The Infrastructure As-A-Service (IaaS) market allows organizations to outsource their entire data center operations including servers, network equipment, storage and backup solutions to a third-party service provider. IaaS provides agile, on-demand and scalable infrastructure without upfront capital costs. Rather than purchasing servers, software, data center space or network gear, companies pay for what they use via monthly subscription. This has given enterprises more flexibility while eliminating high hardware costs and maintenance complexities.
The Global Infrastructure As-A-Service Market is estimated to be valued at US$ 74.22 Bn 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. The increasing adoption of cloud-based technologies across industries has boosted demand for IaaS solutions over the past few years. Digitization initiatives undertaken by companies to enhance their market position have further augmented consumption. Many organizations are deploying IaaS for critical workloads due to cost savings on infrastructure setup and maintenance.
The growing uptake of IoT, big data, artificial intelligence and mobility applications have heightened infrastructure needs of enterprises. IaaS Market Demand platforms offer a highly scalable environment to run resource-intensive new-age workloads without heavy on-premise investment. Several SMBs are switching to third-party cloud infrastructure services as these are more affordable for smaller projects and pilot deployments. Numerous data center operators are expanding their geographic footprint to capture emerging markets. Cloud providers are tapping on opportunities in Asia Pacific and Middle Eastern countries through partnerships with local telecom operators and managed service providers.
Market key trends
The pay-as-you-go pricing model of IaaS has gained widespread popularity as businesses only need to pay for what they consume. Subscription-based infrastructure services allow companies to align IT costs with business requirements instead of over-provisioning for peak usage. Deploying production applications on Iaas platforms has also become common due to their highly available and scalable architecture. This has boosted reliability and productivity for many corporations while reducing downtime risks. Other trends in the IaaS domain include growing preference for hybrid and multi-cloud strategies among customers seeking operational flexibility and data sovereignty.
Porter’s Analysis
Threat of new entrants: New entrants face high set-up costs to build robust and scalable infrastructure required to provide IaaS services.
Bargaining power of buyers: Buyers have high bargaining power due to availability of multiple providers and ease of switching between providers.
Bargaining power of suppliers: Large IaaS providers like AWS control a major portion of the market and do not depend on a single supplier.
Threat of new substitutes: There is a constant threat from emerging technologies like Serverless Computing and Container as a Service (CaaS) that can replace traditional IaaS.
Competitive rivalry: Established players focus on expanding service offerings and global outreach to gain a competitive edge.
The geographical region where the Infrastructure as a Service market is concentrated in terms of value is North America. With an early adoption of cloud technologies, the region holds the largest share in the global IaaS market. The Asia Pacific region is considered the fastest growing geographical region for the Infrastructure as a Service market between 2024 to 2031. Factors like increasing internet penetration, growing economy and government initiatives to strengthen IT infrastructure are fueling the growth of IaaS adoption in the Asia Pacific region.
Geographical Regions
The geographical region where the Infrastructure as a Service market holding the largest share in terms of value is North America. With an early adoption of cloud technologies, the region has witnessed significant growth in the IaaS market over the years. Countries like the US and Canada are global leaders in investing and deploying cloud solutions across various industry verticals. Established cloud giants operating in the region also strengthen its dominance in the global IaaS market.
The fastest growing geographical region for the Infrastructure as a Service market between 2024 to 2031 is the Asia Pacific region. Factors such as increasing internet penetration, growing economy and government initiatives to strengthen IT infrastructure are fueling the growth of IaaS adoption in the Asia Pacific region. Countries like China, India, Japan, Singapore and Australia are emerging as profitable markets for IaaS providers. Rapid digitalization and emphasis on emerging technologies offer immense opportunities for the growth of IaaS market in the Asia Pacific region.
