Cloud computing has just flexed its muscle again, with enterprise spending on cloud infrastructure services hitting an impressive $76.5 billion globally in Q1 2024. According to Synergy Research Group, that’s a $13.5 billion leap from the first quarter of 2023, representing a solid 21% year-on-year growth. This marks the second consecutive quarter where growth rates have substantially rebounded, giving us the strongest numbers since Q3 2022.
Despite ongoing challenges like currency fluctuations, economic headwinds, and geopolitical factors, the market’s underlying strength is undeniable. Much of this momentum is attributed to the rapid rise of generative AI technologies and services, which continue to revolutionize how businesses operate.
Market Dynamics: Who’s Leading the Charge?
In the battle for cloud supremacy, Amazon is still king, maintaining a market-leading 31% share. However, Microsoft (25%) and Google (11%) are hot on Amazon’s heels, each showcasing significantly stronger year-on-year growth. All three tech giants have seen their growth rates soar in the last two quarters. Together, they dominate 72% of the public cloud market, illustrating the massive influence of these cloud titans.
Among the second-tier providers, Huawei, Snowflake, MongoDB, and Oracle are noteworthy players due to their impressive growth rates over the past year.
Global Cloud Expansion
Synergy estimates that quarterly cloud infrastructure revenue, spanning IaaS, PaaS, and hosted private cloud services, has reached a substantial $76.5 billion, with a trailing 12-month revenue hitting $283 billion. Public IaaS and PaaS services account for the lion’s share of this, growing by 23% in Q1.
Geographically, the cloud market is thriving across the globe. The APAC region leads in growth, with countries like India, Japan, Australia, and South Korea all exceeding 25% year-over-year growth. Nevertheless, the U.S. remains the biggest market by a wide margin, with its cloud sector’s growth hitting 20% in Q1.
Future Outlook: The Road Ahead
John Dinsdale, Chief Analyst at Synergy Research Group, sums it up nicely: “In late 2022 and through much of 2023, cloud market growth rates were abnormally low, held back by external factors. We forecasted that growth rates would bounce back, and that’s exactly what we’re seeing.”
He added, “In terms of annualized run rate, we now have a $300 billion market growing at 21% per year. While we won’t see the growth rates from before 2022 due to market size, we are set to witness substantial expansion. We’re forecasting that it will double in size over the next four years.”
About Synergy Research Group
Synergy Research Group offers quarterly market tracking and segmentation data on IT and cloud markets, providing deep insights into vendor revenues, market shares, and regional performance. Their custom research tools like Competitive Matrix™ and CustomView™ enable businesses to gain a clear strategic view of market segments and competition.
Source: https://www.srgresearch.com/articles/huge-cloud-market-sees-a-strong-bounce-in-growth-rate-for-the-second-consecutive-quarter
