Global cloud market spend surpasses $76 billion in Q1 2024
GenAI advancements boost the sector
Synergy Research Group reports that the global cloud infrastructure services market surged in the first quarter of 2024, marking a robust recovery with enterprise spending surpassing $76 billion.
This figure represents a substantial increase of $13.5 billion or 21% compared to last year, signalling the second consecutive quarter of accelerated growth.
The latest data underscores a significant rebound in market momentum, reflecting the most substantial year-on-year growth rate since Q3 2022.
Despite ongoing economic, currency, and political challenges, the cloud industry’s resilience has been strengthened by generative AI technology and service advancements, which have mitigated many operational constraints.
Among the leading players in the cloud market, Amazon maintains a formidable position with a 31% market share, closely followed by Microsoft at 25% and Google at 11%.
All three giants have recorded substantial growth rates in recent quarters, underscoring their dominant roles in shaping the industry landscape.
Market expansion
Public Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) segments have driven overall market expansion, collectively growing by 23% in Q1. The market’s scale and dominance by major providers are particularly evident in the public cloud sector, where the top three players command 72% of the market share.
Geographically, robust growth has been witnessed across all regions, with the APAC region leading the charge with growth rates exceeding 25% in key markets such as India, Japan, Australia, and South Korea. Meanwhile, the United States remains the largest single market, with a Q1 growth rate of 20%.
John Dinsdale, Chief Analyst at Synergy Research Group, noted: “Cloud market growth rates were unusually subdued in 2022 and early 2023 due to external factors. We anticipated a rebound, and the latest figures confirm our expectations.”
He further projected a continued expansion, predicting the market to double over the next four years, reaching an annualised run rate of $300 billion with a sustained growth rate of 21% annually.
Based in Reno, United States, Synergy Research Group provides comprehensive quarterly market analysis and segmentation data for IT and cloud-related markets. It offers insights into vendor revenues across various segments and regions. Their proprietary online database, SIA, facilitates access to detailed market shares and forecasts, supporting informed decision-making in the technology sector.
Featured image: Among the leading players in the cloud market, Amazon maintains a formidable position with a 31% market share, closely followed by Microsoft at 25% and Google at 11%. Credit: Growtika
