Discover trends, market shifts, and competitive outlooks for the infrastructure as a service (iaas) industry through 2025-2034 with The Business Research Company’s reliable data and in-depth research

#How Has The Infrastructure as a service (IaaS) Market Growth Evolved From 2024 To 2025, And What’s Ahead?

The size of the Infrastructure as a Service (IaaS) market has witnessed a significant surge in recent times. It is predicted to escalate from $154.39 billion in 2024 to a considerable $171.96 billion in 2025, registering a compound annual growth rate (CAGR) of 11.4%. Factors fueling growth in the past include a change in workforce dynamics, the advent of devops and agile methodologies, a strategic transition to outsourced IT infrastructure, worldwide expansion coupled with market broadening, and disaster recovery alongside business continuity.

In the upcoming years, a remarkable expansion is anticipated in the Infrastructure as a Service (IaaS) market. It is predicted to swell to a whopping $276.81 billion in 2029, growing at a compound annual growth rate (CAGR) of 12.6%. Factors such as initiatives for digital transformation, improved security protocols, emphasis on sustainable infrastructure, and the adoption of hybrid and multi-cloud, AI and machine learning are responsible for this potential growth. During the forecast period, major trends are expected to include the adoption of serverless computing, containerization and kubernetes, the development of edge computing infrastructure, integration of artificial intelligence (AI), and the growth of software-defined infrastructure (SDI).

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What External and Internal Drivers Are Contributing to the Growth of theInfrastructure as a service (IaaS) Market?

The growth of the infrastructure as a service (IAAS) market is expected to be spurred by an increase in small and medium-sized businesses. These businesses, which are classified based on their personnel number and revenue, significantly benefit from IAAS providers who manage the infrastructure components, consequently lowering maintenance and upgrade costs. In November 2023, the U.S. Small Business Administration (SBA), a United States-based government agency, revealed that small businesses make up 99.9% of all businesses in the country. The same year recorded 33.3 million small businesses, contributing to a job increase of 4.9 million. Therefore, the rising number of small and medium-sized businesses is fueling the growth of the infrastructure as a service (IAAS) market.

What Segment Types Define the Infrastructure as a service (IaaS) Market Structure?

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 Geographic Areas Hold the Strongest Growth Potential in 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.

What Long-Term Trends Are Transforming the Competitive Landscape of the Infrastructure as a service (IaaS) Market?

Leading firms in the infrastructure as a service market are pioneering innovative products like Watson AIOps. This enables the automated detection, diagnosis, and handling of IT anomalies. Watson AIOps is an AIOps platform and a tool for managing IT operations that positions AI centrally in the ITOps toolchain. For example, in September 2022, IBM, a prominent technology company in the US, introduced Watson AIOps. It employs traceable AI to generate trustworthy AI-driven recommendations and insights for vital workloads. Watson AIOps gives concise and clear advice and measures to expedite the problem-solving process for teams.

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What Is the Definition of the Infrastructure as a service (IaaS) Market?

Infrastructure as a Service (IaaS) is a cloud computing model that offers virtualized computing resources, such as servers, storage, and networking, over the internet on a pay-as-you-go basis, allowing organizations to scale their IT infrastructure without the need for physical hardware investment.

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