Gartner Says Worldwide IaaS Public Cloud Services Market Grew 22.5% in 2024

The worldwide infrastructure as a service (IaaS) market grew 22.5% in 2024, reaching $171.8 billion, according to Gartner, Inc. a business and technology insights company. Amazon retained the No. 1 position in the IaaS market in 2024, followed by Microsoft, Google, Alibaba and Huawei.

Expert Take:

“As enterprises continue to seek greater flexibility, improved resilience and optimized performance, there is sustained demand for cloud migration and modernization services,” said Hardeep Singh, Principal Analyst at Gartner. “Enterprises want to transform their IT infrastructure by leveraging multiple platforms for AI and prioritizing modernization by migrating existing workloads to the cloud. They are also deploying cloud-native applications across diverse environments.” This trend is further fueled by the demand for flexibility with data residency and sovereignty, as enterprises seek to gradually transition to the cloud while keeping control over their data and operations.

“Cloud providers are investing heavily in AI infrastructure and capabilities to become leaders in the rapidly evolving AI-optimized IaaS market. They expect that AI will become a much larger revenue contributor in the future, even though it currently remains a relatively small slice of their overall revenue within the IaaS space,” said Singh. “Emerging AI-optimized IaaS offerings from nonhyperscalers, or GPU as a service (GPUaaS) providers, though still nascent, have also played a key role in addressing immediate capacity requirements by offering flexible, high-performance compute on demand.”

In 2024, the top five IaaS providers accounted for 82.1% of the market. Amazon continued to lead the worldwide IaaS market with revenue of 64.8 billion and 37.7% market share, followed by Microsoft with 23.9% market share (see Table 1). Google, Alibaba Group, and Huawei maintained their respective positions year-over-year.

Gartner clients can read more in Market Share: Enterprise Public Cloud Services, Worldwide, 2024 and Market Share Analysis: Infrastructure as a Service, Worldwide, 2024.

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