June 13, 2024
Infrastructure As-A-Service Market
Ict

Infrastructure as a Service Market is Estimated to Witness High Growth Owing to Adoption of Cloud Services

The infrastructure as a service (IaaS) market enables organizations to outsource their complete IT infrastructures to a third-party service provider. IaaS provides virtual server, storage, networking components, bandwidth, and other fundamental computing resources that can be easily provisioned and released with minimal management efforts. IaaS allows organizations to avoid upfront infrastructure costs and focus on projects that are crucial to their core business. Some key benefits of adopting IaaS include scalability, flexibility, lower upfront costs, remote management and monitoring of infrastructure, disaster recovery, and on-demand access to advanced tools.

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.

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 increasing adoption of cloud computing and growing need to optimize infrastructure costs are driving organizations to adopt IaaS solutions. Some key opportunities in the IaaS market include increased demand from SMBs due to flexibility and affordability of IaaS. Technological advancements such as serverless computing, containers, and bare-metal services are further fueling the adoption of IaaS.

Market Drivers

The main drivers accelerating the growth of the Global IaaS Market Share include reduction in IT infrastructure costs, scalability and agility, flexibility to scale up or down resources on demand, pay-per-use pricing models, and focus on core business competencies rather than infrastructure management. IaaS helps businesses of all sizes avoid upfront infrastructure costs, gain access to advanced tools, and ensure business continuity through disaster recovery. This has propelled the popularity of IaaS models among organizations.

Current challenges in the Infrastructure as a Service (IaaS) market:

The key challenge for IaaS providers is around security and privacy concerns of client data and infrastructure. As services are hosted remotely on cloud servers, there are inherent risks of data breaches and privacy issues. Provider need to ensure robust security measures and protocols to address these challenges. Another challenge is around managing costs optimization at scale. With growing volume and complexity of infrastructure needs, keeping costs low while maintaining quality of service is a balancing act. Ensuring seamless integration with existing legacy IT systems of clients is another area that requires focused efforts. Provider need to offer solutions that can integrate well without disrupting current environments. Finally, achieving performance benchmark targets set in highly competitive landscape has become crucial for business and market growth.

SWOT Analysis

Strength: Scalable infrastructure allows expanding quickly to meet spikes in demand. Operational efficiency is higher due to centralized management and automation.
Weakness: Vendor lock-in is a risk as clients are dependent on the provider. Single point of failure remains a concern for services hosted remotely.
Opportunity: Growing adoption of cloud models presents significant market opportunity. Demand from SMBs is rising for affordable scalable cloud based infrastructure.
Threats: Security threats from data breaches and cyber-attacks are a constant challenge. Price wars among competitors impacts profitability.

In terms of value, North America accounts for the largest share of the IaaS market currently. This is attributed to heavy investments in cloud computing by leading technology companies in the U.S. and early adoption of cloud services by enterprises across sectors. The Asia Pacific region is projected to be the fastest growing regional market during the forecast period. This growth can be attributed to increasing investments by cloud service providers like Alibaba, Tencent, IBM to tap rising demand from countries like China, India and Japan.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it