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The infrastructure as a service market size is projected to increase by USD 1254.1 billion, at a CAGR of 55.16% between 2023 and 2028. The market's expansion hinges on various factors, notably the transition from a CAPEX to OPEX model and the increasing demand for simplified solutions among backup and colocation service providers. Within cloud computing, Infrastructure as a Service (IaaS) stands as one of three primary service categories, alongside Software as a Service (SaaS) and Platform as a Service (PaaS). IaaS delivers virtualized computing resources via the Internet, including server capacity, storage, bandwidth, network connections, IP addresses, and load balancers. This model enables vendors to offer scalable and flexible IT infrastructure solutions, reducing upfront costs and enhancing operational agility for businesses. As organizations increasingly opt for scalable, pay-as-you-go services, IaaS continues to play a pivotal role in modernizing IT operations and supporting digital transformation initiatives across various industries.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including 11 11 Systems Inc., Akamai Technologies Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Datacom Group Ltd., Dell Technologies Inc., DigitalOcean Holdings Inc., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Rackspace Technology Inc., Redcentric plc, and VMware Inc.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alibaba Group Holding Ltd. - The company offers infrastructure as a service such as Elastic Computing which features high-performing virtual servers, dedicated host, application management, GPU Service, and cloud-based desktop service
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The public cloud segment is estimated to witness significant growth during the forecast period. The cloud computing model in which IT services are delivered over the Internet or through virtualization is termed a public cloud. Several market players in this segment can provide these services free or on a subscription basis based on the computing resources used. The computing functionality of this segment comprises servers, bandwidth, network connections, IP addresses, and storage to the enterprise-grade.
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The public cloud segment was the largest segment and was valued at USD 21.40 billion in 2018. There is increasing adoption of the pulic cloud segment across enterprises due to the elasticity and scalability of the solution, which is ideal for IT-enabled services. Additionally, the market players in this segment are responsible for managing, maintaining, and developing the pool of computing resources shared among multiple users across the network. Some of the main advantages of the public cloud segment include low investment, high scalability and flexibility, reduced complexity, high reliability, and flexible pricing options. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period.
Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The increase in the demand for cloud computing services fuelling the demand for data centers and storage spaces is significantly contributing to the growth of the global infrastructure as a service (IaaS) market in North America. Additioanlly, the IaaS enables users to scale the resources paper their needs, making it an ideal option for the rising number of startups and small and medium enterprises in the region. Furthermore, these are best suited for temporary workloads and for workloads that are experimental or change unexpectedly. Moreover, the increase in adoption of IaaS is fuelled by the ease of virtualization and the dynamic scaling and automation of administrative tasks. Hence, such factors are expected to drive the market growth in the region during the forecast period.
The market is pivotal in modern IT & telecom industry landscapes, offering processing capabilities and rapid deployment for enterprise-level computing needs. IaaS providers deliver scalable cloud computing services and plug-and-play services that accommodate diverse application workloads. This enables day-to-day operations with robust disaster recovery and mobility solutions crucial for SMBs and larger enterprises alike. The sector supports conferencing and collaboration services through efficient networks and distributed cloud computing models. IaaS solutions cater to diverse industries like retail & e-commerce, leveraging skilled resources to ensure seamless data centre operations. The market's focus on hardware innovation includes flash drives and external hard drives, emphasizing compostability and sustainable practices amidst evolving IT infrastructure demands.
One of the key factors driving the infrastructure as a service (IaaS) market growth is the growing need to simplify solutions for backup. There is increasing adoption of infrastructure as a service (IaaS) across enterprises due to its convenience. Even though flash drives or external HDDs can be used to store data or transport it to other devices, it needs manual or physical handling.
However, the main advantage of IaaS is that it enables to access the stored data from anywhere so long as there is Internet connectivity. Additionally, the information or data is automatically saved simultaneously with the streaming. Thus it reduces the effort for enterprises to manually save, label, and track information. Thus such benefits are positively impacting the infrastructure as a service market. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the infrastructure as a service (IaaS) market growth is the increasing demand for low-cost IT infrastructure. There is an increase in expenditure by IT firms on IT infrastructure procurement and maintenance to meet the rising demand for IT usage and to sustain competition in the market. Thus the increased spending has significantly fuelled the operating costs.
However, the advent of cloud backup and recovery has helped several organizations to reduce their functional cost, as huge capital is needed to maintain IT infrastructure. Additionally, the cloud back enables organizations to save the annual OPEX; cloud storage costs nearly 4 cents per gigabyte to store data internally. Therefore, such benefits are positively impacting IaaS market growth. Hence, such factors are expected to drive market growth during the forecast period.
Increasing incidences of data breaches are one of the key challenges hindering the infrastructure as a service (IaaS) market growth. There is an increasing development of cloud-based application software in the global application software industry due to the rising demand for IaaS applications. However, there are growing concerns regarding the data security of such cloud-based applications.
Moreover, the main challenge associated with the application software industry is data breaches. Data breaches due to the XSS, XSRF, and SQL injection can act as a significant threat to software developers, as it enables malicious third parties to access sensitive customer data. Hence, such factors can negatively impact the IaaS market. Thus, it is expected to hinder market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market trends report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
The market growth analysis research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is pivotal amidst increasing cloud services adoption across industries like healthcare, manufacturing, retail and e-commerce, and IT and telecom. This model, provided by Infrastructure-as-a-Service providers such as Tintri with their Tintri Cloud Engine and Tintri Cloud Platform, supports digitization efforts and enhances computing and networking segments through scalable solutions. It addresses cybersecurity risks including cyberattacks, data leaks, and security threats with robust data protection measures and disaster recovery solutions like Disaster Recovery as a Service. The IaaS framework facilitates edge computing and accommodates the mobile workforce with virtualized IT components and cloud adoption strategies. It integrates AI and big data capabilities for advanced insights while managing privacy concerns and ensuring multitenancy efficiency. From hardware as a service to hybrid models, IaaS plays a crucial role in enterprise-level computing capabilities and supports service-oriented architecture in both cloud and on-premises data center environments.
Industry Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 55.16% |
Market growth 2024-2028 |
USD 1254.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
38.62 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
11 11 Systems Inc., Akamai Technologies Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., AT and T Inc., Cisco Systems Inc., Datacom Group Ltd., Dell Technologies Inc., DigitalOcean Holdings Inc., Fujitsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Rackspace Technology Inc., Redcentric plc, and VMware Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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