Infrastructure as a Service Market to Reach USD 669.97 Billion by 2033, Owing to Accelerating Digital Transformation and Cloud Migration | Research by SNS Insider

The Infrastructure as a Service Market is expanding as organizations shift from on-premises systems to scalable, pay-as-you-go cloud infrastructure, with the U.S. segment rising from USD 38.63 billion in 2025E to USD 212.56 billion by 2033.

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Austin, Dec. 16, 2025 (GLOBE NEWSWIRE) -- The Infrastructure As a Service Market size is valued at USD 120.28 Billion in 2025E and is expected to reach USD 669.97 Billion by 2033 and grow at a CAGR of 23.96%%.

The market analysis of infrastructure as a service is primarily motivated by the widespread digital revolution that is affecting many different businesses. The need for scalable, adaptable, pay-as-you-go cloud compute, storage, and networking resources is rising as businesses of all sizes, from startups and SMEs to major corporations, move away from on-premises infrastructure.

Infrastructure as a Service Market

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The U.S. Infrastructure as a Service Market size is USD 38.63 Billion in 2025E and is expected to reach USD 212.56 Billion by 2033, growing at a CAGR of 23.77% over the forecast period.

Major cloud providers and widespread enterprise adoption dominate the U.S. Infrastructure as a Service (IaaS) market. Growth is fueled by the need for scalable, secure, and adaptable computing, storage, and networking solutions, which is aided by cutting-edge IT infrastructure, hybrid cloud plans, government digital efforts, and quick industry-wide digital transformation.

Segmentation Analysis:

By Service

In 2025, Computing led the market with a share of 41.50% driven by the growing demand for virtual machines, cloud-based workloads, and scalable processing power. Networking is the fastest-growing segment with a CAGR of 27.60% fueled by rising demand for low-latency, high-bandwidth connectivity and secure cloud networking solutions. 

By Deployment

In 2025, Hybrid Cloud led the market with a share of 48.30% as enterprises prefer combining on-premises infrastructure with cloud solutions to balance control, security, and scalability. Public Cloud is the fastest-growing segment with a CAGR of 26.90% driven by cost efficiency, global scalability, and reduced IT management overhead.

By Enterprise Size

In 2025, Large Enterprises led the market with a share of 55.40% due to extensive IT budgets and complex workloads requiring scalable computing, storage, and networking solutions. SMEs is the fastest-growing segment with a CAGR of 24.80% as small and medium businesses increasingly adopt cloud-based solutions to reduce upfront costs, improve agility, and access enterprise-grade technology.

By Industry

In 2025, IT & Telecom led the market with a share of 32.70% due to its extensive cloud-native operations, reliance on scalable infrastructure, and high demand for computing and storage services. Healthcare is the fastest-growing segment with a CAGR of 27.50% driven by digital transformation, electronic health record systems, telemedicine, and analytics platforms.

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Regional Insights:

North America dominated the Infrastructure as a Service Market in 2025E, with over 45.20% revenue share, due to the presence of major cloud service providers, advanced IT infrastructure, and high adoption across enterprises and government sectors.

Asia Pacific region is expected to have the fastest-growing CAGR 25.36%, fueled by rapid digital transformation, increasing cloud adoption, and the rise of startups and SMEs. Expanding IT infrastructure, government initiatives promoting cloud computing, and growing demand for scalable, cost-efficient services accelerate growth.

Market Growth is Driven by the High Adoption of Enterprise Cloud Globally

The quick transition of businesses to cloud computing and digital transformation projects is a major factor propelling the growth of the IaaS market. Traditional on-premises infrastructure is becoming less and less popular among organizations because of its high maintenance costs, limited scalability, and lack of flexibility. Businesses can grow operations dynamically and save capital costs by using Infrastructure as a Service (IaaS) to deliver virtualized computing resources, such as servers, storage, and networking, on demand. The demand for dependable and adaptable cloud infrastructure services is further fueled by the rise of remote work, big data analytics, AI workloads, and IoT integration, which is propelling robust market growth worldwide.

Key Players:

  • Amazon Web Services (AWS)
  • Microsoft Azure
  • Google Cloud Platform (GCP)
  • Alibaba Cloud
  • Oracle Cloud Infrastructure (OCI)
  • IBM Cloud
  • Tencent Cloud
  • DigitalOcean
  • Rackspace Technology
  • NTT Communications
  • Fujitsu Limited
  • SAP SE
  • Huawei Cloud
  • Mindtree Pvt. Ltd.
  • CenturyLink (Lumen Technologies)
  • Verizon Communications
  • AT&T Inc.
  • Cisco Systems
  • HPE (Hewlett Packard Enterprise)
  • Salesforce

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Recent Developments:

  • In March 2025, Google Cloud launched a new cloud region in Sweden (its 42nd globally), expanding its IaaS footprint and improving local data residency and latency for European customers. 
  • In February 2025, Fujitsu launched its “Fujitsu Cloud Service Generative AI Platform” a private cloud IaaS service combining secure data management with on demand GPU compute and LLM support targeting businesses handling sensitive data.

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