The increasing demand for efficient resource allocation is a major driver of Integration Platform as a service market expansion. Companies are using private clouds for important tasks and turning to public clouds for cost efficiency and the ability to easily expand.

As companies progress in their digital transformation efforts, it is crucial to integrate older systems with new cloud applications, which in turn drives the increased use of iPaaS. The shift towards hybrid and multi-cloud configurations is driven by the need for improved business flexibility, strong security, and smooth operations on various cloud services.

Global Market Insights Inc. predicts that the iPaaS Market will exceed USD 128.9 billion by 2032. The increasing trend of combining on-premises systems with public and private clouds and using various services from different providers makes managing data and applications across these environments more challenging. The demand for iPaaS solutions, which simplify integration processes, has been greatly increased.

The market for integration platform as a service is divided by services such as cloud service orchestration, data transformation, API management, data integration, and application integration. By 2032, the market for cloud service orchestration is projected to surpass USD 39 billion after representing more than 32% in 2023. With the rise in adoption of hybrid and multi-cloud models by businesses, there is a growing need for tools to effectively manage, integrate, and optimize different cloud services.

The iPaaS market is categorized into industries like healthcare, BFSI, education, government, and manufacturing. In 2023, approximately 27% of the market share was dominated by the BFSI sector due to the demand for real-time data processing and integration among various systems. The financial sector, dealing with a large volume of confidential data, depends on iPaaS solutions to smoothly link old systems with cloud apps, guaranteeing effective and safe data handling.