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Report Description

Report Description

Forecast Period

2027-2031

Market Size (2025)

USD 61.91 Billion

CAGR (2026-2031)

23.36%

Fastest Growing Segment

Hybrid

Largest Market

North America

Market Size (2031)

USD 218.18 Billion

Market Overview

The Global Infrastructure as a Service (IaaS) Market will grow from USD 61.91 Billion in 2025 to USD 218.18 Billion by 2031 at a 23.36% CAGR. Infrastructure as a Service is a cloud computing model delivering virtualized computing resources such as storage, networking, and servers over the internet. The market is primarily driven by the financial transition from capital expenditure to operational expenditure, which enables organizations to reduce upfront hardware costs. Additionally, the necessity for scalable resources to manage variable workloads and the demand for enhanced business continuity support the fundamental growth of this sector distinct from passing technological trends.

Regulatory compliance regarding data sovereignty remains a significant challenge that could impede market expansion for enterprises operating across borders. According to the Cloud Industry Forum, in 2024, 37% of businesses reported that between 40% and 60% of their IT infrastructure was hosted in the cloud. This figure highlights that while adoption is substantial, a considerable portion of critical infrastructure remains on premises due to complexities in migrating sensitive data.

Key Market Drivers

The proliferation of big data analytics and artificial intelligence workloads is fundamentally reshaping the IaaS landscape, as enterprises require immense computational power to train and deploy generative AI models. This demand has shifted focus toward high-performance computing instances and GPU-accelerated infrastructure, which are often too capital-intensive for companies to maintain on-premises. Consequently, cloud providers are witnessing a revenue surge directly tied to these AI-optimized capabilities, validating the shift toward specialized computing resources. For instance, according to Google, October 2024, in the 'Third Quarter 2024 Results', Google Cloud revenue increased by 35% year-over-year to $11.4 billion, a growth trajectory primarily attributed to the accelerated demand for its AI infrastructure and generative AI solutions.

Simultaneously, the rising adoption of hybrid and multi-cloud architectures drives market momentum as organizations seek to avoid vendor lock-in and optimize performance across different environments. This strategic approach allows businesses to distribute workloads based on specific regulatory requirements, cost efficiencies, or regional availability, thereby enhancing operational resilience. According to Flexera, March 2024, in the '2024 State of the Cloud Report', 89% of surveyed organizations reported embracing a multi-cloud strategy, indicating this has become a standard operational model for modern enterprises. Despite the complexities inherent in managing these distributed environments, overall investment in cloud resources continues to climb globally. According to HashiCorp, June 2024, in the '2024 State of Cloud Strategy Survey', 66% of respondents indicated that they had increased their cloud spending over the previous year, reflecting a sustained commitment to expanding virtualized infrastructure.

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Key Market Challenges

Regulatory compliance regarding data sovereignty constitutes a significant impediment to the growth of the Global Infrastructure as a Service (IaaS) market. As nations implement stringent data localization laws, multinational enterprises struggle with the requirement to store and process sensitive information within specific physical borders. This legal fragmentation forces organizations to abandon the cost-efficiency of a centralized global cloud model in favor of complex, region-specific infrastructure strategies. The necessity to segregate workloads to satisfy diverse local mandates increases operational costs and negates the scalability that IaaS fundamentally offers. Consequently, many enterprises hesitate to migrate critical functions to the cloud, fearing legal repercussions or the inability to meet strict residency obligations.

According to ISC2, in 2024, 40% of organizations cited data privacy concerns as a key obstacle to cloud security adoption. This statistic underscores the tangible impact of regulatory pressures on market behavior. When businesses cannot easily navigate the web of international sovereignty laws, they restrict their use of public cloud resources, opting instead for hybrid or on-premise alternatives. This compliance-driven reluctance directly reduces the addressable market for IaaS providers and slows the overall momentum of digital transformation initiatives globally.

Key Market Trends

The Proliferation of Containerization and Microservices Management is fundamentally altering IaaS resource consumption, shifting the focus from static virtual machines to dynamic, ephemeral infrastructure. As enterprises modernize legacy applications and deploy scalable AI workloads, the demand for managed Kubernetes services and container-optimized operating systems has intensified, compelling cloud providers to re-architect their compute offerings for high-density orchestration. This transition facilitates greater workload portability across hybrid environments, reducing dependency on specific hardware configurations while maximizing resource utilization. According to Nutanix, February 2025, in the '2025 Enterprise Cloud Index', nearly 90% of organizations reported that at least some of their applications are now containerized, a shift driven by the need to support generative AI workloads and ensure deployment flexibility.

The Implementation of Green Cloud and Sustainable Data Center Practices has become a critical operational priority as the energy density of high-performance computing clusters escalates. Infrastructure providers are aggressively integrating renewable energy sources and advanced thermal management technologies, such as direct-to-chip liquid cooling, to mitigate the environmental impact of power-intensive data processing. This trend is no longer merely about corporate social responsibility but is a requisite for operational continuity and regulatory adherence in energy-constrained regions. According to Google, June 2025, in the '2025 Environmental Report', the company reduced its data center energy emissions by 12% in 2024, achieved through clean energy procurement and efficiency improvements despite a 27% rise in electricity consumption.

Segmental Insights

Based on data from authoritative market research, the Hybrid segment is currently the fastest-growing deployment category within the Global Infrastructure as a Service (IaaS) market. This accelerated expansion is primarily driven by the imperative for enterprises to balance strict data sovereignty with operational scalability. Organizations increasingly adopt hybrid architectures to retain sensitive information on private servers, ensuring compliance with rigorous regulatory standards such as the General Data Protection Regulation (GDPR), while simultaneously leveraging public cloud capabilities to manage fluctuating workloads. This strategic approach allows businesses to optimize infrastructure costs and enhance processing agility without compromising security protocols.

Regional Insights

North America maintains a dominant position in the Global Infrastructure as a Service market, primarily due to the concentration of key industry providers like Amazon Web Services and Microsoft in the United States. This leadership is reinforced by widespread early adoption of cloud technologies across enterprises seeking scalable IT solutions. Furthermore, established frameworks from the National Institute of Standards and Technology support secure implementation, encouraging consistent commercial trust. The combination of a mature technological infrastructure and distinct regulatory clarity ensures the region continues to lead global market development.

Recent Developments

  • In April 2025, Microsoft launched new Azure Availability Zones in the Japan West region to strengthen its cloud infrastructure resilience within the Asian market. This expansion enabled the company to offer independent power, cooling, and networking solutions across multiple physical locations in the region, thereby increasing fault tolerance for customer applications. The launch was part of a larger multi-year investment strategy aimed at upgrading the country's digital capabilities and supporting the rapid adoption of artificial intelligence. This development ensured that local enterprises could meet strict data residency and high-availability requirements for their critical workloads.
  • In December 2024, Amazon Web Services introduced the new Amazon EC2 I8g instances during its annual re:Invent conference. These storage-optimized instances were powered by the company's custom-designed Graviton4 processors and featured the latest generation of Nitro Solid State Drives (SSDs). The new offering was developed to provide superior performance for data-intensive workloads, such as real-time analytics, transactional databases, and NoSQL databases. By combining advanced proprietary chips with high-speed storage technology, the company aimed to deliver the highest real-time storage performance available within its extensive portfolio of cloud compute instances.
  • In September 2024, Oracle and Amazon Web Services announced a strategic partnership to launch a new offering called Oracle Database@AWS. This collaboration allowed customers to access the Oracle Autonomous Database and Exadata Database Service on dedicated infrastructure deployed directly inside Amazon Web Services data centers. The initiative was designed to provide a low-latency connection between enterprise applications running on the AWS platform and Oracle’s database services. This development addressed the growing market demand for multi-cloud interoperability, enabling businesses to simplify their architecture by utilizing the strengths of both infrastructure providers seamlessly.
  • In April 2024, Google Cloud launched its first custom Arm-based central processing unit, named Axion, designed specifically for data center operations. This new processor was built using the Arm Neoverse V2 design and was reported to deliver 30 percent better performance than the fastest general-purpose Arm-based instances available in the cloud at the time. The company aimed to deploy these chips to support its internal services, such as video advertising platforms and data analytics tools, while also making them available to business customers. The introduction of this proprietary silicon marked a strategic move to optimize the hardware underlying the firm's infrastructure services.

Key Market Players

  • International business machines corporation
  • Dell EMC
  • Rackspace hosting Inc.
  • Google
  • Microsoft corporation
  • Alibaba group holding Limited
  • Oracle corporation
  • Hewlett Packard Enterprise Development LP
  • Redcentric PLC
  • Amazon web services, Inc.

By Component Type

By Deployment Model

By Enterprise Size

By Industry Vertical

By Region

  • Storage
  • Network
  • Compute
  • Others
  • Private
  • Public
  • Hybrid
  • Large Enterprises
  • SMEs
  • BFSI
  • Government and Education
  • Healthcare
  • Telecom and IT
  • Retail
  • Manufacturing
  • Media and Entertainment
  • Others
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa

Report Scope:

In this report, the Global Infrastructure as a Service (IaaS) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Infrastructure as a Service (IaaS) Market, By Component Type:
  • Storage
  • Network
  • Compute
  • Others
  • Infrastructure as a Service (IaaS) Market, By Deployment Model:
  • Private
  • Public
  • Hybrid
  • Infrastructure as a Service (IaaS) Market, By Enterprise Size:
  • Large Enterprises
  • SMEs
  • Infrastructure as a Service (IaaS) Market, By Industry Vertical:
  • BFSI
  • Government and Education
  • Healthcare
  • Telecom and IT
  • Retail
  • Manufacturing
  • Media and Entertainment
  • Others
  • Infrastructure as a Service (IaaS) Market, By Region:
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • France
    • United Kingdom
    • Italy
    • Germany
    • Spain
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
  • South America
    • Brazil
    • Argentina
    • Colombia
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Infrastructure as a Service (IaaS) Market.

Available Customizations:

Global Infrastructure as a Service (IaaS) Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Global Infrastructure as a Service (IaaS) Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.  Markets Covered

1.2.2.  Years Considered for Study

1.2.3.  Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    Voice of Customer

5.    Global Infrastructure as a Service (IaaS) Market Outlook

5.1.  Market Size & Forecast

5.1.1.  By Value

5.2.  Market Share & Forecast

5.2.1.  By Component Type (Storage, Network, Compute, Others)

5.2.2.  By Deployment Model (Private, Public, Hybrid)

5.2.3.  By Enterprise Size (Large Enterprises, SMEs)

5.2.4.  By Industry Vertical (BFSI, Government and Education, Healthcare, Telecom and IT, Retail, Manufacturing, Media and Entertainment, Others)

5.2.5.  By Region

5.2.6.  By Company (2025)

5.3.  Market Map

6.    North America Infrastructure as a Service (IaaS) Market Outlook

6.1.  Market Size & Forecast

6.1.1.  By Value

6.2.  Market Share & Forecast

6.2.1.  By Component Type

6.2.2.  By Deployment Model

6.2.3.  By Enterprise Size

6.2.4.  By Industry Vertical

6.2.5.  By Country

6.3.    North America: Country Analysis

6.3.1.    United States Infrastructure as a Service (IaaS) Market Outlook

6.3.1.1.  Market Size & Forecast

6.3.1.1.1.  By Value

6.3.1.2.  Market Share & Forecast

6.3.1.2.1.  By Component Type

6.3.1.2.2.  By Deployment Model

6.3.1.2.3.  By Enterprise Size

6.3.1.2.4.  By Industry Vertical

6.3.2.    Canada Infrastructure as a Service (IaaS) Market Outlook

6.3.2.1.  Market Size & Forecast

6.3.2.1.1.  By Value

6.3.2.2.  Market Share & Forecast

6.3.2.2.1.  By Component Type

6.3.2.2.2.  By Deployment Model

6.3.2.2.3.  By Enterprise Size

6.3.2.2.4.  By Industry Vertical

6.3.3.    Mexico Infrastructure as a Service (IaaS) Market Outlook

6.3.3.1.  Market Size & Forecast

6.3.3.1.1.  By Value

6.3.3.2.  Market Share & Forecast

6.3.3.2.1.  By Component Type

6.3.3.2.2.  By Deployment Model

6.3.3.2.3.  By Enterprise Size

6.3.3.2.4.  By Industry Vertical

7.    Europe Infrastructure as a Service (IaaS) Market Outlook

7.1.  Market Size & Forecast

7.1.1.  By Value

7.2.  Market Share & Forecast

7.2.1.  By Component Type

7.2.2.  By Deployment Model

7.2.3.  By Enterprise Size

7.2.4.  By Industry Vertical

7.2.5.  By Country

7.3.    Europe: Country Analysis

7.3.1.    Germany Infrastructure as a Service (IaaS) Market Outlook

7.3.1.1.  Market Size & Forecast

7.3.1.1.1.  By Value

7.3.1.2.  Market Share & Forecast

7.3.1.2.1.  By Component Type

7.3.1.2.2.  By Deployment Model

7.3.1.2.3.  By Enterprise Size

7.3.1.2.4.  By Industry Vertical

7.3.2.    France Infrastructure as a Service (IaaS) Market Outlook

7.3.2.1.  Market Size & Forecast

7.3.2.1.1.  By Value

7.3.2.2.  Market Share & Forecast

7.3.2.2.1.  By Component Type

7.3.2.2.2.  By Deployment Model

7.3.2.2.3.  By Enterprise Size

7.3.2.2.4.  By Industry Vertical

7.3.3.    United Kingdom Infrastructure as a Service (IaaS) Market Outlook

7.3.3.1.  Market Size & Forecast

7.3.3.1.1.  By Value

7.3.3.2.  Market Share & Forecast

7.3.3.2.1.  By Component Type

7.3.3.2.2.  By Deployment Model

7.3.3.2.3.  By Enterprise Size

7.3.3.2.4.  By Industry Vertical

7.3.4.    Italy Infrastructure as a Service (IaaS) Market Outlook

7.3.4.1.  Market Size & Forecast

7.3.4.1.1.  By Value

7.3.4.2.  Market Share & Forecast

7.3.4.2.1.  By Component Type

7.3.4.2.2.  By Deployment Model

7.3.4.2.3.  By Enterprise Size

7.3.4.2.4.  By Industry Vertical

7.3.5.    Spain Infrastructure as a Service (IaaS) Market Outlook

7.3.5.1.  Market Size & Forecast

7.3.5.1.1.  By Value

7.3.5.2.  Market Share & Forecast

7.3.5.2.1.  By Component Type

7.3.5.2.2.  By Deployment Model

7.3.5.2.3.  By Enterprise Size

7.3.5.2.4.  By Industry Vertical

8.    Asia Pacific Infrastructure as a Service (IaaS) Market Outlook

8.1.  Market Size & Forecast

8.1.1.  By Value

8.2.  Market Share & Forecast

8.2.1.  By Component Type

8.2.2.  By Deployment Model

8.2.3.  By Enterprise Size

8.2.4.  By Industry Vertical

8.2.5.  By Country

8.3.    Asia Pacific: Country Analysis

8.3.1.    China Infrastructure as a Service (IaaS) Market Outlook

8.3.1.1.  Market Size & Forecast

8.3.1.1.1.  By Value

8.3.1.2.  Market Share & Forecast

8.3.1.2.1.  By Component Type

8.3.1.2.2.  By Deployment Model

8.3.1.2.3.  By Enterprise Size

8.3.1.2.4.  By Industry Vertical

8.3.2.    India Infrastructure as a Service (IaaS) Market Outlook

8.3.2.1.  Market Size & Forecast

8.3.2.1.1.  By Value

8.3.2.2.  Market Share & Forecast

8.3.2.2.1.  By Component Type

8.3.2.2.2.  By Deployment Model

8.3.2.2.3.  By Enterprise Size

8.3.2.2.4.  By Industry Vertical

8.3.3.    Japan Infrastructure as a Service (IaaS) Market Outlook

8.3.3.1.  Market Size & Forecast

8.3.3.1.1.  By Value

8.3.3.2.  Market Share & Forecast

8.3.3.2.1.  By Component Type

8.3.3.2.2.  By Deployment Model

8.3.3.2.3.  By Enterprise Size

8.3.3.2.4.  By Industry Vertical

8.3.4.    South Korea Infrastructure as a Service (IaaS) Market Outlook

8.3.4.1.  Market Size & Forecast

8.3.4.1.1.  By Value

8.3.4.2.  Market Share & Forecast

8.3.4.2.1.  By Component Type

8.3.4.2.2.  By Deployment Model

8.3.4.2.3.  By Enterprise Size

8.3.4.2.4.  By Industry Vertical

8.3.5.    Australia Infrastructure as a Service (IaaS) Market Outlook

8.3.5.1.  Market Size & Forecast

8.3.5.1.1.  By Value

8.3.5.2.  Market Share & Forecast

8.3.5.2.1.  By Component Type

8.3.5.2.2.  By Deployment Model

8.3.5.2.3.  By Enterprise Size

8.3.5.2.4.  By Industry Vertical

9.    Middle East & Africa Infrastructure as a Service (IaaS) Market Outlook

9.1.  Market Size & Forecast

9.1.1.  By Value

9.2.  Market Share & Forecast

9.2.1.  By Component Type

9.2.2.  By Deployment Model

9.2.3.  By Enterprise Size

9.2.4.  By Industry Vertical

9.2.5.  By Country

9.3.    Middle East & Africa: Country Analysis

9.3.1.    Saudi Arabia Infrastructure as a Service (IaaS) Market Outlook

9.3.1.1.  Market Size & Forecast

9.3.1.1.1.  By Value

9.3.1.2.  Market Share & Forecast

9.3.1.2.1.  By Component Type

9.3.1.2.2.  By Deployment Model

9.3.1.2.3.  By Enterprise Size

9.3.1.2.4.  By Industry Vertical

9.3.2.    UAE Infrastructure as a Service (IaaS) Market Outlook

9.3.2.1.  Market Size & Forecast

9.3.2.1.1.  By Value

9.3.2.2.  Market Share & Forecast

9.3.2.2.1.  By Component Type

9.3.2.2.2.  By Deployment Model

9.3.2.2.3.  By Enterprise Size

9.3.2.2.4.  By Industry Vertical

9.3.3.    South Africa Infrastructure as a Service (IaaS) Market Outlook

9.3.3.1.  Market Size & Forecast

9.3.3.1.1.  By Value

9.3.3.2.  Market Share & Forecast

9.3.3.2.1.  By Component Type

9.3.3.2.2.  By Deployment Model

9.3.3.2.3.  By Enterprise Size

9.3.3.2.4.  By Industry Vertical

10.    South America Infrastructure as a Service (IaaS) Market Outlook

10.1.  Market Size & Forecast

10.1.1.  By Value

10.2.  Market Share & Forecast

10.2.1.  By Component Type

10.2.2.  By Deployment Model

10.2.3.  By Enterprise Size

10.2.4.  By Industry Vertical

10.2.5.  By Country

10.3.    South America: Country Analysis

10.3.1.    Brazil Infrastructure as a Service (IaaS) Market Outlook

10.3.1.1.  Market Size & Forecast

10.3.1.1.1.  By Value

10.3.1.2.  Market Share & Forecast

10.3.1.2.1.  By Component Type

10.3.1.2.2.  By Deployment Model

10.3.1.2.3.  By Enterprise Size

10.3.1.2.4.  By Industry Vertical

10.3.2.    Colombia Infrastructure as a Service (IaaS) Market Outlook

10.3.2.1.  Market Size & Forecast

10.3.2.1.1.  By Value

10.3.2.2.  Market Share & Forecast

10.3.2.2.1.  By Component Type

10.3.2.2.2.  By Deployment Model

10.3.2.2.3.  By Enterprise Size

10.3.2.2.4.  By Industry Vertical

10.3.3.    Argentina Infrastructure as a Service (IaaS) Market Outlook

10.3.3.1.  Market Size & Forecast

10.3.3.1.1.  By Value

10.3.3.2.  Market Share & Forecast

10.3.3.2.1.  By Component Type

10.3.3.2.2.  By Deployment Model

10.3.3.2.3.  By Enterprise Size

10.3.3.2.4.  By Industry Vertical

11.    Market Dynamics

11.1.  Drivers

11.2.  Challenges

12.    Market Trends & Developments

12.1.  Merger & Acquisition (If Any)

12.2.  Product Launches (If Any)

12.3.  Recent Developments

13.    Global Infrastructure as a Service (IaaS) Market: SWOT Analysis

14.    Porter's Five Forces Analysis

14.1.  Competition in the Industry

14.2.  Potential of New Entrants

14.3.  Power of Suppliers

14.4.  Power of Customers

14.5.  Threat of Substitute Products

15.    Competitive Landscape

15.1.  International business machines corporation

15.1.1.  Business Overview

15.1.2.  Products & Services

15.1.3.  Recent Developments

15.1.4.  Key Personnel

15.1.5.  SWOT Analysis

15.2.  Dell EMC

15.3.  Rackspace hosting Inc.

15.4.  Google

15.5.  Microsoft corporation

15.6.  Alibaba group holding Limited

15.7.  Oracle corporation

15.8.  Hewlett Packard Enterprise Development LP

15.9.  Redcentric PLC

15.10.  Amazon web services, Inc.

16.    Strategic Recommendations

17.    About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

The market size of the Global Infrastructure as a Service (IaaS) Market was estimated to be USD 61.91 Billion in 2025.

North America is the dominating region in the Global Infrastructure as a Service (IaaS) Market.

Hybrid segment is the fastest growing segment in the Global Infrastructure as a Service (IaaS) Market.

The Global Infrastructure as a Service (IaaS) Market is expected to grow at 23.36% between 2026 to 2031.

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