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.

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.

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 12.85 billion in 2025 and is projected to grow from USD 24.10 billion in 2023 to USD 59.12 billion by 2033, exhibiting a CAGR of 12% during the forecast period. The market growth can be attributed to the increasing adoption of cloud-based solutions, the need for disaster recovery and business continuity, and the growing demand for high-performance computing. Some of the key drivers of the IaaS market include the increasing adoption of cloud-based solutions, the need for disaster recovery and business continuity, and the growing demand for high-performance computing. The IaaS market is segmented by solution, deployment type, end user, and region. The managed hosting services segment is expected to hold the largest market share during the forecast period. The public cloud segment is expected to grow at the highest CAGR during the forecast period. The large enterprises segment is expected to hold the largest market share during the forecast period. The IT & telecom segment is expected to grow at the highest CAGR during the forecast period. The Asia Pacific region is expected to grow at the highest CAGR during the forecast period. Recent developments include: 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.. Key drivers for this market are: Increasing use of IaaS platform among small and medium organizations, The increasing penetration of cloud based IaaS services; The increasing use of smart devices. Potential restraints include: Lack of IT infrastructure.

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

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 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.

The global hosting infrastructure services market is expected to hold a valuation of US$ 16 billion in 2023 and rise at a high CAGR of 8.5% to top a net worth of US$ 36.1 billion by the end of 2033.

Report Scope

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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

Machine Learning Infrastructure as a Service Market Outlook

The global Machine Learning Infrastructure as a Service market size is projected to witness substantial growth, with an estimated market value of USD 6.3 billion in 2023 expected to surge to USD 18.5 billion by 2032, reflecting a robust CAGR of 12.5% during the forecast period. This remarkable expansion can be attributed to several growth factors, including the increasing adoption of machine learning technologies across various industries, the rising demand for scalable and flexible computing resources, and the continuous advancements in cloud computing services. The integration of AI and machine learning into business processes is reshaping industries, driving efficiency, and fostering innovation, which subsequently fuels the demand for infrastructure services that support these technologies.

One of the primary growth drivers for the Machine Learning Infrastructure as a Service market is the escalating need for businesses to derive actionable insights from vast amounts of data. As organizations generate massive volumes of data daily, the requirement for sophisticated tools to process and analyze this information has become imperative. Machine learning models necessitate considerable computational power and storage, which is best provided by cloud-based infrastructure services. This has led to an increased investment in scalable infrastructure solutions that can efficiently handle complex machine learning algorithms. Furthermore, as businesses continue to embrace data-driven decision-making processes, the demand for infrastructure as a service offerings is expected to grow exponentially.

The evolution of machine learning and AI technologies has also catalyzed the growth of the Machine Learning Infrastructure as a Service market. Innovations such as natural language processing, computer vision, and predictive analytics are becoming more prevalent, requiring robust infrastructure solutions to support their computational needs. The continuous advancement in these technologies encourages organizations to adopt cloud-based infrastructure services to ensure seamless integration and deployment. Moreover, the proliferation of IoT devices and edge computing is further driving the need for flexible and scalable infrastructure services, as these technologies generate massive data streams that require real-time processing and analysis.

Another significant factor contributing to market growth is the cost-effectiveness and operational efficiency offered by cloud-based infrastructure services. By utilizing infrastructure as a service models, organizations can eliminate the need for substantial upfront investments in hardware and software. This not only reduces capital expenditure but also allows businesses to scale their resources according to demand, leading to increased agility and competitiveness. The pay-as-you-go pricing model of cloud services enables companies to optimize their operational costs, making these services particularly attractive for small and medium enterprises that may have limited budgets for IT infrastructure.

From a regional perspective, North America is anticipated to hold a significant share of the Machine Learning Infrastructure as a Service market due to the presence of major technology players and a high adoption rate of advanced technologies. The region's well-established IT infrastructure and a strong focus on research and development activities are expected to drive market growth. Additionally, Asia Pacific is projected to exhibit the highest growth rate during the forecast period, driven by the rapid digital transformation in countries like China and India, increasing investments in cloud computing, and the rising awareness of AI and machine learning technologies among enterprises.

Component Analysis

The Machine Learning Infrastructure as a Service market is segmented by component into hardware, software, and services, each playing a crucial role in the infrastructure ecosystem. Hardware components, such as GPUs and TPUs, are essential for processing the complex algorithms associated with machine learning tasks. These components provide the computational power needed to train and deploy machine learning models efficiently. With the increasing complexity and size of datasets, the demand for high-performance computing hardware is continuously rising, making it a significant segment in the market. Moreover, advancements in hardware technology, such as the development of specialized chips for AI and machine learning, are further boosting this segment's growth.

Software, as a compon

According to Cognitive Market Research, the global Infrastructure Services market size will be USD 159842.5 million in 2025. It will expand at a compound annual growth rate (CAGR) of 22.50% from 2025 to 2033.

North America held the major market share of 37% of the global revenue with a market size of USD 59141.73 million in 2025 and will grow at a compound annual growth rate (CAGR) of 20.8% from 2025 to 2033.
Europe accounted for a market share of 29% of the global revenue with a market size of USD 46354.33 million.
APAC held the market share of 24% of the global revenue with a market size of USD 38362.20 million in 2025 and will grow at a compound annual growth rate (CAGR) of 25.6% from 2025 to 2033.
South America has a market share of 4% of the global revenue with a market size of USD 6074.02 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.3% from 2025 to 2033.
Middle East had a market share of 4% of the global revenue and was estimated at a market size of USD 6393.70 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.0% from 2025 to 2033.
Africa had a market share of 2.20% of the global revenue and was estimated at a market size of USD 3516.54 million in 2025 and will grow at a compound annual growth rate (CAGR) of 22.8% from 2025 to 2033.
Disaster Recovery as a Service (DRaaS) category is the fastest growing Solution segment of the Infrastructure Services industry

Market Dynamics of Infrastructure Services Market

Key Drivers for Infrastructure Services Market

Increasing demand for cloud computing and digital transformation solutions drive the market

The growing need for scalable and flexible IT infrastructure solutions is driving the demand for cloud computing and digital transformation. As per the McKinsey & Company, digital transformation is widespread, with 89% of large companies undertaking it, but only realizing about 30% of the expected financial benefits. Research in the banking sector reveals that digital leaders significantly outperform laggards, achieving higher shareholder returns (8.1% vs 4.9%) and better return on equity thus drives demand for end-to-end infrastructure services, emphasizing strategic talent and operational models for better financial performance. Businesses are increasingly adopting cloud services to enhance operational efficiency, reduce costs, and ensure remote work capabilities. Cloud computing enables organizations to access data and applications from anywhere, facilitating digital transformation initiatives. Additionally, industries such as retail, healthcare, and banking are leveraging cloud solutions to offer personalized customer experiences and improve service delivery. The rise of Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) further accelerates market growth. As more businesses undergo digital transformation, the demand for advanced infrastructure services continues to expand.

https://hbr.org/2023/07/the-value-of-digital-transformation

Growing adoption of IoT and smart technologies in various sectors boost market growth

The widespread adoption of Internet of Things (IoT) and smart technologies is significantly boosting the Infrastructure Services industry. The global number of connected IoT devices is expected to grow by 13% to 18.8 billion by the end of 2024 and reach 40 billion by 2030, driven by increased adoption of Wi-Fi, Bluetooth, and cellular IoT technologies – reported by IoT Analytics. Industries such as manufacturing, healthcare, retail, and transportation are increasingly utilizing IoT solutions to enhance operational efficiency, monitor assets, and improve customer experiences. IoT devices generate massive amounts of data, driving the need for advanced storage solutions, data centers, and robust network management systems. Smart technologies, including artificial intelligence and machine learning, require high-performance computing and scalable infrastructure services for data processing and analysis. The continuous development of smart cities, connected vehicles, and industrial automation further propels market growth. As IoT adoption expands, the demand for reliable and secure infrastructure services intensifies.

https://iot-analytics.com/wp/wp-content/uploads/2024/09/INSIGHTS-RELEASE-Number-of-connected-IoT-devices-vf.pdf

Restraint Factor for the Infrastructure Services Market

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Infrastructure As-A-Service Market size is estimated to be valued at USD 96.98 Bn in 2025 & expected expand at a CAGR of 22.7%,reaching USD 406.06 Bn by 2032.

The statistic shows the size of the Infrastructure as a Service (IaaS) market from 2010 to 2020. In 2018, the cloud Infrastructure as a Service market is predicted to reach ** billion U.S. dollars worldwide. In terms of IaaS market share, Amazon holds the greatest share with ** percent of the IaaS market as of 2016.

The Managed Infrastructure Services Market report segments the industry into Deployment Type (On-Premise, Cloud), Services Type (Desktop and Print Services, Servers, Inventory, Other Types), End User (BFSI, IT and Telecom, Healthcare, Manufacturing, Retail, Other End Users), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa).

The Cloud Infrastructure Services Market report segments the industry into By Service Type (Compute as a Service, Storage as a Service, and more), By Deployment Model (Public Cloud, Private Cloud, and more), By Organization Size (Small and Medium-Sized Enterprises (SMEs), and more), By End-user Vertical (BFSI, IT & Telecommunications, and more), and By Geography (North America, Europe, and more).

Infrastructure-as-a-Service Market Size, Share, Forecast, & Trends Analysis by Offering (Compute, Storage, Others), Deployment (Public, Private, Hybrid), Organization Size, Application (Hosting, Others), Sector (IT & Telecommunications, BFSI, Others), and Geography - Global Forecast to 2031

Saudi Arabia Infrastructure as a Service Market was valued at USD 3.74 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 16.79% through 2029F.

Infrastructure as a Service Market Outlook

The global market size for Infrastructure as a Service (IaaS) was valued at approximately $90 billion in 2023 and is expected to reach around $300 billion by 2032, growing at a CAGR of 14.5% during the forecast period. The rapid expansion of the IaaS market is being driven by the increasing adoption of cloud computing solutions across various industries and the rising need for scalable and cost-effective IT infrastructure.

One of the primary growth factors driving the IaaS market is the growing demand for flexible and scalable IT infrastructure. Organizations are increasingly shifting from traditional on-premise data centers to cloud-based solutions to enhance operational efficiency, reduce capital expenditures, and improve scalability. The IaaS model allows businesses to scale their IT resources up or down based on demand, providing a significant advantage over traditional IT setups. Furthermore, the rise of remote work and digital transformation initiatives has accelerated the adoption of IaaS solutions, as companies seek to ensure business continuity and support a distributed workforce.

Another crucial factor contributing to the growth of the IaaS market is the increasing focus on cost optimization. By leveraging IaaS, organizations can avoid the high upfront costs associated with purchasing and maintaining physical hardware. Instead, they pay for IT resources on a pay-as-you-go basis, which helps in better budget management and cost predictability. Additionally, IaaS providers offer a range of pricing models, including subscription-based and consumption-based pricing, allowing businesses to choose the most suitable option for their needs. This cost-effective approach is particularly attractive to small and medium enterprises (SMEs) that may have limited IT budgets.

The continuous advancements in technology and the introduction of innovative IaaS solutions are also driving market growth. IaaS providers are constantly enhancing their offerings by incorporating advanced features such as artificial intelligence, machine learning, and automation. These technologies enable organizations to optimize their IT operations, improve resource utilization, and enhance overall performance. Moreover, the integration of IaaS with other cloud services, such as Platform as a Service (PaaS) and Software as a Service (SaaS), is creating a comprehensive cloud ecosystem that further boosts the market's growth potential.

Regionally, North America holds the largest share of the IaaS market, driven by the presence of major cloud service providers, high adoption rates of advanced technologies, and significant investments in cloud infrastructure. The Asia Pacific region is expected to witness the highest growth rate during the forecast period, fueled by the rapid digital transformation of economies, increasing penetration of internet services, and the growing emphasis on cloud-based solutions in countries like China, India, and Japan. Europe, Latin America, and the Middle East & Africa are also experiencing significant growth, supported by favorable government initiatives and the rising adoption of cloud computing across various industry verticals.

The role of SAP Cloud Infrastructure Services in the IaaS market is becoming increasingly significant as organizations seek comprehensive cloud solutions that integrate seamlessly with their existing enterprise systems. SAP offers a robust suite of cloud infrastructure services that cater to the diverse needs of businesses, providing scalable and secure IT resources. These services are particularly beneficial for enterprises that rely heavily on SAP's enterprise resource planning (ERP) software, as they offer enhanced compatibility and performance optimization. By leveraging SAP Cloud Infrastructure Services, organizations can achieve greater operational efficiency, reduce IT complexity, and accelerate their digital transformation initiatives. Furthermore, SAP's commitment to innovation and customer-centric solutions ensures that businesses can stay competitive in a rapidly evolving market landscape.

Component Analysis

The IaaS market can be segmented by component into compute, storage, network, and others. The compute segment, which includes virtual machines, CPU, and memory, represents a substantial portion of the market. Organizations are increasingly relying on compute resources to handle large-scale data processing, run complex applications

The Managed IT Infrastructure Services Market report segments the industry into By Service Category (Virtualization, Networking, Storage, Servers), By Enterprise Size (Small & Medium Enterprises, Large Enterprises), By Deployment (On-premises, Cloud), By End-User (IT & Telecommunication, Retail, Transportation & Logistics, BFSI, Manufacturing, Other End-Users), and Geography (North America, Europe, Asia-Pacific, and more).

The global market for infrastructure as a service (IaaS) should grow from $31.1 billion in 2018 to reach $97.6 billion by 2023 at a compound annual growth rate (CAGR) of 25.7% for the period of 2018-2023.