AI Boom: Global Cloud Market to Exceed $400 Billion in 2025

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 climbed to $330 billion last year, up from less than $50 billion in 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 new cloud computing needs that came with it have led to a re-acceleration of growth in 2024 - which is remarkable given the market's size. In the first nine months of 2025, the global cloud market grew at a rate of more than 25 percent, putting it on track to easily surpass $400 billion in revenue this year.

“We can thank GenAI for supersizing what was already a big and high-growth market," John Dinsdale, chief analyst at Synergy Research Group said earlier this year. "Despite being on the verge of becoming a hundred billion dollar per quarter market, cloud revenues are still growing by around 25 percent per year, and we are forecasting that average annual growth over the next five years will remain above 20 percent," Dinsdale added.

In terms of market share, Amazon (AWS) and Microsoft (Azure) remain the market leaders, with Amazon alone accounting for 29 percent of cloud infrastructure revenue in the most recent quarter. Considering that it's a $400-billion market, this means that Amazon's cloud arm rakes in more than $100 billion in revenue per year. And this is high-margin revenue: In 2024, AWS generated $40 billion in operating profit, accounting for almost 60 percent of Amazon's total operating profit.