Infrastructure as a service (IaaS) provides virtualized computing resources such as storage, hardware platforms and network capabilities via the internet ("cloud") on a pay-as-you-go basis. IaaS solutions help organizations address specific computing needs and scale up easily without paying for and managing perpetual licenses. Prominent IaaS offerings include virtual servers, messaging, databases, networking, storage and other fundamental computing resources.
The global Infrastructure as a Service market is estimated to be valued at US$ 74.22 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for cloud computing is a key driver augmenting the growth of the infrastructure as a service market over the forecast period. Cloud computing has led to flexibility, scalability and cost savings for businesses resulting in rapid adoption across various industry verticals. According to Synergy Research Group, spending on cloud infrastructure services exceeded $50 billion in 2021, registering 25% year-over-year growth. IaaS specifically offers on-demand provisioning of resources and helps organizations leverage the benefits of the cloud. Moreover, IaaS allows easy access to latest technologies, increased collaboration and centralized data management. The pay-as-you-go billing model of IaaS also helps businesses optimize infrastructure costs and avoid upfront capital expenditure on hardware procurement. These advantages are expected to further propagate the need for IaaS solutions worldwide.
SWOT Analysis
Strength: Infrastructure as a Service provides tremendous flexibility for organizations as this service model allows the customers to scale up and down their IT infrastructure resources rapidly as per business requirement. This pay-as-you-go pricing model reduces upfront capital expenditure for customers. IaaS providers have highly skilled IT experts and engineers who ensure smooth deployment, management and maintenance of IT infrastructure.
Weakness: Infrastructure as a Service is susceptible to internet connectivity issues and outages which can affect the entire IT infrastructure of the customer. There are also risks related to vendor lock-in and higher costs associated with migration to another cloud service provider.
Opportunity: With more businesses adopting cloud-based services, the demand for IaaS is expected to grow substantially. Growing need for disaster recovery and backup services also presents opportunities for IaaS providers. Emerging technologies like Edge computing is opening new opportunities.
Threats: Cyber threats pose a major challenge for IaaS. Data security and privacy concerns can limit the adoption of this service model. Customers may prefer to build their own data centers if IaaS costs become disproportionately high with increased usage. Increased competition from other cloud service providers is also a threat.
Key Takeaways
The Global Infrastructure As A Service Market Size is expected to witness high growth over the forecast period of 2024 to 2031. The market size is projected to reach US$ 74.22 Billion by 2024 registering a CAGR of around 8.0% during the forecast period.
Regional analysis: North America currently dominates the global IaaS market with the largest share due to strong technology adoption across various industry verticals in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period owing to rising digital transformation initiatives and increasing demand from countries like China and India.
Key players: 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., and Juropol Sp. z o.o. These leading players are focusing on new product launches and partnerships to enhance their market share.
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