According to the report by Expert Market Research (EMR), the global infrastructure as a service (IaaS) market attained a value of USD 234.14 billion in recent years. Aided by the rapid digital transformation across industries, increasing adoption of cloud computing, and growing demand for scalable and cost-efficient IT infrastructure, the market is projected to grow at a robust CAGR of 21.50% during the forecast period of 2026–2035. By 2035, the global IaaS market is expected to reach a value of USD 1641.49 billion.

Infrastructure as a Service (IaaS) is a cloud computing model that provides virtualised computing resources, such as servers, storage, networking, and operating systems, over the internet. It enables organisations to eliminate the need for investing in physical hardware, while offering flexibility, scalability, and enhanced operational efficiency. IaaS has become a critical component of modern IT strategies, supporting businesses in managing workloads, deploying applications, and accelerating innovation.

Infrastructure as a Service (IaaS) Market Trends

One of the prominent trends shaping the global IaaS market is the rising adoption of hybrid and multi-cloud environments. Enterprises are increasingly leveraging a combination of public and private cloud infrastructure to optimise performance, enhance security, and reduce dependency on a single service provider. Additionally, the growing integration of advanced technologies such as artificial intelligence (AI), machine learning (ML), and big data analytics with IaaS platforms is enhancing automation, predictive maintenance, and resource optimisation.

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Drivers of Growth

The rapid expansion of digitalisation across industries is a major driver of the global IaaS market growth. Businesses are increasingly migrating their workloads to the cloud to achieve greater agility, scalability, and cost savings. The growing adoption of remote working models and cloud-based collaboration tools has further accelerated the demand for IaaS solutions.

Challenges and Opportunities

Despite strong growth prospects, the IaaS market faces challenges related to data security, privacy concerns, and regulatory compliance. The risk of data breaches and cyberattacks remains a key concern for organisations migrating sensitive workloads to the cloud. Additionally, compliance with region-specific data protection regulations can increase operational complexity for service providers.

Infrastructure as a Service (IaaS) Market Forecast

Over the forecast period of 2026–2035, the global IaaS market is expected to witness substantial expansion, driven by continuous technological advancements, increasing enterprise cloud adoption, and the growing emphasis on digital transformation. With strong demand across sectors such as IT & telecom, BFSI, healthcare, retail, and manufacturing, the IaaS market is poised to remain a cornerstone of the global cloud computing ecosystem in the coming decade.