According to a recent report published by Allied Market Research, titled, “Infrastructure as a Service (IaaS) Market by Component Type, Deployment Model,User Type, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” The infrastructure as a service market size was valued at $38.94 billion in 2019, and is projected to reach $201.83 billion by 2027, growing at a CAGR of 23.2% from 2020 to 2027.
Infrastructure as a Service (IaaS) is a cloud computing service where enterprises lease servers for compute and storage in the cloud. IaaS online services offer high-level APIs used to dereference different low-level details of underlying network infrastructure such as physical computing resources, data partitioning, scaling, location, security, backup, and others. With IaaS, users can run any operating system or applications on the leased servers without operating & maintenance costs of these servers.
Rise in awareness about various cloud computing services including public, private, and hybrid cloud services, growth in internet penetration in emerging economies, and demand for cost effective and flexible computing services are major factors that drive the growth of the market. In addition, integration of artificial intelligence & demand for IaaS from SMEs are anticipated to create lucrative opportunities for the infrastructure as a service market expansion.
The Telecom & IT industry has registered highest infrastructure as a service market share, owing to expanding customer base and internet users. Reduced investments for new hardware and software across various industry verticals is expected to drive the market for IaaS in the future. Moreover, government & education and healthcare industries exhibited an increasing cloud adoption across various regions, owing to its low cost and improved reliability & scalability.
Surge in ICT expenditure and increase in cloud adoption across several industry verticals including BFSI, retail, healthcare, manufacturing, and government & education are anticipated to augment the infrastructure as a service market trends. The prominent markets, such as Asia-Pacific and Europe, provide growth in cloud infrastructure development, high adoption of Internet of Things (IoT) technology, and surge in demand for low-cost IT infrastructure deployment, which is anticipated to fuel the infrastructure as a service market growth in the coming years.
North America was the largest market in theinfrastructure as a service industry in 2019, owing to the growth in demand for low-cost cloud infrastructure development and faster network accessibility. In addition, industry participants have realized the importance of strengthening the overall IaaS solution to ensure competence and effectiveness of cloud infrastructure in several other emerging markets such as Latin America, the Middle East, and Africa.
Key Findings Of The Study
By component type, the compute segment dominated the Infrastructure as a Service (IaaS) market. However, the storage segment is expected to exhibit significant growth during the forecast period in the industry.
By deployment model, the hybrid segment dominated the market share in 2019.
By user type, the large enterprises segment dominated the market share in 2019. However, the small and medium enterprises segment is expected to exhibit significant growth during the forecast period.
By industry vertical, the telecom & IT segment dominated the infrastructure as a service market revenue in 2019. However, the government & education segment is expected to exhibit significant growth during the forecast period.
Region wise, North America dominated the IaaSmarket in 2019. Whereas, Asia-Pacific is expected to witness significant growth, in terms of CAGR in the coming years.
Some of the key market players profiled in the Infrastructureas a Service (IaaS) market analysis include Amazon Web Services, Inc., Alibaba Group Holding Limited, Dell EMC, Google LLC, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Rackspace Hosting, Inc., Redcentric plc., and Hewlett Packard Enterprise. All these players are involved in the competitive strategies, such as geographical expansion, mergers & acquisitions, product portfolio expansion, and partnership to augment the growth of the IaaS market.