The global infrastructure as a service (IaaS) market attained a value of USD 118.43 billion in 2022. Aided by the increasing adoption of cloud computing and the growing demand for cost-effective IT solutions, the market is projected to further grow at a CAGR of 24.3% between 2023 and 2028 to reach a value of USD 450.52 billion by 2028.
Infrastructure as a Service (IaaS) refers to a cloud computing service model that provides virtualised computing resources over the internet. IaaS allows organisations to outsource their IT infrastructure, such as servers, storage, and networking, to a cloud service provider, eliminating the need to purchase, manage, and maintain physical hardware. This service model offers several benefits, including flexibility, scalability, cost-efficiency, and increased security.
The global infrastructure as a service (IaaS) market growth is primarily driven by the increasing adoption of cloud computing across various industries, such as IT and telecommunications, healthcare, retail, and finance. Moreover, the rising need for remote access to IT infrastructure due to the growing trend of remote work and the global digitalisation drive is further fuelling the growth of the IaaS market.
Another significant factor propelling the infrastructure as a service (IaaS) market expansion is the increasing demand for cost-effective IT solutions. By outsourcing their IT infrastructure to IaaS providers, organisations can reduce their capital expenditures and operational costs, as they only pay for the resources they use. This pay-as-you-go pricing model allows businesses to optimise their IT spending and allocate resources more efficiently.
Furthermore, the infrastructure as a service (IaaS) market is witnessing a surge in demand due to the growing need for data storage and processing solutions.
The increasing volume of data generated by businesses, governments, and individuals has led to a heightened demand for efficient and reliable data storage and management services. IaaS providers offer scalable and secure storage solutions that can be easily integrated with other cloud services, enabling organisations to store, manage, and analyse large amounts of data more effectively. This, in turn, is increasing the infrastructure as a service (IaaS) market demand.