Infrastructure as a Service (IaaS) Public Cloud Services Market Report 2026

The infrastructure as a service (iaas) public cloud services market size has grown rapidly in recent years. It will grow from $118.29 billion in 2025 to $139.8 billion in 2026 at a compound annual growth rate (CAGR) of 18.2%. The growth in the historic period can be attributed to rise of virtualization adoption, growth of web and mobile applications, need to reduce capex on servers, increasing demand for elastic compute, expansion of global data center networks.

The infrastructure as a service (iaas) public cloud services market size is expected to see rapid growth in the next few years. It will grow to $270.03 billion in 2030 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to rise of multi-cloud strategies, growth of AI and ml workloads, demand for gpu compute at scale, increasing focus on cloud resilience, expansion of cloud-native development. Major trends in the forecast period include auto-scaling compute adoption, container and kubernetes services expansion, cloud cost optimization through finops, multi-region disaster recovery demand, gpu and hpc instance growth.

The shift from on-premises data centers to cloud environments is expected to drive the growth of the infrastructure as a service (IaaS) public cloud services market in the coming years. On-premises data centers are facilities owned and managed by organizations that house servers, storage, and networking infrastructure on-site. This shift is driven by increasing demand for scalable, flexible, and cost-efficient IT resources. Infrastructure as a service (IaaS) public cloud services address this demand by providing on-demand computing, storage, and management resources, enabling organizations to scale capacity without significant upfront capital investment. For example, in December 2023, Eurostat, a European Union-based statistical office, reported that 45.2 percent of enterprises in the European Union used cloud computing services. Therefore, the shift from on-premises data centers to cloud environments is driving the growth of the infrastructure as a service (IaaS) public cloud services market.

Key companies operating in the infrastructure as a service (IaaS) public cloud services market are focusing on technological advancements, such as artificial intelligence-powered compute instances, to improve performance, energy efficiency, and scalability for enterprise workloads. Artificial intelligence-powered compute instances are cloud virtual machines optimized with advanced processor architectures and system-level automation to accelerate compute-intensive, memory-intensive, and machine learning workloads. For instance, in February 2023, Amazon Web Services (AWS), a US-based cloud infrastructure company, introduced Amazon Elastic Compute Cloud (Amazon EC2) M7g and R7g instances powered by AWS Graviton3 processors. The M7g instances are designed for general-purpose workloads, including application servers, microservices, and gaming servers, while the R7g instances target memory-intensive workloads, such as open-source databases, in-memory caches, and real-time big data analytics. These instances deliver up to 25 percent better performance over Graviton2-based instances, up to three times faster machine learning performance, including support for bfloat16, and up to 60 percent lower energy consumption for equivalent workloads.

In November 2023, Broadcom Inc., a US-based semiconductors and infrastructure software solutions provider, acquired VMware, Inc. for an undisclosed amount. Through this acquisition, Broadcom Inc. aims to enable enterprise customers to create and modernize private and hybrid cloud environments while leveraging VMware, Inc.’s expertise in cloud software and edge solutions. VMware, Inc. is a US-based cloud computing and virtualization technology company that offers IaaS public cloud services.

Major companies operating in the infrastructure as a service (iaas) public cloud services market are Amazon.com Inc, Alphabet Inc, Microsoft Corporation, Alibaba Group Holding Limited, Huawei Technologies Co Limited, Tencent Holdings Limited, IBM Corporation, Oracle Corporation, OVH Groupe SA, DigitalOcean Holdings Inc, Hetzner Online GmbH, Kamatera Inc, The Constant Company LLC, Leaseweb Global BV, Utho Platforms Private Limited, IONOS Group SE, NTT Communications Corporation, Fujitsu Limited, Virtuozzo International GmbH, Rackspace Technology Inc.

North America was the largest region in the infrastructure as a service (IaaS) public cloud services market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the infrastructure as a service (iaas) public cloud services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the infrastructure as a service (iaas) public cloud services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have created both challenges and opportunities for the IaaS public cloud services market by increasing the cost of imported servers, storage devices, networking components, and data center equipment that underpin scalable compute delivery. These higher infrastructure costs can affect hyperscalers and enterprise cloud buyers in North America and Asia-Pacific that rely on globally sourced hardware to expand cloud capacity. Segments such as high-performance compute, cloud storage, and networking services may experience cost pressure due to increased capex and hardware procurement delays. However, tariffs are also encouraging regional data center expansion, localized procurement strategies, and supply chain diversification. This is driving demand for resource-efficient virtualization, autoscaling optimization, and cloud-native architectures that reduce hardware dependency while improving performance and cost predictability.

The infrastructure as a service (iaas) public cloud services market research report is one of a series of new reports that provides infrastructure as a service (iaas) public cloud services market statistics, including infrastructure as a service (iaas) public cloud services industry global market size, regional shares, competitors with a infrastructure as a service (iaas) public cloud services market share, detailed infrastructure as a service (iaas) public cloud services market segments, market trends and opportunities, and any further data you may need to thrive in the infrastructure as a service (iaas) public cloud services industry. This infrastructure as a service (iaas) public cloud services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Infrastructure as a service (IaaS) public cloud refers to a computing model in which virtualized resources such as storage, networking, and processing power are delivered over the internet on a pay-as-you-go basis. It allows organizations to scale their digital infrastructure dynamically without owning or maintaining physical hardware. This model provides flexibility, cost efficiency, and faster application deployment across various industries, while supporting innovation by enabling enterprises to experiment, build, and expand without large upfront infrastructure investments.

The key service types of infrastructure as a service (IaaS) public cloud include compute, storage, networking, disaster recovery, and others. Compute services deliver virtual servers and on-demand processing power, while storage and networking provide scalable data management and connectivity across cloud environments. IaaS public cloud services are offered through public, private, and hybrid cloud models and utilize pricing structures such as pay-as-you-go, reserved instances, spot instances, and subscription-based models. These services are deployed across small and medium-sized enterprises as well as large enterprises, with key industry verticals including banking, financial services and insurance (BFSI), healthcare, retail, information technology and telecommunications, government, manufacturing, and others.

The infrastructure as a service (IaaS) public cloud market consists of revenues earned by entities by providing services such as computing, storage, networking, monitoring, security. The market value includes the value of related goods sold by the service provider or included within the service offering. The infrastructure as a service (IaaS) public cloud market also includes sales of servers, data centers, virtualization software, networking equipment, storage devices. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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