AWS Remains $330bn Cloud Market Leader, Driven by AI Growth
Amazon Web Services retains its position as the cloud infrastructure market leader, as spending reached US$330bn in 2024 amid increased demand for AI services, according to research from Synergy Research Group.
The research found Microsoft Azure and Google Cloud outpaced AWS in percentage growth terms during the fourth quarter, though AWS maintained its market share at 30% compared to Microsoft's 21% and Google’s 12%.
AWS dominance continues as Microsoft, Google gain ground in Q4 2024
The fourth quarter saw global enterprise spending on cloud infrastructure services reach US$91bn, representing a US$17bn increase from the same period in 2023. The full-year figure of US$330bn marks a US$60bn rise from 2023 and a US$102bn increase from 2022.
“Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023,” says John Dinsdale, Chief Analyst at Synergy Research Group.
- $91bn: Global enterprise cloud spending in Q4 2024
- 68%: Public cloud market share held by top three providers
- 23%: US market growth rate in Q4 2024
The research indicates AWS’s continuing dominance of the sector, with the company holding 31% market share in the third quarter of 2024. This positioned AWS ahead of Microsoft Azure at 20% and Google Cloud at 11%, with the three companies accounting for more than 60% of the market.
Global cloud infrastructure spending reached US$84bn in the third quarter of 2024, representing a year-on-year increase of US$15.7bn or 23%. The 12 months to September 2024 saw cloud infrastructure service revenues climb to US$313bn.
Generative AI drives cloud infrastructure expansion through GPU services
The impact of generative AI (Gen AI) on the cloud services market has proved significant since the launch of ChatGPT in late 2022. The technology has driven half of the market growth over the past two years through new platform services, GPU-as-a-service offerings, and enhancements to existing cloud infrastructure.
“ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024,” John says. “Our assessment is that since ChatGPT was launched, Gen AI has been responsible for at least half of the increase in cloud service revenues. That has come from either newly launched Gen AI/GPU services or from AI-driven improvements to existing cloud services.”
Among second-tier providers, CoreWeave has entered the top 20 ranking of cloud providers, driven by its AI and GPU services. Other providers showing significant year-on-year growth include Oracle, Snowflake, Cloudflare and Databricks.
Public cloud services show sustained growth in 2024
The fourth quarter saw cloud infrastructure service revenues, including Infrastructure-as-a-Service, Platform-as-a-Service and hosted private cloud services, reach US$90.6bn. Public IaaS and PaaS services – which constitute the majority of the market – grew by 24% in Q4, with the top three providers accounting for 68% of the public cloud market.
Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023
The market growth spans all regions globally, with particular strength in emerging markets when measured in local currencies. The trend indicates increasing cloud adoption across diverse geographic regions, though market concentration remains centred in established territories.
Geographic expansion shows regional variations across markets
The United States remains the largest cloud market, with a scale exceeding the entire Asia-Pacific region. US market growth reached 23% in Q4. In Europe, the United Kingdom and Germany represent the largest markets, though Ireland, Spain and Italy showed higher growth rates.
Brazil, Spain, Italy, India and Japan demonstrated growth rates above the worldwide average when measured in local currencies. This growth pattern suggests a broadening of the cloud infrastructure market beyond traditional strongholds.
The Q3 2024 data showed the fourth consecutive quarter of re-accelerating year-over-year growth, indicating sustained momentum in the cloud infrastructure sector. This acceleration comes despite the market’s size, which typically correlates with slower growth rates in technology sectors.
“How much of that was down to AI? ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024,” John notes.
Explore the latest edition of Technology Magazine and be part of the conversation at our global conference series, Tech & AI LIVE.
Discover all our upcoming events and secure your tickets today.
Technology Magazine is a BizClik brand
