Amazon Web Services (AWS), the cloud computing platform of the online retail giant, continues to lead the worldwide cloud infrastructure market by a significant margin. Recent estimates from Synergy Research Group indicate that AWS held a 30% market share during the fourth quarter of 2024. This places it well ahead of Microsoft’s Azure platform, which accounted for 21% of the market, and Google Cloud, with 12%.
The “Big Three” providers – Amazon, Microsoft, and Google – collectively control over 60% of the rapidly expanding cloud market, leaving the remaining competition struggling with low single-digit shares. The total spending on cloud infrastructure services hit $91 billion for the three months ending December 31, 2024, representing a substantial $17 billion increase, or 22%, compared to Q4 2023. For the entire year of 2024, cloud infrastructure service revenues reached an impressive $330 billion, underscoring the intense competition in this sector.
Despite its already substantial size, the cloud market is still experiencing strong growth, with year-over-year expansion even accelerating during 2024. “Given the already massive size of the market, we are seeing an impressive surge in growth,” said John Dinsdale, chief analyst at Synergy Research Group, a few months ago. “While some market headwinds have diminished, it is undoubtedly AI that is a prime factor behind this increased growth rate. New AI-oriented services and technology are helping the major cloud providers to ride a wave – new capabilities lead to increased demand, which leads to increased revenues, which then enables more investment in underlying technologies,” Dinsdale explained, describing a virtuous cycle that could lead to even more growth in the future.
