & E-commerce
- Government & Defense
- Manufacturing
- Transportation & Logistics
- Other Sectors
Infrastructure-as-a-Service Market Assessment, by Geography
- North America
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Europe
- U.K.
- Germany
- Italy
- Spain
- France
- Rest of Europe
- Latin America
- Middle East & Africa
Key questions answered in the report: