The North America Infrastructure-as-a-Service (IaaS) Market is expected to witness market growth of 20.3% CAGR during the forecast period (2024-2031).
The US market dominated the North America Infrastructure-as-a-Service (IaaS) Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $136.83 billion by 2031. The Canada market is experiencing a CAGR of 22.8% during 2024-2031. Additionally, the Mexico market is expected to exhibit a CAGR of 21.9% during 2024-2031.
Infrastructure as a Service, or IaaS, is a cloud computing model and is one of the three primary categories of cloud services, alongside Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). In the IaaS model, cloud service providers deliver fundamental computing resources such as virtual machines (VMs), storage, networking, and computing power on a pay-as-you-go or subscription basis. Unlike traditional IT infrastructure, where businesses own and maintain physical servers and hardware, IaaS enables organizations to rent infrastructure from a cloud provider, eliminating the need for physical hardware management. The infrastructure-as-a-service (IaaS) market has undergone remarkable growth in recent years, becoming one of the most pivotal segments in the rapidly evolving world of cloud computing.
The way businesses grow and maintain their IT infrastructure has been completely transformed by the rise of cloud computing. Before cloud services, companies had to invest in substantial capital expenditures to acquire servers, storage, and networking equipment to support their operations. Maintaining these systems required ongoing costs for hardware upgrades, data center management, and in-house IT staff. However, companies may now transfer the responsibility of managing and owning physical infrastructure because of the development of IaaS. Instead, they can lease these resources from a cloud service provider, paying only for what they use. This shift from capital expenditure (CapEx) to operational expenditure (OpEx) has allowed organizations of all sizes - from startups to enterprises - to scale more efficiently, innovate faster, and focus more on core business operations rather than worrying about the technical complexities of managing hardware.
In Canada, the growth of IaaS is fuelled by government-led digital transformation initiatives and the increasing adoption of big data analytics. Programs like the Digital Charter emphasize the importance of data-driven innovation and secure cloud adoption, encouraging businesses to migrate to scalable IaaS solutions. The healthcare and education sectors are significant contributors to IaaS growth, with institutions using cloud infrastructure for research, data storage, and online services. For example, Shopify, a leading e-commerce platform headquartered in Canada, uses AWS to handle large-scale traffic and streamline its operations, reflecting the nation’s focus on cloud-driven business models. Thus, the regional market is expected to grow rapidly owing to all these factors.
The US market dominated the North America Infrastructure-as-a-Service (IaaS) Market by country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of $136.83 billion by 2031. The Canada market is experiencing a CAGR of 22.8% during 2024-2031. Additionally, the Mexico market is expected to exhibit a CAGR of 21.9% during 2024-2031.
Infrastructure as a Service, or IaaS, is a cloud computing model and is one of the three primary categories of cloud services, alongside Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). In the IaaS model, cloud service providers deliver fundamental computing resources such as virtual machines (VMs), storage, networking, and computing power on a pay-as-you-go or subscription basis. Unlike traditional IT infrastructure, where businesses own and maintain physical servers and hardware, IaaS enables organizations to rent infrastructure from a cloud provider, eliminating the need for physical hardware management. The infrastructure-as-a-service (IaaS) market has undergone remarkable growth in recent years, becoming one of the most pivotal segments in the rapidly evolving world of cloud computing.
The way businesses grow and maintain their IT infrastructure has been completely transformed by the rise of cloud computing. Before cloud services, companies had to invest in substantial capital expenditures to acquire servers, storage, and networking equipment to support their operations. Maintaining these systems required ongoing costs for hardware upgrades, data center management, and in-house IT staff. However, companies may now transfer the responsibility of managing and owning physical infrastructure because of the development of IaaS. Instead, they can lease these resources from a cloud service provider, paying only for what they use. This shift from capital expenditure (CapEx) to operational expenditure (OpEx) has allowed organizations of all sizes - from startups to enterprises - to scale more efficiently, innovate faster, and focus more on core business operations rather than worrying about the technical complexities of managing hardware.
In Canada, the growth of IaaS is fuelled by government-led digital transformation initiatives and the increasing adoption of big data analytics. Programs like the Digital Charter emphasize the importance of data-driven innovation and secure cloud adoption, encouraging businesses to migrate to scalable IaaS solutions. The healthcare and education sectors are significant contributors to IaaS growth, with institutions using cloud infrastructure for research, data storage, and online services. For example, Shopify, a leading e-commerce platform headquartered in Canada, uses AWS to handle large-scale traffic and streamline its operations, reflecting the nation’s focus on cloud-driven business models. Thus, the regional market is expected to grow rapidly owing to all these factors.
List of Key Companies Profiled
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Microsoft Corporation
- IBM Corporation
- Google LLC (Alphabet Inc.)
- VMware, Inc. (Broadcom Inc.)
- Cisco Systems, Inc.
- Fujitsu Limited
- Oracle Corporation
- Alibaba Cloud (Alibaba Group Holding Limited)
- Akamai Technologies, Inc.
Market Report Segmentation
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By Component
- Computing
- Networking
- Storage
- Other Component
By Deployment
- Public Cloud
- Private Cloud
- Hybrid Cloud
By Industry Vertical
- BFSI
- IT & Telecom
- Retail & E-commerce
- Healthcare
- Manufacturing
- Education
- Other Industry Vertical
By Country
- US
- Canada
- Mexico
- Rest of North America
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. North America Infrastructure-as-a-Service (IaaS) Market by Enterprise Size
Chapter 6. North America Infrastructure-as-a-Service (IaaS) Market by Component
Chapter 7. North America Infrastructure-as-a-Service (IaaS) Market by Deployment
Chapter 8. North America Infrastructure-as-a-Service (IaaS) Market by Industry Vertical
Chapter 9. North America Infrastructure-as-a-Service (IaaS) Market by Country
Chapter 10. Company Profiles
Companies Mentioned
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- Microsoft Corporation
- IBM Corporation
- Google LLC (Alphabet Inc.)
- VMware, Inc. (Broadcom Inc.)
- Cisco Systems, Inc.
- Fujitsu Limited
- Oracle Corporation
- Alibaba Cloud (Alibaba Group Holding Limited)
- Akamai Technologies, Inc.
Methodology
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