AI Boom Fuels Cloud Services Market – Europe Lags Behind
TL;DR Global revenue from cloud infrastructure services rose to $330 billion in 2024, driven by AI. Generative AI has reignited growth since 2023, following a temporary slowdown beginning in 2018. AWS, Microsoft …
TL;DR
- Global revenue from cloud infrastructure services rose to $330 billion in 2024, driven by AI.
- Generative AI has reignited growth since 2023, following a temporary slowdown beginning in 2018.
- AWS, Microsoft Azure, and Google Cloud dominate over 65% of the global cloud infrastructure market.
- European providers such as SAP and Deutsche Telekom each hold just 2% market share – remaining niche players overall.
- In Europe, AI-focused services like GPU-as-a-Service are projected to grow 140-160% in 2025; public IaaS and PaaS are key growth drivers.
Frequently Asked Questions
What role does artificial intelligence play in cloud market growth?
Artificial intelligence – especially generative AI – is a major catalyst for growth in the cloud market. Since early 2023, momentum has accelerated again thanks to GenAI.
How large were global cloud infrastructure service revenues in 2024?
Global cloud infrastructure service revenues reached $330 billion in 2024 – a significant increase over prior years.
Which providers dominate the global cloud market?
Amazon Web Services (AWS), Microsoft Azure, and Google Cloud collectively control over 65% of the global market. AWS leads with 32%, followed by Azure at 23% and Google Cloud at 10%.
How strong is the presence of European providers in the global cloud market?
European providers occupy a marginal position. SAP and Deutsche Telekom each hold 2% market share; others – including OVHCloud and Orange – operate regionally or within narrow niches.
Which cloud segments are growing most strongly in Europe?
Public IaaS and PaaS services are expanding rapidly across Europe – as are AI-specific offerings such as GPU-as-a-Service, projected to surge 140-160% in 2025.
2 min Reading Time
Although demand for cloud infrastructure services continues rising – fueled by AI – European providers are failing to expand their market footprint. Their role remains confined to niche segments, while U.S. hyperscalers accelerate further ahead.
According to Synergy Research, global cloud infrastructure service revenues climbed to $330 billion in 2024. Artificial intelligence played a pivotal role: “We can thank GenAI for making an already massive and fast-growing market even larger,” IT-Business quotes Synergy’s chief analyst John Dinsdale.
In 2017, revenues in this sector stood at a comparatively modest $50 billion. From that point onward, AI began accelerating growth in cloud infrastructure services. Although momentum eased somewhat after 2018, it rebounded sharply with the emergence of generative AI starting in early 2023.
Synergy therefore projects that, assuming a sustained 24% growth rate in the second half of 2025, revenues could reach $410 billion – or slightly above $400 billion under a more conservative scenario.
Over 20% Annual Growth Expected
GenAI as growth driver: Global cloud market revenues are climbing – but European providers remain confined to niche roles. Image source: Pexels/cottonbro studio
Dinsdale sees no reason for this trend to reverse: “We forecast average annual growth to remain above 20% over the next five years.” As data from Statista and Canalys show, global infrastructure-service revenues already hit $90.9 billion in Q1 2025. Amazon Web Services (AWS) captured the largest share at 32%. Microsoft Azure ranked second in Q1 with 23%, followed by Google Cloud at 10%.
The “other famous” providers collectively accounted for nearly 35% of the market. The industry as a whole achieved a new record revenue milestone in 2024 – $596 billion. European providers play only a minor role here, especially considering that the three leading hyperscalers – AWS, Microsoft Azure, and Google Cloud – already command over 65% of the global market.
European Providers Remain in the Niche
These three also rank among the world market’s biggest winners. SAP and Deutsche Telekom are Europe’s largest cloud players – but globally, each commands only a 2% share. Trailing them, according to IT-Business, are OVHCloud, Telecom Italia, Orange, and numerous smaller regional providers – most operating narrowly within niche segments or constrained by specific local requirements.
The UK and Germany host Europe’s largest cloud markets. However, Ireland, Spain, and Italy report the highest growth rates. For 2025, Synergy forecasts €72 billion in European cloud revenue – with half generated in the first half of the year alone.
Key growth drivers here will be public IaaS and PaaS services. Hosted private cloud solutions are losing some traction – in stark contrast to AI-related services such as GPU-as-a-Service or generative AI platforms, which are expected to rise 140-160% across Europe.
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