Global Infrastructure-as-a-service Market Overview
As per MRFR analysis, the Infrastructure-as-a-service Market Size was estimated at 42.05 (USD Billion) in 2023. The Infrastructure-as-a-service Market is expected to grow from 47.88 (USD Billion) in 2024 to 200 (USD Billion) by 2035. The Infrastructure-as-a-service Market CAGR (growth rate) is expected to be around 13.88% during the forecast period (2025 - 2035)
Key Infrastructure-as-a-service Market Trends Highlighted
The growing need for scalable and effective IT infrastructure is driving notable developments in the global infrastructure-as-a-service industry. The increasing need for cloud services among companies trying to reduce operating expenses while increasing performance is one of the main factors propelling the market.
IaaS is becoming more and more popular among businesses because it allows them to adapt their resources to changing business requirements, which facilitates the transition to digital transformation. Additionally, the demand for dependable and secure cloud infrastructures has increased due to the growth of remote work and international corporate operations.
Technology suppliers now have a number of chances to innovate and improve the services they offer, especially in fields like automation, security, and hybrid cloud solutions. Businesses want to optimize their cloud infrastructures and prevent vendor lock-in by utilizing multi-cloud methods.
As businesses grow more aware of their environmental impact, recent developments also show that IaaS solutions are placing greater emphasis on sustainability and energy efficiency. Data center operators have responded to this by adopting green practices and using renewable energy sources.
Additionally, resource management and operational efficiency are being improved by the incorporation of AI and machine learning into IaaS products. All things considered, the global infrastructure-as-a-service industry is changing quickly as a result of new technology, changing corporate procedures, and an increasing focus on sustainability, which is fostering an exciting climate for expansion and investment.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Infrastructure-as-a-service Market Drivers
Increased demand for digital transformation
As businesses around the world embrace digital transformation, the demand for Infrastructure-as-a-service Market solutions is growing significantly. A survey conducted by the Global Information Technology Association indicates that 70% of organizations are in some stage of digital transformation, with 40% planning to increase their IT spending to support these initiatives.
This trend highlights the essential role of Infrastructure-as-a-service in providing scalable resources that are crucial for effective digital operations. Major firms like Amazon Web Services and Microsoft Azure are leading the way in offering robust cloud solutions that facilitate this transformation, cementing their influence in driving market growth.
Furthermore, studies from the United Nations suggest that investment in cloud computing can enhance productivity by up to 30%, thus compelling businesses to adopt Infrastructure-as-a-service offerings as they aim to leverage technological advancements.
Growing adoption of remote working
The rise of remote working has fundamentally reshaped organizational structures and has contributed to the expansion of the Infrastructure-as-a-service Market. According to a report from the International Labour Organization, globally, the number of remote workers surged by 30% during the recent global pandemic, emphasizing the need for flexible and scalable infrastructure solutions.
Organizations such as Google and IBM have successfully transitioned many employees to remote work, driving the demand for Infrastructure-as-a-service to ensure seamless connectivity and collaboration.This shift necessitates the deployment of cloud resources, which offer reliable and accessible IT environments conducive to remote operations, pushing businesses to adopt Infrastructure-as-a-service solutions.
Cost efficiency and reduced capital expenditure
The Infrastructure-as-a-service Market is being propelled by the significant cost advantages it offers to businesses compared to traditional IT infrastructure.
According to studies from the International Telecommunication Union, enterprises adopting Infrastructure-as-a-service can reduce their total costs by approximately 25-30% by eliminating the need for physical hardware and reducing maintenance expenses.Companies such as IBM and Oracle have successfully showcased how transitioning to Infrastructure-as-a-service can optimize operations while minimizing overhead costs.
This financial incentive is particularly appealing to small and medium businesses that require efficient resource management. As organizations continue to evaluate their expenditure in the post-pandemic world, the economic benefits of Infrastructure-as-a-service solutions will drive further adoption and growth.
Increasing focus on data security and compliance
With the global rise in cyber threats, there has been an increasing focus on data security and compliance regulations, motivating organizations to turn to the Infrastructure-as-a-service Market for secure solutions. The Cybersecurity and Infrastructure Security Agency indicates that over 60% of businesses experienced at least one significant cybersecurity incident in the last year.
Companies like Google Cloud and Microsoft Azure have developed robust security frameworks compliant with international standards such as ISO 27001 and GDPR, which not only protect sensitive data but also enhance customer trust.As organizations prioritize safeguarding their information and adhering to regulations, the demand for secure Infrastructure-as-a-service platforms will continue to grow, further catalyzing market expansion.
Infrastructure-as-a-service Market Segment Insights
Infrastructure-as-a-service Market Deployment Model Insights
The Deployment Model within the Infrastructure-as-a-service Market significantly contributed to the overall structure and revenue generation of this evolving industry. Deployment models played a crucial role in how organizations leverage cloud solutions to optimize their operational efficiency and technological capabilities.
The Public Cloud segment was valued at 20.0 USD Billion in 2024 and is projected to ascend to 85.0 USD Billion by 2035, making it a prominent player in the market. This model thrived on its ability to provide scalable and cost-effective resources to a wide array of businesses, allowing them access to advanced infrastructure without the need for substantial capital investment.
Additionally, the Private Cloud, valued at 15.0 USD Billion in 2024 and expected to grow to 65.0 USD Billion by 2035, catered to organizations that prioritized security and compliance. This deployment model offered a tailored environment, making it particularly significant for industries such as healthcare and finance, where data sensitivity is paramount.
The Hybrid Cloud segment, valued at 12.88 USD Billion in 2024 and anticipated to reach 50.0 USD Billion by 2035, created a blend of both public and private cloud solutions, offering organizations flexibility in balancing workloads.This segued into a strong market trend of optimizing performance while ensuring strict compliance and security benchmarks are met, highlighting the importance of this model in a market increasingly focused on integrated solutions.
As enterprises strive to enhance operational agility and scalability, understanding the dynamics within these deployment models will be pivotal for stakeholders operating within the Infrastructure-as-a-service Market.Market growth is driven by technological advancements, rising demand for digital transformation, and increasing cloud adoption across various sectors, underlining the significance of these deployment strategies in today's business landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Infrastructure-as-a-service Market Service Type Insights
The market segmentation within Service Type includes crucial elements such as Compute, Storage, Networking, and Disaster Recovery, each contributing significantly to the overall landscape. Compute services play a vital role by providing scalable processing power to businesses, while Storage solutions are essential for managing and storing vast amounts of data efficiently.
Networking services enhance connectivity and data transfer, crucial in today’s cloud-dependent environment. Additionally, Disaster Recovery services are increasingly in demand, ensuring business continuity and protecting data integrity in the face of unexpected challenges.
As enterprises continue to embrace cloud computing, the Infrastructure-as-a-service Market data reveals an upward trend, driven by the need for operational efficiency and cost-effectiveness. The market is poised to benefit from advancements in technology and an increasing reliance on digital solutions, presenting myriad opportunities for innovation and growth amid ongoing challenges.
Infrastructure-as-a-service Market End-user Insights
The IT and Telecommunications sector is a major contributor, capitalizing on cloud services to enhance operational efficiency and service delivery. Meanwhile, the BFSI segment emphasizes the need for secure and reliable infrastructure for data management and transaction processing.
In the Healthcare domain, organizations increasingly rely on Infrastructure-as-a-service to ensure compliance with regulations while improving patient care through data analytics. The Retail sector leverages these services to optimize supply chain operations and enhance customer engagement through personalized experiences.
Lastly, government agencies are adopting Infrastructure-as-a-service to improve service delivery and reduce costs, aligning with digital transformation initiatives. The overall Infrastructure-as-a-service Market revenue reflects an increasing demand driven by the adoption of advanced technologies and the necessity for scalable infrastructure solutions across these critical sectors.With a focus on enhancing operational agility and reducing capital expenditures, these industries are well-positioned to dominate the market landscape in the coming years.
Infrastructure-as-a-service Market Application Insights
The segment encompasses various facets, notably Business Continuity and Data Backup, which play critical roles in ensuring operational resilience and data integrity for enterprises across the globe. The growing reliance on cloud services has propelled demand for effective Test and Development environments, enabling businesses to innovate rapidly without hefty infrastructure investments.
Furthermore, Big Data Analytics has emerged as a significant driver of market growth, as organizations leverage large sets of data to gain insights and improve decision-making processes. The trend towards digital transformation and increasing focus on cost efficiency are key factors contributing to the advancement of the Infrastructure-as-a-service Market.
By utilizing these applications, companies are not only enhancing their operational capabilities but also seizing opportunities for growth and competitive advantage. As organizations continue to navigate the complexities of modern technology needs, the demand for comprehensive Infrastructure-as-a-service solutions is expected to strengthen significantly.
Infrastructure-as-a-service Market Regional Insights
The Infrastructure-as-a-service Market revenue demonstrated substantial growth. In this regional analysis, North America held the majority with a valuation of 20.0 USD Billion in 2024, projected to surge to 85.0 USD Billion by 2035, driven by advanced technology adoption and robust cloud infrastructure.
Europe's market valuation stood at 15.0 USD Billion in 2024, scaling to 55.0 USD Billion by 2035, reflecting significant investments in digital transformation initiatives and cloud-based solutions. In South America, the market garnered interest with a value of 4.0 USD Billion in 2024, expected to reach 18.0 USD Billion by 2035, indicating a growing demand for IaaS amidst rising cloud awareness.Meanwhile, the Asia Pacific region, valued at 7.0 USD Billion in 2024, showcased a promising trajectory towards 35.0 USD Billion by 2035 as enterprises increasingly adopted IaaS to enhance operational efficiency.
Lastly, the Middle East and Africa market was at 1.88 USD Billion in 2024, anticipated to grow to 7.0 USD Billion by 2035, as regional players recognize the potential of cloud solutions to drive innovation.Overall, the Infrastructure-as-a-service Market segmentation indicated varying growth drivers and market readiness across these regions, each addressing specific technological needs and challenges in the evolving digital landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Infrastructure-as-a-service Market Key Players and Competitive Insights
The Infrastructure-as-a-service Market is a rapidly evolving sector characterized by the increasing demand for cloud solutions, flexibility, and scalability. This market encapsulates a variety of companies that provide virtualized computing resources over the internet, enabling organizations to utilize IT infrastructure without the burden of managing physical hardware.
The intense competitive landscape is driven by technological advancements, strategic partnerships, and evolving customer needs, which push companies to innovate continuously. Key players in this arena are leveraging advanced technologies such as artificial intelligence, machine learning, and big data analytics to enhance their service offerings.
Market participants are also focusing on establishing a global footprint to tap into emerging markets while ensuring compliance with regional regulations and standards. As organizations from diverse sectors seek cost-effective and efficient solutions, this market continues to expand, highlighting the competitive insights that shape its future.
Huawei stands as a prominent player in the Infrastructure-as-a-service Market, with a solid reputation for delivering advanced cloud computing solutions and services. The company demonstrates a robust market presence through its comprehensive portfolio, which includes cloud services, DevOps, and distributed computing architecture.
Huawei's strengths lie in its commitment to research and development, enabling it to provide innovative solutions tailored to meet global customer demands. Their focus on enhancing data security and improving the user experience has made them a trusted provider in this competitive landscape.
Furthermore, Huawei's strategic collaborations and partnerships with various technology firms worldwide amplify its influence and market reach, allowing it to remain competitive within the continuously evolving cloud environment.Oracle also plays a significant role in the Infrastructure-as-a-service Market, offering a suite of cloud services that encompass infrastructure, platform, and software-as-a-service solutions.
The company's strengths include its comprehensive database offerings, enterprise resource planning solutions, and the innovative Oracle Cloud Infrastructure, which ensures high performance, security, and scalability. Oracle has made strategic moves through mergers and acquisitions, enhancing its capabilities and expanding its service portfolio to meet the diverse needs of global businesses.
The company maintains a strong focus on providing integrated solutions that cater to various sectors, allowing it to serve multinational clients effectively.Oracle's commitment to continuous improvement and its ability to adapt to changing market conditions ensure that it remains a formidable competitor in the global IaaS landscape, enabling organizations to leverage cloud technologies for enhanced operational efficiency and agility.
Key Companies in the Infrastructure-as-a-service Market Include
- Huawei
- Oracle
- Microsoft
- IBM
- Google
- DigitalOcean
- Linode
- Amazon Web Services
- Equinix
- VMware
- Alibaba Cloud
- Red Hat
- Salesforce
- Rackspace
- NTT Communications
Infrastructure-as-a-service Market Developments
With the opening of its 35th global region in January 2025, AWS now supports government-grade workloads up to Secret classification in the Asia Pacific (Thailand) region. The public preview of Amazon Elastic VMware Service (EVS), which allows VMware Cloud workloads to operate natively within AWS environments, was released by AWS in June 2025.
In March 2025, IBM Cloud announced collaborations to connect the AMD Instinct MI300X GPU with its Watsonx AI platform and introduced Storage Ceph as a Service, enabling on-premises clients to use Ceph-based storage through cloud-style operating models.
Google Cloud extended Workforce Identity Federation (including Microsoft Entra ID single sign-on), harmonized its Cloud Functions and Cloud Run platforms, and introduced continuous query capabilities in BigQuery for near-real-time analytics in December 2024.
Microsoft Azure released significant IaaS improvements in June 2025, such as improved guidelines for improving AI virtual machine installations in its Cloud Adoption Framework and sophisticated AI workload management tools. Oracle Cloud Infrastructure simplified infrastructure administration for enterprise users in November 2023 by updating its UI to incorporate IaaS, PaaS, and SaaS navigation.
Infrastructure-as-a-service Market Segmentation Insights
Infrastructure-as-a-service Market Deployment Model Outlook
- Public Cloud
- Private Cloud
- Hybrid Cloud
Infrastructure-as-a-service Market Service Type Outlook
- Compute
- Storage
- Networking
- Disaster Recovery
Infrastructure-as-a-service Market End-user Outlook
- IT and Telecommunications
- BFSI
- Healthcare
- Retail
- Government
Infrastructure-as-a-service Market Application Outlook
- Business Continuity
- Data Backup
- Test and Development
- Big Data Analytics
Infrastructure-as-a-service Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Report Attribute/Metric
|
Details
|
Market Size 2023
|
42.05(USD Billion)
|
Market Size 2024
|
47.88(USD Billion)
|
Market Size 2035
|
200.0(USD Billion)
|
Compound Annual Growth Rate (CAGR)
|
13.88% (2025 - 2035)
|
Report Coverage
|
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
|
Base Year
|
2024
|
Market Forecast Period
|
2025 - 2035
|
Historical Data
|
2019 - 2024
|
Market Forecast Units
|
USD Billion
|
Key Companies Profiled
|
Huawei, Oracle, Microsoft, IBM, Google, DigitalOcean, Linode, Amazon Web Services, Equinix, VMware, Alibaba Cloud, Red Hat, Salesforce, Rackspace, NTT Communications
|
Segments Covered
|
Deployment Model, Service Type, End-user, Application, Regional
|
Key Market Opportunities
|
Hybrid cloud solutions, Enhanced security features, Multi-cloud management tools, AI-driven infrastructure optimization, and Edge computing integration
|
Key Market Dynamics
|
Scalability and flexibility, Cost efficiency, Growing cloud adoption, Enhanced security features, Competitive landscape
|
Countries Covered
|
North America, Europe, APAC, South America, MEA
|
Infrastructure as a Service Market Highlights:
Frequently Asked Questions (FAQ) :
The Infrastructure-as-a-service Market was valued at 47.88 billion USD in 2024.
By 2035, the Infrastructure-as-a-service Market is anticipated to reach a valuation of 200.0 billion USD.
The expected compound annual growth rate (CAGR) for the Infrastructure-as-a-service Market from 2025 to 2035 is 13.88%.
North America is projected to dominate the market, valued at 85.0 billion USD by 2035.
The Public Cloud segment is anticipated to be valued at 85.0 billion USD in 2035.
Major players in the market include Huawei, Oracle, Microsoft, IBM, Google, DigitalOcean, and Amazon Web Services.
The Private Cloud segment is expected to reach a value of 65.0 billion USD by 2035.
The Asia Pacific region was valued at 7.0 billion USD in the Infrastructure-as-a-service Market in 2024.
Key growth drivers include increasing demand for cloud solutions and enhanced flexibility in IT infrastructure.
The Hybrid Cloud segment is projected to be valued at 50.0 billion USD by 2035.