ID: MRFR/ICT/4454-HCR | 100 Pages | Published By Aarti Dhapte on March 2023
Infrastructure as a Service Market Size was valued at USD 21.3 billion in 2021. The Infrastructure as a Service market industry is projected to grow from USD 26.43 Billion in 2022 to USD 119.82 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 24.10% during the forecast period (2022 - 2030).Increasing cloud adoption across various industrial verticals and launching various cloud-based solutions are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Infrastructure as a Service Market Trends
Growing Adoption of Cloud-based Solutions in Various Industrial Verticals to Propel market growth
In order to increase their productivity, agility, and resilience, many industrial companies have turned to cloud technology. Cloud solutions are ready-to-use solutions for practically and are used by companies in various industries, including telecommunications, banking, financial services and insurance (BFSI), healthcare, retail, and manufacturing. Some multinational companies have been using clouds for a while already. Companies in the market are heavily investing in adopting cloud solutions, and it has been anticipated that the adoption of these solutions will be higher in the coming years owing to their large-scale adoptions across various functions.
More businesses will adopt IaaS as they replace older infrastructure and applications with more modern ones. The first step out of legacy and modernization is much simpler with IaaS than with SaaS and PaaS. Owing to the same, the adoption of Iass is higher among SMEs compared to larger enterprises as they already have a better IT infrastructure. According to various surveys and research studies, cloud services are used in over 94% of the companies, out of which 2/3rd currently operate a public cloud and 45% use a private cloud, and the remaining 55% use traditionally managed on-premises systems. Such growing adoption of cloud services is expected to aid the Infrastructure as a Service market CAGR across the globe in recent years.
However, to cater to the increasing demand, companies in the Iaas market are investing, launching, or upgrading their existing solutions. This is another factor driving the growth of the revenue of the Infrastructure as a Service market revenue.
Infrastructure as a Service Solution Insights
The Infrastructure as a Service market segmentation, based on solutions, includes managed hosting services, storage as a service, high-performance computing as a service, disaster recovery as a service, and others. The disaster recovery as a service segment held the majority share in 2021, contributing to around ~35-38% with respect to the Infrastructure as a Service market revenue. This is primarily owing to the rising need for the adoption of Iaas for data management and the growing need for a reduction in man-made errors. Moreover, to improve their data protection and recovery process, these services give organizations better functionalities and reduce downtime. Further, managed to host services segment is anticipated to grow at the fasters CAGR during the projected period owing to the growing adoption of cloud services and the rising need for the modernization o IT infrastructure.
April 2022: Datto, the disaster recovery service, raised a cool $100 million in a round led by several investors.
Infrastructure as a Service Deployment Type Insights
The Infrastructure as a Service market segmentation, based on deployment type, includes public cloud, private cloud, and hybrid cloud. The public cloud segment dominated the market in 2021. The increasing need for the modernization of IT infrastructure and the rising need for lowering operations costs is boosting the public cloud segmental for Infrastructure as a Service, positively impacting the market growth. Further, hybrid cloud is projected to be the faster-growing segment during the forecast period, 2022-2030, owing to growing awareness regarding the benefits offered by use of hybrid clouds.
July 2021: Virtuozzo Has Acquired Onapp, a company that provides software and services that enable MSPs, hosts, and telecom providers to create and sell their own public, private and hybrid clouds. This is anticipated to further broadened the growth opportunity for the Infrastructure as a Service industry.
Infrastructure as a Service End User Insights
The Infrastructure as a Service market data has been bifurcated by end users into SMEs and large enterprises. The SMEs segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The ease of access and rising need for cost-effective solutions are the primary factors propelling the growth of this segment. Moreover, the rising need for enhanced data storage and security among SMEs is also aiding segmental growth.
Figure 2: Infrastructure as a Service Market, by Deployment Type, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Infrastructure as a Service Vertical Insights
Based on Vertical, the Infrastructure as a Service industry has been segmented into IT & telecom, BFSI, healthcare, retail and e-commerce, government & defense, and others. IT & telecom held the largest segment share in 2021, owing to the rapid adoption of modern cloud-based services and rising demand for data center infrastructure. Moreover, rising investments and new product launches are expected to boost the market growth in the coming years. Moreover, the retail segment is anticipated to grow at the fastest CAGR in the Infrastructure as a Service industry due to growing data and the faster-growing retail industry due to online shopping.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America Infrastructure as a Service market accounted for USD 9.4 billion in 2021 and is expected to exhibit a noteworthy CAGR growth during the study period. This is attributed to the presence of large IT infrastructure, the presence of major players, and rising new product launches or upgrades by major players in this region.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3 INFRASTRUCTURE AS A SERVICE MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Infrastructure as a Service market accounts for the second-largest market share due to the growing investments by major players in this region and new product launches. Further, the Germany Infrastructure as a Service market held the largest market share, and the UK Infrastructure as a Service market was the fastest growing market in the European region.
The Asia-Pacific Infrastructure as a Service Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the growing retail sector and the rising need for data management. Additionally, the growing number of SMEs, increasing penetration of smart devices, and rising adoption of digital trends is also boosting the growth of the Infrastructure as a Service market in this region during the forecast period. Moreover, China's Infrastructure as a Service market held the largest market share, and the India's Infrastructure as a Service market was the fastest-growing market in the Asia-Pacific region.
Major market players are heavily raising investments from the public and private sectors, which will help the Infrastructure as a Service market grow faster during the coming years. Companies in the market are also taking initiatives to grow their footprint, with key market developments such as new launches, mergers and acquisitions, raising funds/investments, and collaboration with other companies. Major players in the Infrastructure as a Service industry are launching advanced products with a user-friendly interface.
One of the primary strategies adopted by manufacturers in the Infrastructure as a Service industry is raising investments for launching new products that are already in the pipeline in the market. In recent years, the Infrastructure as a Service industry has launched some advanced versions of its already available solutions. In the Infrastructure as a Service market, major players such as Amazon Web Services Inc. (U.S.), Google LLC (U.S.), Microsoft Corporation (U.S.), Accenture (Republic of Ireland), and others are working on expanding the market demand by investing in research and development activities.
Microsoft Corporation (U.S.) is a multination cloud service provider that provides services from local data centers for accelerating digital transformation. The company offers Iaas essential computing, storage, and networking resources on demand on a pay-as-you-go basis. In February 2021, Microsoft launched Azure Stack HCI, a new hybrid cloud solution in India. Azure Stack HCI combines infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) services in a software stack that spans on-premises data centers and Microsoft's Azure cloud.
Also, Google LLC (US) provides an Iaas service that offers solutions, such as computing, virtualization storage, and networking, to businesses and individuals via the cloud. The company captured USD 6.4 billion in IaaS cloud services revenue in 2021, and 64% growth Y-o-Y compared to USD 3.9 billion in sales in 2020.
Medtronic Inc (Ireland)
Abbott Laboratories (US)
Stryker Corporation (US)
DePuy Synthes (US)
B. Braun Melsungen AG (Germany)
NuVasive, Inc (US)
Zimmer Biomet (US)
Globus Medical (US), among others
January 2023: Bengaluru-based company InCruiter, an Interview as a Service (IaaS) based HRTech startup, raised around USD 121,351 in a funding round led by Recur Club. The company is planning on launching a new product which is in the pipeline by the end of 2023.
September 2022: Toqio, a FinTech IaaS-based startup raised USD 20 million in a Series A funding round led by AlbionVC and other company investors.
February 2020: Akamai acquired infrastructure-as-a-service provider Linode for USD 900 million. The company plans on combining Linode's developer-friendly cloud computing capabilities with the company’s edge platform and security services.
Infrastructure as a Service Solution Outlook
Managed Hosting Services
Storage As A Service
High-Performance Computing As A Service
Disaster Recovery As A Service
Infrastructure as a Service Deployment Type Outlook
Infrastructure as a Service End User Outlook
Infrastructure as a Service Verticals Outlook
IT & Telecom
Retail And E-Commerce
Government & Defense
Infrastructure as a Service Regional Outlook
Rest of Europe
Rest of Asia-Pacific
Rest of the World
|Market Size 2021||USD 21.3 billion|
|Market Size 2022||USD 26.43 billion|
|Market Size 2030||USD 119.82 billion|
|Compound Annual Growth Rate (CAGR)||24.10% (2022-2030)|
|Market Forecast Period||2022-2030|
|Historical Data||2018 & 2020|
|Market Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Solution, Deployment Type, End User, Verticals, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Amazon Web Services Inc. (U.S.), Google LLC (U.S.), Microsoft Corporation (U.S.), International Business Machines Corporation (U.S.), Cisco Systems Inc (U.S.), HCL Technologies Limited (India), Accenture (Republic of Ireland), Computer Sciences Corporation (U.S.), and VMware Inc. (U.S)|
|Key Market Opportunities||Growing demand for improving IT infrastructure|
|Key Market Dynamics||Rising investment by companies Growing number of in SMEs|
The Infrastructure as a Service market size was valued at USD 21.3 Billion in 2021.
The market is projected to grow at a CAGR of 24.10% during the forecast period, 2022-2030.
North America had the largest share of the market
The key players in the market are Amazon Web Services Inc. (U.S.), Google LLC (U.S.), Microsoft Corporation (U.S.), International Business Machines Corporation (U.S.), Cisco Systems Inc (U.S.), HCL Technologies Limited (India), Accenture (Republic of Ireland), Computer Sciences Corporation (U.S.), and VMware Inc. (U.S).
The SMEs category dominated the market in 2021.
The public cloud had the largest share of the market.