Infrastructure as a Service - EU-27

EU-27

Revenue in the Infrastructure as a Service market is projected to reach US$25.09bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 19.17%, resulting in a market volume of US$60.29bn by 2029.
The average spend per employee in the Infrastructure as a Service market is projected to reach US$111.90 in 2024.
In global comparison, most revenue will be generated in the United States (US$78,280.00m in 2024).

Key regions: United Kingdom, China, France, Netherlands, Germany

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Analyst Opinion

The Infrastructure as a Service market in EU-27 is experiencing steady growth and development, driven by customer preferences for flexible and scalable IT infrastructure solutions, along with favorable local special circumstances and underlying macroeconomic factors.

Customer preferences: In the EU-27 region, customers are increasingly seeking Infrastructure as a Service (IaaS) solutions due to their numerous advantages. One of the key customer preferences is the ability to scale IT infrastructure resources up or down based on demand, allowing businesses to be more agile and cost-efficient. Additionally, customers appreciate the flexibility of paying only for the resources they use, rather than investing in and managing their own physical infrastructure. This preference for flexibility and cost-effectiveness is driving the adoption of IaaS solutions in the EU-27 market.

Trends in the market: A prominent trend in the EU-27 IaaS market is the increasing adoption of cloud-native technologies and solutions. This trend is fueled by the need for businesses to modernize their IT infrastructure and leverage the benefits of cloud computing. Cloud-native technologies, such as containers and microservices, enable organizations to build and deploy applications more efficiently and effectively. As a result, there is a growing demand for IaaS providers that offer robust cloud-native capabilities, such as container orchestration and serverless computing. Another trend in the EU-27 IaaS market is the rise of multi-cloud and hybrid cloud strategies. Businesses are recognizing the importance of diversifying their cloud infrastructure to avoid vendor lock-in and ensure resilience. This trend is driving the demand for IaaS providers that offer seamless integration and management of multiple cloud environments. Additionally, businesses are increasingly adopting hybrid cloud architectures, combining on-premises infrastructure with public cloud services. This trend is creating opportunities for IaaS providers that can offer hybrid cloud solutions and enable seamless workload migration between different environments.

Local special circumstances: The EU-27 market has its own unique set of circumstances that contribute to the development of the IaaS market. One such circumstance is the presence of strict data protection and privacy regulations, such as the General Data Protection Regulation (GDPR). These regulations require businesses to ensure the security and privacy of personal data, which has led to an increased demand for IaaS providers that offer robust security measures and compliance with regulatory requirements. Additionally, the EU-27 market is characterized by a diverse range of languages and cultures, which creates a need for IaaS providers that can offer localized services and support.

Underlying macroeconomic factors: The EU-27 market is influenced by various macroeconomic factors that contribute to the growth of the IaaS market. One such factor is the increasing digitalization of businesses and the need for scalable and flexible IT infrastructure. As businesses across industries embrace digital transformation, there is a growing demand for IaaS solutions that can support their evolving technological needs. Additionally, the EU-27 market benefits from a strong focus on innovation and technology, with governments and organizations investing in initiatives to foster digital growth. This favorable environment encourages the adoption of IaaS solutions and drives market development. In conclusion, the Infrastructure as a Service market in EU-27 is experiencing growth and development driven by customer preferences for flexibility and scalability, along with favorable local special circumstances and underlying macroeconomic factors. The increasing adoption of cloud-native technologies, the rise of multi-cloud and hybrid cloud strategies, and the presence of strict data protection regulations are shaping the market trends in the region. With the ongoing digitalization of businesses and the focus on innovation, the EU-27 market presents opportunities for IaaS providers to meet the evolving needs of customers and drive further market growth.

Methodology

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.