Driven by the rise of generative AI, the market for cloud infrastructure services reached $330 billion in revenues last year.
According to Synergy Research Group, revenues from cloud infrastructure services reached $330 billion in 2024, up from less than $50 billion in 2017.
After years of gradually slowing expansion, the global cloud infrastructure market is experiencing a sharp rebound in growth this year, driven largely by the rise of generative AI. In the first half of 2025, the market expanded by nearly 25%, putting it on track to surpass $400 billion this year.
AI is playing a central role in this surge. Generative AI requires vast computing power and specialized hardware. These resources are most efficiently delivered through cloud platforms. The growth of GenAI-driven services has created a wave of new demand for infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) solutions, which account for the bulk of the market, having grown by 27% in Q2, while also boosting innovation across existing offerings.
Synergy Research estimates that GenAI-specific cloud services grew 140–180% year-over-year. John Dinsdale, chief analyst at Synergy Research Group, added that cloud revenues are expected to grow more than 20% annually over the next five years due to the forecast tech development.
Market leaders continue to benefit most from the surge in cloud infrastructure tools. Amazon Web Services (AWS) holds a 30% global share as of Q2 2025. The cloud subdivision of the e-commerce giant generated more than $100 billion in annual revenue, with $40 billion in operating profit last year — nearly 60% of Amazon’s total. Microsoft Azure follows with a 20% market share, while Google Cloud holds 13%. Together, the three control 63% of the public cloud market.
Meanwhile, fast-rising challengers such as CoreWeave, Oracle, Databricks, and Snowflake are seeing some of the highest growth rates thanks to their AI and GPU-focused services.
Region-wise, the United States remains the largest market for cloud infrastructure services, expanding by 24% in Q1 2025 and 25% in Q2. Strong momentum is also seen in countries like Brazil, Spain, Italy, South Korea, India, and Indonesia — all outpacing the global average.
