Infrastructure As A Service (IaaS) Public Cloud Services Market Expanding With $229.29 Billion at 18% CAGR by 2029
The Business Research Company
The Business Research Company’s Infrastructure As A Service (IaaS) Public Cloud Services Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 14, 2025 /EINPresswire.com/ -- What Is The Forecast For The Infrastructure As A Service (IaaS) Public Cloud Services Market From 2025 To 2029?
The public cloud services market for Infrastructure as a Service (IaaS) has seen fast-paced growth in current years. The market size, which was $99.94 billion in 2024, is predicted to reach $118.29 billion in 2025, thanks to a Compound Annual Growth Rate (CAGR) of 18.4%. Factors contributing to this growth during the historic period include a heightened dependence on virtualization technologies, a surge in the use of cloud-based storage solutions, increasing requirement for scalable computing power, growing utilization of disaster recovery and backups, and a shift from capital expenditure to operational expenditure.
The public cloud services market for infrastructure as a service (IaaS) is projected to experience substantial expansion in the coming years. Its value is anticipated to rise to $229.29 billion in 2029, exhibiting a compound annual growth rate (CAGR) of 18.0%. The surge in demand for the incorporation of artificial intelligence and machine learning, an escalating necessity for edge computing functions, the escalating adoption of hybrid and multi-cloud strategies, an increase in digital transformation efforts across various sectors, and heightened emphasis on cost minimization and business agility largely account for the predicted growth in this period. The forecast timeframe is likely to witness several industry trends such as breakthroughs in serverless computing modalities, progress in cloud-native app frameworks, the meshing of the Internet of Things with cloud infrastructure, investments geared towards more energy-efficient and sustainable data centers, and advancements in quantum computing abilities within cloud platforms.
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What Are The Core Growth Drivers Shaping The Future Of The Infrastructure As A Service (IaaS) Public Cloud Services Market?
The anticipated growth of the Infrastructure as a Service (IaaS) Public Cloud Services market is linked to the increasing transition from on-premises data centers towards cloud environments. On-premises data centers, facilities that an organization owns and manages, which host its servers, storage, and networking infrastructure within their premises, are gradually giving way to the cloud. This move is primarily fueled by an escalating need for IT resources that are scalable, flexible, and cost-effective. IaaS public cloud services cater to this need, offering on-demand computing, storage, and management amenities, permitting organizations to augment capacity devoid of considerable initial capital costs. For instance, a statistical office based in the European Union, Eurostat, reported that 45.2% of enterprises within the Union were using cloud computing services in December 2023. Therefore, the market for IaaS public cloud services is growing in tandem with the increasing shift from on-premises data center towards cloud environments.
Which Companies Are Currently Leading In The Infrastructure As A Service (IaaS) Public Cloud Services Market?
Major players in the Infrastructure As A Service (IaaS) Public Cloud Services Global Market Report 2025 include:
• Amazon.com Inc.
• Alphabet Inc.
• Microsoft Corporation
• Alibaba Cloud
• Huawei Services Co. Limited
• Tencent Cloud
• Dell Technologies Inc.
• IBM Corporation
• Oracle Corporation
• SAP SE
What Are The Upcoming Trends Of Infrastructure As A Service (IaaS) Public Cloud Services Market In The Globe?
Leading corporations in the Infrastructure as a Service (IaaS) public cloud service sector are prioritizing technological enhancements like artificial intelligence-powered instances to bolster efficiency, performance, and scalability for corporate tasks. These AI-enhanced compute instances incorporate advanced system automation and processor infrastructures to expedite compute-focused, memory-heavy, and AI-driven workload management. For example, in February 2023, US-based cloud infrastructure firm, Amazon Web Services (AWS), launched Amazon Elastic Compute Cloud (Amazon EC2) M7g and R7g editions powered by AWS Graviton3 processors. The M7g versions are tailored for generic workloads such as microservices, application servers, and gaming servers, while the R7g editions are purposed for memory-heavy components like real-time big data analytics, open-source databases, and in-memory caches. These editions provide up to 25% enhanced performance as compared to Graviton2-based counterparts, up to thrice the speed for machine learning tasks, including support for bfloat16, and up to 60% decreased energy consumption for similar workloads.
Comparative Analysis Of Leading Infrastructure As A Service (IaaS) Public Cloud Services Market Segments
The infrastructure as a service (iaas) public cloud servicesmarket covered in this report is segmented –
1) By Service Type: Compute, Storage, Networking, Disaster Recovery, Other Service Types
2) By Deployment Model: Public Cloud, Private Cloud, Hybrid Cloud
3) By Pricing Model: Pay As You Go, Reserved Instances, Spot Instances, Subscription Based Pricing
4) By Application: Small And Mid-Sized Enterprises, Large Enterprises
5) By Industry Vertical: Banking, Financial Services And Insurance, Healthcare, Retail, Information Technology And Telecommunications, Government, Manufacturing, Other Industry Vertical Types
Subsegments:
1) By Compute: Virtual Machines (VMs), Bare Metal Servers, Containers And Kubernetes Services, High Performance Computing (HPC) Instances, Auto-Scaling Services
2) By Storage: Block Storage, Object Storage, File Storage, Backup And Archival Storage, Cloud Data Lakes
3) By Networking: Virtual Private Cloud (VPC), Load Balancers, Content Delivery Networks (CDN), Cloud DNS Services, Network Security And Firewalls
4) By Disaster Recovery: Cloud Backup Solutions, Replication Services, Failover And Recovery Management, Data Protection And Continuity Solutions, Site Recovery As A Service (SRaaS)
5) By Other Service Types: Identity And Access Management (IAM), Monitoring And Logging Services, Infrastructure Security Services, API Management, Cloud Migration Services
View the full infrastructure as a service (iaas) public cloud services market report:
https://www.thebusinessresearchcompany.com/report/infrastructure-as-a-service-iaas-public-cloud-services-global-market-report
Which Regions Are Dominating The Infrastructure As A Service (IaaS) Public Cloud Services Market Landscape?
In the Infrastructure As A Service (IaaS) Public Cloud Services Global Market Report 2025, North America held the top spot in 2024. It is forecasted that Asia-Pacific will undergo the swiftest growth in the projected period. This market report encompasses several regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
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