Infrastructure as a Service (IaaS) Market to Hit $481.8 Bn by 2030 Driven by Cloud Adoption & Digital Transformation

The IaaS market is expanding rapidly, driven by cloud adoption, digital transformation, and rising demand for scalable, cost-efficient IT infrastructure.

WILMINGTON, DE, UNITED STATES, November 25, 2025 /EINPresswire.com/ -- According to a new report published by Allied Infrastructure as a Service (IaaS) Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component Type (Storage, Network, Compute, Others), by Deployment Model (Private, Public, Hybrid), by Enterprise Size (Large Enterprises, SMEs), by Industry Vertical (BFSI, Government and Education, Healthcare, Telecom and IT, Retail, Manufacturing, Media and Entertainment, Others): Global Opportunity Analysis and Industry Forecast, 2020-2030, The global infrastructure as a service (iaas) market was valued at $51.3 billion in 2020, and is projected to reach $481.8 billion by 2030, growing at a CAGR of 25.3% from 2021 to 2030.

The Infrastructure as a Service (IaaS) market has emerged as a foundational component of modern cloud computing, enabling organizations to access virtualized computing resources on demand. By replacing traditional on-premise infrastructure with flexible, scalable cloud models, enterprises can significantly reduce capital expenditure while enhancing operational agility.

As digital transformation accelerates across industries, IaaS adoption continues to rise, supported by advancements in virtualization, data center innovation, and the increasing need for remote accessibility. Organizations of all sizes are leveraging IaaS for application hosting, storage, disaster recovery, and high-performance computing, driving sustained market growth.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲: https://www.alliedmarketresearch.com/request-sample/A01967

𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐲𝐧𝐚𝐦𝐢𝐜𝐬
The primary driver of the Infrastructure as a Service (IaaS) market is the rapid shift toward cloud-based environments as businesses seek scalable solutions to support growing data volumes and evolving application demands. This shift is further strengthened by cost-saving opportunities, as IaaS eliminates upfront hardware investments and maintenance burdens.

Rising digitalization across sectors—such as healthcare, retail, BFSI, and manufacturing—is also contributing to market expansion. Cloud infrastructure enables these industries to deploy advanced analytics, automation, and AI technologies without heavy infrastructure constraints.

Another key trend shaping the market is hybrid cloud adoption. Enterprises increasingly prefer hybrid and multi-cloud strategies to optimize workloads, enhance flexibility, and avoid vendor lock-in. This diversification is pushing IaaS vendors to broaden offerings and strengthen interoperability.

Security advancements are also playing a crucial role in supporting market growth. Modern IaaS platforms integrate robust encryption, identity management, and compliance capabilities, addressing concerns related to data privacy, breaches, and regulatory requirements. This makes IaaS more appealing for sensitive and mission-critical workloads.

However, challenges such as escalating cloud costs, complexity in cloud migration, and dependence on cloud service providers continue to impact growth. Organizations are seeking better cloud cost management tools, transparent pricing models, and improved service-level agreements, prompting vendors to innovate in customer support and cost optimization.

𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝘁𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁: https://www.alliedmarketresearch.com/connect-to-analyst/A01967

𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The infrastructure as a service (IaaS) market is segmented by component, deployment model, enterprise size, and industry vertical. Components include compute, storage, and networking services, with compute leading due to demand for flexible processing power. Public cloud dominates deployment, though hybrid models are rising quickly. Large enterprises account for the majority share, while SMEs are adopting IaaS for cost efficiency. Key industries driving demand include IT & telecom, BFSI, retail, healthcare, and manufacturing.

Depending on the deployment model, the hybrid segment currently holds the largest share of the Infrastructure as a Service (IaaS) market and is projected to grow at the fastest rate during the forecast period. This growth is driven by the surge in data generated from big data, IoT, social media, business applications, and financial services. Hybrid deployment offers a cost-effective and scalable environment to manage this expanding information load, making it a preferred choice for organizations seeking flexibility and efficiency.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Region-wise, North America dominated the Infrastructure as a Service (IaaS) market in 2020, supported by the presence of leading providers that foster innovation and technological advancement. Major players such as Amazon Web Services, Inc. continue to make substantial investments in the region, strengthening its market leadership. Meanwhile, Asia-Pacific is expected to record notable growth due to the rapid adoption of cloud technologies, rising demand for advanced functionalities, and the increasing need for business units to gain direct control over their IT resources.

𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆: https://www.alliedmarketresearch.com/purchase-enquiry/A01967

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
The key players that operate in the IaaS market are Alibaba Group Holding Limited, Amazon Web Services, inc., Dell Technologies, Inc., Google Corporation, Hewlett Packard Enterprise Development LP, IBM Corporation, Microsoft Corporation, Oracle corporation, RACKSPACE TECHNOLOGY, INC., and Redcentric Plc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• By component type, the compute segment accounted for the largest infrastructure as a service market size in 2020.
• By region, North America generated highest revenue in 2020.
• By deployment model, the hybrid segment generated the highest revenue in 2020.

𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆
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David Correa
Allied Market Research
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