GLOBAL INFRASTRUCTURE AS CODE (IAC) MARKET SIZE (2024 - 2030):

The Global Infrastructure as Code (IaC) Market, estimated at USD 0.8 Billion in 2023, is forecasted to reach USD 4.47 Billion by 2030, exhibiting a CAGR of 24.0% during the period from 2024 to 2030.

Infrastructure as Code Market Overview:

The process of managing and provisioning infrastructure through code, rather than manual methods, defines Infrastructure as Code (IaC). This approach simplifies the editing and distribution of configurations by generating configuration files with the user's infrastructure specifications. Consequently, it ensures consistent environments and mitigates haphazard, undocumented configuration changes through the codification and documentation of specifications. Similar to software source code files, configuration files are recommended for source control, as version control forms a critical aspect of IaC. Modularizing infrastructure through IaC allows users to automate the combination of various components. By automating infrastructure provisioning with IaC, developers no longer need to manually oversee servers, operating systems, storage, and other infrastructure elements during application development or deployment.

IaC offers several advantages such as cost reduction, decreased risk of human errors, enhanced consistency, elimination of configuration drift, and improved security strategies. Many regions, particularly in the Asia-Pacific area, are rapidly adopting IaC solutions due to these mentioned benefits. Hence, the Global Infrastructure as Code (IaC) Market is expected to witness a substantial CAGR during the forecast period.

Global Infrastructure as Code (IaC) Market Drivers:

The growth of the global Infrastructure as Code (IaC) market is propelled by the evolution of composable infrastructure.

Features like streamlined operations, scalable resources, and inherent data protection and recovery capabilities are anticipated to drive the adoption of Infrastructure as Code solutions. Currently, the full potential of composable systems is not entirely realized across industries. However, this is expected to change as buyers become more cognizant of the advantages and benefits of these solutions, owing to the efforts of leading infrastructure as code ecosystem companies. Presently, large enterprises are the primary users of infrastructure as code solutions.

The emergence of modern cloud architectures is another factor contributing to the expansion of the global Infrastructure as Code (IaC) market.

Modern cloud architectures offer benefits such as increased innovation, reduced costs, enhanced reliability, and accelerated time to market. However, managing cloud infrastructure has become more complex due to numerous APIs and loosely connected services. This complexity necessitates the use of infrastructure as code as the most effective solution. Infrastructure as code platforms empowers developers with complete control over programming languages, simplifying the management of dependencies in numerous cloud applications. Consequently, this factor is driving the demand for IaC solutions.

Global Infrastructure as Code (IaC) Market Challenges:

The global Infrastructure as Code (IaC) market faces challenges, primarily concerning the shortage of skilled professionals and the risk of human error. Some businesses may hesitate to adopt IaC and DevOps models due to the high level of technical proficiency required, necessary cultural and business practice adjustments, the risks associated with migrating existing solutions, or concerns about the qualifications of their teams.

Global Infrastructure as Code (IaC) Market Opportunities:

The global Infrastructure as Code (IaC) market presents lucrative opportunities through the adoption of DevOps tools and the embrace of IaC by small and medium-sized enterprises (SMEs). Businesses can gradually integrate DevOps capabilities and significantly enhance effectiveness and efficiency through the utilization of DevOps tools. Additionally, Infrastructure of Code (IaC) solutions aid small and medium-sized enterprises (SMEs) in optimizing their IT operations, reducing the likelihood of human error, and cutting costs.

COVID-19 Impact on the Global Infrastructure as Code (IaC) Market:

The outbreak of the COVID-19 pandemic had a substantial impact on the global Infrastructure as Code (IaC) market. Strict lockdowns, travel restrictions, and social distancing measures in numerous countries hindered the manufacturing capacities of many companies and led to a shortage of skilled workers. These disruptions affected the deployment of Infrastructure as Code (IaC) solutions, negatively influencing the market's growth. However, the shift to remote work and online operations by many organizations due to the pandemic-induced restrictions increased the demand for scalable and efficient cloud infrastructure solutions. The industry experienced significant revenue growth due to the rising demand for robust IT infrastructure and the increasing prevalence of virtual collaboration among corporate teams. Consequently, the global Infrastructure as Code (IaC) market encountered both challenges and opportunities during the challenging period of the COVID-19 pandemic.

Global Infrastructure as Code (IaC) Recent Industry Developments:

In March 2023, Ermetic, a provider of cloud infrastructure security solutions, announced enhancements to its Cloud Native Application Protection Platform (CNAPP). These enhancements enable customers to automatically identify and rectify risky or excessive privileges, compliance violations, and misconfigurations in Kubernetes clusters.

In February 2023, Nethopper.io, the pioneer of KAOPS (Kubernetes Application Operations Platform as a Service), expanded its support for CNCF Crossplane. This extension enables the automation of cloud infrastructure provisioning, management, and orchestration, extending the capabilities of Kubernetes clusters.

Global Infrastructure as Code (IaC) Market Segmentation:

By Component:

• Tools
• Services

In 2022, the tools segment secured the leading market share. The surge in market dominance can be accredited to the manifold benefits offered by IaC tools. IaC technologies proffer heightened consistency and swiftness, an optimized software development cycle, and diminished management overhead. Previously, data centers necessitated administrators for computing, storage, networking, and other functions, responsible for supervising and managing the hardware and middleware layers. With IaC, these varied roles are rendered unnecessary, allowing administrators to focus on selecting cutting-edge technologies for forthcoming major projects.

By Infrastructure Type:

• Mutable
• Immutable

The mutable segment held the foremost market share in 2022. Mutable infrastructure denotes the infrastructure that can be modified or altered post initial installation. Development teams can make ad hoc server alterations, for instance, to better align with application or development requirements, or to mitigate critical security risks stemming from unstable infrastructure. The immutable segment is predicted to be the fastest-growing segment during the forecast period.

By Deployment Mode:

• On-Premise
• Cloud

In 2022, the on-premise segment clinched the highest market share. IaC extends beyond merely cloud-based resources, finding application in numerous settings including on-premises environments. It can be employed to configure networking rules for setting up firewalls, Virtual Private Networks (VPNs), and other networking resources. Furthermore, it facilitates the configuration of databases and other storage resources, serving a crucial role in establishing DevOps pipelines for software delivery, configuring Continuous Integration/Continuous Delivery (CI/CD) tools.

By Organization Size:

• Large Enterprises
• Small & Medium Enterprises (SMEs)

The large enterprises segment attained the foremost market share in 2022. The upsurge is attributed to the escalating trend of digitization among large enterprises. Due to their expansive workforces, large enterprises are more susceptible to rising trends in connectivity, mobility, and bandwidth. Moreover, the escalating need for employees to access computing resources and applications from any location at any time has made it arduous for enterprises to efficiently store their data, manage data centers, and focus on core business operations. Large enterprises also generate substantial volumes of critical business data, necessitating the automation of infrastructure for application deployment to expedite operations and curtail human error.

By Industry Vertical:

• Banking, Financial Services, and Insurance (BFSI)
• IT and Telecommunications
• Healthcare
• Government
• Retail
• Manufacturing
• Others

In 2022, the BFSI segment dominated with the highest market share. The growth is ascribed to the escalating demand for IaC solutions within the BFSI sector. Enterprises in BFSI necessitate Infrastructure as Code solutions that autonomously generate requisite code prior to software delivery to mitigate risks. This enables security teams to address vulnerabilities proactively without real-time concerns.

By Region:

• North America
• Europe
• Asia-Pacific
• The Middle East & Africa
• South America

In 2022, North America held the largest slice of the global Infrastructure as Code (IaC) market. The surge in market share is attributed to the mounting adoption of advanced technologies, notably Infrastructure as Code (IaC), alongside the presence of leading cloud service providers in the region. The United States constitutes a significant portion of this market share, boasting a robust supply base that contributes to the nation's burgeoning market. Furthermore, the region hosts numerous prominent market players such as GitLab Inc., HashiCorp Inc., IBM Corporation, CircleCI, Inc., and Amazon Web Services, Inc.

Asia-Pacific is forecasted to emerge as the swiftest-growing region during the projected period. This is owing to the escalating adoption of novel and emerging technologies, encompassing DevOps and cloud computing, by a plethora of SMEs seeking to optimize IT operations and reduce overall costs. Additionally, the region benefits from increased government support in the form of investments and initiatives.

Key Market Players:

1. IBM Corporation (United States)
2. Amazon Web Services, Inc. (United States)
3. HashiCorp Inc. (United States)
4. Red Hat, Inc. (United States)
5. GitLab Inc. (United States)
6. Google LLC (United States)
7. VMware, Inc. (United States)
8. Codefresh, Inc. (United States)
9. CircleCI, Inc. (United States)
10. Microsoft Corporation (United States)