June 25, 2024
Infrastructure As-A-Service Market

Infrastructure as a Service Market is Estimated to Witness High Growth Owing to Increasing Cloud Services Adoption

The infrastructure as a service (IaaS) model enables consumers to outsource equipment like storage, hardware, servers, and networking components. It provides scalable and on-demand access to high-end network infrastructure required to support critical business applications. IaaS is becoming a preferred choice for enterprises as it does not require huge upfront investments and ensures flexibility to pay as per usage. It helps businesses scale up or down resources quickly based on changing needs without incurring high costs. Additionally, IaaS also reduces operational and maintenance costs and increases business agility.

The global infrastructure as a service market is estimated to be valued at US$74.22 billion in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the infrastructure as a service market are Rubicon Technology Inc., KYOCERA Corporation, Saint-Gobain, SCHOTT AG, Monocrystal, Rayotek Scientific Inc., CRYSTALWISE TECHNOLOGY INC., ILJIN Display CO. Ltd, Namiki Precision Jewel Co., Ltd., Juropol Sp. z o.o. Some of the top players are focusing on strategic collaborations and partnerships to strengthen their market position and service offerings.

The increasing adoption of cloud technologies across various industries provides significant growth opportunities in the Infrastructure As A Service Market Growth. Big data analytics, IoT, and mobility are fuelling the demand for scalable and flexible IaaS. Furthermore, growing need to optimize infrastructure costs is driving SMEs to adopt IaaS solutions.

The global IaaS market is expanding rapidly with growing acceptance in developed markets of North America and Europe. Meanwhile, emerging countries of Asia Pacific and Latin America are expected to offer substantial untapped potential during the forecast period. Leading IaaS providers are investing heavily toward expanding their geographical footprints in high growth regions.

Market Drivers

The increasing adoption of digital technologies across industries has been a major factor driving the demand for scalable and flexible IaaS solutions. Growing need among organizations to optimize infrastructure costs without compromising on scalability and agility is augmenting the market growth. Furthermore, emphasis on effective resource utilization is prompting businesses to leverage pay-per-use IaaS offerings. Continuous advancements in IaaS technologies are enabling improved service quality, thereby supporting market expansion.

PEST Analysis

Political: The IaaS market is subject to data privacy and security regulations set by governments worldwide. Different countries have varying laws for how data can be stored and accessed.
Economic: As businesses increasingly adopt cloud-based IT solutions to save costs on capital expenditures and improve operational efficiency, it is driving demand for IaaS solutions. The economic environment impacts overall IT spending.
Social: Younger users are more comfortable sharing data and using cloud services, influencing enterprise adoption of IaaS models. However, some individuals value data privacy which can influence social acceptance of public cloud services.
Technological: Advances in server virtualization, networking, and automation have enabled IaaS platforms to support dynamic scaling of infrastructure. Continued improvements in cloud technologies allow IaaS providers to offer more powerful and cost-effective services.

The regions that account for the largest shares in terms of value are North America and Western Europe. These mature markets have high cloud adoption rates driven by advanced IT infrastructure and early developer ecosystems. However, over the forecast period the fastest regional growth is expected in Asia Pacific as countries industrialize and more firms and consumers in the region embrace digital transformation. This growing middle class with increased Internet access represents a major opportunity for IaaS providers to expand.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it