Europe Infrastructure-as-a-Service (IaaS) Market Insights Forecasts to 2033                                       

• The Europe Infrastructure-as-a-Service (IaaS) Market Size was valued at USD 32.29 Billion in 2023
• The Market Size is Growing at a CAGR of 12.53% from 2023 to 2033.
• The Europe Infrastructure-as-a-Service (IaaS) Market Size is Expected to Reach USD 105.12 Billion by 2033.

The Europe Infrastructure-as-a-Service (IaaS) Market size is expected to reach USD 105.12 Billion by 2033, at a CAGR of 12.53% during the forecast period 2023 to 2033.

Market Overview

Infrastructure as a service (IaaS) is a type of cloud computing that delivers virtualized computing resources via the Internet. IaaS is one of three major types of cloud computing services, along with software as a service (SaaS) and platform as a service (PaaS). In the IaaS model, the cloud provider handles IT infrastructures such as storage, servers, and networking resources, which are delivered to subscriber businesses via virtual computers accessible via the Internet. IaaS might provide numerous benefits to enterprises, such as making workloads faster, easier, more flexible, and cost-efficient. The anticipated increase in the number of small and medium-sized enterprises (SMBs) in European countries is expected to be a major driver of the European infrastructure-as-a-service (IaaS) market. Furthermore, the broad use of cloud computing in a variety of industry verticals, such as banking, financial services and insurance (BFSI), government and education, healthcare, IT and telecom, retail, manufacturing, media and entertainment, and so on, is driving the growth of the market for infrastructure-as-a-service in Europe.

Report Coverage

This research report categorizes the market for the Europe infrastructure-as-a-service (IaaS) market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe infrastructure-as-a-service (IaaS) market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe infrastructure-as-a-service (IaaS) market.

Driving Factors

The sustained expansion of the European infrastructure-as-a-service market can be ascribed to the escalating need for economical solutions and the improved comprehension of the profitable benefits of infrastructure-as-a-service among notable industry figures. The growth of the infrastructure-as-a-service market in Europe is also being driven by the growing awareness of the many varieties of cloud computing services. In addition, according to Eurostat, the statistical agency of the European Union, which has its headquarters in Luxembourg, a 5 to 6-percentage-point increase from 2020 to 41.5% of businesses reported employing cloud computing services in 2021. Furthermore, high internet penetration in the European region drives market growth. The European Commission is also taking steps to draft relevant laws for cloud service switching.

Restraining Factors

Public cloud security breaches and high-profile hacking incidents have significantly increased in the past few years. Many industry sectors, including BFSI, government, healthcare, retail, and others, view security concerns about protecting stakeholders' information and private data as a major deterrent to the implementation of cloud infrastructure. Organizational, physical, technological, compliance, and data breaches are a few of the main security issues that are anticipated to impede the infrastructure-as-a-service (IaaS) market expansion in Europe.

Market Segment

• In 2023, the disaster recovery as a service (DRaaS) segment is witnessing significant growth over the forecast period.

Based on solution, the Europe Infrastructure-as-a-Service (IaaS) market is segmented into managed hosting, disaster recovery as a service (DRaaS), communication as a service (CaaS), database as a service (DBaaS), storage as a service (SaaS), colocation, network management, content delivery, and others. Among these, the disaster recovery as a service (DRaaS) segment is witnessing significant growth over the forecast period. In Europe, disasters claimed the lives of around 50 million people and resulted in annual economic losses of about USD 12.87 Billion. A cloud-based solution called disaster recovery as a service (DRaaS) is intended to guarantee business continuity in the case of a disaster or data loss. It offers businesses a dependable and reasonably priced method of duplicating and recovering their vital IT infrastructure and data in the cloud.

• In 2023, the public cloud segment is witnessing significant growth over the forecast period.

Based on deployment type, the Europe Infrastructure-as-a-Service (IaaS) market is segmented into public cloud, private cloud, and hybrid cloud. Among these, the public cloud segment is witnessing significant growth over the forecast period. The increasing preference for public cloud services among small and medium-sized businesses, owing to their operational efficiency and low setup costs, is expected to drive industry demand in the coming years.

• In 2023, the large enterprises segment accounted for the largest revenue share over the forecast period.

Based on the organization size, the Europe Infrastructure-as-a-Service (IaaS) market is segmented into small & medium enterprises (SMEs) and large enterprises. Among these, the large enterprises segment accounted for the largest revenue share over the forecast period. Large enterprises have distinct requirements and challenges that influence their demand for cloud services. Cloud computing, which includes IaaS, PaaS, and SaaS, provides several benefits to large enterprises. It allows them to dynamically scale resources to support their massive workloads.

•  In 2023, the IT & telecom segment is witnessing significant growth over the forecast period.

Based on the end-use industry, the Europe Infrastructure-as-a-Service (IaaS) market is segmented into IT & telecom, banking, financial services, and insurance (BFSI), healthcare, retail and e-commerce, government & defense, energy & utilities, manufacturing, and others. Among these, the IT & telecom segment is witnessing significant growth over the forecast period. IaaS adoption in IT & telecom organizations is rapidly increasing as a result of lower staffing and physical infrastructure maintenance costs. The increased use of mobile broadband and big data has accelerated the demand for IaaS in the IT & telecom sectors.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe infrastructure-as-a-service (IaaS) market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Amazon Web Services Inc.
• Google Inc.
• Microsoft Corporation
• Oracle
• IBM Corporation
• Rackspace Hosting Inc.
• EMC Corporation
• VMWare Inc.
• RedHat Inc.
• RedCentric PLC
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In November 2023, Leaseweb Global, a cloud services and Infrastructure as a Service (IaaS) provider, has introduced a new channel partner program in the United Kingdom. The program is designed for managed service providers (MSPs). It establishes a framework for long-term sales partnerships, enabling MSPs to provide their customers with both strategic advice and high-quality cloud services.

Market Segment

This study forecasts revenue at regional, and country levels from 2022 to 2033. Spherical Insights has segmented the Europe Infrastructure-as-a-Service (IaaS) Market based on the below-mentioned segments:

Europe Infrastructure-as-a-Service (IaaS) Market, By Solution

• Managed Hosting
• Disaster Recovery as a Service (DRaaS)
• Communication as a Service (CaaS)
• Database as a Service (DBaaS)
• Storage as a Service (SaaS)
• Colocation
• Network Management
• Content Delivery
• Others

Europe Infrastructure-as-a-Service (IaaS) Market, By Deployment Type

• Public Cloud
• Private Cloud
• Hybrid Cloud

Europe Infrastructure-as-a-Service (IaaS) Market, By Organization Size

• Small & Medium Enterprises (SMEs)
• Large Enterprises

Europe Infrastructure-as-a-Service (IaaS) Market, By End-Use Industry

• IT & Telecom
• Banking, Financial Services, and Insurance (BFSI)
• Healthcare
• Retail and E-commerce
• Government & Defense
• Energy & Utilities
• Manufacturing
• Others