- AWS, Microsoft Azure and Google Cloud occupy a larger share of the cloud market than before
- Analysts say AWS’s position is slowly declining, while Microsoft and Google are climbing
- Annual growth will continue at 20-25% for five years
New figures from Synergy Research show growth of around 60% in the global cloud infrastructure services market over two years, with spending reaching $107 billion in the first quarter of 2025.
The data also reveals the growing dominance of the big three providers – AWS, Microsoft Azure and Google Cloud – together now hold 63% of the market, up from 62% in 2024 and 61% in 2023.
However, despite being the largest of the three, Amazon’s position has been in steady decline since the second quarter of 2022, and it may well be time to separate it from the top spot as Microsoft and Google are on the rise.
AWS could be on the verge of losing its position in the cloud market
All three companies have drawn attention to the impacts of AI on cloud growth.
Although still far behind AWS (29%) in terms of market share, Microsoft Azure (20%) shows a generally consistent upward trend. Google (13%), even further behind, is also experiencing constant growth. Its size is now approaching 4 times that of Alibaba, which occupies fourth place.
“Its share shows gradual erosion as Microsoft and Google continue to narrow the gap, but it remains striking how effectively Amazon has maintained its leadership position,” explained chief analyst John Dinsdale.
Looking ahead, Synergy expects the average annual growth rate of cloud revenue to remain above 20% over the next five years. Last quarter, they stood at around 25%.
In the three months ending September 30, 2025, AWS saw a 20% year-over-year increase in revenue to $33 billion. Microsoft outpaced Amazon in the same three months, with a 26% increase in revenue to $49.1 billion. Although more modest, at $15.2 billion, Google Cloud saw the largest increase of the three, at a staggering 34%.
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