The Infrastructure-as-a-Service (IaaS) market is poised for remarkable growth as the BFSI sector adopts cloud technologies, according to a report by Research and Markets. The market is projected to reach a valuation of $411.9 billion by 2030, reflecting a robust compounded annual growth rate of 22.6% during the years spanning 2023 to 2030.

The report highlights the surge in IaaS adoption across varied sectors with an emphasis on innovation and security. The compute and storage segments are at the forefront of market expansion, with the latter expected to witness the highest growth rate across the forecast horizon. The increasing demand for storage solutions, driven by escalating enterprise data and a unified goal to reduce data center costs, is fueling innovation and investment within this sphere.

One significant trend illuminated in the market study is the migration of the BFSI sector to cloud-based infrastructures, signaling the sector’s digital evolution. However, concerns regarding data security and privacy present tangible barriers to the market’s otherwise meteoric rise.

Enterprises, particularly small and medium-sized businesses, are showing marked interest in IaaS, leveraging benefits such as cost efficiency, fortified security measures, and efficient computing processes to reinvent their operational architectures.

The report also dissects market trends by application and sector. Hosting, storage, backup, and recovery applications are central to the market’s growth, catalyzed by digital transformation and increasing cloud workload transitions. While IT & telecommunications maintain the largest share, retail & e-commerce sectors are rapidly catching up, driving further market expansion.

Key findings in infrastructure deployment and organization size include the dominance of public cloud adoption, the rising prominence of hybrid cloud deployments with anticipated highest CAGR, and the impactful growth stimulation by small & medium-sized enterprises in the IaaS arena.