IaaS revenue to reach $39 billion across APAC
Infrastructure as a service revenue across the Asia Pacific region is set to grow at a rate of 11.2% during 2019-2024, according to new forecasts from GlobalData.
The data and analytics company says the market is expected to reach to reach US$39.3bn in 2024.
"The Asia-Pacific (APAC) region continues to be a vibrant market for infrastructure as a service (IaaS) space, owing to the growing demand for the cloud infrastructure services among enterprises," GlobalData says.
"Increased government spending to modernise the existing IT infrastructure and agrowing shift towards server virtualisation are the major factors likely to boost the growth of the IaaS market in the region," says Anshuma Singh, rechnology analyst at GlobalData.
According to the analyst company's Market Opportunity Forecasts Model, IaaS will be the fastest-growing segment during the forecast period.
It accounted for approximately 21% of the total cloud computing revenue in 2019 in the region, it says. China, Japan, India, Australia and South Korea will be the five largest IaaS markets within the Asia Pacific region, together accounting for more than 80% of the overall market share by 2024.
According to the forecasts, government initiatives are expected to propel the development of the cloud services market in the region either directly or indirectly in line with other digitalisation initiatives such as Digital India campaign in India and Cloud-First Strategy by Malaysia.
IaaS vendors are also focusing on strategic partnerships with the local and global telecom service providers to expand their presence in the region, GlobalData says. For instance, Amazon introduced Amazon Web Services (AWS) Wavelength for telecom operators.
Leading telcos including Vodafone, KDDI, SK Telecom and Verizon partnered with AWS to develop edge computing services on 5G networks across Europe, Japan and South Korea, the analyst firm explains. In 2019, Alibaba Cloud partnered with ZNet Technologies Private Limited (an India-based cloud service distributor) to strengthen its presence in India.
Singh says maintaining and owning a data centre is expensive and complicated.
"Against this backdrop, IaaS has emerged as a universal technology in the cloud environment," he says.
"This will encourage businesses to implement cloud infrastructure services within their premise to reduce operating costs and enhance productivity," explains Singh.
Comments provided by Anshuma Singh, Technology Analyst at GlobalData Information based on GlobalDatas Market Opportunity Forecasts Model GlobalData Market Opportunity Forecasts Model provides revenue opportunity forecasts for 15 IT solutions for the period 2019-2024, spanning 43 geographical markets, six regions, 22 verticals and two size bands.
The report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData.