IaaS market pegged for $200+ billion at 23.2% CAGR through 2027

July 20, 2020
Surging ICT expenditures and increases in cloud adoption across several industry verticals, including BFSI, retail, healthcare, manufacturing, and government/education will boost the Infrastructure-as-a-Service (IaaS) market, find Research and Markets.

A new report entitled, "Infrastructure as a Service Market by Component Type, Deployment Model, User Type and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020-2027", has been added to the offering of technology analyst firm Research and Markets (Dublin, Ireland).

According to the analyst, the infrastructure as a service market (IaaS) was valued at $38.94 billion in 2019, and is projected to reach $201.83 billion by 2027, growing at a CAGR of 23.2% from 2020 to 2027.

Per Research and Markets, a "rise in awareness about various cloud computing services including public, private, and hybrid cloud services, growth in internet penetration in emerging economies, and demand for cost effective and flexible computing services are major factors that drive the growth of the market." In addition, integration of artificial intelligence and demand for IaaS from SMEs [small and medium- sized enterprises] are anticipated to create lucrative opportunities for the IaaS market's expansion.

As noted by the report's executive summary:

  • The telecom and IT industry has registered highest infrastructure as a service market share, owing to expanding customer base and internet users. Reduced investments for new hardware and software across various industry verticals is expected to drive the market for IaaS in the future. Moreover, the government and education and healthcare industries exhibited an increasing cloud adoption across various regions, owing to its low cost and improved reliability and scalability.
  • A surge in ICT expenditure and increase in cloud adoption across several industry verticals, including BFSI, retail, healthcare, manufacturing, and government and education are anticipated to augment the IaaS market's trends. Prominent markets, such as Asia-Pacific and Europe, provide growth in cloud infrastructure development, high adoption of Internet of Things (IoT) technology, and surge in demand for low-cost IT infrastructure deployment, which is anticipated to fuel the infrastructure as a service market growth in the coming years.
  • North America was the largest market in the IaaS industry in 2019, owing to the growth in demand for low-cost cloud infrastructure development and faster network accessibility. In addition, industry participants have realized the importance of strengthening the overall IaaS solution to ensure competence and effectiveness of cloud infrastructure in several other emerging markets such as Latin America, the Middle East, and Africa.

Key findings of the report include the following:

  • By component type, the compute segment dominated the IaaS market. However, the storage segment is expected to exhibit significant growth in the industry during the forecast period.
  • By deployment model, the hybrid segment dominated the market share in 2019.
  • By user type, the large enterprises segment dominated the market share in 2019. However, the small and medium enterprises segment is expected to exhibit significant growth during the forecast period.
  • By industry vertical, the telecom and IT segment dominated IaaS market revenue in 2019. However, the government and education segment is expected to exhibit significant growth during the forecast period.
  • Region-wise, North America dominated the IaaS market in 2019, whereas Asia-Pacific is expected to witness significant growth in terms of CAGR in the coming years.

Key market players profiled in the IaaS market analysis include: Amazon Web Services, Inc.; Alibaba Group Holding Limited; Dell EMC; Google LLC, IBM Corp., Microsoft Corp., Oracle Corp., Rackspace Hosting, Inc., Redcentric plc., and Hewlett Packard Enterprise (HPE). The report notes that all these players are involved in the competitive strategies, such as geographical expansion, mergers and acquisitions, product portfolio expansion, and partnership to augment the growth of the IaaS market.

For more information about this report visit https://www.researchandmarkets.com/r/mwiubo.

Sponsored Recommendations

Data Center

Data Center Frontier Trends Summit Combines Education, Networking

Feb. 20, 2024
The theme-based content within the Summit aims to support critical decision-making across the data center ecosystems.
Data Center

Revised TIA-942 Data Center Standard Approved for Publication

Feb. 12, 2024
The “C” revision of TIA-942 includes requirements for fiber connectivity and cabinet widths, as well as guidelines for thermal management and humidity levels.