The cloud market has experienced a remarkable 25 per cent growth as enterprises transition from AI experimentation to large-scale deployment. Global spending on cloud infrastructure services reached an impressive $102.6 billion in the third quarter of 2025, according to research from Omdia.
This growth marks the fifth consecutive quarter where the cloud sector has maintained a growth rate above 20 per cent, demonstrating the robust demand for cloud services amid a rapidly evolving technology landscape.
Cloud market: Shifts in Market Dynamics
As enterprises focus on deploying AI at scale, major cloud service providers are adjusting their strategies. No longer competing solely on model performance, hyperscalers are now prioritising platform-level capabilities that support diverse AI strategies and ensure reliable operation of AI agents.
Leading Providers Maintain Dominance
Amazon Web Services (AWS), Microsoft Azure, and Google Cloud continue to lead the cloud market, collectively accounting for 66 per cent of global spending. AWS holds the largest market share at 32 per cent, with a revenue growth of 20 per cent, attributed to easing compute supply constraints and strong demand stemming from its partnership with Anthropic.
Microsoft Azure follows closely with a 22 per cent share, boasting a remarkable 40 per cent revenue increase, largely due to its renewed collaboration with OpenAI and the expansion of its Azure AI Foundry ecosystem. Meanwhile, Google Cloud has seen a 36 per cent growth rate, increasing its market share to 11 per cent, driven by its enterprise-grade AI offerings.
Order Backlogs Indicate Strong Demand
The rising order backlogs across these major providers signal a healthy demand environment as enterprises pursue the scaled deployment of applications. Rachel Brindley, Senior Director at Omdia, emphasised the importance of collaboration across the ecosystem in this shifting landscape.
Adapting to Real-World Challenges
Firms are increasingly viewing multi-model support as a necessity rather than a feature, seeking resilience and flexibility for generative AI workloads. However, many businesses still lack the standardised building blocks required for effective deployment, which can hinder business continuity and customer experience.
Yi Zhang, Senior Analyst at Omdia, pointed out that hyperscalers are stepping in to fill this gap. With recent launches such as AWS AgentCore and Microsoft’s Agent Framework, these providers are making it easier for enterprises to build and run AI agents in production environments.
Innovations and Regional Expansion
Recent innovations reflect this trend, with AWS unveiling the Nova 2 model family and introducing frontier agents like Kiro, aimed at enhancing productivity for software teams. Microsoft has also experienced success with its agent framework, which clients like KPMG are using to improve audit processes.
Meanwhile, Google Cloud has launched Gemini Enterprise, integrating its model family with no-code development tools. The quarter also saw AWS expanding its geographical footprint with the opening of a new zone in New Zealand, while Microsoft announced infrastructure plans for Malaysia and India.
Looking Ahead
As the cloud market advances into 2026, the focus will be on transforming satisfied customers into vocal advocates through trusted digital stewardship and the provision of hyper-personalised services. The landscape is evolving, and hyperscalers are positioning themselves to meet the demands of a more dynamic enterprise environment.
