AWS Cloud Revenue Hits US$330bn as AI Hardware Drives Growth
Amazon Web Services (AWS), the cloud computing leader, has maintained its 30% market share of global enterprise cloud spending as demand for AI services drives growth across the sector.
Global enterprise spending on cloud infrastructure reached US$91bn in the fourth quarter of 2024. For AWS, this represents a US$17bn increase from the fourth quarter of 2023.
Likewise, according to Synergy Research Group, its total cloud infrastructure spending for 2024 reached US$330bn for the company, marking a US$60bn rise from 2023 and a $102bn increase from 2022.
This can be attributed to surging demand for graphics processing unit (GPU) capacity to power AI workloads.
“Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023,” says John Dinsdale, Chief Analyst at Synergy Research Group.
AWS maintains market dominance
Research from Synergy Research Group points to AWS continuing to hold dominance within the sector, as it maintains its 31% market share in the third quarter of 2024, ahead of Microsoft Azure at 20% and Google Cloud at 11%.
The three firms account for 68% of public cloud infrastructure spending.
- $91bn: Global enterprise cloud spending in Q4 2024
- 68%: Public cloud market share held by top three providers
- 23%: US market growth rate in Q4 2024
Microsoft Azure, the cloud computing platform of software company Microsoft, increased its market share to 21% in the fourth quarter. Google Cloud, on the other hand, reached 12% market share.
All things considered, global cloud infrastructure spending reached US$84bn in the third quarter of 2024, representing a year-on-year increase of US$15.7bn. The 12 months to September 2024 in particular saw cloud infrastructure service revenues reach US$313bn.
GPU popularity drives market growth
The continued impact of AI technologies is ultimately driving the cloud services market. Synergy Research Group in particular credits the launch of OpenAI’s ChatGPT in particular for overwhelming market growth, which has led to growth in platform services and GPU-as-a-service offerings from cloud providers.
“ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024,” John adds.
“Our assessment is that since ChatGPT was launched, Gen AI has been responsible for at least half of the increase in cloud service revenues.”
As far as second-tier providers are concerned, CoreWeave has entered the top 20 ranking of cloud infrastructure firms, particularly as it looks to support data centre infrastructure growth worldwide.
Enterprise software firms Oracle, Snowflake, Cloudflare and Databricks have also shown growth in cloud revenue.
Likewise, public cloud services, which include Infrastructure-as-a-Service (computing and storage capacity sold by the hour) and Platform-as-a-Service (development tools and databases), grew 24% in the fourth quarter.
Growth rates vary across AWS regional markets
Synergy Research Group analysis confirms that the US remains the largest market for cloud infrastructure, with spending exceeding the Asia-Pacific (APAC) region. US market growth reached 23% in the fourth quarter.
Q4 was another strong quarter for cloud services, helping to drive a full-year growth rate that was a full four percentage points higher than 2023
Additionally, the UK and Germany represent the largest European markets for cloud infrastructure, whilst the Republic of Ireland, Spain and Italy showed higher growth rates than other European markets in the fourth quarter.
Elsewhere, Brazil, Spain, Italy, India and Japan showed growth rates above the worldwide average when measured in local currencies, indicating increasing adoption of cloud services across emerging markets.
Notably, the findings revealed Q3 2024 marked the fourth consecutive quarter of accelerating year-over-year growth in cloud infrastructure spending. This acceleration continues despite the size of the market, which often correlates with slower growth in technology sectors.
“How much of that was down to AI? ChatGPT was launched at the end of 2022 and helped to bolster service development through 2023 and then boost more aggressive market growth through 2024,” John suggests.
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