The global cloud market just experienced one of the biggest quarterly growth spurts ever
New data from Synergy Research Group has revealed a significant increase in spending on cloud infrastructure services, with the first quarter of 2024 not only setting a new high but also sending year-over-year growth on an upward trajectory.
The company’s report revealed that global cloud spending exceeded $76 billion in the first three months of 2024, marking a substantial 21% year-over-year increase from $13.5 billion, and the second quarter also saw significant year-over-year growth.
According to the data, Amazon, Microsoft and Google can be thanked for much of the spending, which together account for two-thirds (67%) of the market.
Global cloud spending is increasing
Amazon maintains its strong position as market leader, claiming almost a third (31%). Microsoft (25%) and Google (11%) follow in second and third place.
However, Synergy also saw healthy growth among second-tier cloud providers, including Huawei, Snowflake, MongoDB and Oracle.
Despite ongoing economic and political uncertainties, the cloud market continues to prove resilient, while the increased focus on cloud computing and artificial intelligence suggests the market will have enough fuel for many more quarters to come.
Public IaaS and PaaS services, which Synergy says account for a large share of the market, saw a notable increase of 23% during the quarter, with total twelve-month revenue reaching $283 billion.
Without mentioning any geographic region that performed poorly, Synergy confirmed that the APAC region saw the largest growth of 25%, although the entire region still lags behind the US, which remains the largest cloud market.
Looking ahead, John Dinsdale, principal analyst at Synergy Research Group, commented: “We won’t return to pre-2022 growth rates (up to around 40%) because the market has become too big to grow that fast, but we will see the market continues to grow substantially. We predict its size will double in the next four years.”