Global spending on cloud infrastructure services reached $99 billion in Q2 2025, marking a 24% increase from the previous year. The expansion signals renewed momentum in the cloud sector, driven primarily by generative AI workloads that recorded growth rates between 140% and 180% year-over-year.
Amazon Web Services holds 30% of the market, followed by Microsoft Azure at 20% and Google Cloud at 13%. Together, these three hyperscalers control 63% of the global cloud infrastructure market. The second quarter showed shifting dynamics, with Google Cloud gaining ground while AWS and Azure saw slight declines in market share compared to the same period in 2024.
Cloud Market Share Key Statistics
- Global cloud infrastructure spending totaled $99 billion in Q2 2025, up from $79 billion in Q2 2024.
- AWS maintains market leadership with 30% share, though revenue growth of 17% trails behind competitors.
- Google Cloud posted the fastest growth at 32% year-over-year, generating $13.6 billion in quarterly revenue.
- Microsoft Azure recorded 26% growth with $29.9 billion in revenue, despite losing 3 percentage points in market share.
- AI-specific cloud services grew between 140% and 180% year-over-year, becoming the primary growth driver for the industry.
Cloud Market Share Distribution in Q2 2025
The cloud infrastructure market remains concentrated among a few dominant players. AWS commands 30% of global spending, representing approximately $29.7 billion in quarterly infrastructure services revenue based on the total market size.
Azure holds the second position with 20% market share, translating to roughly $19.8 billion in infrastructure spending. Google Cloud’s 13% share equals about $12.9 billion in market value for Q2 2025.
Alibaba Cloud and Oracle Cloud Infrastructure each maintain smaller but stable positions at 4% and 3% respectively. The remaining 30% of the market consists of various providers including IBM Cloud, Tencent Cloud, Salesforce, and numerous regional players.
| Provider | Q2 2025 Market Share | Change from Q2 2024 |
|---|---|---|
| AWS | 30% | -2 points |
| Microsoft Azure | 20% | -3 points |
| Google Cloud | 13% | +1 point |
| Alibaba Cloud | 4% | Flat |
| Oracle Cloud | 3% | Flat |
| Others | 30% | — |
Cloud Market Share Revenue Performance
AWS generated $30.9 billion in revenue during Q2 2025, growing 17% year-over-year. While this growth rate appears modest compared to competitors, the absolute revenue increase of $4.5 billion demonstrates continued expansion at scale.
Microsoft’s Intelligent Cloud segment, which includes Azure, reached $29.9 billion in quarterly revenue with 26% growth. This performance closed the gap with AWS, though Microsoft reports cloud revenue across multiple services beyond pure infrastructure.
Google Cloud’s $13.6 billion quarterly revenue represents 32% growth, the fastest among the top three providers. This acceleration helped Google Cloud gain one percentage point in market share during Q2 2025.
| Provider | Q2 2025 Revenue | Year-over-Year Growth |
|---|---|---|
| AWS | $30.9 billion | 17% |
| Microsoft Cloud | $29.9 billion | 26% |
| Google Cloud | $13.6 billion | 32% |
Cloud Market Share Growth Comparison
The divergence in growth rates reveals shifting competitive dynamics. Google Cloud’s 32% expansion nearly doubles AWS’s 17% growth, indicating the search giant’s success in capturing new workloads and customers.
Azure’s 26% growth positions Microsoft between the two competitors. The company benefits from enterprise relationships and integrated offerings across its product portfolio.
Despite slower growth percentages, AWS adds the most absolute revenue due to its larger base. The company’s $4.5 billion increase in quarterly revenue exceeds Google Cloud’s entire Q2 2023 revenue of approximately $8 billion.
Quarterly Cloud Market Share Trends
Market share shifted between Q1 and Q2 2025, with AWS recovering one percentage point to reach 30% in the second quarter. The company had fallen to 29% in Q1 2025 before rebounding.
Azure experienced a two-point decline from 22% in Q1 to 20% in Q2 2025. This drop represents the most significant quarterly movement among top providers, potentially reflecting increased competition for enterprise workloads.
Google Cloud gained one point each quarter, moving from 12% in Q1 to 13% in Q2 2025. The steady progression demonstrates consistent market share capture despite the competitive environment.
| Quarter | AWS | Azure | Google Cloud |
|---|---|---|---|
| Q1 2025 | 29% | 22% | 12% |
| Q2 2025 | 30% | 20% | 13% |
AI Impact on Cloud Infrastructure Market
Generative AI services drove extraordinary growth in Q2 2025, with year-over-year expansion ranging from 140% to 180%. These workloads now constitute a significant portion of new cloud spending, fundamentally changing infrastructure requirements.
The hyperscalers collectively grew 27% year-over-year in Q2 2025, faster than the overall market’s 24% growth. This outperformance indicates customers prefer established providers for AI workloads requiring massive computational resources.
Training large language models and serving AI applications demands specialized hardware including GPUs and custom AI chips. Providers investing heavily in this infrastructure capture disproportionate shares of the growth.
Market Concentration and Competition
The top three providers control 63% of cloud infrastructure spending, leaving 37% for all other competitors combined. This concentration increased from previous years as customers consolidate spending with fewer providers.
The “others” category includes approximately 30% of market share distributed across dozens of providers. Regional clouds, specialized platforms, and legacy hosting services maintain presence in specific verticals or geographies.
Breaking into the top tier proves difficult for smaller providers. The capital requirements for global infrastructure and the network effects of platform ecosystems create substantial barriers to entry.
FAQ
What is the total cloud market size in 2025?
Global cloud infrastructure spending reached $99 billion in Q2 2025, representing a 24% increase from Q2 2024. The annual run rate exceeds $390 billion based on quarterly figures.
Which cloud provider has the largest market share?
Amazon Web Services leads with 30% market share in Q2 2025, generating $30.9 billion in quarterly revenue. Microsoft Azure follows at 20% and Google Cloud holds 13%.
How fast is the cloud market growing?
The cloud infrastructure market grew 24% year-over-year in Q2 2025. AI-specific services drove faster growth between 140% and 180%, accelerating overall market expansion significantly.
Why is Azure losing market share despite strong revenue growth?
Azure’s market share declined from 23% to 20% year-over-year despite 26% revenue growth. This occurs when competitors grow faster than Azure, even as Azure’s absolute revenue increases substantially.
What percentage of cloud market do the top three providers control?
AWS, Microsoft Azure, and Google Cloud collectively control 63% of the global cloud infrastructure market in Q2 2025. The remaining 37% consists of Alibaba, Oracle, and numerous smaller providers.