Global Infrastructure as a service (IaaS) market size is expected to reach $276.81 billion by 2029 at 12.6%, segmented as by deployment type, public cloud, private cloud, hybrid cloud

The global infrastructure as a service (IaaS) market size was valued at USD 192.71 Billion and is expected to grow at a CAGR of 21.50% in the forecast period of 2025-2034. The market is further expected to reach a value of USD 1351.04 Billion. North America is the leading region for the market, whereas the Asia Pacific is the fastest-growing region in the industry.

Key Insights and Trends

• The Asia Pacific IaaS market is expected to grow at a CAGR of 25.8% over the forecast period.
• The United States market held 48.8% of the North American IaaS market in 2024.
• By component, private cloud IaaS is projected to register a CAGR of 20.4% over the forecast period.
• By application, the retail category is expected to grow at a CAGR of 26.0% during the forecast period.

Market Size & Forecast

• Market Size in 2024: USD 192.71 Billion
• Projected Market Size in 2034: USD 1351.04 Billion
• CAGR from 2025 to 2034: 21.50%
• Fast-Developing Regional Market: Asia Pacific
• Largest Application: Retail

In 2024, the Infrastructure as a Service (IaaS) market was worth around *** billion U.S. dollars. IaaS is a computing infrastructure that is provisioned and managed over the internet by a cloud provider. IaaS delivers fundamental network, compute, and storage resources to customers on demand. This model reduces the need for an owned infrastructure that is difficult and expensive to maintain.

Infrastructure As A Service (IaaS) Market size was valued at USD 1,60,325.63 Million in 2024 and is projected to reach USD 7,26,965.98 Million by 2032, growing at a CAGR of 21.00% from 2026 to 2032.

Global Infrastructure As A Service (IaaS) Market Executive Summary

Infrastructure as a Service (IaaS) is a fundamental cloud computing segment that delivers virtualized computing infrastructure over the internet, such as servers, storage, networking, and virtualization resources. IaaS allows companies to bypass the costs and complexities of buying and maintaining physical servers and data center infrastructure, providing scalable, on-demand access to computing resources on a pay-as-you-go basis. These services are provided in an extremely automated and elastic platform, enabling businesses to quickly deploy applications, monitor workloads, and scale up operations in real time.

The infrastructure as a service market size was valued at USD 120.89 billion in 2024 and is expected to reach USD 2.36 trillion by 2037, expanding at around 25.7% CAGR during the forecast period i.e., between 2025-2037. North America industry is poised to hold largest revenue share by 2037, owing to presence of advanced IT infrastructure and high penetration of hybrid cloud in the region.

In 2023, Amazon generated around ** billion U.S. dollars from the sale of infrastructure as a service (IaaS), giving it a market share of approximately ** percent, more than the next three largest vendors in the market combined. Microsoft's growth in 2020 was driven by the global healthcare crisis that disrupted workplace environments and increased the demand for Microsoft's cloud products and solutions. In 2023, almost all IaaS providers exhibited growth, while the leading five providers accounted for over ** percent of the market.

The global revenue in the infrastructure as a service segment of the public cloud market was forecast to continuously increase between 2025 and 2029 by over *** percent. After the twelfth consecutive increasing year, the revenue is estimated to reach about *** billion U.S. dollars in 2029.

The Infrastructure As A Service Market is Segmented by Deployment Mode (Public Cloud, Private Cloud and Hybrid Cloud), Service Type(Compute As A Service (CaaS), Storage As A Service (STaaS), Database / Analytics As A Service (DBaaS) and More), End-User Industry(BFSI, IT and Telecom, Healthcare and Life Sciences) and Geography.

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Infrastructure As A Service (IaaS) Market Size 2025-2029

The infrastructure as a service (IaaS) market size is forecast to increase by USD 424.6 billion at a CAGR of 33% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the shift from capital expenditure (CAPEX) to operational expenditure (OPEX) models and the increasing demand for cloud-based applications. This transition allows businesses to reduce upfront costs and invest in core competencies, while IaaS providers manage their IT infrastructure. However, the market faces challenges, including regulatory hurdles impacting adoption in certain industries and supply chain inconsistencies that can temper growth potential. Additionally, the rise of cloud computing has led to an increased focus on data security, as the number of data breaches continues to grow. This trend is driven by the flexibility and cost savings offered by cloud computing services, which enable businesses to manage their IT spending more efficiently.
Companies seeking to capitalize on market opportunities must prioritize regulatory compliance and invest in robust security measures to mitigate risks and maintain customer trust. Navigating these challenges effectively will require strategic planning and a deep understanding of the evolving IaaS landscape.

What will be the Size of the Infrastructure As A Service (IaaS) Market during the forecast period?

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In the dynamic cloud market, businesses increasingly adopt and deploy cloud infrastructure to optimize operations and reduce costs. Cloud infrastructure architecture evolves, with a focus on security, automation, and orchestration. Cloud infrastructure providers offer various solutions, including serverless platforms and container orchestration, to cater to diverse business needs. Cloud infrastructure management platforms enable monitoring, capacity planning, and cost management, ensuring optimal performance and efficiency. Cloud infrastructure trends include the integration of data governance and the future adoption of advanced technologies like artificial intelligence and machine learning. The increasing digitization of industries, such as IT & telecom and retail & e-commerce, is driving the demand for flexible and scalable IT infrastructure.
Cloud infrastructure deployment and optimization remain key priorities for businesses, necessitating robust infrastructure design and provisioning strategies. Cloud service providers continue to innovate, offering automation tools and infrastructure services to streamline deployment and management. The cloud infrastructure landscape is constantly evolving, requiring businesses to stay informed and adapt to emerging trends and best practices. Simultaneously, hybrid cloud models, which combine both public and private cloud solutions, offer a balance between cost savings and security.

How is this Infrastructure As A Service (IaaS) Industry segmented?

The infrastructure as a service (IaaS) industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Deployment

  Public cloud
  Private cloud
  Hybrid cloud


End-user

  Large enterprises
  SMEs


Application

  Managed hosting
  Storage as a service
  Disaster recovery as a service
  Compute as a service
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Deployment Insights

The public cloud segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth as businesses increasingly adopt cloud-based solutions for their IT needs. IaaS offerings, such as data warehousing, cloud transformation, and cloud security services, enable businesses to store, process, and secure their data in a flexible and scalable manner. Cloud analytics and machine learning capabilities offer valuable insights from big data, while hybrid cloud deployments provide the benefits of both on-premises infrastructure and cloud computing. Managed services, including network services and disaster recovery, ensure high availability and business continuity. Security services protect against cyber threats, while serverless computing and edge computing offer efficient and cost-effective solutions for running applications. Data security remains a top priority, with IaaS providers implementing advanced security measures to protect against cyberattacks and data breaches.

Virtual machines and infrastructure automation streamline IT operations, and private and public cloud options cater to various business requirements. Cloud adoption continues to grow due to its ability to support

Explore Market Research Intellect's Cloud Infrastructure-as-a-Service (IaaS) Market Report, valued at USD 100 billion in 2024, with a projected market growth to USD 200 billion by 2033, and a CAGR of 8.5% from 2026 to 2033.

Infrastructure as a Service (IaaS) Market Outlook

The global Infrastructure as a Service (IaaS) market size reached USD 97.56 billion in 2023 and is projected to expand to USD 393.62 billion by 2032, growing at a compound annual growth rate (CAGR) of 16.7% from 2024 to 2032. The driving forces behind this impressive growth include an increasing adoption of cloud computing solutions, the need for scalable IT infrastructure, and the cost-efficiency of IaaS solutions, which are encouraging various industries to shift towards IaaS.

One of the primary growth factors of the IaaS market is the burgeoning demand for scalable and flexible IT infrastructure. As businesses grow, so do their computing needs, necessitating a reliable, scalable solution that can adjust in real-time without massive upfront investments. IaaS offers enterprises the ability to scale their infrastructure up or down based on demand, ensuring optimal resource utilization and cost management. This elasticity is particularly beneficial for industries experiencing rapid growth or seasonal fluctuations in demand, cementing IaaS as a preferred choice for modern enterprises.

Another significant factor contributing to the expansion of the IaaS market is the shift towards remote and hybrid work models. The global pandemic has underscored the importance of robust and flexible IT infrastructure, as organizations pivot to remote operations and seek to maintain business continuity. IaaS provides a seamless and efficient way to support remote workforces by offering secure, remote access to necessary IT resources. This has led to a surge in demand for IaaS solutions, as companies strive to facilitate remote work, enhance cybersecurity, and ensure uninterrupted operations.

Furthermore, the cost-efficiency of IaaS solutions is a compelling driver for market growth. Traditional on-premises infrastructure requires substantial capital investments, ongoing maintenance costs, and dedicated in-house IT teams. In contrast, IaaS operates on a pay-as-you-go model, allowing businesses to only pay for the resources they use. This shift from capital expenditure (CapEx) to operational expenditure (OpEx) is particularly attractive to small and medium-sized enterprises (SMEs) with limited budgets, enabling them to access cutting-edge technology without significant financial strain.

Regionally, North America dominates the IaaS market, driven by the presence of numerous cloud service providers, early adoption of advanced technologies, and substantial investments in cloud infrastructure. The region's mature IT landscape and strong emphasis on digital transformation further propel IaaS adoption. However, Asia Pacific is expected to witness the highest growth rate during the forecast period, fueled by rapid industrialization, increasing internet penetration, and a growing number of SMEs adopting cloud solutions. Countries like China and India are at the forefront of this regional surge, supported by government initiatives and a robust startup ecosystem.

Component Analysis

The IaaS market can be segmented by components, including compute, storage, network, and others. The compute segment holds a significant share, driven by the increasing demand for processing power across various applications such as data analytics, artificial intelligence, and machine learning. IaaS compute resources allow businesses to leverage high-performance computing without investing in expensive hardware, thus fostering innovation and efficiency. The rising adoption of big data analytics and the need for real-time processing capabilities further contribute to the growth of the compute segment.

Storage is another critical component of the IaaS market, catering to the growing need for reliable and scalable data storage solutions. With the exponential increase in data generation, organizations require robust storage infrastructure to manage and secure their data. IaaS storage solutions provide highly scalable and cost-effective options, enabling businesses to store vast amounts of data without worrying about capacity limitations. Additionally, features such as data redundancy, backup, and disaster recovery enhance the attractiveness of IaaS storage offerings.

The network segment of the IaaS market encompasses virtual networks, load balancers, and various other networking services. As businesses expand globally and migrate their operations to the cloud, the demand for efficient and secure networking solutions has surged. IaaS network services facilitate seamless connectivity, ensuring optimal performance and security fo

The cloud infrastructure-as-a-service (IaaS) market is projected to reach a value of USD 180.84 billion by 2033, exhibiting a CAGR of 13.8% during the forecast period (2023-2033). The growing adoption of cloud computing, increasing demand for data storage and processing capabilities, and the need for cost-effective IT infrastructure are key factors driving market growth. Additionally, the emergence of new technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) is further fueling the demand for IaaS solutions. The market for cloud IaaS is expected to witness significant growth in the coming years, with key players such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Alibaba Cloud accounting for a major share. These companies are investing heavily in expanding their data center footprint, introducing new services, and developing partnerships with third-party providers to cater to the evolving needs of customers. Emerging economies in the Asia-Pacific and Middle East & Africa regions are expected to offer lucrative opportunities for cloud IaaS providers, due to increasing internet penetration and the growing adoption of cloud-based services in these regions.

The Infrastructure as a Service (IaaS) Market size was valued at USD 130.08 USD billion in 2023 and is projected to reach USD 505.52 USD billion by 2032, exhibiting a CAGR of 21.4 % during the forecast period. Infrastructure as a service (IaaS) is a form of cloud computing that delivers fundamental IT infrastructure resources like compute, servers, virtual machines, network, and storage to consumers, over the internet and on a pay-as-you-go basis. IaaS enables users to scale resources on an as-needed basis, especially in "spiky" workloads, reducing the need for high, up-front capital expenditures and the complexity that comes with buying, setting up and maintaining on-premises infrastructure. IaaS is attractive because acquiring computing resources to run applications or store data the traditional way requires time and capital. Recent developments include: December 2023 – ZKTeco announced a partnership with Amazon Web Services (AWS) to launch the innovative Minerva IoT platform and boost its cloud capabilities. The goal of this collaboration is to leverage AWS's robust cloud infrastructure to develop a secure, scalable IoT platform with advanced capabilities., November 2023 – Leaseweb Global, a cloud services and Infrastructure as a Service (IaaS) provider, launched a new channel partner program in the U.K. The program has been designed for managed service providers (MSPs). It provides a framework for building long-term sales partnerships, allowing MSPs to offer both strategic advice and high-quality cloud services to their customers., December 2022 – F5 announced the launch of Distributed Cloud App infrastructure protection. The solution increases application observability and security to cloud-native infrastructures., October 2022 – Lenovo announced improvements to its Lenovo TruScale Infrastructure-as-a-Service technology solution deployed across the enterprise. The new offering has extended partnerships with Nutanix, Veeam, and Red Hat and is gaining customer acceptance. This solution bids on the safety, control of on-premises Infrastructure, and flexibility of the hybrid cloud., August 2022 – 11:11 Systems, an infrastructure solution provider, acquired cloud management services from Sungard availability services. The acquisition provides cross-platform cloud deployments for future development, including scalability, compliance, and availability to the next level of clients to manage, optimize, and defend their mission-critical cloud environments., February 2022 – Akamai acquired IaaS provider Linode for USD 900 million. The acquisition builds a unique generation of applications from the cloud to edge, delivering unprecedented scale, reach, performance, reliability, and security.. Key drivers for this market are: Increase in Demand for Low-Cost IT Infrastructure and Faster Data Accessibility to Drive Market Growth. Potential restraints include: Challenges Related to Hacking May Restrain Market Growth. Notable trends are: Distributed Cloud Computing and Cost Optimization will Drive Cloud Adoption and Bolster Market Growth.

In the fourth quarter of 2024, the most popular vendor in the cloud infrastructure services market, Amazon Web Services (AWS), controlled ** percent of the entire market. Microsoft Azure takes second place with ** percent market share, followed by Google Cloud with ** percent market share. Together, these three cloud vendors account for ** percent of total spend in the fourth quarter of 2024. Organizations use cloud services from these vendors for machine learning, data analytics, cloud native development, application migration, and other services. AWS Services Amazon Web Services is used by many organizations because it offers a wide variety of services and products to its customers that improve business agility while being secure and reliable. One of AWS’s most used services is Amazon EC2, which lets customers create virtual machines for their strategic projects while spending less time on maintaining servers. Another important service is Amazon Simple Storage Service (S3), which offers a secure file storage service. In addition, Amazon also offers security, website infrastructure management, and identity and access management solutions. Cloud infrastructure services Vendors offering cloud services to a global customer base do so through different types of cloud computing, which include infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Further, there are different cloud computing deployment models available for customers, namely private cloud and public cloud, as well as community cloud and hybrid cloud. A cloud deployment model is defined based on the location where the deployment resides, and who has access to and control over the infrastructure.

Amazon AWS led the global infrastructure as a service (IaaS) software industry in 2024 with a market share of over ** percent, followed by Google Cloud Platform and Quali who accounted for around ** and ** percent of the market share, respectively.

The North America Infrastructure-as-a-Service (IaaS) Market would witness market growth of 20.3% CAGR during the forecast period (2024-2031). The US market dominated the North America Infrastructure-as-a-Service (IaaS) Market by Country in 2023, and would continue to be a dominant market till 2031;

Infrastructure as a Service (IaaS) Providers Market Outlook

The global Infrastructure as a Service (IaaS) Providers market size is projected to witness significant growth, with market valuation estimated to reach USD 148.5 billion in 2023 and expected to grow at a robust CAGR of 23.2% to reach approximately USD 654.7 billion by 2032. This remarkable growth is primarily driven by the increasing demand for scalable and elastic computing services, which provide businesses with the flexibility to meet dynamic market needs. The rise in cloud adoption across various industries, coupled with the need for cost-efficient and reliable IT infrastructure, serves as a pivotal growth factor for the IaaS market.

The increasing digital transformation across industries acts as a catalyst for the growth of the IaaS market. Businesses are increasingly realizing the importance of maintaining a competitive edge through digital solutions, which often necessitate robust and scalable IT infrastructure. IaaS allows companies to deploy and manage complex workloads on demand, which is crucial for supporting digital initiatives. The shift towards a digital-first approach is further propelled by the necessity of maintaining business continuity in unpredictable times, such as during the COVID-19 pandemic, which bolstered the demand for cloud infrastructure services. Consequently, the ability of IaaS to provide on-demand resources and facilitate innovation without the need for substantial upfront investments is a significant growth driver.

Another notable growth factor is the trend towards globalization and the expansion of businesses into new markets. Organizations are increasingly looking to tap into new customer bases and improve their operational efficiencies globally. The deployment of IaaS solutions supports this trend by offering the infrastructure needed to quickly enter new geographical markets without the burden of setting up physical data centers. This agility is particularly attractive for industries such as retail and e-commerce, which require scalable IT resources to handle fluctuating customer demands and seasonal spikes. Moreover, the advancements in networking technologies and the proliferation of high-speed internet across regions have made IaaS a viable option for businesses of all sizes, further fueling its market growth.

Security and compliance concerns, traditionally seen as barriers, are now becoming growth enablers for the IaaS market. As vendors enhance their offerings to include robust security features and compliance with international standards, more enterprises are warming up to the idea of migrating their critical workloads to the cloud. The ability to ensure data protection and adhere to regulatory requirements is a compelling proposition for industries such as BFSI and healthcare, which handle sensitive data and have stringent compliance mandates. This assurance of data security and compliance is driving even the most cautious industries to consider IaaS solutions, thereby broadening the market's scope and reach.

Regionally, North America continues to dominate the IaaS market, buoyed by the rapid adoption of advanced technologies and the presence of key market players. The region's early embrace of cloud computing and technology innovation has paved the way for robust infrastructure development. Furthermore, the emphasis on digital transformation initiatives and the supportive regulatory environment contribute significantly to this leadership position. Asia Pacific, however, is emerging as a high-growth region, with a rapidly expanding IT sector and increasing investment by global companies in digital infrastructure. The burgeoning start-up ecosystem in countries like India and China, along with governmental initiatives to promote digitalization, further enhances the market potential in this region.

As the IaaS market continues to evolve, Managed Cloud As a Service is becoming an increasingly attractive option for businesses seeking to optimize their cloud infrastructure management. This service model allows organizations to offload the complexities of managing cloud environments to specialized providers, who offer comprehensive management solutions tailored to specific business needs. By leveraging Managed Cloud As a Service, companies can focus on their core operations while ensuring that their cloud infrastructure is efficiently managed and optimized for performance, security, and compliance. This approach not only enhances operational efficiency but also provides businesses with the flexibility to scale

Cloud Infrastructure as a Service (IaaS) Market Outlook

The global Cloud Infrastructure as a Service (IaaS) market size is projected to grow from USD 90 billion in 2023 to USD 380 billion by 2032, exhibiting a robust compound annual growth rate (CAGR) of 17.5% during the forecast period. This phenomenal growth can be attributed to several factors including the increasing adoption of cloud computing technologies, the growing need for cost-efficient and scalable IT infrastructure, and the rise of remote working arrangements which further drives the need for cloud-based services.

One of the primary drivers of the Cloud IaaS market is the increasing shift of enterprises towards digital transformation. Many organizations are moving their workloads and applications to the cloud to enhance agility, reduce capital expenditure, and improve operational efficiency. This trend is further propelled by advancements in artificial intelligence (AI), machine learning (ML), and big data analytics, which demand robust, scalable, and flexible infrastructure that IaaS solutions offer. Moreover, the COVID-19 pandemic has accelerated cloud adoption as businesses have had to pivot to remote work and digital service delivery models, which rely heavily on cloud infrastructure.

Another significant growth factor is the expanding adoption of hybrid and multi-cloud strategies. Enterprises are increasingly opting for hybrid cloud solutions to leverage the benefits of both public and private clouds while ensuring flexibility, security, and compliance. Multi-cloud approaches, wherein organizations use multiple cloud services from different providers, are also gaining traction as they help mitigate risks related to vendor lock-in and enhance disaster recovery capabilities. These strategies require sophisticated IaaS offerings, thereby fueling market growth.

The proliferation of Internet of Things (IoT) devices and the rise of edge computing are further augmenting the demand for IaaS. As IoT devices generate massive amounts of data that need to be processed and analyzed in real-time, edge computing infrastructure becomes critical. IaaS providers are responding to this demand by offering solutions that support edge computing, enabling businesses to process data closer to the source and thus reducing latency and improving performance. This trend is expected to significantly drive the growth of the Cloud IaaS market in the coming years.

Cloud Engineering plays a pivotal role in the evolution of the Cloud IaaS market. As organizations increasingly adopt cloud-based solutions, the demand for skilled cloud engineers who can design, implement, and manage cloud infrastructure is on the rise. These professionals are essential for ensuring that cloud environments are optimized for performance, security, and scalability. Cloud Engineering involves a deep understanding of cloud platforms, networking, and security protocols, enabling businesses to leverage the full potential of their cloud investments. As the market continues to grow, the need for expertise in Cloud Engineering will become even more critical, driving innovation and efficiency in cloud deployments.

Regionally, North America holds the largest share of the Cloud IaaS market, driven by the presence of major cloud service providers, high adoption rates of advanced technologies, and a robust IT infrastructure. However, the Asia Pacific region is anticipated to witness the highest growth rate during the forecast period. This rapid growth can be attributed to the increasing adoption of cloud services by small and medium enterprises (SMEs), government initiatives supporting digitalization, and the expanding e-commerce sector in countries like China and India. Europe is also expected to see considerable growth, driven by stringent data protection regulations and the need for cloud solutions that ensure compliance.

Component Analysis

The Cloud IaaS market is segmented by components which include compute, storage, network, and others. Compute services form the backbone of Cloud IaaS offerings, providing the necessary processing power for running applications and handling complex computations. These services are crucial for enterprises that require high-performance computing capabilities, such as those in the fields of AI, ML, and scientific research. The demand for compute services is expected to grow steadily as more businesses shift towards cloud-first strategies and require scalable processing power.

[219+ Pages Report] The global infrastructure as a service (IaaS) market size is expected to grow from USD 51.31 billion in 2021 to USD 482 billion by 2030, at a CAGR of 25.35% from 2022-2030

The forecast for the global Infrastructure as a Service (IaaS) market predicts substantial growth, with market size projected to soar to USD 1582.21 Billion by 2033, a significant increase from the USD 163.21 Billion recorded in 2024. This expansion reflects an impressive compound annual growth rate (CAGR) of 28.71% anticipated between 2025 and 2033.

The Global Infrastructure as a Service (IaaS)