Synergy Research Group credited the impact of generative AI (GenAI) for helping boost enterprise spending on cloud infrastructure services to more than $76 billion in Q1, up 21 per cent from a year ago.

The research company stated the market growth rate is the strongest since Q3 2022. It noted while “there are still some economic, currency and political headwinds” the overall strength of the market compensated for constraints due to AI.

John Dinsdale, chief analyst at Synergy Research, explained while the market will not return to the growth rates seen in 2022, “it will double in size over the next four years”.

“In terms of annualised run rate, we now have a $300 billion market, which is growing at 21 per cent per year,” he stated.

With most cloud providers having already released Q1 2024 earnings, Synergy Research Group estimates quarterly cloud infrastructure service revenue including IaaS, PaaS and hosted private cloud services at $76.5 billion. Public IaaS and PaaS services account for most of the market and grew by 23 per cent.

Among the large hyperscale providers, Amazon Web Services (AWS), Microsoft and Google continue to dominate market share at 31 per cent, 25 per cent and 11 per cent respectively. The research company noted Microsoft and Google are growing at a faster rate than AWS.

Rounding out the top-five, Alibaba is fourth with a 4 per cent share followed by Salesforce on 3 per cent.

The top-three cloud providers account for 72 per cent of the global public cloud market.

Tier-two cloud providers Huawei, Snowflake, MongoDB, and Oracle posted the highest yearly growth rates.

Regionally, the US remains by far the largest cloud market and grew 20 per cent in the quarter. When measured in local currencies the APAC region had the strongest growth, with India, Japan, Australia and South Korea all increasing 25 per cent.