IaaS Market Size is Projected to Reach USD 201.83 Billion by 2027 - Valuates Reports

BANGALORE, India, June 26, 2020 /PRNewswire/ -- The infrastructure as a service (IaaS) market size was valued at USD 38.94 Billion in 2019 and is projected to reach USD 201.83 Billion by 2027, growing at a CAGR of 23.2% from 2020 to 2027.

Infrastructure as a service (IaaS) is a virtual computing infrastructure, provisioned, and managed over the internet. IaaS lets you allocate your computer, network, storage, and security resources on demand. It enables end-users to scale and shrink resources on an as-needed basis, reducing the need for high, up-front capital expenditure. 

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TRENDS INFLUENCING THE IaaS MARKET SIZE

• The IaaS market size is expected to see a growth in the coming years, due to the fact that IaaS service providers offer a wide range of services with advanced functionalities on existing network components.
• Additionally, IaaS services provide comprehensive monitoring, log access, load balancing and clustering, protection, and storage redundancy features such as replication, backup, and recovery, which further supports the growth of the IaaS market size.
• Government initiatives to encourage internet adoption and other advanced technologies in their economies foster the growth of IaaS market size during the forecast period.
• The increase in demand for hybrid cloud services is projected to drive the growth of the IaaS market size. By utilizing hybrid cloud systems, it is expected that different organizations will avoid assigning all their data to a single location in one network. Hybrid cloud architecture reduces the risks associated with data theft or loss compared to other Software such as the public cloud in case of any unwanted situation.
• It is anticipated that simplifying disaster recovery with cloud adoption would fuel the growth of the IaaS market size.

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IaaS MARKET SHARE ANALYSIS

• Due to the growing adoption of cloud-based services in the industry, the IT and telecommunications sectors are expected to experience significant growth. This industry is seen as the primary vertical that generates huge personal, financial, and health-based information. Customer-based organizations in the banking financial services and insurance sector generate vast amounts of sensitive business and financial data that look to the convenience of security and storage for smooth business continuity.
• Based on the region, the Asia Pacific is expected to register the highest growth rate during the forecast period. Increasing internet penetration coupled with developing technology in various economies, including China, India, and South Korea, can be attributed to high growth in this region.
• Thanks to the existence of massive IT infrastructure, the North America IaaS market held the largest IaaS market share. The market dominance in this region can be attributed to advances in software technology and the introduction of numerous cloud-based solutions.

TOP COMPANIES IN THE IaaS MARKET

• Amazon is projected to dominate the global IaaS market. It accounts for almost half the global IaaS market share. By utilizing innovative technologies and acquisitions, it continues to expand aggressively into innovative new markets. Amazon is closely followed by Microsoft and Alibaba.
• Microsoft is delivering its IaaS capabilities through its innovative and open offering of Microsoft Azure, which continues to strengthen its position as a leading IaaS provider.
• On the other hand, Alibaba has developed an ecosystem that consists of managed service providers (MSPs) and independent vendors of software (ISV). Its success is driven by aggressive investment in R&D.
• Some of the other major companies in the IaaS market include Dell EMC, Google LLC, Interntional Business Machines Corporation, Oracle Corporation, Rackspace Hosting, Inc., Red Hat, Inc., Redcentricplc., and Hewlett Packard Enterprise.

By Component Type

• Storage
• Network
• Compute
• Others

By Deployment Model

• Private
• Public
• Hybrid

By User Type

• Small and Medium Enterprises
• Large Enterprises

By Industry Vertical

• BFSI
• Government & Education
• Healthcare
• Telecom & IT
• Retail
• Manufacturing
• Media & Entertainment
• Others

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA

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Key Market Players

• Amazon Web Services, Inc.
• Dell EMC
• Google LLC
• International Business Machines Corporation
• Microsoft Corporation
• Oracle Corporation
• Rackspace Hosting, Inc.
• Alibaba Group Holding Limited
• Redcentric plc.
• Hewlett Packard Enterprise

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Factors such as growing digital transformation among industries, rising penetration of internet and mobile devices across the world, and an increase in consumption of big data are the primary drivers for the growth of Cloud computing market size.

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