The global cloud market is experiencing remarkable growth, with enterprise spending on cloud infrastructure services reaching nearly 20 billion from the same period in 2024, marking the third consecutive quarter of 24-25% year-over-year growth.
The driving force behind this surge is Generative AI (GenAI), which has propelled cloud providers‘ quarterly revenues up by 100 billion quarterly market, cloud revenues continue to grow at around 25% annually, with projections indicating average annual growth above 20% over the next five years.
GenAI-specific cloud services have witnessed extraordinary growth rates of 140-180% in the second quarter. Beyond enterprise cloud services, AI is also fueling revenue expansion in other digital sectors, such as social media and search, which are experiencing strong double-digit growth.
Amazon maintains its lead in the cloud market, while Microsoft and Google are achieving higher growth rates, holding market shares of 30%, 20%, and 13%, respectively. On the Tier 2 front, CoreWeave stands out, thanks to its AI and GPU services, achieving over a billion dollars in quarterly cloud revenue and nearing a spot in the top twelve cloud providers.
Public IaaS and PaaS services dominate the market, growing by 27% in the second quarter. The top three cloud providers account for 68% of the public cloud market, demonstrating their strong presence. Geographically, the cloud market is expanding robustly across all regions, with countries like Brazil, India, Australia, Indonesia, Ireland, and Mexico growing at rates above the global average.
The US remains the largest cloud market by a significant margin, surpassing the entire APAC region in scale, and grew by 25% in the second quarter. In Europe, the UK and Germany lead in market size, while Ireland, Spain, and Italy exhibit the highest growth rates.
Overall, the cloud market is on a strong upward trajectory, driven by the transformative power of GenAI and the expanding digital economy.
