Over the past few years, as more and more IT services were moved to the cloud, the market for cloud infrastructure services grew manifold. According to Synergy Research, cloud infrastructure service revenues reached $419 billion in 2025, an almost ninefold increase since 2017. And while the market's growth had gradually and naturally slowed to just below 20 percent in 2023, the rise of generative AI and the corresponding cloud computing needs have led to a re-acceleration of growth - which is remarkable given the market's size. In 2025, the global cloud market grew at a rate of 27 percent, which was the highest since 2022. Since then, the market has picked up even more momentum, with revenue growing 37, 45 and 57 percent in the first three quarters of 2026, respectively. In the third quarter, the 12th consecutive quarter with accelerating growth, revenue jumped $60 billion year-over-year, putting the cloud market on track to reach $600 billion this year.
"AI has totally transformed the cloud market in terms of service capabilities, customer demand, and growth opportunities," John Dinsdale, chief analyst at Synergy Research Group said in a statement. "What we now see is AI technology propelling cloud markets in a way that was unimaginable just four years ago. As the growth rate jumps to well over 50 percent, the leading cloud providers are benefiting from surging revenues, but they are also facing a much-changed market landscape, with AI labs and neoclouds emerging as both partners and competitors."
In terms of market share, Amazon (AWS), Microsoft (Azure) and Google remain the market leaders with a combined market share of more than 60 percent. Amazon's cloud arm is on track to reach $150 billion in revenue and tens of billions in profit this year. In 2025, AWS generated $45.6 billion in operating profit, accounting for almost 60 percent of Amazon's total operating profit.
