The worldwide infrastructure as a service (IaaS) market experienced significant growth in 2023, expanding by 16.2% to reach a total of $140 billion, up from $120 billion in 2022, according to Gartner, Inc.
Amazon maintained its leading position in the IaaS market in 2023, followed by Microsoft, Google, Alibaba, and Huawei.
Cloud technologies continue to be a major business disruptor, due in part to the focus on hyper scalers looking to support offerings related to sovereignty, ethics, privacy, and sustainability,
said Sid Nag, VP Analyst at Gartner.
This should continue to drive exponential growth into the future with these offerings being spurred by generative AI (GenAI) investments for 2024 and beyond.
In 2023, the top five IaaS providers dominated the market, accounting for 82% of the total market share. Amazon led the global IaaS market with a revenue of $54.6 billion and a 39% market share. Microsoft followed with a 23% market share. Google, with a growth rate of 26.3% in 2023, moved into the third position, capturing 8.2% of the market share. Alibaba held the fourth spot with 7.9% of the market.
As the top hyper scalers continue to grow their IaaS offerings in the shadow of GenAI, we should also see other areas, such as software-as-a-service (SaaS) and platform-as-a-service (PaaS), grow as well. IaaS is the tide that lifts all boats,
said, Nag.
While GenAI is beginning to impact the growth of cloud markets, AI-driven growth in 2023 remained relatively small. However, investments in generative AI are expected to significantly boost cloud offerings in the coming years.
The rapid growth of the IaaS market reflects the increasing reliance on cloud technologies across various sectors. The focus on hyperscalers, companies that provide large-scale cloud services, underscores the importance of cloud infrastructure in supporting modern business needs related to data sovereignty, ethical considerations, privacy, and sustainability.
Overall, the IaaS market's impressive growth trajectory highlights the pivotal role of cloud technologies in driving digital transformation and innovation. As generative AI and other advanced technologies continue to evolve, the market is poised for even greater expansion, further solidifying the dominance of leading providers like Amazon, Microsoft, and Google.
News Source: Emirates News Agency
