February 22, 2024
Infrastructure As A Service Market

Infrastructure as a Service Market: Rising Demand for Cloud Computing Drives Market Growth

Market Overview:

The Infrastructure As Service  Market offers on-demand virtualized computing resources over the internet, enabling organizations to eliminate the need for physical infrastructure and reduce costs. The advantages of IaaS include flexibility, scalability, and cost-effectiveness. By availing IaaS, businesses can deploy and manage their own infrastructure, including servers, storage, and networking, without the need for purchasing and maintaining physical hardware. The growing need for cloud computing services and the increasing adoption of IaaS in various industries are driving the growth of the market.

Market Key Trends:

One key trend in the Infrastructure as a Service market is the rising adoption of hybrid cloud solutions. Hybrid cloud combines the benefits of public and private cloud environments, offering improved flexibility and security. It allows organizations to take advantage of both on-premises infrastructure and cloud-based services, ensuring optimal performance and cost-efficiency. With the increasing volume of data and the need for secure and scalable infrastructures, the demand for hybrid cloud solutions is expected to surge in the coming years. This trend is driven by the growing awareness of the benefits of hybrid cloud and the need for a balanced approach to IT infrastructure management.

The global Infrastructure As A Service  Market Demand is estimated to be valued at US$ 52.5 billion in 2023 and is expected to exhibit a CAGR of 22.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Porter’s Analysis

Threat of New Entrants: The infrastructure as a service market is highly competitive and characterized by the presence of several established players. The high capital requirement and the need for strong technical expertise act as barriers to entry, making it difficult for new entrants to penetrate the market. Thus, the threat of new entrants is low.

Bargaining Power of Buyers: With a wide range of service providers to choose from, buyers in the infrastructure as a service market have significant bargaining power. They can negotiate for better pricing, service quality, and contractual terms. This puts pressure on the service providers to offer competitive prices and high-quality services to retain customers.

Bargaining Power of Suppliers: Suppliers in the infrastructure as a service market, such as hardware and software providers, have moderate bargaining power. While there are multiple suppliers available, the market is dominated by a few key players who hold significant purchasing power. Suppliers can leverage this power to negotiate favorable terms and pricing.

Threat of New Substitutes: The threat of new substitutes is low in the infrastructure as a service market. The demand for cloud computing services is increasing, and businesses are increasingly relying on the scalability, flexibility, and cost-effectiveness provided by infrastructure as a service. Traditional IT infrastructure alternatives are unable to match these benefits, making it unlikely for substitutes to emerge in the near future.

Competitive Rivalry: The infrastructure as a service market is highly competitive, with numerous players striving to gain market share. Key players such as Alibaba Group Holding Limited, Amazon Web Services, and Microsoft Corporation dominate the market. Intense competition among these players leads to aggressive pricing strategies, constant innovation, and the development of new services.

Key Takeaways

The global infrastructure as a service market is expected to witness high growth, exhibiting a CAGR of 22.7% over the forecast period of 2023-2030. This growth can be attributed to the increasing adoption of cloud-based services by businesses across various industries. The scalability, flexibility, and cost-efficiency offered by infrastructure as a service are driving its demand.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the infrastructure as a service market. The region has a well-developed IT infrastructure and is witnessing increased adoption of cloud computing services. Additionally, the presence of major market players in this region further contributes to its dominance.

Key players operating in the infrastructure as a service market include Alibaba Group Holding Limited, Redcentric Plc., Amazon Web Services, Inc., Rackspace Hosting, Inc., Oracle Corporation, Google LLC, and Microsoft Corporation. These players have a strong market presence and are constantly striving to stay ahead through technological advancements, strategic partnerships, and new product launches. As the market grows, competition among these key players is expected to intensify.

In conclusion, the infrastructure as a service market is poised for significant growth in the coming years, driven by the increasing adoption of cloud computing services. Key players in the market are focused on innovation and competitive strategies to gain a larger market share. As businesses continue to embrace digital transformation, the demand for infrastructure as a service is expected to surge.


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