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Infrastructure As A Service (IaaS) Public Cloud Services Market Growth Potential: How Will Market Size Shift Through 2030?
The infrastructure as a service (iaas) public cloud services market size has shown rapid expansion in recent years. It is forecast to grow from $118.29 billion in 2025 to $139.8 billion in 2026, achieving a compound annual growth rate (CAGR) of 18.2%. The historical increase can be attributed to the rise in virtualization adoption, the growth of web and mobile applications, the necessity to reduce capital expenditure on servers, an increasing demand for elastic compute, and the expansion of global data center networks.
The infrastructure as a service (iaas) public cloud services market size is projected to experience rapid expansion in the coming years, with its value anticipated to reach $270.03 billion by 2030, growing at a compound annual growth rate (CAGR) of 17.9%. This projected growth over the forecast period is primarily driven by the increasing adoption of multi-cloud strategies, the surge in AI and ML workloads, the escalating demand for GPU compute at scale, a heightened focus on cloud resilience, and the widespread expansion of cloud-native development. Furthermore, significant trends expected during this period include the uptake of auto-scaling compute, the broadening of container and Kubernetes services, cloud cost optimization practices through FinOps, the rising requirement for multi-region disaster recovery, and the continued growth of GPU and HPC instances.
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Infrastructure As A Service (IaaS) Public Cloud Services Market Development Factors: What’s Supporting Demand?
The continued transition from on-premises data centers to cloud environments is projected to drive the future expansion of the infrastructure as a service (IaaS) public cloud services market. On-premises data centers are facilities that an organization owns and operates, containing its servers, storage, and networking hardware on-site. This increasing shift from on-premises data centers to cloud environments is being propelled by a heightened demand for information technology resources that are scalable, flexible, and cost-efficient. Infrastructure as a service (IaaS) public cloud services cater to this need by offering computing, storage, and management resources on demand, enabling organizations to scale their capacity without requiring major upfront capital investments. For instance, in December 2023, Eurostat, a European Union-based statistical office, indicated that 45.2% of enterprises in the European Union were using cloud computing services. Therefore, the expanding move from on-premises data centers to cloud environments is a key force behind the growth of the infrastructure as a service (IaaS) public cloud services market.
Infrastructure As A Service (IaaS) Public Cloud Services Market Segments: Where Is Growth Concentrated?
The infrastructure as a service (iaas) public cloud services market 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 Enterprise Size: 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
Infrastructure As A Service (IaaS) Public Cloud Services Market Transformation Trends: What Innovations Are Driving Change?
Leading companies within the infrastructure as a service (IaaS) public cloud services market are emphasizing technological advancements, such as artificial intelligence-powered compute instances, to enhance performance, energy efficiency, and scalability for enterprise workloads. Artificial intelligence-powered compute instances are defined as cloud virtual machines optimized with advanced processor architectures and system-level automation to accelerate compute-intensive, memory-intensive, and machine learning workloads. For instance, in February 2023, Amazon Web Services (AWS), a US-based cloud infrastructure company, launched Amazon Elastic Compute Cloud (Amazon EC2) M7g and R7g instances, powered by AWS Graviton3 processors. The M7g instances are suitable for general-purpose workloads, including application servers, microservices, and gaming servers, while the R7g instances are designed for memory-intensive workloads, such as open-source databases, in-memory caches, and real-time big data analytics. These instances provide up to 25% better performance over Graviton2-based instances, up to three times faster machine learning performance, including support for bfloat16, and up to 60% lower energy consumption for equivalent workloads.
Infrastructure As A Service (IaaS) Public Cloud Services Market Key Participants And Competitive Landscape
Major companies operating in the infrastructure as a service (iaas) public cloud services market are Amazon.com Inc, Alphabet Inc, Microsoft Corporation, Alibaba Group Holding Limited, Huawei Technologies Co Limited, Tencent Holdings Limited, IBM Corporation, Oracle Corporation, OVH Groupe SA, DigitalOcean Holdings Inc, Hetzner Online GmbH, Kamatera Inc, The Constant Company LLC, Leaseweb Global BV, Utho Platforms Private Limited, IONOS Group SE, NTT Communications Corporation, Fujitsu Limited, Virtuozzo International GmbH, Rackspace Technology Inc
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Infrastructure As A Service (IaaS) Public Cloud Services Market Geographic Spread And Regional Opportunities
North America was the largest region in the infrastructure as a service (IaaS) public cloud services market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the infrastructure as a service (iaas) public cloud services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
