The worldwide Infrastructure as a Service (IaaS) market experienced significant growth in 2022.According to a report released by Gartner, the overall market grew by 29.7%, reaching a total value of $120.3 billion compared to $92.8 billion in 2021. Amazon remained the dominant player, holding the top position with a 40% market share, followed by Microsoft, Alibaba, Google, and Huawei.The growth of IaaS has transformed the cloud from a mere technological disruptor to a major driver of business disruption. IaaS played a pivotal role in propelling the growth of Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS), as more buyers adopted cloud solutions and modernized their existing applications.Despite a slight slowdown in the fourth quarter of 2022 due to customers optimizing their previously committed capacity, IaaS growth surpassed expectations. This trend is expected to continue until mid-2023, according to the study’s authors, with a significant acceleration expected in 2024.
IaaS Growth: Additional Commentary
Sid Nag, VP Analyst, Gartner, commented:“Cloud has been elevated from a technology disruptor to a business disruptor. IaaS is driving software-as-a-service (SaaS) and platform-as-a-service (PaaS) growth as buyers to continue to add more applications to the cloud and modernize existing ones.
“IaaS growth in 2022 was stronger than expected, despite a slight softening in the fourth quarter as customers focused on using their previously committed capacity to its fullest potentialThis is expected to continue until mid-2023 and is a natural outcome of the market’s maturity. We expect an acceleration in 2024, as there is still room for plenty of additional future growth.”
