2025-2034 Infrastructure as a service (IaaS) Market Evolution: Disruptions, Innovations, and Untapped Opportunities

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What Is the Expected CAGR for the Infrastructure as a service (IaaS) Market Through 2025?
The size of the Infrastructure as a Service (IaaS) market has seen a fast-paced expansion in the past few years. Predictions show a growth from a market size of $155.03 billion in 2024 to $175 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 12.9%. The historical growth of this market can be linked to changes in workforce dynamics, the rise of DevOps and agile practices, the strategic shift towards outsourcing IT infrastructure, the process of globalization, market expansion, and the emphasis on disaster recovery and business continuity.

What's the Projected Size of the Global Infrastructure as a service (IaaS) Market by 2029?
It is anticipated that the Infrastructure as a Service (IaaS) market will witness a noteworthy increase over the upcoming years, with an estimated value of $288.21 billion by 2029 and a Compound Annual Growth Rate (CAGR) of 13.3%. The surge during the projected period is due to factors such as digital transformation initiatives, improved security protocols, emphasis on eco-friendly infrastructure, acceptance of hybrid and multi-cloud platforms, and incorporation of AI and machine learning. The dominant trends expected during this period encompass the acceptance of serverless computing, containerization and kubernetes, edge computing infrastructure, the integration of artificial intelligence (AI), and software-defined infrastructure (SDI).

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Top Growth Drivers in the Infrastructure as a service (IaaS) Industry: What's Accelerating the Market?
The anticipated growth of the Infrastructure as a Service (IAAS) market can be attributed to an increase in the number of small and medium-sized businesses (SMBs). These are businesses operating below a specific threshold in terms of revenue and staff numbers. Saving on maintenance and upgrade costs is made possible because IAAS providers manage all the elements of the infrastructure. As an example, in November 2023, data from the U.S. Small Business Administration (SBA) has shown that small businesses account for 99.9% of all U.S businesses. 33.3 million small businesses were recorded in 2023, which resulted in an addition of 4.9 million jobs. Consequently, the rising number of small and medium-sized businesses is fuelling the expansion of the Infrastructure as a Service (IAAS) market.

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What Trends Will Shape the Infrastructure as a service (IaaS) Market Through 2029 and Beyond?
Leading organizations in the infrastructure as a service market are focusing on innovation, creating products like Watson AIOps which allows for the automatic detection, diagnosis, and rectification of IT irregularities. Watson AIOps, an AI-based IT operations management platform, empowers IT operators to utilize AI at the heart of their ITOps toolchain. In September 2022, IBM, a technology firm based in the US, introduced Watson AIOps. The platform leverages transparent AI to foster trust among teams and stakeholders in the AI-driven suggestions and insights for their vital workloads. Watson AIOps delivers concise, straightforward advice and strategies, facilitating swift solution finding for teams.

What Are the Main Segments in the Infrastructure as a service (IaaS) Market?
The infrastructure as a service (iaas)market covered in this report is segmented -

1) By Deployment Type: Public Cloud, Private Cloud, Hybrid Cloud
2) By Application: Managed Hosting, Storage As A Service, Disaster Recovery As A Service And Backup, Compute As A Service (CaaS), Network As A Service (NaaS), Content Delivery Services, High-Performance Computing As A Service (HPcaaS)
3) By End User: Small And Medium Enterprises (SMEs), Large Enterprises
4) By Industry Vertical: Banking, Financial Services, And Insurance (BFSI), Government And Education, Healthcare, IT And Telecom, Retail, Manufacturing, Media And Entertainment, Other Industry Verticals

Subsegments:
1) By Public Cloud: Multi-Tenant Infrastructure, Pay-As-You-Go Pricing Models, Shared Resources
2) By Private Cloud: Single-Tenant Infrastructure, Enhanced Security And Compliance Features, Dedicated Resources
3) By Hybrid Cloud: Combination Of Public And Private Cloud Resources, Integration Services For Seamless Operation, Flexible Resource Allocation Based On Demand

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Which Top Companies are Driving Growth in the Infrastructure as a service (IaaS) Market?
Major companies operating in the infrastructure as a service (IaaS) market include Alphabet Inc., Google Inc., Microsoft Corporation, Alibaba Group Holding Limited, Dell Technologies Inc., Tencent Holdings Limited, Amazon Web Services Inc., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, Fujitsu Limited, Hewlett Packard Enterprise Company, Savvisa Century Link Company, DXC Technology Company, Vmware Inc., Alibaba Cloud Inc., RedHat Inc., Rackspace Technology Inc., Nutanix Inc., IONOS Cloud Inc., Joyent Inc., Redcentric plc, Linode LLC, MapR Technologies Inc., Mesosphere Inc., ProfitBricks Inc., Mirantis Inc., EMC Corporation, Micronaut Foundation, OpenStack Foundation

Which Regions Will Dominate the Infrastructure as a service (IaaS) Market Through 2029?
North America was the largest region in the infrastructure as a service (IAAS) market in 2024. Western Europe was the second largest region in the global infrastructure as a service (IAAS) market share. The regions covered in the infrastructure as a service (IAAS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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