Burgeoning Cloud Infrastructure Services Market
The rapidly rising demand from an increasing number of small and midsize businesses (SMBs) for reducing their IT burden and lowering the costs involved in managing the IT infrastructures, along with the necessity to deploy enterprise level computing capabilities, is driving the growth of the lucrative infrastructure as a service (IaaS) market. Several additional factors such as scalability, flexibility and agility provided by the service, apart from faster implementation are also providing an impetus to the market growth.
Considerations Influencing the High Spending on IaaS
Certain data security limitations in the public cloud and the high costs involved in the private cloud model have led to the increasing adoption of hybrid cloud by many organizations. This, in turn, has resulted in the rise of adoption of IaaS solutions. Increasing digitalization, advancements in technology and the rising demand for virtualization, storage and disaster recovery have also contributed to the high spending on IaaS by organizations in no small measure.
Market Share by Region
At the global level, the overall IaaS market is expected to grow at a CAGR of 29 percent to $56.05 Billion by 2020. The North America region will continue to garner the largest share of the market. The APAC market is forecast to grow at the highest rate with a CAGR of 35.8 percent with the increasing adoption of IaaS in India, China and Australia.
In the Middle East, the market size is likely to expand by over three times from the present $2.66 Billion to reach $8.79 Billion by 2022. While Qatar will have the largest market adoption, other countries including Kuwait, Bahrain, Egypt, Turkey, Oman, Israel and Iran will also experience a tremendous growth resulting from the promotion of technologies such as cloud and analytics, and the increasing usage of cloud-dependent technologies such as IoT and BYOD.
Growth Across Industry Verticals
BFSI along with IT, Telecom and Healthcare account for the largest market share by industry. These are followed by other high growth sectors such as government, energy, utilities, retail and e-commerce.