The global cloud infrastructure market has reached a staggering US$330 billion in 2024, with artificial intelligence (AI) playing a pivotal role in this expansion. Since the launch of ChatGPT, AI has powered half of the sector's growth, marking a new era of technological advancement.
In the fourth quarter alone, global spending on cloud services soared to US$91 billion, a 22% increase from the same period in 2023, according to Synergy Research Group. "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," noted John Dinsdale, chief analyst at Synergy Research Group.
Emerging players in AI services are making significant strides. CoreWeave, a company specializing in AI and GPU services, has broken into the top 20 cloud providers globally, showcasing the rapid evolution of the industry.
The United States remains the largest cloud market, surpassing the entire Asia-Pacific region. In the U.S., cloud spending grew by 23% in the fourth quarter, reflecting the country's robust adoption of cloud technologies.
In Europe, the United Kingdom and Germany lead as the largest markets, but countries like Ireland, Spain, and Italy are experiencing the highest growth rates. Similarly, Brazil, Spain, Italy, India, and Japan have shown above-average growth in local currencies, underscoring the global nature of cloud adoption.
The impact of generative AI on the cloud sector has been profound since ChatGPT's launch in late 2022. It has driven improvements to existing services and spurred the development of new GPU-powered offerings, enhancing the capabilities of cloud infrastructure.
Public infrastructure and platform services dominate the market, growing by 24% in the fourth quarter. The top three providers—Amazon, Microsoft, and Google—now control 68% of the public cloud segment, highlighting their dominance in the industry.
Amazon leads the cloud infrastructure market with a 30% share, maintaining its position as the largest provider globally. Microsoft follows with 21% of the market, strengthening its foothold in the enterprise cloud segment. Google, with 12% of global cloud infrastructure spending, continues to focus on AI and machine learning capabilities.
Chinese tech giant Alibaba holds 4% of the worldwide market, leading the Asian cloud sector. Oracle captures 3% of global cloud spending, showing growth in enterprise solutions and database services.
Other notable players include Salesforce, IBM, and Tencent, each holding 2% of the market, specializing in various cloud services. Emerging AI specialist CoreWeave, data platform provider Snowflake, and established technology firms like Fujitsu and VMware maintain a 1% market share each.
Regional telecom providers such as China Telecom, China Unicom, and NTT also hold a 1% market share each, serving their respective geographical markets. Enterprise software providers SAP and Akamai, along with Chinese tech company Baidu and data analytics firm Databricks, round out the 1% market share holders.
Key Takeaways:
- AI is a major driver of growth in the global cloud market, contributing to half of the sector's expansion.
- The U.S. leads the cloud market, with significant growth also seen in Europe and Asia.
- Amazon, Microsoft, and Google dominate the public cloud segment, controlling 68% of the market.
- Emerging AI companies like CoreWeave are gaining traction, reflecting the industry's dynamic nature.
- Generative AI continues to enhance cloud services, driving innovation and new offerings.
In conclusion, the global cloud market is experiencing unprecedented growth, fueled by advancements in AI technology. As AI continues to evolve, it will undoubtedly shape the future of cloud computing, offering new opportunities and challenges for businesses worldwide.