The latest data from Synergy Research Group reveals a substantial increase in enterprise spending on cloud infrastructure services, reaching a staggering $94 billion worldwide in Q1. This marks a significant growth of $17.5 billion or 23% from the first quarter of 2024.
“We continue to see strong revenue and growth numbers coming out of the cloud market, with a major acceleration of growth over the last six quarters. All of the leading cloud providers are posting some impressive numbers,” said John Dinsdale, a chief analyst at Synergy Research Group. “While the growth is broad-based across geographies and services, clearly, AI is making a big difference. We saw 140-160% growth in GenAI-specific services, with AI also contributing to service enhancements and added growth across the broader portfolio. The capex numbers are huge, but so are the incremental revenues.”
Cloud market growth
Data showed that the cloud market growth rate has increased by around seven percentage points since ChatGPT was launched, and generative AI started to impact the IT ecosystem. The market has grown by 52% since the end of 2022.
Synergy projects that quarterly cloud infrastructure service revenues (including IaaS, PaaS, and hosted private cloud services) were $93.9 billion, trailing twelve-month revenues reaching $348.1 billion.
Public IaaS and PaaS services account for the bulk of the market, growing by 24% in Q1 or by 26% if measured in constant currency—the top three major cloud providers in the public cloud account for 68% of the market.
In APAC, Indonesia, South Korea, and India are among the major countries with the strongest growth, all growing at rates above the worldwide average. The US maintains its position as the largest cloud market, with its scale far surpassing the whole APAC region and growing by 24% in Q1.
