Gartner Says Worldwide Iaas Public Cloud Services Revenue Grew 16.2% In 2023

(MENAFN- Mid-East) DUBAI, UAE, July, 2024 - The worldwide infrastructure as a service (IaaS) market grew 16.2% in 2023, to total $140 billion, up from $120 billion in 2022, according to Gartner, Inc. Amazon retained the No. 1 position in the IaaS market in 2023, followed by Microsoft, Google, Alibaba and Huawei.

“Cloud technologies continue to be a major business disruptor, due in part to the focus on hyperscalers looking to support offerings related to sovereignty, ethics, privacy and sustainability,” said Sid Nag, VP Analyst at Gartner.“This should continue to drive exponential growth into the future with these offerings being spurred by generative AI (GenAI) investments for 2024 and beyond.”

In 2023, the top five IaaS providers accounted for 82% of the market. Amazon continued to lead the worldwide IaaS market with revenue of $54.6 billion and 39% market share , followed by Microsoft with 23% market share (see Table 1). With growth of 26.3% in 2023, Google moved into the third position at 8.2% market share. Alibaba secured the fourth spot with 7.9% of the market.

Table 1. Worldwide IaaS Public Cloud Services Market Share, 2022-2023 (Millions of U.S. Dollars)

Company	2023 Revenue	2023 Market Share (%)	2022 Revenue	2022 Market Share (%)	2022-2023 Growth (%)
Amazon	54,648	39.0	48,123	39.9	13.6
Microsoft	32,197	23.0	25,889	21.5	24.4
Google	11,454	8.2	9,072	7.5	26.3
Alibaba Group	11,119	7.9	9,222	7.7	20.6
Huawei	5,980	4.3	5,248	4.4	13.9
Others	24,601	17.6	22,943	19.0	7.2
Total	139,999	100	120,497	100	16.2

Source: Gartner (July 2024)

“As the top hyperscalers continue to grow their IaaS offerings in the shadow of GenAI, we should also see other areas, such as software-as-a-service (SaaS) and platform-as-a-service (PaaS), grow as well. IaaS is the tide that lifts all boats,” said Nag.

GenAI is beginning to have an impact on the growth of cloud markets, although AI-driven growth in 2023 was small.

“Cloud is the foundational and scalable substrate required to make GenAI a reality. The segments that are beginning to see the impacts of GenAI include IaaS, where AI model training is consuming IaaS resources, and SaaS where GenAI capabilities are beginning to be included in SaaS applications,” said Nag.“Capacity demand in public cloud markets has already increased sharply as a result and will continue to do so through 2028. In the near term, AI-driven revenue growth will be small relative to the overall public cloud market.”

Gartner clients can read more in“Market Share: Services, Worldwide, 2023” and“Market Share Analysis: Infrastructure as a Service, Worldwide, 2023.”

Learn how to maximize the benefits of cloud computing in the complimentary Gartner ebook Devising an Effective Cloud Strategy.

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