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    Infrastructure as a Service Market

    ID: MRFR/ICT/4454-HCR
    100 Pages
    Aarti Dhapte
    September 2025

    Infrastructure-as-a-service Market Research Report By Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), By Service Type (Compute, Storage, Networking, Disaster Recovery), By End-user (IT and Telecommunications, BFSI, Healthcare, Retail, Government), By Application (Business Continuity, Data Backup, Test and Development, Big Data Analytics), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Infrastructure as a Service Market Summary

    The Global Infrastructure-as-a-Service Market is projected to grow significantly from 47.9 USD Billion in 2024 to 200 USD Billion by 2035.

    Key Market Trends & Highlights

    Infrastructure-as-a-service Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate of 13.88 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 200 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 47.9 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of cloud computing due to increased demand for scalable solutions is a major market driver.

    Market Size & Forecast

    2024 Market Size 47.9 (USD Billion)
    2035 Market Size 200 (USD Billion)
    CAGR (2025-2035) 13.88%

    Major Players

    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 Trends

    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.

    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.

    The global Infrastructure-as-a-Service market is poised for robust growth, driven by increasing demand for scalable cloud solutions and the ongoing digital transformation across various sectors.

    U.S. Department of Commerce

    Infrastructure as a Service Market Drivers

    Market Growth Projections

    The Global Infrastructure-as-a-Service Market Industry is projected to experience substantial growth over the next decade. With a market size of 47.9 USD Billion in 2024, the industry is expected to expand significantly, reaching 200 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 13.88% from 2025 to 2035, highlighting the increasing adoption of cloud-based solutions across various sectors. The market dynamics suggest that organizations are recognizing the strategic advantages of IaaS, leading to a robust demand for these services in the global landscape.

    Growing Demand for Cloud Services

    The Global Infrastructure-as-a-Service Market Industry is experiencing a surge in demand for cloud services, driven by the need for scalable and flexible IT solutions. Organizations are increasingly migrating their workloads to the cloud to enhance operational efficiency and reduce costs. In 2024, the market is projected to reach 47.9 USD Billion, reflecting a growing reliance on cloud infrastructure. This trend is likely to continue as businesses seek to leverage the benefits of IaaS, including improved resource management and reduced capital expenditures. As a result, the Global Infrastructure-as-a-Service Market Industry is poised for substantial growth in the coming years.

    Emergence of Advanced Technologies

    The Global Infrastructure-as-a-Service Market Industry is being propelled by the emergence of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things. These technologies require substantial computing power and storage capabilities, which IaaS providers are well-positioned to deliver. As organizations increasingly adopt these technologies to drive innovation and improve decision-making, the demand for IaaS solutions is likely to rise. The anticipated compound annual growth rate of 13.88% from 2025 to 2035 suggests a robust market expansion, as businesses seek to harness the potential of these advanced technologies within their infrastructure.

    Regulatory Compliance and Data Security

    The Global Infrastructure-as-a-Service Market Industry is increasingly influenced by the need for regulatory compliance and data security. Organizations are under pressure to adhere to stringent regulations regarding data protection and privacy. IaaS providers are responding by enhancing their security measures and ensuring compliance with industry standards. This focus on security is becoming a critical factor in the decision-making process for businesses considering cloud solutions. As the market evolves, the emphasis on regulatory compliance is expected to drive growth, with the IaaS sector projected to reach 200 USD Billion by 2035, reflecting the importance of secure and compliant infrastructure.

    Increased Adoption of Hybrid Cloud Solutions

    The Global Infrastructure-as-a-Service Market Industry is witnessing a notable shift towards hybrid cloud solutions, which combine on-premises infrastructure with public cloud services. This approach allows organizations to maintain control over sensitive data while benefiting from the scalability of cloud resources. The increasing complexity of IT environments is driving this trend, as businesses seek to optimize their operations. By 2035, the market is expected to reach 200 USD Billion, indicating a robust growth trajectory. The hybrid model appears to offer a balanced solution, catering to diverse business needs and enhancing the overall agility of IT operations.

    Focus on Cost Efficiency and Operational Agility

    Cost efficiency remains a critical driver for the Global Infrastructure-as-a-Service Market Industry, as organizations strive to optimize their IT expenditures. IaaS solutions offer a pay-as-you-go model, allowing businesses to scale resources according to their needs without incurring unnecessary costs. This flexibility is particularly appealing in a competitive landscape where operational agility is paramount. As companies continue to prioritize cost management, the IaaS market is expected to flourish, with projections indicating a market size of 47.9 USD Billion in 2024. This focus on cost efficiency is likely to shape the future of IT infrastructure.

    Market Segment Insights

    Infrastructure-as-a-service Market Segment Insights

    Infrastructure-as-a-service Market Segment Insights

    Infrastructure-as-a-service Market Deployment Model 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.

    Infrastructure-as-a-service Market Service Type Insights

    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

    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

    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.

    Get more detailed insights about Infrastructure as a Service Market Research Report – Forecast to 2035

    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.

    Infrastructure-as-a-service Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    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 market include

    Industry 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.

    Future Outlook

    Infrastructure as a Service Market Future Outlook

    The Infrastructure-as-a-service Market is projected to grow at a 13.88% CAGR from 2024 to 2035, driven by increasing cloud adoption, demand for scalability, and cost efficiency.

    New opportunities lie in:

    • Develop hybrid cloud solutions to cater to diverse enterprise needs.
    • Leverage AI and machine learning for enhanced data management services.
    • Expand into emerging markets with tailored IaaS offerings.

    By 2035, the Infrastructure-as-a-service Market is expected to be a cornerstone of global IT infrastructure.

    Market Segmentation

    Infrastructure-as-a-service Market End-user Outlook

    • IT and Telecommunications
    • BFSI
    • Healthcare
    • Retail
    • Government

    Infrastructure-as-a-service Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Infrastructure-as-a-service Market Application Outlook

    • Business Continuity
    • Data Backup
    • Test and Development
    • Big Data Analytics

    Infrastructure-as-a-service Market Service Type Outlook

    • Compute
    • Storage
    • Networking
    • Disaster Recovery

    Infrastructure-as-a-service Market Deployment Model Outlook

    • Public Cloud
    • Private Cloud
    • Hybrid Cloud

    Report Scope

    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



    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What was the market size of the Infrastructure-as-a-service Market in 2024?

    The Infrastructure-as-a-service Market was valued at 47.88 billion USD in 2024.

    What will be the expected market valuation of the Infrastructure-as-a-service Market by 2035?

    By 2035, the Infrastructure-as-a-service Market is anticipated to reach a valuation of 200.0 billion USD.

    What is the expected CAGR for the Infrastructure-as-a-service Market from 2025 to 2035?

    The expected compound annual growth rate (CAGR) for the Infrastructure-as-a-service Market from 2025 to 2035 is 13.88%.

    Which region is expected to hold the largest market share in the Infrastructure-as-a-service Market by 2035?

    North America is projected to dominate the market, valued at 85.0 billion USD by 2035.

    What is the expected market size of the Public Cloud segment in the Infrastructure-as-a-service Market by 2035?

    The Public Cloud segment is anticipated to be valued at 85.0 billion USD in 2035.

    Who are the key players in the Infrastructure-as-a-service Market?

    Major players in the market include Huawei, Oracle, Microsoft, IBM, Google, DigitalOcean, and Amazon Web Services.

    What is the expected value of the Private Cloud segment of the Infrastructure-as-a-service Market in 2035?

    The Private Cloud segment is expected to reach a value of 65.0 billion USD by 2035.

    How much was the Asia Pacific region valued in the Infrastructure-as-a-service Market in 2024?

    The Asia Pacific region was valued at 7.0 billion USD in the Infrastructure-as-a-service Market in 2024.

    What are the anticipated growth drivers for the Infrastructure-as-a-service Market?

    Key growth drivers include increasing demand for cloud solutions and enhanced flexibility in IT infrastructure.

    What is the market size of the Hybrid Cloud segment in the Infrastructure-as-a-service Market by 2035?

    The Hybrid Cloud segment is projected to be valued at 50.0 billion USD by 2035.

    Infrastructure as a Service Market Research Report – Forecast to 2035 Infographic
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