The cloud market continues to grow prolifically. According to new data from Synergy Research Group, the cloud infrastructure market witnessed a significant surge in 2024, hitting a total of $330 billion in revenue. This represents a $60 billion increase from 2023 and a substantial $102 billion rise since 2022.
The launch of ChatGPT at the end of 2022 marked a turning point, with generative AI (GenAI) technologies driving half of the market’s growth over the past two years. This growth, fueled by new GenAI platform services, GPU as a service, and improvements across various cloud services, continues to push cloud markets.
Leadership and Growth in the Cloud Sector
Amazon continued to lead the cloud market in 2024, although Microsoft and Google reported higher growth percentages. CoreWeave, Oracle, Snowflake, Cloudflare, and Databricks saw the highest year-on-year growth rates among the second-tier cloud providers. CoreWeave’s focus on AI and GPU services propelled it into the top twenty cloud providers for the first time. The cloud market’s expansion was robust across all geographic regions, with particularly strong growth in Brazil, Spain, Italy, India, and Japan—all of which outpaced the global average. The U.S. remained the largest market, growing by 23% in Q4 and dwarfing other regions, including the APAC region. While the UK and Germany are the largest markets in Europe, it was Ireland, Spain, and Italy that showed the highest growth rates.
See also: CDW Cloud Computing Report Notes Cloud Success, Challenges
The Role of AI in Market Expansion
The integration of GenAI has revolutionized the cloud services sector, contributing to a marked acceleration in growth, four percentage points from 2023. This uptick is largely attributed to the impact of ChatGPT, which spurred more aggressive growth throughout 2024. Generative AI has now become a key component of revenue growth in the cloud sector, influencing the launch of new services, reshaping existing offerings, and setting the stage for further innovations in cloud technology.
Elizabeth Wallace is a Nashville-based freelance writer with a soft spot for data science and AI and a background in linguistics. She spent 13 years teaching language in higher ed and now helps startups and other organizations explain – clearly – what it is they do.
