by The infrastructure as-a-service (IaaS) market offers on-demand infrastructure resources over the internet. IaaS offers computation, storage, networking, and other fundamental computing resources where users are able to deploy and run software which can include operating systems and applications. The on-demand delivery model of IaaS enables enterprises to quickly scale up or down their infrastructure as needs change, without upfront investment in servers or data centers.
The global Infrastructure As-A-Service Market is estimated to be valued at US$ 74.22 Bn in 2024 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 key trends:
Growing demand for scalability and flexibility is a major trend contributing to the growth of the infrastructure as-a-service market. IaaS allows users to add or remove computing resources such as CPU, storage, bandwidth, and virtual machines according to demand without any upfront investment or having to own the physical infrastructure. This pay-as-you-go pricing model of IaaS provides organizations the flexibility to dynamically scale their infrastructure capacity up or down based on their application workload and usage requirements. The on-demand, elastic nature of IaaS addresses the needs of enterprises with fluctuating or unpredictable workloads and enables quick response to changes in demand.
SWOT Analysis
Strength: Infrastructure as a Service enables businesses to optimize their infrastructure costs and focus more on their core competencies. IaaS provides on-demand, scalable and metered infrastructure resources to businesses.
Weakness: IaaS comes with security risks as sensitive data is stored on shared servers managed by third-party service providers. Businesses have limited control over the infrastructure deployed in the cloud. There are transition costs involved in migrating legacy systems and applications to cloud-based models.
Opportunity: Growing adoption of cloud computing and digital transformation initiatives across industries is creating strong demand for IaaS solutions. Expanding internet penetration in developing markets offers new growth avenues. Integration of emerging technologies like AI, IoT, blockchain can enhance the scope of IaaS.
Threats: Stiff competition among major cloud players like Amazon Web Services, Microsoft Azure and Google Cloud Platform increases pricing pressures. Dependency on telecom connectivity and server uptime poses reliability challenges. Stringent data privacy regulations pose compliance issues for cross-border data transfers.
Key Takeaways
The Global Infrastructure As A Service Market Size is expected to reach US$ 374.82 Billion by 2031 from US$ 74.22 Billion in 2024, growing at a compound annual growth rate (CAGR) of 8.0% during the forecast period.
North America currently dominates the market and is expected to continue its dominance owing to early adoption of cloud computing across industries in the region. Asia Pacific is expected to witness the fastest growth during the forecast period supported by expanding digitalization, favorable government policies promoting cloud adoption among SMEs, increasing investments in digital infrastructure by 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., Juropol Sp. z o.o. They are focusing on expanding their service portfolios, partnerships, geographic footprint to consolidate their market positions. For instance, in December 2021, KYOCERA acquired Anthropic, an AI safety startup to enhance its AI capabilities for manufacturing applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
