Infrastructure as a Service (IaaS) Market Size, Revenue Analysis, Opportunities, Trends, Product Launch, 2026

Growing need for reducing physical infrastructure and save IT cost, technological advancements in Edge computing, research, and constant innovation are some of the factors driving the IaaS market.

According to the current analysis of Reports and Data, the IaaS market was valued at USD 75.0 Billion in 2018 and is expected to reach USD 238.87 Billion by the year 2026, at a CAGR of 18%. IaaS market research study offers an all-inclusive analysis of the revenue generated by the IaaS vendors locally and globally. It includes the analysis of key strategies, business models, geographic presence, market dynamics, industry outlook, competitive landscape, and IaaS market revenue for all segments. The study provides an overall insight into the factors responsible for the growth in the IaaS market. The factors driving the IaaS market are growing need for reducing physical infrastructure and save IT cost, technological advancements in Edge computing, and the increasing number of SMEs creating revenue opportunities for cloud IaaS providers.

The factors that hinder the growth of the market include the stringent regulations and the compliance requirements for the IaaS vendors. The privacy and the security of the data is also the one of the factors that is challenging the growth of the market. The IaaS market comprises of the different service types that include compute as a service, storage as a service, disaster recovery and backup as a service, networking as a service, desktop as a service, and managed hosting. The DRaaS is estimated to have the highest growth rate, due to the ability to restore the services and data in case of a disaster. The DRaaS services take backup periodically and keep on updating the backups so as to recover the latest backed up data to avoid loss of time and maintain business continuity.

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Infrastructure as a Service (IaaS) is indeed a cloud computing model that provides virtualized computing resources to users via the internet. It is a fundamental component of cloud computing, along with Software as a Service (SaaS) and Platform as a Service (PaaS). In IaaS, the entire infrastructure, including servers, networking, storage, and data centers, is provisioned and managed by a cloud service provider.

One of the key advantages of IaaS is that it enables users to avoid the costs and complexities associated with purchasing and managing physical servers. Instead, users can utilize the virtual resources provided by the cloud service provider. With IaaS, users only pay for the resources they actually use, as the infrastructure is offered as individual service components.

The responsibility for managing the IaaS infrastructure lies with the cloud service provider, allowing users to focus on installing, configuring, and managing their software applications. This approach ensures that resources are readily available when needed, enabling rapid expansion of storage capacity without delays or wasted unused capacity.

Among the deployment models in IaaS, the public cloud deployment model has been projected to have the largest market size in 2019. Public cloud deployment offers hassle-free and secure deployment options, with no need for heavy upfront investments or infrastructure management. Public cloud services provide benefits such as reliability, scalability, flexibility, cost-effectiveness, and location independence.

To stay competitive and cater to a larger audience, companies in the IaaS market have adopted various growth strategies. These strategies include new product development, forming partnerships and agreements, and engaging in mergers and acquisitions.

Top Companies Operating in the Global Infrastructure as a Service (IaaS) Market:

Amazon Web Services Inc., IBM Corporation, Microsoft Corporation, HCL Technologies Limited, Cisco Systems Inc., Computer Sciences Corporation, Accenture, Rackspace Inc., VMware Inc., Oracle Corporation Fujitsu Ltd, Verizon Communications Inc., and DXC Technology.

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The global market is further segmented into type and application:

Service type (Revenue in USD Million; 2016–2026)

  • Compute as a Service
  • Storage as a Service
  • Disaster Recovery and Backup as a Service
  • Networking as a Service
  • Desktop as a Service
  • Managed Hosting

Deployment Model (Revenue in USD Million; 2016–2026)

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Organization size

  • Small and Medium-sized Enterprises (SMEs)
  • Large Enterprises

End-User (Revenue in USD Million; 2016–2026)

  • Banking, Financial Services, and Insurance (BFSI)
  • IT and Telecommunications
  • Government and Public Sector
  • Retail and Consumer Goods
  • Manufacturing
  • Energy and Utilities
  • Media and Entertainment
  • Healthcare and Life Sciences
  • Others

Regional analysis provides insights into key trends and demands in each major country that can affect market growth in the region.

  • North America (U.S., Canada, Mexico)
  • Europe (Germany, U.K., Italy, France, BENELUX, Rest of Europe)
  • Asia Pacific (China, India, Japan, South Korea, Rest of APAC)
  • Latin America (Brazil, Rest of LATAM)
  • Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of MEA)

Further key findings from the report suggest

  • The IaaS market is growing at a CAGR of 3% in Asia Pacific due to the rapid industrialization, urbanization, and digitalization of the developing countries and the increased use of digital learning in developing countries such as India, China, and Singapore.
  • The disaster recovery as a service market is forecasted to grow at a highest CAGR in the IaaS market. The DRaaS enables quicker response time and enables the infrastructure and data is protected and restored in case of an natural or manmade disaster.
  • The hybrid cloud deployment is forecasted to have the highest growth rate in the IaaS market. The hybrid cloud combines the characteristics of both private and public cloud. The hybrid cloud enables low cost installation along with added security for the infrastructure.
  • The large enterprises is estimated to have the larger market share in the IaaS market owing to the need for elimination of the physical infrastructure and implement the IaaS on demand, scalable, secure and reliable infrastructure for the enterprise
  • The telecom and IT is estimated to be the fastest growing segment in the corporate end-user due to the increasing use of IaaS in the IT industry owing to the massive amount of data and application development activities carried out in the industry.
  • The vendors in the market have adopted various strategies to increase the product ecosystem and gain a competitive edge over its competitors. For instance, AWS started two new data centers in Hong Kong to increase its global footprint

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Overall, IaaS provides businesses with a flexible and cost-effective solution for accessing and managing computing resources. By leveraging the power of the cloud, organizations can focus on their core competencies while leaving the infrastructure management to the cloud service providers.

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