The global data center colocation market is estimated to be valued at US$ 74.22 Bn in 2024.
Infrastructure as a service (IaaS) provides virtualized computing resources such as storage, hardware platforms, and networking components via the internet. IaaS allows enterprises to set up an operational IT infrastructure on a public cloud without having to build their own infrastructure or procure hardware. Some key advantages of IaaS include flexibility, scalability, high availability, reduced cost of ownership, and pay-as-you-go pricing model. The need for scalable, cost-effective and remotely accessible cloud services is growing rapidly across industries to support digital transformation initiatives.
The Global Infrastructure as-a-Service Market is estimated to be valued at US$ 74.22 Billion in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Infrastructure as a service market are Rubicon Technology Inc., KYOCERA Corporation, Saint-Gobain, SCHOTT AG, Monocrystal, Rayotek Scientific Inc., CRYSTALWISE TECHNOLOGY INC., ILJIN Display CO. Ltd, Namiki Precision Jewel Co., Ltd., Juropol Sp. z o.o. The demand for IaaS is growing rapidly due to the increasing adoption of cloud computing and DevOps among enterprises. Technological advancements such as edge computing, 5G, automation, and artificial intelligence are further enhancing the capabilities of IaaS platforms.
Market Trends
The rising popularity of hybrid cloud models among organizations is a key trend in the Infrastructure As A Service Market Share. Hybrid cloud allows enterprises to utilize both public and private clouds to maximize the advantages of each deployment model. Another trend is the increasing focus on developing sustainable and eco-friendly data center infrastructure to support IaaS. Tech giants are investing in renewable energy sources and efficient cooling solutions to build green data centers.
Market Opportunities
Growing demand for disaster recovery-as-a-service (DRaaS) solutions among enterprises provides lucrative opportunities for IaaS vendors. DRaaS provides automated replication and recovery of critical applications and data to ensure business continuity. Another major opportunity is the increasing initiatives toward digital transformation of government agencies and smart city projects which rely on scalable cloud infrastructure.
Impact of COVID-19 on Infrastructure As-A-Service Market Growth:
The COVID-19 pandemic has significantly impacted the growth of the Infrastructure As-A-Service market globally. The crisis compelled organizations across industries to adopt remote working models and digital technologies at a large scale, driving significant demand for IaaS solutions. Various restrictions imposed during the pandemic such as lockdowns and travel bans disrupted supply chains initially. However, IaaS providers played a crucial role during this period by enabling seamless service continuity and uninterrupted access to critical applications for remote workers. This boosted the reliance of organizations on cloud infrastructures to sustain business operations. The demand for IaaS solutions further increased in the post-COVID period as many companies have continued the work from home policy and are looking to enhance digital capabilities and flexibility through public clouds on a long-term basis. While supply chain issues persisted during the early phase of recovery, IaaS vendors responded proactively with capacity expansions and innovative pricing schemes to support the surge in cloud adoption. Looking ahead, the market is expected to grow exponentially driven by increasing migration of workloads to public clouds and need for scalable, flexible and pay-per-use infrastructure services among organizations across verticals.
Geographical Regions with Highest Concentration in Infrastructure As-A-Service Market:
North America represents the largest and most concentrated region in terms of Infrastructure As-A-Service market value currently. The region accounts for over 40% of the global market revenue led by widespread digital transformation among enterprises and advanced cloud adoption in the US and Canada. Factors such as strong technological advancements, presence of prominent IaaS vendors, and high IT expenditure fuel cloud infrastructure services demand in North America. Asia Pacific is emerging as another major geographical hub for IaaS with around 25% of global market worth. Countries including China, India, Japan and Australia are demonstrating fast pace of cloud migration to achieve operational agility and support expanding digital ecosystems. Rapid economic growth, growing internet penetration, and government initiatives promoting cloud computing are driving substantial growth of IaaS deployments across Asia Pacific.
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