Infrastructure as Code Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud-based and On-premises), By Infrastructure Type (Mutable Infrastructure and Immutable Infrastructure), By Approach (Imperative and Declarative), By End-user (BFSI, Retail, Government, Manufacturing, IT & Telecom, Healthcare, and Others), and Regional Forecast, 2023-2030

The global infrastructure as code market size was valued at USD 759.1 million in 2022. The market is projected to grow from USD 908.7 million in 2023 to USD 3,304.9 million by 2030, exhibiting a CAGR of 20.3% during the forecast period.

Infrastructure as Code (IaC) is the process of managing and deploying computing data centers through machine-readable definition files rather than physical hardware configurations or interactive configuration tools. IaC significantly reduces human intervention in various infrastructure operations. It is used to automate infrastructure configuration processes by reducing manual efforts and aims to optimize spending by adjusting infrastructure requirements. IaC is driven by principles of application development to bring development in physical, virtual, and cloud infrastructure.

IaC is the process of using code to manage IT infrastructure, which includes networks, servers, and databases. Most importantly, IaC provides a transparent and easy-to-read layout of infrastructure. It has changed the way enterprises design and build their IT infrastructure cost-effectively and competitively. IaC helps businesses manage their IT infrastructure needs while improving consistency and reducing errors and manual configuration.

COVID-19 IMPACT

Increase in Remote Work Culture Trend During Pandemic Boosted Market Growth

The COVID-19 pandemic had a devastating impact on many economies across the globe. The pandemic disrupted supply chains and the distribution of goods and services and severely impacted the adoption of IaC solutions. Amid the global pandemic, digital technology became a key enabler of connectivity along with increased spending on the development of IT infrastructure to optimize the organization’s resources, including physical and cloud infrastructure.

The rise in organizational work-from-home operating models during the pandemic enabled the migration of assets to cloud platforms to drive the productivity of the business. According to a survey conducted by IT & engineering leaders, 74% of respondents agreed that infrastructure automation has helped their workforce to work effectively.

The remote work culture generates the need for infrastructure automation among different industry verticals for automating infrastructure operations and reducing operating time. This factor created the demand for IaC tools to automate the infrastructure in an efficient and scalable way during the pandemic.

LATEST TRENDS

Integration of AI technology with IaC Tools for Automated Deployment of Code to Boost Market Growth

The rising integration of Artificial Intelligence (AI) technology with infrastructure as code eliminates the need for manual coding. It allows users to create and update their infrastructure easily via the command line. According to research, by 2025, half of the decisions regarding cloud infrastructure will be automated by using artificial intelligence and Machine Learning (ML) technologies.

For instance,

• In December 2022, Firefly launched a new Artificial Intelligence Infrastructure-as-Code Generator (AIaC) based on OpenAI’s ChatGPT Large Language Model (LLM) to generate the IaC code templates using natural language.

Integrating AI and ML technologies helps to raise operational efficiency, simplify processes, and drive digital transformation among enterprises. The AI-integrated IaC tools can incorporate continuous integration and continuous delivery of CI/CD pipelines, which allows for automated building, testing, and deployment of code. Hence, the integration of AI technology with IaC tools aims to automate the code, which is expected to drive the infrastructure as code market growth.

DRIVING FACTORS

Surge in Demand for IaC Tools for Managing Multi-cloud Infrastructure to Drive Market Growth

Managing the multi-cloud infrastructure involves IaC tools, such as Terraform and CloudFormation, which help deploy various resources across different cloud providers consistently. It also helps to reduce the risks and errors by modifying the code to automate the configuration processes and to standardize the multi-cloud deployments. The use of IaC tools in multi-cloud infrastructure helps improve network visibility and update server status.

For instance,  

• In October 2023, HashiCorp, Inc., a multi-cloud infrastructure automation software provider, declared that it focuses on strengthening the cloud platform by adding new capabilities into its infrastructure portfolio for end-to-end workflow automation and lifecycle management of the entire infrastructure.

IaC allows the organization’s infrastructure configuration to be automatically standardized and scaled. IaC tools can also be used as real-time monitoring solutions across an organization's entire IT infrastructure. The organization's increasing focus is on managing security monitoring solutions and automating compliance by reducing deployment issues to drive the market during the forecast period.

Hence, the integration of IaC tools with multi-cloud infrastructure drives the market growth during the forecast period.

RESTRAINING FACTORS

Complexity in Managing Code-Driven Architecture Hinders Market Growth

The traditional IT infrastructure of organizations needs multiple code repositories and specialized platforms and tools to manage and maintain automated infrastructure operations. Despite the growing popularity of the IaC tools, organizations may face challenges in transitioning the manual infrastructure management process to a code-driven automated process. This factor has a huge impact on the existing workflows, and it may reduce the productivity of the business operation.

Furthermore, the inadequate knowledge about handling the multi-tiered complex architecture of large enterprises creates resistance to the integration of new technologies. This factor generates risks and creates vulnerability issues while managing the code-driven infrastructure configuration of the organization.

Hence, the complexity of managing code-driven architecture restricts market growth.

SEGMENTATION

By Deployment Analysis

Rising Need to Manage Cloud-based Infrastructure via Template Files to Boost Cloud-based Segment Growth

Based on deployment, the market is divided into cloud-based and on-premises.

Among these, the cloud-based segment is projected to grow with the highest CAGR over the projected period. The segment’s growth is estimated due to the fact that IaC tools can be integrated with cloud-based infrastructure to manage cloud management actions, such as configuration and provision of the cloud infrastructure components. As cloud deployments can be managed through template files rather than manual IT interaction, it significantly reduces the IT processing time and provides continuous monitoring.

Moreover, the need for hardware for installing the on-premise infrastructure requires high investment in installing physical servers and other components to manage the infrastructure operations of the business.

Hence, demand for the adoption of cloud-based IaC tools is high compared to on-premises tools during the forecast period.

By Infrastructure Type Analysis

Redeployment of Infrastructure Automation System Surge the Demand for Immutable Infrastructure Segment Growth

Based on infrastructure type, the market is divided into mutable infrastructure and immutable infrastructure.

The immutable infrastructure segment held the largest market share in 2022. The dominance is attributed to the occurrence of various IT-related instances where the infrastructure automation system is being redeployed rather than restored from multiple unique configurations and versions. It also helps to improve the uptime in unexpected events. It is easy to troubleshoot as compared to the mutable infrastructure. Immutable infrastructure is a type of infrastructure that helps to manage and deploy the software & services on IT resources and completely replaces components rather than changing and upgrading.

The mutable infrastructure segment is anticipated to grow with the highest CAGR during the estimated period as it allows the upgrade or downgrade of the server at each point by diagnosing the problems in the infrastructure. It helps resolve emergency security issues and assists in fulfilling various application requirements. As each server is unique, it is difficult to configure as it consumes more time to fix the error. Thus, the adoption of mutable infrastructure is low as compared to immutable infrastructure.

By Approach Analysis

Automating DevOps Infrastructure by Using Repeatable Coding to Boost the Demand for Declarative Approach

By approach, the market is divided into imperative and declarative.

The declarative segment holds the largest share of the market and is expected to grow with the highest CAGR over the projected period. The segment leads as most companies prefer to use a declarative approach, make slow changes in the infrastructure as per the need and also describe the problems more briefly than the imperative approach. This approach uses a highly repeatable programming language to get the desired end-state. Moreover, it is able to automate the company’s DevOps infrastructure without years of coding experience.

The imperative programming approach requires a lot of programming knowledge to control every step of the process. Thus, the explicitness of an error at a single step can cause the failure of the entire process.

By End-user Analysis

Rising Need for Next-Generation Computing Capabilities in IT & Telecom Industry to Drive Market Growth

Based on end-user, the market is segmented into BFSI, retail, government, manufacturing, IT & telecom, healthcare, and others.

The IT & telecom segment holds the largest market share among these industries and is projected to grow with a high CAGR during the forecast period. The integration of advanced digital technologies to deliver next-generation computing and networking capabilities to improve operational efficiency across the multi-cloud environment boosts users' demand for IaC tools. Integration of cloud technologies to improve the inventory management and procurement functions of the retail & e-commerce sector boosts the demand for the market.

The BFSI segment is estimated to grow with the second highest CAGR over the projected timeframe due to rising demand for security and compliance capabilities to deliver better customer experience. The usage of IaC tools, such as Terraform, accelerates the digital transformation for banks and other financial service providers to capitalize on new market opportunities across the globe. It enhances operational efficiency and provides security to the systems by using zero-trust security tools.

REGIONAL INSIGHTS

The global market regions are segmented as North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America held the largest infrastructure as code market share in 2022 due to the presence of a large number of infrastructure as code tool providers across the region. Rising ICT spending on digitalizing the infrastructure management operations of different industries to automate the IT functions and boost the productivity of companies. The presence of a large number of data centers in the U.S. and Mexico generates demand for the adoption of IaC tools to bring automation by improving the speed and agility of businesses. These are the key factors that drive market growth.

Asia Pacific is projected to grow with the highest CAGR during the projected period due to increasing spending on cloud computing and artificial intelligence in China and India. According to the National Association of Software and Service Companies (NASSCOM), the Information Technology and Business Process Management (IT-BPM) sector contributed around 8% of India’s GDP (Gross Domestic Product) in the fiscal year 2020-21. Furthermore, growing investments in small and medium-sized companies of different industries to build advanced cloud infrastructure boost the demand for IaC tools. These factors are responsible for the increase in the adoption of infrastructure as code tools in the region.

Europe is expected to hold a significant CAGR during the forecast period due to the increasing adoption of end-to-end infrastructure automation platforms among different industry verticals. According to research, 46.5% of service provider German companies are currently using cloud computing technology for their business processes, and 11.1% are planning to adopt it to improve business operations. Thus, the adoption of cloud computing technology among European companies shows the development of modern IT infrastructure to optimize their business processes.

The Middle East & Africa is in a growing phase due to increasing government investments in bringing digital transformation in infrastructure development across various industries.

• For instance, in May 2021, Amazon Web Services (AWS) developed its first data center in Bahrain to deliver cloud computing services to users across the GCC region. Thus, the newly launched data center accelerates the adoption of cloud computing services in Bahrain and other countries across the GCC region.

Similarly, South America is estimated to grow with the third leading CAGR over the projected period. The growth is attributed to the rising investments by enterprises in developing multi-cloud environments to fulfill the demands generated by customers to bring agility and efficiency across the IT infrastructure.

KEY INDUSTRY PLAYERS

Increasing Investments in Partnerships by Major Players to Fuel Market Growth

Leading companies are making partnerships to boost advancements in infrastructure as code solutions to improve their supply chain operations. Innovations in the product portfolio are supporting key players to maintain their competitive edge. These players are also concentrating on strategic partnerships, acquisitions, product launches, and collaborations to increase their business and distribution network to boost their market revenue.

• March 2023 - env0, an Israeli infrastructure as code automation software provider, raised USD 18.1 million in series A funding. This funding is used to provide frictionless access to the self-service infrastructure environments and resources.

LIST OF KEY COMPANIES PROFILED:

• Microsoft Corporation (U.S.)


• HashiCorp, Inc. (U.S.)


• Snyk Limited (U.S.)


• Cisco Systems, Inc. (U.S.)


• Amazon Web Services, Inc. (U.S.)


• Zscaler, Inc.  (U.S.)


• Progress Software Corporation (Chef) (U.S.)


• Red Hat, Inc. (U.S.)


• Pulumi Corporation (U.S.)


• Hewlett Packard Enterprise Development LP (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Pulumi Corporation raised USD 41 million in funding to develop infrastructure-as-code automation in the cloud to accelerate innovation in its open-source platform. Pulumi will use this investment to innovate its open-source platform to provide easy access to cloud infrastructure to every user.


• May 2023: Klotho launched InfraCopilot, an advanced infrastructure-as-code editor tool with Natural Language Processing (NLP) processing capabilities to design and modify the cloud infrastructure. It also helps to deliver a simple interface accessible by developers to bring high-level and low-level architecture changes.


• April 2023: Pulumi Corporation, a growing infrastructure as code tool provider, launched Pulumi Insights, an intelligent infrastructure as code product to help companies for analyzing cloud infrastructure resources. It enables new AI-driven capabilities to bring infrastructure automation to boost the productivity of the business.


• February 2023: Red Hat, Inc., an open-source solution provider, introduced the Ansible Automation Platform on Google Cloud. It enables rapid cloud automation for managing the IT ecosystems and provides high-quality applications for better innovations.


• June 2022: HashiCorp, Inc. added new drift detection capabilities in HashiCorp Terraform to help organizations reduce risks and downtime and to provide agility and visibility of the infrastructure operations.

REPORT COVERAGE

The infrastructure as code market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key end-user developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2017-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2017-2021
Growth Rate	CAGR of 20.3% from 2023 to 2030
Unit	Value (USD Million)
Segmentation	By Deployment Cloud-based On-premises By Infrastructure Type Mutable Infrastructure Immutable Infrastructure By Approach Imperative Declarative By End-user BFSI Retail Government Manufacturing IT & Telecom Healthcare Others (Energy & Utilities) By Region North America (By Deployment, Infrastructure Type, Approach, End-user, and Country) U.S. (By End-user) Canada (By End-user) Mexico (By End-user) Europe (By Deployment, Infrastructure Type, Approach, End-user, and Country) U.K. (By End-user) Germany (By End-user) France (By End-user) Italy (By End-user) Spain (By End-user) Russia (By End-user) Benelux (By End-user) Nordics (By End-user) Rest of Europe Asia Pacific (By Deployment, Infrastructure Type, Approach, End-user, and Country) China (By End-user) Japan (By End-user) India (By End-user) South Korea (By End-user) ASEAN (By End-user) Oceania (By End-user) Rest of Asia Pacific Middle East & Africa (By Deployment, Infrastructure Type, Approach, End-user, and Country) Turkey (By End-user) Israel (By End-user) GCC (By End-user) North Africa (By End-user) South Africa (By End-user) Rest of the Middle East & Africa South America (By Deployment, Infrastructure Type, Approach, End-user, and Country) Brazil (By End-user) Argentina (By End-user) Rest of South America