Iaas/Hosting Infrastructure Services Market Size will Observe Substantial Growth by 2032 with a CAGR of 27.9%

Prudour Private Limited

Updated · Apr 10, 2023

Iaas/Hosting Infrastructure Services Market Size will Observe Substantial Growth by 2032 with a CAGR of 27.9%

Market Overview

The Iaas/Hosting Infrastructure Services Market was experiencing rapid growth and was expected to keep expanding in the upcoming years. IaaS refers to outsourcing computing infrastructure such as servers, storage, networking, and other resources to third-party providers who make them accessible online to clients.

The market for IaaS and hosting infrastructure services is highly competitive, with several major players such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These firms have invested heavily in building out their cloud infrastructure to offer a range of services to businesses of all sizes.

In 2022, the global Iaas/Hosting Infrastructure Services Market was valued at USD 82.0 Bn and is forecast to reach USD 960.0 Bn by 2032, rising at a compound annual growth rate (CAGR) of 27.9% during this forecast period.

This growth is being spurred by factors such as rising demand for scalable and flexible computing resources, the proliferation of cloud-native applications, and the need for cost-effective data storage and processing solutions.

In addition to the major players mentioned above, there is also a range of smaller and niche providers providing IaaS and hosting infrastructure services tailored toward specific industries or use cases. Examples include DigitalOcean, Linode, Vultr, and OVHcloud.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Request for PDF sample report

Key Takeaways

  • In 2022, the global IaaS market was valued at USD 82.0 Bn and is forecast to reach USD 960.0 Bn by 2032.
  • This sector is highly competitive and dominated by major players such as AWS, Azure, and GCP.
  • The growing need for scalable and flexible computing resources, the proliferation of cloud-native applications, as well as cost-effective data storage and processing, are driving the growth of this market.
  • There are also specialty providers of IaaS and hosting infrastructure services, tailored toward specific industries or use cases.
  • The cloud computing market is expected to experience steady growth over the years ahead, as more businesses take advantage of its advantages to enhance agility, scalability, and cost efficiency.

Regional Overview

  • North America is the leading market for IaaS/Hosting Infrastructure Services, with the United States dominating in this space.
  • Europe is the second-largest market for IaaS/Hosting Infrastructure Services, with countries like Germany, the UK, and France dominating in this space.
  • The Asia-Pacific region is projected to experience the highest compound annual growth rate during this forecast period, led by countries such as China, India, and Japan.
  • Latin America and the Middle East & Africa are expected to experience significant growth in the IaaS/Hosting Infrastructure Services market, though these regions have smaller populations compared to other regions.


Growing demand for scalable and flexible computing resources: IaaS' ability to quickly scale up or down computing resources according to changing business needs is a major advantage, fuelling its popularity.

The proliferation of cloud-native applications: As more businesses create these applications, the need for cloud infrastructure services like IaaS is growing.

Cost-effective data storage and processing: IaaS can be more cost-effective than traditional on-premises infrastructure, especially for small and medium-sized businesses.

Adoption of hybrid cloud: Many businesses are moving toward a hybrid cloud strategy, combining public cloud services with on-premises infrastructure, increasing demand for IaaS providers.


Security and privacy worries: Some businesses are hesitant to move sensitive data to the cloud due to concerns about security and privacy.

Technical Knowledge Necessary: IaaS requires technical proficiency to set up and administer, which may be a deterrent for some businesses.

Dependence on Internet Connection: Since IaaS is accessible over the Internet, businesses may experience downtime or slow performance if their Internet connections experience problems.

Vendor Lock-in: Once a business has invested in an IaaS provider, switching can be both challenging and expensive due to vendor lock-in.


Growth of Edge Computing: With the rising adoption of edge computing, which involves processing data closer to its source rather than in the cloud, IaaS providers now have an opportunity to offer edge infrastructure services.

Expansion into New Verticals: Infrastructure as a Service provider can expand into different industries, such as healthcare or finance, by offering tailored infrastructure services tailored for these sectors.

International Expansion: There are opportunities for IaaS providers to expand into new geographic regions, particularly emerging markets with increasing demand for cloud infrastructure services.

Innovation in Technologies and Services: IaaS providers can continue to advance and create new technologies and services, such as serverless computing, to stay ahead of the market and meet changing customer demands.


Intense Competition: The IaaS market is highly competitive, with major players such as AWS, Azure, and GCP dominating it. Smaller providers may find it difficult to stay relevant in this highly consolidated space.

Cloud Migration Challenges: Migrating existing applications and data to the cloud can be complex and time-consuming, which may pose a barrier for some businesses.

Rising Costs: As IaaS adoption grows, businesses may face rising costs for cloud infrastructure services that could limit their adoption.

Data Governance and Compliance: With the growing importance of data governance and compliance, IaaS providers must guarantee their services meet the regulatory requirements of their customers. This can be particularly challenging in highly regulated industries such as healthcare or finance.

Recent Developments

  • In January 2021, Google Cloud announced the acquisition of Actifio, a data backup and recovery company, to enhance its backup and disaster recovery capabilities.
  • In February 2021, AWS announced the launch of AWS Network Firewall, a managed firewall service designed to protect virtual private clouds.
  • In March 2021, Microsoft announced the acquisition of The Marsden Group, a company that specializes in industrial automation and digital transformation, to enhance its offerings for the manufacturing industry.
  • In March 2021, IBM announced plans to spin off its managed infrastructure services unit into a separate public company to focus on its cloud and AI businesses.

Key Market Segments


  • Managed Hosting
  • Colocation Services
  • Hybrid hosting
  • Shared Hosting
  • Website Hosting
  • Virtual Dedicated Servers
  • Virtual Private Servers
  • Others


  • IT & Telecom
  • BFSI
  • Healthcare
  • Retail
  • Manufacturing
  • Government
  • Utilities
  • Others

Key Market Players

  • Wipro Limited
  • Amazon Web Services
  • AT&T
  • Google Inc.
  • HP Inc.
  • IBM Corporation
  • Microsoft Corporation
  • Akamai Technologies
  • Daisy Group Limited
  • VMware Inc.
  • Oracle Corporation
  • others

Report Scope

Report Attribute Details
The market size value in 2022 USD 82.0 Bn
Revenue Forecast by 2032 USD 960.0 Bn
Growth Rate CAGR Of 27.9%
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of the World
Historical Years 2017-2022
Base Year 2022
Estimated Year 2023
Short-Term Projection Year 2028
Long-Term Projected Year 2032

Frequently Asked Questions

Q: What is IaaS?

A: IaaS stands for Infrastructure-as-a-Service. It is a type of cloud computing service where the provider offers virtualized computing resources such as servers, storage, and networking over the Internet.

Q: What are the benefits of using IaaS?

A: Some benefits of using IaaS include scalability, cost savings, flexibility, and the ability to quickly provision and de-provision computing resources.

Q: What are some examples of IaaS providers?

A: Some examples of IaaS providers include AWS, Azure, GCP, DigitalOcean, and Linode.

Q: What is the difference between IaaS and PaaS?

A: PaaS stands for Platform-as-a-Service. While IaaS provides virtualized computing resources, PaaS provides a platform for developing, testing and deploying applications. PaaS providers typically offer tools and frameworks to support the development and deployment of applications.

Q: Is IaaS secure?

A: IaaS providers typically have security measures in place to protect customer data and infrastructure. However, businesses are still responsible for implementing their own security measures to protect their data and applications in the cloud.

  • News
  • Prudour Private Limited
    Prudour Private Limited

    The team behind market.us, marketresearch.biz, market.biz and more. Our purpose is to keep our customers ahead of the game with regard to the markets. They may fluctuate up or down, but we will help you to stay ahead of the curve in these market fluctuations. Our consistent growth and ability to deliver in-depth analyses and market insight has engaged genuine market players. They have faith in us to offer the data and information they require to make balanced and decisive marketing decisions.

    Read next