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Gartner, the world's leading research and advisory firm, announces that the worldwide Infrastructure as a Service (IaaS) market grew by 29.7% in 2022, totaling US$ 120.3 billion, versus US$ 92.8 billion in 2021. Amazon maintained its number 1 position in the IaaS market in 2022, followed by Microsoft, Alibaba, Google and Huawei.

 Sid Nag, Analyst and Vice President at Gartner

Cloud Platforms have been elevated from a technology model to a business disruptor", it says sid nag, analyst and vice president at Gartner. “Infrastructure as a Service is driving the growth of Software as a Service (SaaS) and Platform as a Service (PaaS) as buyers continue to add more applications to the Cloud and modernize current environments.”

“IaaS growth in 2022 was stronger than expected, despite a slight slowdown in Q4 as customers focused on using the full potential of their previously compromised capabilities,” says Nag. “This is expected to continue until mid-2023 and is a natural result of the maturing market. We expect an acceleration in 2024, as there is still room for much future growth ”.

In 2022, the top five IaaS providers accounted for over 80% of the market. Amazon continued to lead the world in IaaS with revenue of US$ 48.1 billion and share of 40%.

Microsoft followed at No. 2 with 21.5% share, achieving over US$ 25B in Public Cloud IaaS revenue during 2022. Its first software strategy continued to support its growth in IaaS as customers demanded more Cloud capability to support process automation, advanced analytics and digital workplace capabilities.

With 7.7% of market share, Alibaba Group again took the third position, even though it achieved a modest growth of 2.4% per year. While Alibaba continues to lead the IaaS market in China, its limited potential for global expansion has slowed its growth, leading to the recent decision to spin off its Alibaba Cloud business into a separate entity.

Google had the highest growth rate of the top five IaaS providers, evolving 41% in 2022 to reach over US$ 9 billion in revenue. Increasing its investment in Sovereign Cloud and expanding marketing and sales partner programs helped grow its customer base and generate additional IaaS revenue.

Huawei rounds out the top five IaaS vendors list with 4.4% of market share and US$ 5.2 billion in revenue for 2022. Since its transformation in 2020 to focus more on Cloud, Huawei has steadily increased its IaaS revenue in China and emerging markets.

"THE Generative Artificial Intelligence will continue to drive the cloud market, particularly as hyperscalers look to support offerings beyond existing, democratized solutions,” says Nag. “As companies integrate the tool into their technology portfolio, new markets and opportunities for hyper cloud climbers will emerge related to sovereignty, ethics, privacy and sustainability🇧🇷

Gartner customers can read more at “Market Share: IT Services, Worldwide, 2022”.

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