Global Infrastructure-as-a-Service Market to Grow at a CAGR of 23.4% by 2030

Introduction

Infrastructure-as-a-Service (IaaS) is a cloud computing solution that helps eliminate hardware costs by providing virtual server rooms and network systems on third-party or in-house data centers. It provides complete IT infrastructure components such as servers, networks, storage systems, and data centers to various user groups, including large and small & medium enterprises (SMEs).

The cost-effective benefits of IaaS technology, growth in demand for faster data accessibility, and increase in cloud adoption across various industry verticals are some critical factors driving the growth of the global IaaS market. In addition, a significant trend toward hybrid cloud as the primary deployment model and government spending on ICT in several developed and developing nations drive market expansion. However, the absence of uniform standards and the rise in security and privacy concerns are expected to restrain the market's expansion. On the contrary, the integration of AI with IaaS and the rise in demand for IaaS by SMEs are anticipated to provide lucrative growth opportunities for the global IaaS market during the forecast period.

Market Dynamics

Growth in Demand for Low-Cost IT Infrastructure and Faster Data Accessibility to Drive the Global Infrastructure-as-a-Service Market

Enterprises worldwide focus on creating a mobile workforce in which employees may access data from remote locations via internet services, necessitating the virtualization of IT components such as servers, storage, networks, and others. IaaS allows faster data access regardless of the data center's location due to a standardized IT infrastructure implementation. IaaS incurs cheap investment costs because it does not necessitate an on-premise data center or additional services and maintenance expenses. As part of their integrated cloud service offerings, managed service providers such as Amazon Web Services, Inc., Microsoft Corporation, and IBM Corporation provide 365 days a year of continuous cloud service availability.

With the most responsive scalability of pooled cloud servers, end customers find IaaS a cost-effective service because they only pay for what they use. In addition, end customers can avoid the expenditures associated with bringing individual servers online. This significant element is predicted to fuel the market's growth throughout the forecast period.

Growth in Cloud Adoption among SMEs to Provide Opportunities for the Global Infrastructure-as-a-Service Market

SMBs increasingly use cloud infrastructure due to better uptime, reliability, IT service enrichment, expanded data access flexibility, and operational speed. According to the Cloud Industry Forum, SMBs tend to use cloud computing due to the cost-effectiveness of virtual networking, storage alternatives, and business models. During the projected period, factors such as increased customer support, enhanced business continuity, and replacement of conventional IT infrastructure are anticipated to generate sufficient room for market expansion.

Numerous industrial verticals, including the banking and financial sector, governmental sectors, healthcare, manufacturing, communications & IT, and business service provider, have adopted cloud computing as a leading trend. Numerous operational needs, including document storage, network security, virtual data center, and many others, are met by cloud applications, which are predicted to provide a global opportunity for IaaS. In the coming years, Infrastructure-as-a-Service (IaaS) and PaaS (Platform-as-a-Service) are expected to be traded more than actual data centers, per the U.S. International Trade Administration.

Key Highlights

• The global IaaS market was worth USD 58 billion in 2021 and is estimated to reach an expected value of USD 385 billion by 2030, registering a CAGR of 23.4% during the forecast period (2022 – 2030).

• By component, the global Infrastructure-as-a-Service market is divided into storage, network, compute, and others. The compute segment was the highest contributor to the market and is estimated to grow at a CAGR of 22.9% during the forecast period. 
• By deployment model, the global Infrastructure-as-a-Service market is divided into private, public, and hybrid models. The hybrid segment was the highest contributor to the market and is estimated to grow at a CAGR of 23.8% during the forecast period. 
• According to user type, the global Infrastructure-as-a-Service market is categorized into small & medium enterprises (SMEs) and large enterprises. The large enterprise segment dominated the global Infrastructure-as-a-Service market and is estimated to grow at a CAGR of 20.7% during the forecast period.  

• As per industry vertical, the global Infrastructure-as-a-Service market is divided into banking, financial services and insurance (BFSI), government & education, healthcare, telecommunication & IT, retail, manufacturing, media & entertainment, and others. The telecom & IT segment was the highest contributor to the market and is estimated to grow at a CAGR of 21% during the forecast period.

Regional Insights

Region-wise, the global Infrastructure-as-a-Service market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue contributor and is estimated to grow at a CAGR of 21.3%. The infrastructure development in North America is sufficient for adopting IaaS technology. Additionally, prominent suppliers are concentrating on developing innovative solutions, strategic alliances, and geographic growth to strengthen their worldwide market position. The BFSI and government sectors are expected to dominate the IaaS market during the projected period. Key market drivers in North America include the rising demand for low-cost cloud infrastructure development and faster network connectivity. In addition, the rising need for ample data storage and the adoption of IaaS gateways contribute to the expansion of this industry.

Europe is the second largest region. It is estimated to reach an expected value of USD 105 billion by 2030, registering a CAGR of 23.4%. The European IaaS market is expanding at a rapid rate due to the increasing use of IaaS as a result of cost-effective solutions and the growing knowledge of the benefits of IaaS among the leading industry players. In addition, the widespread understanding of the various types of cloud computing services accelerates the expansion of this European market. In addition, the SWIPO working group presented a comprehensive proposal for a governance framework that would make the Codes of Conduct practically enforceable via a complaints process for users. In addition, a surge in the use of IaaS solutions by e-commerce businesses is anticipated to support market growth in this region.

Asia-Pacific is the third largest region. Asia-Pacific is anticipated to have the highest growth in the IaaS market due to a rise in the adoption of high-speed internet connections, such as 4G connections, a large population base, a rise in rivalry among telecom& IT service providers, and an increase in GDP. In addition, telcos in Asia-Pacific are cooperating with multiple cloud service providers to offer a unified cloud offering that includes public and private storage and computation in addition to connectivity via IP-VPN or dedicated lines, which is driving the expansion of the IaaS market in Asia-Pacific. In Asia-Pacific, competition is intense due to the number of providers offering affordable, superior, and customized solutions. The growth of the IaaS market in the Asia-Pacific region is driven by a combination of high demand for cloud services, a rising requirement for workplace mobility, and robust economic expansion. In addition, increases in IT spending and population expansion in countries like India and China are predicted to create lucrative potential prospects for the industry. In addition, international players focus on Asia-Pacific expansion to reach unexplored markets.

Competitive Players

Competitive Landscape

The major players in the global IaaS market, which include Amazon Web Services, Inc., Alibaba Group Holding Limited, Microsoft Corporation, IBM Corporation, Redcentric plc., Google, Inc., Oracle Corporation, EMC Corporation, Rackspace, Inc., and Hewlett Packard Enterprise

Recent Developments

Market News

• October 2022 - Sibos 2022, IBM (NYSE: IBM) and Tietoevry, an IT software and services company headquartered in Finland announced a global technology and consulting collaboration for its financial technology software unit Tietoevry Banking to help deliver secured and innovative solutions for payment and transaction technology to banks globally.
• October 2022 - IBM (NYSE: IBM) announced today it will add Red Hat storage product roadmaps and Red Hat associate teams to the IBM Storage business unit, bringing consistent application and data storage across on-premises infrastructure and cloud

Segmentation

Global Infrastructure-as-a-Service Market: Segmentation

By Component Type

• Storage
• Network
• Compute
• Others

By Deployment Model

• Private
• Public
• Hybrid

By User Type

• Small and Medium Enterprises
• Large Enterprise

By Industry Vertical

• BFSI
• Government & Education
• Healthcare
• Telecom & IT
• Retail
• Manufacturing
• Media & Entertainment
• Others

By Region

• North America
• Europe
• Asia-Pacific