Enterprise spending on cloud infrastructure services reached $84 billion worldwide in the 3rdquarter of 2024, up $15.7 billion or 23% from the same time last year, according to new data from Synergy Research Group.
“Over the last four quarters, the market has grown by almost $16 billion, while the respective figure was $10 billion over the previous four quarters. Given the already massive size of the market, we are seeing an impressive surge in growth,” said John Dinsdale, a chief analyst at Synergy Research Group.
Prime factor
Dinsdale said that artificial intelligence is undoubtedly a prime factor behind market acceleration.
“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 enables more investment in underlying technologies,” he said.
Synergy's estimates put quarterly cloud infrastructure service revenues (including IaaS, PaaS, and hosted private cloud services) at $83.8 billion. The dominance of the major cloud providers is even more pronounced in the public cloud, where the top three players hold a significant 68% of the market, shaping its dynamics.
Growth in all regions
Synergy's report underscores that the cloud market is not just growing, but thriving in all world regions. India, Japan, Brazil, and Italy are leading the charge, demonstrating robust market growth and above-average growth rates.
