RENO,
Nev., April 30, 2024 /PRNewswire/ -- New data
from Synergy Research Group shows that Q1 enterprise spending on
cloud infrastructure services was well over $76 billion worldwide, up $13.5 billion or 21% from the first quarter of
2023. This is the second consecutive quarter in which the
year-on-year growth rate has markedly improved, with Q1 seeing the
strongest growth since the third quarter of 2022. Though they have
diminished somewhat, there are still some economic, currency and
political headwinds. However, the underlying strength of the
market is more than compensating for those constraints, aided in no
small part by the impact of generative AI technology and services.
In terms of competitive positioning, Amazon maintains a strong lead
in the market though Microsoft and Google had the stronger
year-on-year growth numbers. All three saw their growth rates
increase substantially in the last two quarters. Their Q1 worldwide
market shares were 31%, 25% and 11% respectively. Among the tier
two cloud providers, those with the highest year-on-year growth
rates include Huawei, Snowflake, MongoDB and Oracle.
With most of the major cloud providers having now released their
earnings data for Q1, Synergy estimates that quarterly cloud
infrastructure service revenues (including IaaS, PaaS and hosted
private cloud services) were $76.5
billion, with trailing twelve-month revenues reaching
$283 billion. Public IaaS and PaaS
services account for the bulk of the market and those grew by 23%
in Q1. The dominance of the major cloud providers is even more
pronounced in public cloud, where the top three account for
72% of the market. Geographically, the cloud market continues
to grow strongly in all regions of the world. When measured in
local currencies the APAC region had the strongest growth, with
India, Japan, Australia and South Korea all growing by
25% or more year over year. The US remains by far the largest cloud
market, with its scale surpassing the whole APAC region. The US
market grew by 20% in Q1.
"Synergy reported that in late 2022 and through much of 2023
cloud market growth rates were abnormally low, held back by
external factors. We forecast that growth rates would bounce back
and that is what we are now seeing," said John Dinsdale, a Chief Analyst at Synergy
Research Group. "In terms of annualized run rate we now have a
$300 billion market which is growing
at 21% per year. We will not return to the growth rates seen prior
to 2022, 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."
About Synergy Research Group
Synergy Research Group provides quarterly market share analysis
and forecasts for Communications and Cloud related industries. Our
data and analysis is provided to clients through Synergy's unique
research SaaS platform, SIA™, which enables intuitive access to
complex and fast-moving data sets.
Synergy's Competitive Matrix™ and CustomView™ take this research
capability one step further, enabling our clients to receive
on-going quantitative market research that matches their internal,
executive view of the market segments they compete
in. Synergy's data analytics and analysis have been widely
recognized worldwide for over 20 years and are frequently used by
global industry leaders, governments, and financial
institutions.
To speak to an analyst or to find out more about how to
access Synergy's in-depth market data, please contact Heather Gallo
@ hgallo@srgresearch.com or at
775-785-3113.
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SOURCE Synergy Research Group