Gartner Reports Global Public Cloud IaaS Market Grew 22.5% in 2024

Gartner revealed that the global market for Infrastructure as a Service (IaaS) grew by 22.5% in 2024, reaching a total value of USD 171.8 billion. Amazon remained the market leader, followed by Microsoft, Google, Alibaba, and Huawei, respectively.

Expert Insights:
Hardeep Singh, principal analyst at Gartner, stated: As organizations continue to seek greater scalability, flexibility, and optimal efficiency, there is a sustained demand for cloud services to support migration and modernization initiatives. Enterprises are looking to transform their IT infrastructure by leveraging multiple AI platforms while prioritizing modernization through migrating existing workloads to the cloud. They are also deploying cloud-native applications across diverse environments. This trend is further driven by the growing need for flexibility in local data storage and data sovereignty, as organizations aim to transition to the cloud gradually while maintaining control over their data and operations.

 
Singh added:
Cloud providers are heavily investing in infrastructure and AI capabilities to lead in the rapidly developing AI-optimized IaaS market. They anticipate AI to become a major revenue driver in the future, even though it currently represents only a small portion of overall IaaS revenue. New AI-optimized IaaS products from non-hyperscaler providers or GPU-as-a-Service (GPUaaS) players, while still nascent, are playing a key role in meeting immediate capacity needs by offering flexible high-performance computing on demand.

 
In 2024, the top five IaaS providers accounted for 82.1% of the market share. Amazon continued to dominate the global IaaS market with USD 64.8 billion in revenue and a 37.7% market share, followed by Microsoft at 23.9%. Google, Alibaba Group, and Huawei maintained their positions compared to the previous year.

Gartner / PC & Associates Consulting Co., Ltd