Infrastructure as a Service (IaaS) market is expected to grow at a CAGR of 22.1% from 2015 to 2022, reaching US$73.9 billion by the end of 2022, according to a report by Transparency Market Research.
The report titled: “Infrastructure as a Service (IaaS) Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2022”, puts the figure for IaaS in 2014 at US$15.6 billion.
APAC to see surge
The global IaaS market is expected to witness lucrative growth opportunities in the APAC region due to rising investments and economic growth of emerging markets, which is further driving technology adoption. Hybrid cloud IaaS model is expected to be the fastest growing implementation model for the IaaS market. This is due to the introduction of more enterprises which may look for solutions that are more cost-efficient and ensure better flexibility in outsourcing their IT requirements to the cloud.
Thus, the global IaaS market; with its rising applications in large and small and medium enterprises is expected to record 305.6% revenue growth over the forecast period 2015 to 2022.
North America as leader
Geographically, North America led the global IaaS market in 2014, accounting for over 40% of the global market revenue share and is expected to continue the dominance throughout the forecast period.
The growth of the IaaS market in Europe is mainly attributable to demand from Western Europe which is currently witnessing a mature IT market, where companies are investing heavily on software and services.
Asia Pacific is expected to be among the fastest growing regions for IaaS, owing to the growing number of small and medium enterprises. In MEA, the market is anticipated to grow due to increasing demand on strengthening ICT capabilities from industry verticals such as oil & gas, construction, healthcare, public institutions and telecommunications.
Furthermore, in the Latin America region, the growing usage of social networking, low bandwidth applications, and mobile phones along with the rising private sector demand are seen as dominant factors fuelling the growth of IaaS market throughout the forecast period.
However, privacy issues, higher data security, and evolving needs and growing complexities of the marketplace are expected to restrict the market growth during the forecast period.