by Infrastructure as a service (IaaS) is a model for delivering computing infrastructure, ranging from servers to software to data center space, on-demand as an outsourced service and pay-per-use. IaaS enables enterprises to avoid upfront infrastructure costs, enables rapid access to computing power, and allows them to scale up or scale down infrastructure on demand based on requirements. Infrastructure as a service has gained popularity as companies are increasingly adopting cloud-based services for benefits such as scalability, reduced costs, and capability to access infrastructure from anywhere.
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% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing digital transformation across industries has emerged as a key trend fueling the growth of the IaaS market. Digital transformation allows organizations to enhance customer experience and optimize business processes. This has increased the demand for cloud-based infrastructure among enterprises. According to a survey, about 64% of organizations see digital transformation as a high priority over the next few years. IaaS plays a vital role in digital transformation by providing flexible and scalable cloud infrastructure for building and deploying digital systems. Growing emphasis on digital transformation is expected to drive significant growth in the IaaS market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the infrastructure as-a-service market is moderate. The market requires large capital investments and established vendor relationships which pose significant barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Buyers can negotiate on price and contract terms. They also have options to build infrastructure in-house.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. There are many component providers and switching costs are low.
Threat of new substitutes: The threat of new substitutes is moderate. Companies may opt for hosted private clouds or hybrid cloud as alternatives to public IaaS.
Competitive rivalry: The competitive rivalry in the market is high as players compete on service portfolio, pricing, and customer experience.
Key Takeaways
The Global Infrastructure As-A-Service Market Size is expected to witness high growth over the forecast period from 2024 to 2031.
Regionally, North America dominates currently due to technological advancements and digital transformation initiatives by enterprises in the region. The Asia Pacific region is expected to grow at the fastest pace owing to government initiatives and increasing adoption of cloud-based services by SMEs in countries like China and India.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
