15 Biggest Cloud Providers by Market Share in 2024

Afifa Mushtaque

Tue, Feb 20, 2024, 8:36 AM10 min read

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In this article, we will look at the 15 biggest cloud providers by market share in 2024. We have also discussed the latest revenue and growth of top cloud providers. If you want to skip our detailed analysis, head straight to the 5 Biggest Cloud Providers by Market Share in 2024.

The COVID-19 pandemic has fueled a rapid shift towards cloud adoption, with projections indicating that global spending on cloud services and related components will exceed $1.0 trillion in 2024, maintaining a CAGR of 15.7%.

Moreover, the global cloud services market is witnessing major growth, with a projected value of $2.19 trillion by 2032, with a CAGR of 17.10% from 2023. In 2022, North America held a dominant market share of 42%, driven by a strong emphasis on digitalization, particularly in sectors like IoT, big data analytics, and artificial intelligence. Large enterprises accounted for 52% of the market share in 2022, reflecting their investment in cloud solutions for enhanced agility and efficiency.

The market is segmented by deployment, with private clouds leading in 2022 with a share of over 47%, offering organizations greater control and security. However, hybrid clouds are expected to witness rapid growth, driven by SMEs adopting cloud-based solutions for productivity enhancement and cost reduction. Software as a Service (SaaS) dominated the market in 2022 due to its ease of deployment and cost-effectiveness, while Infrastructure as a Service (IaaS) is projected to grow rapidly, fueled by the demand for hybrid cloud platforms and robust data storage solutions.

In terms of region, Asia Pacific is anticipated to experience exponential growth, fueled by increasing demand from sectors such as manufacturing and healthcare. Additionally, key market developments, such as collaborations between companies like Walgreens Boots Alliance Inc (NASDAQ:WBA) and Microsoft Corp (NASDAQ:MSFT), underscore the growing importance of cloud technology in revolutionizing different industries.

Moreover, AI-as-a-Service is democratizing AI through cloud platforms, enabling businesses to harness transformative technologies without heavy investment. Leveraging vast compute power and data, AI models like ChatGPT are trained, offering economic and social benefits. Predicted to rise from 76% to 85%, multi-cloud strategies provide cost and flexibility advantages but pose challenges in data governance and integration.

Hybrid cloud solutions combining on-premises infrastructure with cloud services are also gaining popularity, allowing organizations to balance security and flexibility. In 2024, real-time cloud infrastructure is becoming equally vital, as organizations are prioritizing up-to-the-minute insights over stale data. Streamed data consumption is also on the rise, emphasizing the need for instant access storage like Flash and solid-state devices. This shift accommodates trends such as cloud gaming and streamed entertainment from platforms like Netflix Inc (NASDAQ:NFLX) and Spotify Technology SA (NYSE:SPOT), indicating a growing demand for real-time data handling capabilities.

It is worth mentioning that Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (CGP) are the top three cloud providers in the world in 2024.

On the financial end, in the fourth quarter of 2024, Amazon.com, Inc (NASDAQ:AMZN)’s cloud division, AWS, witnessed a revenue growth of 13% year over year, hitting $24.20 billion, meeting analysts' expectations precisely. This growth was attributed to the increasing adoption of cloud services for artificial intelligence, with AWS introducing products like the Q chatbot and the Trainium2 chip. Despite this growth, AWS faced stiff competition from Microsoft Corp (NASDAQ:MSFT)’s Azure and Alphabet Inc (NASDAQ:GOOG)'s Google Cloud, which saw revenue increases of 30% and 26%, respectively. However, AWS maintained its position as a major contributor to Amazon.com, Inc (NASDAQ:AMZN)’s overall revenue, representing 14% of the company's total earnings.

Operating income for AWS in the fourth quarter stood at $7.17 billion, surpassing StreetAccount's consensus by approximately 38%. This stable performance further solidified AWS's continued profitability and dominance in the cloud services market. Additionally, Amazon.com, Inc (NASDAQ:AMZN)’s decision to extend the useful life of its servers to six years is projected to bolster first-quarter operating income by $900 million.

On the other hand, Microsoft Corp (NASDAQ:MSFT)’s Azure cloud platform is rapidly gaining ground on Amazon Web Services (AWS), with analysts estimating Azure to now be about three-quarters the size of its top competitor, compared to being only half its size five years ago. Much of Microsoft Corp (NASDAQ:MSFT)’s recent success can be to its strategic focus on artificial intelligence (AI). Revenue growth in Microsoft Corp (NASDAQ:MSFT)’s Azure and cloud services division is being largely boosted by AI, with 6 points of revenue growth attributed to AI in the latest period. This growth outpaces AWS, with Microsoft Corp (NASDAQ:MSFT) Azure’s revenue increasing by 30% compared to AWS's 13% year-over-year growth.

It is interesting to note that Microsoft Corp (NASDAQ:MSFT)’s investment in AI isn't just limited to software; they're also integrating AI capabilities into their cloud infrastructure, including the use of graphics processing units (GPUs) for running AI models. Their collaboration with OpenAI, including technologies like GPT-4, has attracted a considerable number of Azure AI customers.

To read more about cloud companies, see Top 20 Cloud Computing Companies in USA.

15 Biggest Cloud Providers by Market Share in 2024

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Methodology

To list the biggest cloud providers by market share in 2024, we utilized the market share value of big cloud companies based on their Q4 2023 revenue from their respective cloud segments. We obtained data of Q4 2023 market share data from CRN.com.

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