Infrastructure as a Service Market to See Astounding 25.7% Annual Growth Through 2023

The cost-effectiveness of cloud-based services and the increasing amount of data being generated by daily business operations are combining to fuel strong growth of the global Infrastructure as a Service (Iaas) market, according to a new report by BCC Research.

The industry expects to see a compound annual growth rate (CAGR) of 25.7% through 2023, when it is expected to reach nearly $98 billion, according to the report “Infrastructure as a Service (IaaS): Global Markets to 2023.”

Major industry leaders mentioned in this report include Amazon, Microsoft Azure, and Google.

Research Highlights

• The cloud now dominates all aspects of computing end use – from providing personal email to managing enterprise-level company CRM software. The industry is seeing larger companies turn to infrastructure as a service (IaaS) for servers, data storage, hardware management, and bandwidth.
• With IaaS, businesses make use of pay-as-you-go cloud infrastructure from a CSP. This service delivery model one of the fastest growing since 2016 and this trend will continue during the forecast period. 
• The market is heavily weighted toward large enterprises, which have an expected 2023 value of $58.5 billion, followed by small and medium businesses at $39.1 billion.

“These services enable organizations to store data safely while ensuring business continuity,” the report notes. “This reliance is driving the adoption of IaaS globally. Furthermore, increasing demand for big data analytics, more SMBs creating new business avenues, cost reduction and increasing business agility are other factors driving revenue in the global IaaS market.”

Data Confidentiality and Security Concerns Top List of Market Restraints

Despite the benefits of cloud technology, some large organizations are still hesitant to transfer information to public cloud-based services due to security concerns. There is a perception among some organizations that IaaS or cloud technologies are less reliable due to privacy concerns for intellectual property with a third party. To combat this, some vendors are providing subscriptions and advance versions of anti-DDoS solutions.

Editors/reporters requesting analyst interviews should contact Eric Surber at press@bccresearch.com.