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.
The U.S. Infrastructure as a Service Market is worth $38.63 billion in 2025 and is predicted to expand at a rate of 23.77% per year to reach $212.56 billion by 2033.
The U.S. Infrastructure as a Service (IaaS) market is mostly made up of big cloud providers and businesses that use it a lot. The requirement for scalable, secure, and adaptive computing, storage, and networking solutions is driving growth. This is helped by cutting-edge IT infrastructure, hybrid cloud plans, government digital activities, and speedy industry-wide digital transformation.
Analysis of Segmentation:
By Service
Computing had the most market share in 2025, with 41.50%. This was because more and more people wanted virtual machines, cloud-based workloads, and processing power that could grow. Networking is increasing the quickest, with a CAGR of 27.60%. This is because there is a growing need for secure cloud networking solutions and low-latency, high-bandwidth connections.
By Deployment
Hybrid Cloud had the biggest market share in 2025, with 48.30%. This is because businesses like to combine their own infrastructure with cloud solutions to get the best balance of control, security, and scalability. The public cloud is the fastest-growing part, with a CAGR of 26.90%. This is because it is cheaper, can be used all over the world, and requires less IT management.
By the Size of the Business
In 2025, Large Enterprises had the biggest share of the market, 55.40%, since they had big IT budgets and complicated workloads that needed scalable computing, storage, and networking solutions. The SME market is expanding the quickest, with a CAGR of 24.80%. This is because more and more small and medium-sized enterprises are using cloud-based solutions to lower their initial costs, become more flexible, and get access to enterprise-grade technology.
By Field
In 2025, IT and telecom had the largest market share at 32.70%. This was because it had a lot of cloud-native activities, relied on scalable infrastructure, and had a strong demand for computing and storage services. Digital transformation, electronic health record systems, telemedicine, and analytics platforms are driving the healthcare sector’s 27.50% CAGR, making it the fastest-growing segment.
Insights from the region:
In 2025E, North America had the largest share of the Infrastructure as a Service Market, with more than 45.20% of revenue. This was because there were many significant cloud service providers, advanced IT infrastructure, and a lot of use in businesses and government.
The Asia Pacific area is predicted to have the fastest-growing CAGR of 25.36%. This is because of the rapid digital transformation, the rise of startups and small and medium-sized businesses, and the expanding use of cloud computing. The rise of the IT infrastructure, government programs that promote cloud computing, and the rising need for services that can grow and are cheap all speed up growth.
The high use of enterprise cloud around the world is what drives market growth.
A big reason why the IaaS industry is growing is that organizations are quickly moving to cloud computing and digital transformation programs. Organizations are using less and less traditional on-premises infrastructure since it costs a lot to maintain, doesn’t scale well, and isn’t very flexible. Infrastructure as a Service (IaaS) lets businesses supply virtualized computer resources like servers, storage, and networking on demand. This lets them grow their operations quickly and save money on capital costs. The rise of remote work, big data analytics, AI workloads, and IoT integration is driving strong market growth around the world. This is making the need for reliable and flexible cloud infrastructure services even greater.
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
What’s new:
Google Cloud opened a new cloud region in Sweden in March 2025. This was its 42nd area worldwide. It increased its IaaS footprint and improved data residency and latency for European customers.
Fujitsu introduced its “Fujitsu Cloud Service Generative AI Platform” in February 2025. It’s a private cloud IaaS service that combines safe data management with on-demand GPU compute and LLM support. It’s aimed for enterprises that deal with sensitive data.
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