Global enterprise spending on cloud infrastructure hit $84 billion in Q3 2024, up 23 percent or $15.7 billion from the same period last year. This growth marks the fourth consecutive quarter of increasing year-on-year growth.
The adoption of generative AI has significantly boosted demand, driving this accelerated growth across the cloud services market.
Amazon leads with a 31 percent market share, followed by Microsoft at 20 percent and Google at 13 percent of the global cloud services business.
All three saw growth rates improve, with Amazon and Google showing particularly strong growth.
Among smaller cloud providers, Oracle, Huawei, Snowflake, and Cloudflare led in year-on-year growth.
The leading cloud providers are Amazon 31 percent, Microsoft 20 percent, Google 12 percent, Alibaba 4 percent, Oracle 3 percent, Salesforce 2 percent, IBM 2 percent, Tencent 2 percent and Huawei 2 percent. Other companies who have a market share of 1 percent (to the nearest percentage point) include Akamai, Baidu, China Telecom, China Unicom, Fujitsu, NTT, Snowflake, SAP and VMware.
Public IaaS and PaaS services dominate, growing by 24 percent in Q3.
The U.S. remains the largest cloud market, growing 23 percent year-over-year and outpacing the entire APAC region.
Major growth regions include India, Japan, Brazil, and Italy. In Europe, high-growth markets include Ireland, Italy, and Spain.
The market’s rapid growth in recent quarters, up $16 billion over the last four quarters, highlights a renewed momentum. The rise in AI-driven services has created a feedback loop—higher demand drives revenues, enabling greater investment in cloud and AI technologies.
John Dinsdale, Chief Analyst at Synergy, attributes much of this growth to the surging demand for AI capabilities, which has helped cloud providers increase both services and revenue.
