The Big Three Dominate Global Cloud Market as AI Drives Surge in Spending
Spending on digital infrastructure is projected to exceed $ 400 billion this year, fuelled by massive demand for generative artificial intelligence
Amazon Web Services (AWS), Microsoft Azure, and Google Cloud are solidifying their dominance over the global cloud market as soaring demand for generative AI drives unprecedented growth.
According to data from Synergy Research Group, the global cloud market is on track to surpass $400 billion in revenue in 2025, a first for the industry.
This follows a substantial 25% increase in spending on cloud infrastructure services in the second quarter of 2025, which saw total expenditure hit $99 billion.
In the second quarter, AWS maintained its leading position with a commanding 30% market share, far ahead of Microsoft Azure at 20% and Google Cloud at 13%.
Together, the "Big Three" control over 60% of the market, with all other providers holding single-digit shares.
John Dinsdale, Chief Analyst at Synergy Research Group, noted that AI is the primary catalyst for this growth.
"This is a great time for cloud providers," he said. "In Q2, we saw growth in cloud services specifically for GenAI as high as 140-180%, and AI is also driving the growth of the overall cloud services."
The surge in demand marks a significant rebound for the market, which had seen its growth rate slow to under 20% in 2023. Since 2024, growth has accelerated to nearly 25%, surpassing previous expectations.
The report also highlighted the immense profitability of the dominant players. In 2024 alone, AWS recorded more than $40 billion in operating profit, making up nearly 60% of Amazon's total profit.
Meanwhile, Microsoft Azure is strengthening its position by integrating its own services and leveraging its strategic investment in OpenAI, positioning itself as a key platform for the rapidly expanding AI sector.
As industries from finance to manufacturing become more reliant on the cloud, the competition among these giants has moved beyond simply gaining customers.
It now includes massive investments in data centres, semiconductors, and AI infrastructure to meet future demand.
The projected value of the global cloud market is not just a number, but a clear sign that the "AI economy" is here, with cloud technology serving as its fundamental infrastructure.
