PUBLISHER: The Business Research Company | PRODUCT CODE: 1435420
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435420
Infrastructure as a Service (IaaS) is a cloud-based service providing remote computing and storage resources to enterprises.
The primary types are public, private, and hybrid clouds. Public clouds are internet-based solutions offered by service providers, shared among organizations and accessed through subscription or pay-per-use models. Industries utilizing IaaS include BFSI, government, healthcare, IT, telecom, retail, manufacturing, media, and more. IaaS serves various operations such as managed hosting, storage, disaster recovery, compute, network, content delivery, and high-performance computing. It's commonly used by both small-medium enterprises (SMEs) and large enterprises.
The infrastructure as a service (IaaS) market research report is one of a series of new reports from The Business Research Company that provides infrastructure as a service (IaaS) market statistics, including infrastructure as a service (IaaS) industry global market size, regional shares, competitors with infrastructure as a service (IaaS) market share, detailed infrastructure as a service (IaaS) market segments, market trends and opportunities, and any further data you may need to thrive in the infrastructure as a service (IaaS) industry. This infrastructure as a service (IaaS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The infrastructure as a service (iaas) market size has grown rapidly in recent years. It will grow from $94.85 billion in 2023 to $108.34 billion in 2024 at a compound annual growth rate (CAGR) of 14.2%. The historic growth can be attributed to changing workforce dynamics, the emergence of DevOps and agile practices, strategic adoption of outsourced IT infrastructure, globalization, market expansion initiatives, and the focus on disaster recovery and business continuity.
The infrastructure as a service (iaas) market size is expected to see rapid growth in the next few years. It will grow to $212.34 billion in 2028 at a compound annual growth rate (CAGR) of 18.3%. The forecasted growth in IT centers on digital transformation, security enhancements, sustainable infrastructure, hybrid cloud use, and AI integration. Key trends include serverless computing, containerization, edge computing, AI integration, and SDI.
The anticipated rise in the number of small and medium-sized businesses (SMBs) is poised to be a significant driver for the growth of the Infrastructure as a Service (IaaS) market. SMBs, characterized by personnel and revenue falling below certain thresholds, are increasingly turning to IaaS providers to handle infrastructure components. This approach reduces maintenance and upgrade costs for SMBs, making IaaS an attractive solution. As an illustration, according to the U.S. Small Business Administration (SBA), small businesses constitute 99.9% of all businesses in the United States. In 2021, there were 31.7 million small businesses in the U.S., accounting for 64.2% of net new private-sector jobs created from 2010 to 2021. The growing number of SMBs is a key driver for the expansion of the IaaS market.
The market growth of Infrastructure as a Service is further propelled by the widespread adoption of cloud computing across various industry verticals, including banking, financial services and insurance (BFSI), government and education, healthcare, IT and telecom, retail, manufacturing, and media and entertainment. Industries are rapidly adopting IaaS due to its benefits, such as low cost, improved reliability, and scalability. In the banking sector, for instance, there is a notable adoption of IaaS for leveraging cloud computing advantages such as data analytics, AI-driven analytics with machine and deep learning algorithms, agility, and scale. According to Eurostat, a Luxembourg-based statistics body for the European Union, 41% of organizations reported using cloud computing services in 2021, a 5-percentage point rise from 2020. The banking sector, in particular, has witnessed a higher rate of IaaS adoption, reflecting the substantial benefits offered by cloud computing. The rise in cloud services adoption across diverse industry verticals is a major driving force behind the growth of the Infrastructure as a Service market.
Privacy and data protection concerns are anticipated to impede the growth of the infrastructure-as-a-service (IaaS) market throughout the forecast period. Common security threats in the IaaS space include data leaks, compromises to accounts, authentication bypass, interface and API hacking, cyber-attacks, permanent data loss, insufficient awareness about the cloud's capabilities, application vulnerabilities, and misuse of cloud services. For example, according to CisCo, it is projected that by 2022, over 50% of enterprise data will be generated and processed outside traditional data centers or clouds, a significant increase from less than 10% in 2019. As data becomes more distributed, Infrastructure and Operations (I&O) organizations encounter challenges in providing effective data protection and management. Consequently, these privacy and data protection concerns, posing challenges for service providers, are expected to act as hindrances to the growth of the market.
Prominent companies in the infrastructure as a service (IaaS) market are actively engaged in developing innovative products to enhance their offerings. One such example is the introduction of Watson AIOps by IBM, a renowned US-based technology company. Launched in September 2022, Watson AIOps serves as an AIOps platform and IT operations management solution designed to enable IT operators to integrate AI into their ITOps toolchain. Leveraging traceable AI, Watson AIOps assists teams and stakeholders in building trust in AI-powered recommendations and insights for their mission-critical workloads. The platform provides clear and succinct recommendations and actions, aiding teams in finding solutions swiftly.
Major companies operating in the IaaS market are focusing on the development of distributed cloud services to support various workloads, including generative AI. Distributed cloud computing proves advantageous for businesses by facilitating cost reduction through high-speed data processing, seamless information sharing via the cloud, and minimizing the overall total cost of ownership. Akamai Technologies Inc., a prominent US-based content delivery network (CDN), cybersecurity, and cloud service provider, exemplifies this trend. In February 2023, the company launched Akamai Connected Cloud, a massively distributed edge and cloud computing service, introducing three new enterprise-scale core cloud computing sites across the U.S. and Europe. These initiatives underscore the commitment of major companies to innovation, as they strive to enhance their product offerings in the dynamic field of infrastructure as a service.
In March 2022, Akamai Technologies Inc., a U.S.-based content delivery network (CDN), cybersecurity, and cloud service provider, successfully acquired Linode for $900 million. This strategic move brings together Linode's robust cloud computing capabilities with Akamai's industry-leading edge platform and security services. The combined offering provides businesses with a formidable platform for building, running, and securing applications. Linode LLC, the acquired entity, is a U.S.-based infrastructure-as-a-service (IaaS) platform provider.
Major companies operating in the infrastructure as a service (iaas) market report are Alphabet Inc.; Google Inc.; Microsoft Corporation; Alibaba Group Holding Limited; Dell Technologies Inc.; Tencent Holdings Limited; Amazon Web Services Inc..; International Business Machines Corporation; Cisco Systems Inc..; Oracle Corporation; Fujitsu Limited; Hewlett Packard Enterprise Company; Savvisa Century Link Company; DXC Technology Company; Vmware Inc.; Alibaba Cloud Inc.; RedHat Inc.; Rackspace Technology Inc.; Nutanix Inc.; IONOS Cloud Inc.; Joyent Inc.; Redcentric plc; Linode LLC; MapR Technologies Inc.; Mesosphere Inc.; ProfitBricks Inc.; Mirantis Inc.; EMC Corporation; Micronaut Foundation; OpenStack Foundation
North America was the largest region in the infrastructure as a service (IaaS) market in 2023. Western Europe was the second largest region in the global infrastructure as a service (IaaS) market share. The regions covered in the infrastructure as a service (iaas) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the infrastructure as a service (iaas) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The infrastructure as a service (IaaS) market includes revenues earned by entities by providing computer infrastructure on-demand through an internet platform. IaaS refers to providing access to computer infrastructure through networked servers. Establishments providing IaaS host hardware, software, servers, storage and other infrastructure components for their users. These components include networking features, computer hardware, space for data storage, system maintenance, backup and resiliency planning. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Infrastructure as a service (IaaS) Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on infrastructure as a service (iaas) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for infrastructure as a service (iaas) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The infrastructure as a service (iaas) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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