Infrastructure as a Service - Europe

In Europe, revenue in the 0 market is projected to reach US$41.02bn in 2025.
The Infrastructure as a Service market dominates the market with a projected market volume of 0 in 2025.
Revenue in this sector is expected to exhibit an annual growth rate (CAGR 2025-2029) of 18.62%, leading to a market volume of US$81.21bn by 2029.
In a global context, it is noteworthy that most revenue will be generated the United States, which is expected to reach US$93.99bn in 2025.
As European nations increasingly prioritize sustainability, Germany's Infrastructure as a Service market is evolving rapidly to support green cloud initiatives and energy-efficient solutions.

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

Infrastructure as a Service: market data & analysis

The Public Cloud Market in Europe is seeing remarkable growth, fueled by factors like the high adoption of digital technologies, growing health consciousness among individuals, and the convenience of online health services. This notable growth rate is being driven by the increasing demand for Infrastructure as a Service (IaaS) and its benefits in terms of cost, scalability, and flexibility for businesses in the region.

Customer preferences: As more businesses move towards a remote workforce, the demand for Infrastructure as a Service (IaaS) within the Public Cloud Market is expected to rise. This shift is driven by the need for virtual collaboration tools and cloud-based solutions that enable seamless communication and project management. Additionally, the increasing focus on sustainability and cost-efficiency is encouraging companies to adopt IaaS, as it allows for more efficient use of resources and reduced environmental impact.

Trends in the market: In Europe, the Infrastructure as a Service Market within the Public Cloud Market is experiencing a surge in demand for hybrid and multi-cloud solutions, as companies seek to optimize their IT infrastructure and reduce costs. Another trend is the increasing adoption of serverless computing, which offers scalability and cost-efficiency for businesses. This trajectory is significant as it reflects the growing preference for flexible and cost-effective cloud solutions. For industry stakeholders, this trend presents opportunities for expansion and innovation, but also challenges in terms of managing complex and diverse cloud environments. As the market continues to evolve, it will be crucial for stakeholders to stay abreast of these trends and adapt their strategies accordingly.

Local special circumstances: In Europe, the Infrastructure as a Service market is influenced by the region's strict data privacy laws, which require companies to ensure the security of their cloud infrastructure. This has led to the emergence of local cloud providers that specialize in compliance with these regulations. Additionally, Europe's diverse cultural landscape has resulted in varying levels of cloud adoption, with countries like Germany and France being more conservative compared to the UK and Nordic countries. These localized factors play a significant role in shaping the Infrastructure as a Service market in Europe, making it unique and distinct from other markets.

Underlying macroeconomic factors: The Infrastructure as a Service Market within the Public Cloud Market in Europe is strongly affected by macroeconomic factors such as technological advancements, government policies and investments, and the overall economic health of the region. Countries with strong government support and investment in cloud infrastructure are experiencing faster market growth compared to regions with limited resources and regulatory challenges. Furthermore, the increasing demand for cost-effective and flexible IT solutions, coupled with the rising adoption of digital transformation initiatives, is driving the growth of the Infrastructure as a Service Market in Europe. The ongoing digitalization of businesses and the growing need for data storage and management are also major drivers of the 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.

Infrastructure as a Service - Europe

Revenue

Key Players

Analyst Opinion

Global Comparison

Methodology

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