Infrastructure as a Service (IaaS) refers to the type of public cloud service that provides virtualized computing resources. IaaS offers on-demand access to virtual machines, storage, and networking components, thus allowing users to build, deploy, and manage IT infrastructure without the need to invest in physical hardware. IaaS offers scalability, flexibility, and cost-efficiency by requiring users to pay only for the resources they consume. The IaaS market includes the companies that provide these types of public cloud resources and services to individuals, businesses, and organizations. A typical example of this type of service is Amazon Web Services (AWS). AWS provides a wide range of virtual machines, storage, and networking resources that users can access on demand to build and manage their IT infrastructures.
The Infrastructure as a Service (IaaS) market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.
Key players of the IaaS market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).
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The growth in the Infrastructure as a Service (IaaS) segment is predominantly driven by the increasing demand for cost-effective, flexible, and scalable IT Infrastructure. The rising adoption of cloud-based infrastructure services in various industries is expected to further drive this growth, particularly in emerging economies.
Even with the COVID-19 pandemic, this segment has grown more than 30% over the past five years. This growth can be credited to the flexibility offered by the adoption of hybrid or public cloud infrastructure over on-premises or private cloud infrastructure. A major part of the segment’s revenue, nearly 60%, is generated from technologically advanced countries in North America and Europe.
Over the next five years, the overall market is expected to grow by more than 10% each year, despite challenges in market saturation, security concerns, and lack of proper IT infrastructure in emerging economies.
The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).
Modeling approach / Market size:
The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.
We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.
The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.