The global infrastructure as a service market size is expected to exceed USD 60 billion in the coming years with an estimated growth rate of over 25% over the forecast period. It is a form of cloud computing system dependent on significant physical resources, such as network connections, bandwidth, load balancers, and servers, which are present as a virtual service offered by the cloud service providers (CSPs). An increasing amount of financial and business information and other critical data in various IT sectors are expected to increase the adoption of infrastructure as a service (IaaS) in many organizations.
The need for reducing cost in IT infrastructure management, and to focus more on their primary operations has been the key objective of various agencies. The technological innovations have led to growing mobility, ease of access, sophisticated working environment, and digitalization development in numerous business verticals. Ease of deployment, flexibility, and scalability of services can also be acknowledged as the key factors steering the market growth.
Surging demand for hybrid cloud platforms is expected to drive the infrastructure as a service market over the forecast period. By employing hybrid cloud services, various organizations are anticipated to avoid assigning all their data to one system one single place. Storing of all the data in one place makes organizations susceptible to unforeseen errors or data theft. Hybrid cloud architecture reduces the risks associated with data theft or loss in case of any unwanted situation as compared to other software such as public cloud.
It, in turn, has led to increased adoption of private platform implementations the safest mode of cloud deployment, despite its high implementation costs. However, the hybrid cloud provides many advantages including confidentiality, security, and retrieval of lost information or any critical data. With growing technological advancements and innovations hybrid cloud is expected to enable organizations in reducing their overhead costs. Additional benefits include the flexibility of storing information either on deployment mode or premise simultaneously. Cloud-based data storage protects operating systems and offers faster application recovery and accessibility.
IT and telecommunication sector are expected to witness significant growth rate owing to increasing adoption of cloud-based services in the industry. This industry is considered to be the primary vertical generating enormous personal, financial, and healthcare information. Customer-based organizations in banking financial services and insurance (BFSI) sector create large volumes of confidential business and financial data which look at security and storage convenience for smooth business continuity.
By implementation, the global IaaS market has been segmented into the hybrid, public, and private cloud. Hybrid sectors expected to have the largest market share owing to its broad applications providing an integrated service by using both public and private cloud to perform various functions in the same organization.
Public cloud is expected to witness significant growth rate over the forecast period owing to the increasing demand for this service from small & medium businesses (SMBs) and startups. These services are cost-efficient and provide high operation efficiency to the end users.
By services, the market has been segmented into disaster recovery as a service (DRaaS), storage as a service (STaaS), compute as a service (CaaS), data center as a service (DCaaS), desktop as a service (DaaS), and application hosting as a service. DRaaS is expected to have the largest market share owing to the increasing catastrophe in data management including man-made errors, and data theft incidents. These services provide the organizations with better functionalities and minimize downtime to enhance their data protection and recovery process.
By end-use, the global infrastructure as a service industry has been segmented into large, medium, and small enterprises. These segments can be further classified into various business verticals including BFSI, IT, and telecom, media & entertainment, healthcare, manufacturing, transportation, and consumer goods & retail. BFSI and IT are expected to have the largest market share owing to increasing demand for data center infrastructure for virtualization and greater efficiency.
North America IaaS market dominated the global demand owing to the presence of large IT infrastructure thereby increasing the demand for IaaS. Innovations in software development and launch of various cloud-based solutions can be attributed to the market dominance in this region.
Asia Pacific is expected to witness significant growth rate over the forecast period and is anticipated to lead the infrastructure as a service market over the forecast period. Increasing internet penetration coupled with developing technology in various economies including China, India, and South Korea can be attributed to high growth in this region.
Increasing number of SMBs in these regions is expected to implement hybrid cloud model owing to its cost efficiency and ease of access. Additional factors include high security and enhanced data storage that is further expected to drive market penetration in this region.
The prominent service providers and vendors include Fujitsu, IBM, VMware, Cisco Systems, Google, Inc., and Microsoft. Other industry participants include AWS, Profitbricks, CSC, and Rackspace. The infrastructure-as-a-service market is highly competitive due to the presence of many players and increasing demand for IaaS software models. Ongoing research and technological advancements are expected to be the key trends in the global market.
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In contrast to its related industries like consumer electronics and semiconductors, the data center and communications infrastructure industry is expected to be more buoyant with continued strategic investments made to support the increased network traffic and data usage for remote working during the lockdown phase. From school closures necessitating students to use virtual offerings (Google Classroom ) to the governments using business analytics services (Power BI) for communicating virus updates, the demand for communication services and related infrastructure has witnessed an unprecedented rise amidst the global pandemic. Digital services including telemedicine are expected to remain popular even after the pandemic is contained, thereby ensuring strong growth in the communication infrastructure industry. The report will account for Covid19 as a key market contributor.