Infrastructure As A Service Market Is Estimated To Expand Further...

Infrastructure As A Service Market Is Estimated To Expand Further At A CAGR Of 28.10% From 2025 To 2034

Posted 2025-07-15 08:10:21

According to Custom Market Insights (CMI), the Global Infrastructure as a Service (IaaS) Market was valued at approximately USD 54.1 billion in 2021. The market is projected to experience strong growth, reaching around USD 485.5 billion by 2030. This represents a compound annual growth rate (CAGR) of 28.1% over the forecast period from 2022 to 2030.

The recently released report titled “Infrastructure as a Service Market” provides a detailed and comprehensive evaluation of the market. It includes estimations for market size, revenue, pricing, market share, growth forecasts, competitive positioning, and insights into key market trends and developments.

Infrastructure as a Service Market: Overview

Infrastructure as a Service (IaaS) refers to a standardized and highly automated computing model where service providers deliver computing resources, including storage and networking, on demand. These resources are scalable in near real-time and are billed based on consumption.

Customers can access these services through self-service interfaces such as application programming interfaces (APIs) or graphical user interfaces (GUIs). The infrastructure may be hosted either by the service provider or on-premise in the customer’s data center. The services can be provided in a single-tenant or multitenant environment.

Key drivers of growth in the IaaS market include the increasing demand for cost-efficient IT infrastructure, faster data access, and the growing adoption of cloud-based deployment across various industries. Businesses are adopting IaaS to reduce the operational burden of IT management, lower capital investment in data centers, and minimize the need for skilled personnel. These services also help reduce the time and expenses associated with managing and maintaining traditional IT systems.

Furthermore, as demand for high-speed network infrastructure increases, businesses are turning to IaaS solutions for quick and reliable access to data. The rise in demand for flexible, scalable, and remotely accessible IT services is also supporting the continued expansion of the IaaS market.

To view the full report, visit: https://www.custommarketinsights.com/report/infrastructure-as-a-service-market/

Growth Factors

A major factor contributing to the adoption of IaaS is the growing volume of financial, operational, and customer data being generated by enterprises. Organizations are increasingly looking to reduce the cost of managing on-premise IT systems and shift focus toward their core business functions.

Technological advancements have led to greater accessibility, mobile working environments, and rising digitalization across various industries. These developments have driven organizations to seek scalable and easy-to-implement solutions. IaaS offers precisely these benefits, with simplified implementation, high adaptability, and cost-effective scalability.

Many companies are working toward building mobile and remote workforces that require access to data from any location via internet-enabled services. This shift necessitates the virtualization of IT infrastructure, including servers, storage, and networking. With a shared architecture, IaaS allows for faster access to information, regardless of physical location.

Another important advantage of IaaS is the low initial investment cost. Since there is no need for on-site data centers or ongoing hardware maintenance, businesses can start using IaaS with minimal capital. Major service providers such as IBM, Microsoft, and Amazon Web Services offer reliable, round-the-clock cloud services as part of their integrated offerings.

For end users, IaaS represents significant cost savings, as they only pay for the resources they actually use. This usage-based pricing model helps businesses avoid the cost of building and maintaining their own infrastructure while enabling rapid scaling as needed. This flexible and efficient model is expected to be a major factor driving the growth of the IaaS market during the forecast period.

Segmental Overview

The IaaS market is segmented by component, deployment, and industry.

Based on components, the compute segment is projected to grow at the fastest rate. Similar to cloud computing, compute services provide access to virtualized computing resources via the internet. These services eliminate the need for businesses to manage software, servers, backups, and disaster recovery on their own, significantly reducing complexity.

In terms of deployment models, the public cloud segment is anticipated to witness the highest growth rate. The increasing adoption of public cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) is a key driver of this trend. The benefits of public cloud deployment, including improved agility, flexibility, and scalability, allow organizations to launch applications and services quickly without investing in expensive hardware. Public cloud environments also offer easy scalability with minimal overhead.

Within the industry segment, the IT and telecommunications category is expected to grow at the fastest rate. The increasing adoption of cloud services within this sector is expected to contribute to its rapid expansion. As telecom providers and IT companies embrace cloud-native architectures, the need for scalable and efficient infrastructure solutions continues to grow.

To request a free sample of the report, visit: https://www.custommarketinsights.com/request-for-free-sample/?reportid=20934

Regional Overview

North America accounted for the largest share of the IaaS market in 2021. The region's strong performance can be attributed to its advanced IT infrastructure and the presence of leading cloud service providers. Additionally, ongoing innovations in software development and the widespread availability of cloud solutions have strengthened the market position of North America.

The United States and Canada are experiencing high levels of cloud adoption across industries, as businesses increasingly pursue digital transformation initiatives. Organizations in the region are investing in cloud infrastructure to improve operational efficiency, reduce costs, and enhance their service delivery capabilities. These factors are expected to support continued growth of the IaaS market in North America during the forecast period.

Competitive Landscape

The Infrastructure as a Service market is highly competitive and includes numerous global players competing for market share. Companies are adopting a range of strategies to expand their customer base, including product launches, partnerships, and technological upgrades.

The market features strong competition between major technology firms offering cloud services. These players are focused on improving the reliability, performance, and flexibility of their offerings to meet the evolving demands of customers. Additionally, the emergence of artificial intelligence, automation, and analytics in cloud services is further shaping the competitive dynamics of the IaaS landscape.

The report provides a detailed analysis of the competitive landscape, including company overviews, recent developments, financial highlights, and business strategies.

Prominent Players

Some of the key companies operating in the global IaaS market include: