Share remains steady since 2022
European cloud providers are holding around a 15 percent local market share, says new data from Synergy Research Group.
For 2024, that represented around $70 billion of revenue. Local providers have tripled their revenue between 2017 and 2024. Synergy Research estimates that 2025 revenue will grow 24 percent year on year, with the first half seeing around $42.2bn in revenue for local providers.
The 15 percent market share has remained relatively steady since 2022, having previously consistently dropped since 2017, when local providers held around 29 percent of the market share.
Synergy Research states that Amazon, Microsoft, and Google still retain a total of 70 percent of the European market.
Of the European providers, SAP and Deutsche Telekom led the pack with two percent each, followed by OVHcloud, Telecom Italia, Orange, and others.
Currently, public infrastructure as-a-service and platform as-a-service offerings make up most of the market, growing faster than hosted private cloud services. Synergy Research adds that generative AI services, including GPUaaS and GenAI PaaS have seen a 140-160 percent growth.
The largest cloud markets are in the UK and Germany, with high growth rates in Ireland, Spain, and Italy.
“The cloud market is a game of scale where aspiring leaders have to place huge financial bets, must have a long-term view of investments and profitability, must maintain a focused determination to succeed, and must consistently achieve operational excellence. No European companies have come close to that set of criteria, and the result is a market where the five leaders are all US companies,” said John Dinsdale, chief analyst at Synergy Research Group.
“As US cloud providers continue to invest some €10 billion every quarter in European capex programs, that presents an impossible hill to climb for any companies who wish to seriously challenge their market leadership. Consequently, European cloud providers have mostly settled into positions of serving local groups of customers that have some specific local needs, sometimes working as partners to the big US cloud providers. While many European cloud providers will continue to grow, they are unlikely to move the needle much in terms of overall European market share.”
The issue of data sovereignty in Europe has become increasingly prominent since the inauguration of President Donald Trump. In March of this year, more than 100 organizations signed an open letter to European officials calling for the continent to become “more technologically independent” and saying the current reliance on hyperscalers creates “security and reliability risks.”
Since then, US hyperscalers including Amazon Web Services, Microsoft, and Google have made various efforts to reassure European customers. Despite this, earlier this month, Microsoft France's legal director, Anton Carniax, conceded under oath that the company couldn't guarantee that French citizens' data would never be transmitted to US authorities without explicit French authorization.
