The cloud Infrastructure as a Service (IaaS) market is expected to grow at a compound annual growth rate of 25.72% over the forecast period to reach a market size of US$319.075 billion in 2026 from US$64.278 billion in 2019.
Infrastructure as a service (IaaS) is a standardised, highly automated cloud computing service in which a service provider's computer resources, supported by storage and networking capabilities, are made available to clients on demand. Under an IaaS service model, a cloud provider hosts the infrastructure components that would typically be found in an on-premises data centre. This includes the virtualization or hypervisor layer, as well as servers, storage, and networking equipment.
Low costs, scalability, flexibility, and security are the key growth drivers for the market. Cloud infrastructure service offerings provide faster Time-to-Market (TTM) and application development and deployment procedures. Furthermore, the growing demand for companies to reduce operating expenses and IT infrastructure maintenance is driving the use of cloud infrastructure services.
Several industries, including banking, financial services and insurance (BFSI), government and education, healthcare, information technology and telecommunications (IT&T), retail, manufacturing, media and entertainment, and others, are embracing IaaS due to benefits such as lower costs and increased reliability and scalability. Due to the huge benefits of cloud computing, such as data analytics, AI-driven analytics using machine and deep learning algorithms, agility, and scale, the banking sector, in particular, has seen a significantly higher rate of IaaS adoption. Banking companies can swiftly make adjustments and add new features owing to cloud computing.
Concerns regarding privacy and data protection are expected to hinder the expansion of the cloud IaaS market. Data leaks, compromised accounts, and authentication bypass, interface and API hacking, cyber-attacks, permanent data loss, lack of understanding of cloud capabilities, application vulnerability, and exploitation of cloud services are all common IaaS security risks. On June 20, 2021, A CVS Health cloud database misconfiguration left over a billion records exposed. A total of 1,148,327,940 records belonging to CVS Pharmacy and Aetna were identified which contained information like Visitor ID, Session ID, and device information.
Impact of Covid-19:
Due to the shift of business operations online, the COVID-19 pandemic has accelerated market growth for cloud IaaS. Businesses continued to invest in cloud infrastructure, platforms, and software in order to increase the stability of their business operations and prepare for future pandemic outbreaks. Work from home became the only efficient and safe method of conducting business due to the mandated lockdowns, thus necessitating cloud services for effective collaboration, communication, and processing of massive quantities of data between different enterprises and teams.
|Market size value in 2019||US$64.278 billion|
|Market size value in 2026||US$319.075 billion|
|Growth Rate||CAGR of 25.72% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Deployment Model, Application, End-Use Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Amazon Web Services, Microsoft Azure, IBM, Google, Salesforce.com, Adobe, SAP, Rackspace, Alibaba, Huawei|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global cloud infrastructure as a service (IaaS) market?
A1. Cloud Infrastructure As A Service (IaaS) Market was valued at US$64.278 billion in 2019.
Q2. What will be the cloud infrastructure as a service market size by 2026?
A2. The cloud infrastructure as a service (IaaS) market is expected to reach a total market size of US$319.075 billion by 2026.
Q3. What are the growth prospects for the cloud infrastructure as a service (IaaS) market?
A3. The global cloud infrastructure as a service market is expected to grow at a CAGR of 25.72% during the forecast period.
Q4. What factors are anticipated to drive the cloud infrastructure as a service market growth?
A4. The emerging trend of digitization, along with the rising adoption of cloud-computing services, is one of the key factors driving the growth of the cloud infrastructure as a service market.
Q5. How is the global cloud infrastructure as a service (IaaS) market segmented?
A5. The cloud infrastructure as a service (IaaS) market has been segmented by deployment model, application, end-use industry, and geography.