Infrastructure as a Service - Worldwide

Worldwide

Revenue in the Infrastructure as a Service market is projected to reach US$183.50bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 20.28%, resulting in a market volume of US$461.90bn by 2029.
The average spend per employee in the Infrastructure as a Service market is projected to reach US$51.53 in 2024.
The global market share of 0 was 0 in 2021.
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 is experiencing significant growth worldwide, driven by customer preferences for scalable and cost-effective cloud computing solutions.

Customer preferences: Customers are increasingly seeking Infrastructure as a Service (IaaS) solutions due to their flexibility and scalability. With IaaS, businesses can easily scale their infrastructure up or down based on their needs, allowing them to quickly respond to changing market conditions. Additionally, IaaS solutions offer cost savings compared to traditional on-premises infrastructure, as businesses only pay for the resources they use. This cost-effectiveness is particularly appealing to small and medium-sized enterprises (SMEs) with limited budgets.

Trends in the market: One of the key trends in the IaaS market is the adoption of multi-cloud strategies. Businesses are utilizing multiple IaaS providers to leverage the strengths of each platform and avoid vendor lock-in. This trend is driven by the desire for increased flexibility and resilience in the face of potential service disruptions. Additionally, the rise of hybrid cloud environments, combining on-premises infrastructure with IaaS solutions, is also contributing to the growth of the market. Another trend in the IaaS market is the increasing demand for specialized infrastructure. As businesses become more reliant on data-intensive technologies such as artificial intelligence (AI) and machine learning (ML), they require infrastructure that can support the processing and storage requirements of these technologies. This has led to the emergence of specialized IaaS providers that offer high-performance computing capabilities tailored to the needs of AI and ML workloads.

Local special circumstances: In the United States, the IaaS market is driven by the presence of major technology companies that offer comprehensive cloud computing solutions. These companies have extensive infrastructure and data centers, allowing them to provide reliable and scalable IaaS services. Additionally, the high level of digitalization in the United States has led to a strong demand for cloud-based infrastructure. In Europe, data protection regulations such as the General Data Protection Regulation (GDPR) have influenced the IaaS market. Businesses in Europe are increasingly concerned about data privacy and security, leading them to choose IaaS providers that comply with these regulations. As a result, European businesses are more likely to opt for local or regional IaaS providers that have a strong focus on data protection.

Underlying macroeconomic factors: The global shift towards remote work and digital transformation has accelerated the adoption of IaaS solutions. The COVID-19 pandemic has forced businesses to quickly adapt to remote work environments, increasing the demand for cloud-based infrastructure. Additionally, the increasing reliance on digital services and the need for efficient data storage and processing have further fueled the growth of the IaaS market. Furthermore, the increasing availability of high-speed internet connectivity has made it easier for businesses to access and utilize IaaS solutions. This has particularly benefited emerging markets where internet infrastructure is rapidly improving. As a result, businesses in these markets are increasingly turning to IaaS to support their growth and digital transformation initiatives. In conclusion, the Infrastructure as a Service market is experiencing significant growth worldwide due to customer preferences for scalable and cost-effective cloud computing solutions. The adoption of multi-cloud strategies, the demand for specialized infrastructure, and the global shift towards remote work and digital transformation are driving the growth of the market. Local special circumstances, such as data protection regulations in Europe, also influence the choice of IaaS providers. The underlying macroeconomic factors of increased digitalization and improved internet connectivity further contribute to the growth of the market.

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.