IaaS market seen reaching $481.8 billion by 2030

The global infrastructure as a service market is projected to grow from $51.3 billion in 2020 to $481.8 billion by 2030, driven by cloud adoption, AI workloads and digital transformation. The forecast underscores how enterprises are shifting more computing infrastructure off-premises as demand rises for scalable, lower-cost capacity.

Why it matters: - The infrastructure as a service market is expected to expand sharply as companies move more core computing needs into cloud environments. - The projected rise to $481.8 billion by 2030 points to strong demand for scalable infrastructure that supports AI, analytics, remote work and business continuity. - Small and medium-sized businesses are becoming a bigger part of the market as cloud infrastructure replaces larger upfront IT investments.

What happened: - Allied Market Research said the global Infrastructure as a Service market was valued at $51.3 billion in 2020 and is projected to reach $481.8 billion by 2030. - The firm forecast a 25.3% compound annual growth rate for the 2020-2030 period. - The report was released June 23, 2026. - The release included a downloadable PDF brochure and a 298-page report purchase option.

The details: - IaaS delivers virtualized computing resources over the internet, including virtual machines, storage, networking, backup systems, security frameworks and on-demand computing power. - The market covers public cloud, private cloud and hybrid cloud deployment models. - The report cites cloud adoption, rising internet penetration, greater artificial intelligence use and expanding SME demand as key growth drivers. - Enterprises are using IaaS to support digital applications, big data analytics, artificial intelligence initiatives and remote work environments. - The report also points to growth in connected devices, real-time analytics, cloud-native architectures and containerized applications. - Industries using IaaS include banking, healthcare, retail, manufacturing, telecommunications, government and education. - Key restraints include security concerns, vendor lock-in, network reliability issues and data residency rules. - The report says maintenance services are growing around monitoring, updates, security management, workload optimization, backup management and support. - Infrastructure development services are also expanding through consulting, architecture planning, migration assistance, security implementation and cloud governance.

Between the lines: - The forecast reflects a broader shift from traditional data centers toward cloud-first infrastructure strategies. - AI is becoming a major demand engine because training and running large workloads requires scalable, high-performance computing. - Hybrid cloud remains important because many organizations want flexibility without giving up control over sensitive workloads. - The report suggests providers that can offer AI-ready infrastructure, automation and stronger compliance tools may have an edge.

What's next: - Allied Market Research expects hybrid cloud, AI integration, edge computing, automation and advanced analytics to shape the next phase of IaaS growth. - Cloud providers are likely to keep investing in data center expansion, cybersecurity, energy efficiency and sustainability. - Regional demand is expected to stay strongest in the US, while India and China are highlighted as fast-growing markets. - Competition will continue to center on performance, security, pricing, AI integration and hybrid cloud capabilities.

The bottom line: - IaaS is moving from an IT option to a core layer of digital infrastructure, and the market outlook points to sustained double-digit growth through 2030.