The global cloud market just saw one of its biggest ever quarterly growth spurts

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New data from Synergy Research Group has revealed a significant surge in cloud infrastructure service spend, with Q1 2024 not only setting a new high but also sending year-on-year growth rates on an upward trajectory.

The firm’s report revealed global cloud spend surpassed $76 billion during the first three months of 2024, marking a substantial 21% year-over-year increase of $13.5 billion, and also the second quarter to have seen considerable year-on-year growth.

According to the data, Amazon, Microsoft and Google can be thanked for a large proportion of the spend, collectively accounting for two-thirds (67%) of the market.

Global cloud spend is on the up

Amazon maintains its stronghold as market leader, according for nearly one-third (31%) by itself. Microsoft (25%) and Google (11%) follow in second and third place.

However Synergy also noted healthy growth among tier-two cloud providers, including Huawei, Snowflake, MongoDB and Oracle.

Despite lingering economic and political uncertainties, the cloud market continues to prove resilient, while the increased focus on cloud computing and artificial intelligence suggests that the market will have enough fuel for plenty more quarters yet.

Public IaaS and PaaS services, which Synergy says account for a large portion of the market, saw a notable 23% increase during the quarter, with overall trailing twelve-month revenue hitting $283 billion.

Failing to mention any geographic regions that performed poorly, Synergy confirmed that the APAC region saw the biggest growth of 25%, though the entire region still trails behind the US, which remains the single largest cloud market.

Looking ahead, John Dinsdale, a Chief Analyst at Synergy Research Group, commented: “We will not return to the growth rates seen prior to 2022 [up to around 40%], as the market has become too massive to grow that rapidly, but we will see the market continue to expand substantially. We are forecasting that it will double in size over the next four years.”