Synergy Research Group has revealed the market share of leading Cloud service providers during the second-quarter of 2024.
Amazon Web Services (AWS), Microsoft, Google, Alibaba, Oracle and Salesforce are the Cloud leaders globally.
In China, Alibaba, Tencent, China Telecom, Huawei, China Unicom and China Mobile are the Cloud leaders.
In Asia Pacific (excluding China), Cloud leaders are Amazon, Microsoft, Google, NTT, Alibaba and Fujitsu.
In Europe, Cloud leaders are Amazon, Microsoft, Google, Oracle, Salesforce and IBM.
Amazon, Microsoft, and Google hold substantial market shares of 32 percent, 23 percent, and 12 percent respectively. These top three companies have maintained their leadership positions across all major regions, including the United States, the rest of the Asia-Pacific (APAC) region, Europe, and other global markets.
Global Cloud Market Leaders:
Amazon Web Services (AWS) retains its top spot with a 32 percent market share.
Microsoft Azure follows with 23 percent.
Google Cloud holds a 12 percent share.
Alibaba, Oracle, and Salesforce are the other leading cloud providers. However, when China is excluded from the analysis, the top three cloud providers — Amazon, Microsoft, and Google — remain the same across all major regions. Beyond these three, the rankings vary slightly by region, with Oracle, Salesforce, IBM, and NTT often competing for position.
Barriers to Entry:
The report emphasizes that becoming a leader in the cloud market requires enormous scale, substantial financial resources, continuous technical innovation, a strong global brand, a vast network of hyperscale infrastructure, and long-term corporate commitment. These factors create significant barriers for new entrants seeking to challenge the dominance of Amazon, Microsoft, and Google.
While there is room for local players in specific regions or countries to compete, their opportunities are often limited to niche markets. Factors such as local expertise, regulatory compliance, and data residency requirements can give these smaller players a competitive edge in their home markets. However, their influence remains constrained compared to the global reach of the top three.
China stands out as a unique case in the global cloud landscape. Due to geopolitical and historical reasons, Western cloud providers face severe restrictions in the Chinese market. As a result, the market is dominated by local giants such as Alibaba, Tencent, China Telecom, and Huawei. In fact, the top ten cloud providers in China are all domestic companies, reflecting the country’s distinct cloud ecosystem.
Cloud infrastructure service revenues, which include Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and hosted private cloud services, reached $79 billion in Q2 2024. The trailing twelve-month revenues totaled $297 billion. Public IaaS and PaaS services continue to dominate the market.
Geographically, the United States remains the largest cloud market, significantly outpacing China, which is the second-largest. China, in turn, is far ahead of other leading markets, including Japan, the United Kingdom, Germany, and India. Combined, the U.S., China, APAC, and Europe account for over 90 percent of the global cloud market.
“Between them, Amazon, Microsoft, and Google operate over 560 hyperscale data centers worldwide. In Q2 alone, they invested over $48 billion in capital expenditures, primarily to expand and enhance their data centers and networks,” said John Dinsdale, Chief Analyst at Synergy Research Group.
