Infrastructure as Code Market Size, Share, and Trends Analysis, By Component (Tools, Services), By Type (Imperative IaC, Declarative IaC), By Infrastructure (Mutable IaC, Immutable IaC), By Deployment (Cloud, On-Premises), By End-Use (IT & Telecommunication, BFSI, Healthcare, Retail, Others), and By Region, Forecast 2025-2032

Infrastructure as Code Market Overview and Key Insights:

The global infrastructure as code market reached USD 934.6 million in 2024 and is expected to register a revenue CAGR of 23.7% during the forecast period. Rising adoption of cloud-native architectures, increasing demand for better optimization of business operations, rise of DevOps practices, and increasing shift towards microservices architecture are expected to drive revenue growth of the market.

Market Drivers:

Rising adoption of cloud-native architectures is the major factor driving revenue growth of the market. According to recent projections, 90% of organizations are expected to adopt a hybrid cloud strategy by 2027. This trend underscores the increasing need for businesses to enhance their hybrid cloud capabilities, particularly to support the growing deployment of Generative AI workloads. Cloud-native systems require highly automated, scalable, and flexible infrastructure provisioning. IaC provides this by allowing infrastructure to be defined and managed through code. It makes deployments faster, more consistent, and easily repeatable.  The demand for IaC tools that support automated infrastructure lifecycle management continues to grow as more enterprises migrate to multi-cloud and hybrid cloud environments to boost agility and innovation.

In November 2024, Techstrong Group introduced PlatformEngineering.com, a new platform created specifically for the rapidly expanding platform engineering community. This latest initiative is designed to serve as a central hub for news, trends, and insights in the platform engineering space. The site will highlight how platform engineering supports cloud-native application development through self-service platforms, automated workflows, and resilient infrastructure solutions. This type of innovation is translating into increased spending on IaC solutions as organizations seek to scale their development operations with automation, standardization, and governance.

Market Opportunity:

integration of AI and ML workflows is creating significant opportunities for the market by driving demand for dynamic, scalable, and automated infrastructure management. AI and ML models require highly flexible and high-performance environments for training, testing, and deployment. They need rapid scaling across cloud and on-premises resources. IaC allows organizations to automate the provisioning and management of these complex environments. It ensures consistency, speed, and resource optimization.

According to Google, over 25% of its newly developed code is now generated with the help of Artificial Intelligence (AI). The use of AI in coding has significantly improved productivity and operational efficiency. The company has restructured its operations by bringing together its research teams, machine learning infrastructure groups, and developer teams to foster greater collaboration and integration. As enterprises invest more heavily in AI/ML capabilities, the need for intelligent, automated infrastructure provisioning through IaC will continue to expand and drive revenue growth of the market.

Recent Trends:

One recent trend in the infrastructure as code market is the growing adoption of GitOps for Infrastructure Management. GitOps leverages Git repositories as the single source of truth for both application and infrastructure configurations. It helps organizations to manage and automate infrastructure deployments through familiar Git workflows. This approach enhances consistency, version control, and traceability, allowing teams to easily track changes, perform rollbacks, and enforce compliance.

In May 2024, OpsMill, a leader in infrastructure and network automation, announced the beta launch of its open-source platform, Infrahub. This platform consolidates various previously separate automation functions into one unified solution. It allows IT teams to automate and manage data center, cloud, network, and security operations in a scalable and user-friendly way. Infrahub is the first platform to integrate the GitOps Infrastructure-as-Code methodology with a flexible, structured data model. It provides a powerful new approach to infrastructure automation.

Restraints & Challenges:

Complexity of implementation and the steep learning curve represent a significant barrier to the revenue growth of the infrastructure as code market. Deploying IaC solutions requires a deep understanding of coding, cloud platforms, configuration management, and version control systems, which can be challenging for organizations with limited technical expertise or smaller IT teams.  Additionally, transitioning from traditional infrastructure management to a fully automated code-driven approach demands substantial changes in processes, tooling, and team skillsets.  As a result, many organizations, particularly small and medium-sized enterprises, are hesitant to fully invest in IaC solutions. It is slowing down the overall expansion and restraining revenue growth of the market.

Component Segment Insights and Analysis:

Based on the component, the infrastructure as code market is segmented into tools and services. Tools segment is further sub-segmented into configuration orchestration tools, configuration management tools, infrastructure provisioning tools, and others. Services segment is further sub-segmented into consulting, integration and deployment, support and maintenance, and training and education.

Tools segment accounted for largest revenue share in 2024 due to the increasing demand for automation, scalability, and operational efficiency in IT infrastructure management. Organizations across industries are rapidly adopting IaC tools to streamline the provisioning, configuration, and management of complex infrastructures. It reduces manual errors and accelerates deployment timelines. The growing shift toward cloud-native applications, DevOps practices, and multi-cloud environments has further amplified the need for advanced IaC tools.

In January 2025, Tacton, a global leader in Configure, Price, Quote (CPQ) software and a prominent SaaS platform, announced the launch of its new Connect to Anything integration feature. Powered by Workato, a leading enterprise orchestration platform, this solution revolutionizes the way manufacturers integrate Tacton CPQ within their digital ecosystems, offering seamless connectivity to more than 600 enterprise applications, including CRM, ERP, PLM, PIM, and analytics tools. The introduction of advanced integration capabilities is driving revenue growth of this segment by addressing a critical need for seamless, automated interoperability across diverse enterprise systems. This drives greater adoption of IaC tools among enterprises seeking to modernize and optimize their IT operations.

Type Segment Insights and Analysis:

Based on type, the infrastructure as code market is segmented into Imperative IaC and Declarative IaC.

Declarative IaC segment contributed the largest share in 2024 due to its ability to simplify infrastructure management by allowing users to define the desired end-state of systems, rather than specifying step-by-step instructions. This approach increases operational efficiency, reduces the risk of configuration errors, and improves system consistency. It has high demand among enterprises adopting DevOps, cloud-native architectures, and multi-cloud strategies. The evolution toward declarative models was led by tools like Terraform and AWS CloudFormation. Instead of detailing procedural steps, users defined the desired infrastructure state through configuration files, while the tools automated the necessary actions to achieve it. Terraform introduced state files for resource tracking and scalability, while CloudFormation used JSON or YAML templates to manage AWS resources declaratively. Both effectively addressed the limitations of earlier imperative approaches.

Modern tools like Terraform CDK and Pulumi have also gained strong traction among engineers by enabling them to write Infrastructure as Code using familiar programming languages such as Python, TypeScript, and Go. While this approach initially appears to revert to an imperative style, these tools ultimately produce declarative outputs, like Terraform plans or CloudFormation templates. It defines the desired infrastructure state. This blending of programming familiarity with declarative outcomes is significantly enhancing the adoption of declarative IaC models and drives revenue growth of this segment.

Infrastructure Segment Insights and Analysis:

Based on infrastructure, the infrastructure as code market is segmented into mutable IaC and immutable IaC.

Immutable IaC segment contributed the largest share in 2024 due to rising demand for more secure, stable, and predictable infrastructure deployments. Immutable IaC ensures that once an infrastructure environment is deployed, it remains unchanged. Any updates or modifications require redeploying a new version rather than altering the existing one. For example, Heroku serves as a developer-friendly platform for application deployment and offers an accessible entry point into immutable infrastructure practices. For each application deployed, developers select a specific runtime version, which remains unchanged throughout the application’s lifecycle unless it must be updated or retired due to support or security requirements.

Mutable IaC segment is expected to register a fast revenue growth rate during the forecast period due to increasing demand for agility among organizations to support continuous integration and delivery (CI/CD) pipelines. Mutable IaC has the flexibility and adaptability in managing dynamic infrastructure environments where real-time changes and quick updates are critical. It allows infrastructure configurations to be modified directly without the need to redeploy the entire system, which is particularly valuable for organizations operating in fast-paced development, testing, and staging environments.

 Geographical Outlook:

Infrastructure as code market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamic. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different region and countries.

North America Infrastructure as Code Market:

Market in North America accounted for largest revenue share in 2024 due to the strong emphasis on digital transformation, cloud adoption, and automation in the region, especially in U.S. and Canada.  According to a survey, nearly 40% of employees in the United States reported using some form of automated management at their workplace. Among them, 34% experienced automated schedule assignments, while 32.4% had their tasks allocated through automated systems. IaC solutions have become essential in automating and managing complex infrastructure deployments as organizations in North America increasingly prioritize operational efficiency, scalability, and cost-effectiveness.

 The rise of DevOps practices in the region has further accelerated the demand for IaC tools that enable rapid provisioning, configuration, and management of cloud infrastructure.  In March 2025, JFrog Ltd, the U.S.-based Liquid Software company, launched JFrog ML. It is a groundbreaking MLOps solution integrated into the JFrog Platform. JFrog ML leverages JFrog Artifactory as its preferred model registry and JFrog Xray for scanning and securing ML models. It enhances user efficiency and streamlines workflows by offering a unified platform experience for DevOps, DevSecOps, and MLOps. This shift toward automating and managing complex infrastructure at scale drives revenue growth of the market in this region.

Asia Pacific Infrastructure as Code Market:

Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to the rapid digital transformation initiatives across various industries, including manufacturing, finance, healthcare, and telecommunications. The demand for automated infrastructure management solutions has surged as organizations in this region increasingly migrate to cloud environments. In February 2025, Chinese technology giant Alibaba announced that it plans to invest over USD 50 billion in artificial intelligence and cloud computing over the next three years. The investment in AI and cloud computing accelerates the digital transformation of enterprises and drives revenue growth of the market in this region.

In addition, Government policies and investments in technological infrastructure in countries such as India, China, and Japan are also supporting the revenue growth of the IaC market. In April 2024, Microsoft announced plans to invest USD 2.9 billion over the next two years to expand its hyperscale cloud computing and AI infrastructure in Japan. The investment in AI and cloud computing in the region strengthens the demand for scalable, secure, and automated infrastructure management and drives revenue growth of the market.

Europe Infrastructure as Code Market:

Market in Europe accounted for a significant revenue share in 2024 especially in U.K., Germany, Spain and France. European enterprises are prioritizing automation, scalability, and security to remain competitive. It has heightened the demand for IaC solutions that streamline infrastructure management and deployment. Moreover, the growing emphasis on regulatory compliance, data protection regulations like GDPR, and cybersecurity has heightened the importance of the automation and consistency provided by Infrastructure as Code (IaC) tools.

In March 2025, Oracle announced plans to invest 5 billion over the next five years to expand its data center operations in the UK, aiming to meet growing domestic demand for cloud computing and Artificial Intelligence (AI) services. This initiative aligns with regulations requiring sovereign, in-country data processing and supports the UK government’s national AI strategy. Oracle’s investment is expected to further enhance cloud infrastructure. It is expected to increase the adoption of IaC tools and drive revenue growth of the market in this region.

Competition Analysis:

The Infrastructure as Code market is characterized by a consolidated structure, with few players competing across various segments and regions. List of major players included in the Infrastructure as Code market report are:

• Microsoft Corporation
• Google LLC
• Amazon Web Services, Inc.
• Snyk Limited
• HashiCorp (IBM)
• Zscaler, Inc.
• Pulumi Corporation
• Spacelift, Inc
• Vmware (Broadcom)
• Cisco Systems Inc.
• GitLab
• Scalr
• SentinelOne
• Rackspace Technology

Strategic Developments in Infrastructure as Code Market:

• On 27 February 2025, IBM announced the completion of its acquisition of HashiCorp. It is a company known for automating and securing the infrastructure supporting hybrid cloud applications and generative AI. The combined strengths of both organizations are expected to help clients drive innovation, enhance security, and maximize the value of their cloud investments. For over a decade, HashiCorp has supported some of the world’s largest enterprises in navigating hybrid and multi-cloud environments, actively contributing to the evolution and transformation of the cloud landscape.
• On 25 September 2024, System Initiative has officially launched its groundbreaking DevOps automation technology, offering a user-friendly, powerful, and collaborative solution that reimagines and goes beyond traditional Infrastructure as Code. This innovative SaaS platform lays the groundwork for transformative advancements across the enterprise tech ecosystem. It is now accessible to DevOps engineers globally, featuring a generous free tier, straightforward usage-based pricing, and support from an inclusive open-source community.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Infrastructure as Code Market Report:

 The Infrastructure as Code market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• Component Outlook (Revenue, USD Million; 2022-2032)
  • Tools
    • Configuration Orchestration Tools
    • Configuration Management Tools
    • Infrastructure Provisioning Tools
    • Others
  • Services
    • Consulting
    • Integration and Deployment
    • Support and Maintenance
    • Training and Education

• Type Outlook (Revenue, USD Million; 2022-2032)
  • Imperative IaC
  • Declarative IaC

• Infrastructure Outlook (Revenue, USD Million; 2022-2032)
  • Mutable IaC
  • Immutable IaC

• Deployment Outlook (Revenue, USD Million; 2022-2032)
  • Cloud
    • Public Cloud
    • Private Cloud
    • Hybrid Cloud
  • On-Premises

• End-Use Outlook (Revenue, USD Million; 2022-2032)
  • IT & Telecommunication
  • Banking, Financial Services, and Insurance (BFSI)
  • Healthcare
  • Retail
  • Government
  • Manufacturing
  • Energy and Utilities
  • Others

• Regional Outlook (Revenue, USD Million; 2022-2032)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey
    • Rest of MEA

Frequently Asked Questions (FAQ) about the Infrastructure as Code Market Report