US cloud market grows by 30% in Q3
US enterprise spending on cloud infrastructure services grew 30% in 2022, according to Q3 data from Synergy Research Group.
The news follows 14 quarters in the US where year-on-year growth has stayed within 27-34%, with Q3 2022 close to the mid-point of this band. Globally, the Q3 growth rate was affected by a historically strong US dollar and a 'severely' restricted Chinese market. Focusing on US market data overcomes the aforementioned macro issues and show the strength of the cloud market.
The US cloud market leaders were Amazon, Microsoft and Google who together accounted for 76% of their home market. At the same time, some of the smaller cloud providers have been growing more rapidly, most notably Snowflake and MongoDB, the latter via its platform-as-a-service (PaaS) offering. Oracle has also seen increase in its cloud growth rate over the period.
“Given some of the exceptional circumstances facing markets at the moment, it is important to have a handle on drill-down details in order to better understand the underlying trends and how they might impact future market growth. In this case an analysis of the US cloud market is enlightening,” said John Dinsdale, a chief analyst at Synergy Research Group.
“US spending on cloud services is now approaching a $100 billion annual run rate and continues to grow by 30% per year, which is pretty unusual for such a large IT market. The growth rates for regional cloud markets beyond the US will bounce back as some of the current exceptional circumstances work their way through the system. This helps to underpin Synergy’s cloud forecasts which continue to show strong growth over the next five years.”
In addition, Synergy estimates that quarterly cloud infrastructure service revenues in the US, including infrastructure-as-a-service (IaaS), PaaS and hosted private cloud services, is close to $23 billion with twelve-month revenues reaching $84 billion.
Public IaaS and PaaS services account for the majority of the market and they continue to grow more rapidly than hosted private cloud services. The PaaS share of the market is higher in the US than elsewhere, indicating a more developed US market.