Infrastructure as a Service - China

Revenue in the Infrastructure as a Service market is projected to reach US$32.04bn in 2024.
0.0 dominates the market with a projected market volume of 0.0 in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 21.87%, resulting in a market volume of US$86.14bn by 2029.
In global comparison, most revenue will be generated United States (US$77.05bn in 2024).

Definition:

Infrastructure as a Service (IaaS) refers to the type of public cloud service that provides virtualized computing resources. IaaS offers on-demand access to virtual machines, storage, and networking components, thus allowing users to build, deploy, and manage IT infrastructure without the need to invest in physical hardware. IaaS offers scalability, flexibility, and cost-efficiency by requiring users to pay only for the resources they consume. The IaaS market includes the companies that provide these types of public cloud resources and services to individuals, businesses, and organizations. A typical example of this type of service is Amazon Web Services (AWS). AWS provides a wide range of virtual machines, storage, and networking resources that users can access on demand to build and manage their IT infrastructures.

Additional Information:

The Infrastructure as a Service (IaaS) market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the IaaS market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Server capabilities, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
Computing resources, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
Storage resources, such as Amazon Elastic Block Store (EBS), Azure Blob Storage, and Google Cloud
Network capabilities, such as Google Cloud Interconnect and Alibaba Cloud Express Connect

Business-Process-as-a-Service (BPaaS), such as payroll management and accounting solutions via ADP Workforce Now, Intuit QuickBooks Online, Workday, and Oracle NetSuite
Desktop-as-a-Service (DaaS), such as Amazon WorkSpaces, Microsoft Windows Virtual Desktop, VMware Horizon Cloud, and Citrix Virtual Apps and Desktops
Platform-as-a-Service (PaaS), such as Heroku, AWS Elastic Beanstalk, Google App Engine, Microsoft Azure App Service, and IBM Cloud Foundry
Software-as-a-Service (SaaS), such as Google Workspace, Microsoft 365, Salesforce, Zoom, and Slack
System infrastructure software, such as Microsoft Windows Server, Linux distributions, VMware for virtualization, and Cisco’s networking software
Private cloud services, such as IBM Cloud Private, Microsoft Azure Stack HCI, and VMware vCloud Suite

The Infrastructure as a Service market in China has seen considerable growth in the Public Cloud market, driven by factors such as increasing adoption of digital technologies, growing demand for online services, and the convenience offered by cloud-based solutions. This growth is attributed to the country's rapid technological development and government initiatives to promote digitalization in various industries.

Customer preferences: The Infrastructure as a Service Market within the Public Cloud Market in China has seen a rise in demand for cloud-based solutions that cater to the unique needs of Chinese businesses. With the growing trend of digital transformation, companies are seeking more secure and cost-effective options to manage their IT infrastructure. This has led to a surge in demand for Infrastructure as a Service solutions, which provide scalable and customizable cloud-based infrastructure for businesses to operate more efficiently. Additionally, with the increasing importance of data privacy and security in China, there has been a shift towards local cloud providers who can comply with regulatory requirements and offer better data protection.

Trends in the market: In China, the Infrastructure as a Service Market within the Public Cloud Market is experiencing a surge in demand, driven by the country's rapid digital transformation and the increasing adoption of cloud technology by businesses. This trend is expected to continue, with China's government investing heavily in digital infrastructure and promoting the use of cloud services. As a result, there is a growing demand for advanced infrastructure and storage solutions, leading to the emergence of local and international cloud service providers in the market. This trend presents significant opportunities for industry stakeholders, including technology companies and IT service providers, while also posing challenges such as data security and compliance. It is crucial for stakeholders to keep pace with the evolving landscape and leverage emerging technologies like artificial intelligence and edge computing to stay competitive in the market.

Local special circumstances: In China, the Infrastructure as a Service Market within the Public Cloud Market is heavily influenced by the government's initiatives to promote cloud adoption and digital transformation. The country's strict regulations surrounding data privacy and security have also shaped the market, with local providers offering tailored solutions to meet these requirements. Additionally, China's vast market size and unique technology landscape have led to the emergence of domestic players, such as Alibaba Cloud and Tencent Cloud, dominating the market.

Underlying macroeconomic factors: The Infrastructure as a Service Market within the Public Cloud Market in China is largely influenced by macroeconomic factors such as the country's rapid economic growth, supportive government policies, and increasing investments in digital infrastructure. As China continues to invest heavily in its digital economy, the demand for cloud-based infrastructure services is expected to grow significantly. Additionally, the country's strong economic growth and increasing adoption of technology among businesses are driving the demand for cost-effective and scalable cloud solutions. Furthermore, the Chinese government's push towards digital transformation and the country's large population provide a vast market for cloud service providers to tap into, further driving the growth of the Infrastructure as a Service Market within the Public Cloud Market.

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing. It allows businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. Currently, the most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.