Cloud market growth has surged for the fourth consecutive quarter, according to a report from Synergy Research Group.

Data from this quarter shows that Q3 enterprise spending on cloud infrastructure services was up $15.7 billion (23 percent) from Q3 2024.

After seeing a slump in growth rates through 2023, this is now the fourth consecutive quarter in which the year-on-year growth rate has increased, with the report attributing the growth to generative AI.

AWS takes the first spot and maintains a strong lead in the market, however, Microsoft and Google had higher percentage growth. Regardless of ranking, all three have seen growth from twelve months ago.

The current market shares for AWS, Microsoft, and Google stand at 31 percent, 20 percent, and 13 percent respectively.

In a recent earnings call, Amazon said it expected its cloud business to generate sales of $110 billion in 2024, with Q3 seeing $27.5 billion in sales. Google posted Q3 2024 revenues of $11.4 billion and Microsoft said it was on track to deliver an annual revenue run rate of $10 billion in Q4 2024.

Among the secondary cloud providers, those with the highest year-on-year growth rates include Oracle, Huawei, Snowflake, and Cloudflare.

In the public cloud market, the dominance of the big three is even more pronounced and they account for 68 percent of the market.

The countries with the strongest growth included India, Japan, Brazil, and Italy; all growing at rates above the worldwide average. The US remains the largest cloud market and its scale surpasses the entire APAC region, growing by 23 percent in Q3.

“Over the last four quarters, the market has grown by almost $16 billion, while over the previous four quarters, the respective figure was $10 billion. Given the already massive size of the market, we are seeing an impressive surge in growth,” said John Dinsdale, a chief analyst at Synergy Research Group.

“While some market headwinds have diminished, it is undoubtedly AI that is a prime factor behind this increased growth rate. New AI-oriented services and technology are helping the major cloud providers to ride a wave - new capabilities lead to increased demand, which leads to increased revenues, which then enables more investment in underlying technologies.”

Earlier this year, Synergy Research Group said the cloud and infrastructure market had hit $427 billion.