Synergy Research estimates the cloud infrastructure market at $57B in Q3-2022. That was up by well over $11 billion from the third quarter of last year despite two fierce headwinds – historically strong U.S. dollar and a severely restricted Chinese market. The incremental spending represents year-on-year growth of 24%. If exchange rates had remained constant over the last year, the growth rate would have been over 30%. As the market continues on a strong growth trajectory,
Google is alone among the hyper-scaler giants to be gaining market share. Google Cloud increased its market share in Q3 compared to the prior quarter, while Amazon and Microsoft market shares remained relatively unchanged. Compared to a year ago all three have increased their market share by at least a percentage point. Amazon, Microsoft and Google combined had a 66% share of the worldwide market in the quarter, up from 61% a year ago. In aggregate all other cloud providers have tripled their revenues since late 2017, though their collective market share has plunged from 50% to 34% as their growth rates remain far below the market leaders.
Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $57.5 billion, with trailing twelve-month revenues reaching $217 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 26% in Q3. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three control 72% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world.
“It is a strong testament to the benefits of cloud computing that despite two major obstacles to growth the worldwide market still expanded by 24% from last year. Had exchange rates remained stable and had the Chinese market remained on a more normal path then the growth rate percentage would have been well into the thirties,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “The three leading cloud providers all report their financials in US dollars so their growth rates are all beaten down by the historic strength of their home currency. Despite that all three have increased their share of a rapidly growing market over the last year, which is a strong testament to their strategies and performance. Beyond these three, all other cloud providers in aggregate have been losing around three percentage points of market share per year but are still seeing strong double-digit revenue growth. The key for these companies is to focus on specific portions of the market where they can outperform the big three.”
Synergy provides quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region. Market shares and forecasts are provided via Synergy’s uniquely designed online database SIA™, which enables easy access to complex 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.