What Has Been the Growth of the Infrastructure as a service (IaaS) Market So Far?
The infrastructure as a service (iaas) market has seen considerable growth due to a variety of factors.
• The size of the Infrastructure as a Service (IaaS) market has seen a swift expansion in previous years. It is predicted to soar from $154.39 billion in 2024 to $171.96 billion in 2025 with a compound annual growth rate (CAGR) of 11.4%.
The historic growth can be credited to factors such as the progression of workforce dynamics, the burgeoning of devops and agile processes, the strategic pivot towards outsourced IT infrastructure, globalization and market broadening, as well as disaster recovery and business continuity.
What is the Forecasted Market Size and CAGR for the Infrastructure as a service (IaaS) Market?
The infrastructure as a service (iaas) market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the infrastructure as a service (IaaS) market is predicted to witness significant expansion in the forthcoming years, reaching $276.81 billion in 2029 at a 12.6% compound annual growth rate (CAGR). The increase during the projection period can be linked to initiatives for digital transformation, improved security strategies, a focus on eco-friendly infrastructure, adoption of hybrid and multi-cloud, and incorporation of AI and machine learning. Key market trends in the projected period include the rise of serverless computing, containerization and kubernetes, advancements in edge computing infrastructure, AI assimilation, and the introduction of software-defined infrastructure (SDI).
What Are the Critical Driver Fuelling the Infrastructure as a service (IaaS) Market's Growth?
The growth of the infrastructure as a service (IAAS) market is anticipated to be fueled by an increase in the number of small and medium-sized businesses. These are enterprises that have lesser personnel and revenue numbers compared to larger organizations. IAAS providers take care of every aspect of the infrastructure, which significantly cuts down on the maintenance and upgrade expenses for these smaller entities. For example, data from the U.S. Small Business Administration (SBA), a government agency in the United States, showed in November 2023, that small businesses comprise 99.9% of all businesses in the country with 33.3 million small businesses contributing to an increase of 4.9 million jobs in 2023. Therefore, the surge in small and medium-sized businesses is positively impacting the growth of the infrastructure as a service (IAAS) market.
What Are The Principal Market Segments In The Global Infrastructure as a service (IaaS) Healthcare Industry?
The infrastructure as a service (IaaS) market covered in this report is segmented –
1) By Deployment Type: Public Cloud, Private Cloud, Hybrid Cloud
2) By Application: Managed Hosting, Storage As A Service, Disaster Recovery As A Service And Backup, Compute As A Service (CaaS), Network As A Service (NaaS), Content Delivery Services, High-Performance Computing As A Service (HPcaaS)
3) By End User: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Industry Vertical: Banking, Financial Services, And Insurance (BFSI), Government And Education, Healthcare, IT And Telecom, Retail, Manufacturing, Media And Entertainment, Other Industry Verticals
Subsegments:
1) By Public Cloud: Multi-Tenant Infrastructure, Pay-As-You-Go Pricing Models, Shared Resources
2) By Private Cloud: Single-Tenant Infrastructure, Enhanced Security And Compliance Features, Dedicated Resources
3) By Hybrid Cloud: Combination Of Public And Private Cloud Resources, Integration Services For Seamless Operation, Flexible Resource Allocation Based On Demand
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Which Emerging Market Trends Are Altering The Infrastructure as a service (IaaS) Market?
Major firms in the Infrastructure as a Service (IaaS) market are advancing by introducing groundbreaking products such as Watson AIOps. This platform aids in identifying, diagnosing, and addressing IT irregularities independently. Effectively, Watson AIOps offers an AIOps platform and IT operations management solution which positions AI at the heart of the ITOps resources. In September 2022, IBM, an American technology corporation, unveiled Watson AIOps. This product employs traceable AI, which bolsters trust in AI-powered suggestions and insights for vital work tasks among teams and stakeholders. Watson AIOps provides precise, to-the-point recommendations and strategies to expedite the problem-solving process for teams.
Who Are the Key Players in the Infrastructure as a service (IaaS) Market?
Major companies operating in the infrastructure as a service (IaaS) market include:
• Alphabet Inc.
• Google Inc.
• Microsoft Corporation
• Alibaba Group Holding Limited
• Dell Technologies Inc.
• Tencent Holdings Limited
• Amazon Web Services Inc.
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Fujitsu Limited
• Hewlett Packard Enterprise Company
• Savvisa Century Link Company
• DXC Technology Company
• Vmware Inc.
• Alibaba Cloud Inc.
• RedHat Inc.
• Rackspace Technology Inc.
• Nutanix Inc.
• IONOS Cloud Inc.
• Joyent Inc.
• Redcentric plc
• Linode LLC
• MapR Technologies Inc.
• Mesosphere Inc.
• ProfitBricks Inc.
• Mirantis Inc.
• EMC Corporation
• Micronaut Foundation
• OpenStack Foundation
What are the Regional Insights into the Infrastructure as a service (IaaS) Market?
North America was the largest region in the infrastructure as a service (IAAS) market in 2024. Western Europe was the second largest region in the global infrastructure as a service (IAAS) market share. The regions covered in the infrastructure as a service (IAAS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
