Cloud Services Market Statistics 2026: Spending, Share and Growth

According to IDC, global spending on public cloud services is forecast to surpass $1 trillion in 2026, growing over 21%. IDC expects that spending to double by 2029. These cloud services market statistics track spending, provider share, backlog, capital spending and adoption across the US, Europe, the UK, India and Australia.

The providers selling the capacity are growing faster still. AWS segment sales increased 37% year over year to $42,232 million in the second quarter of 2026. Over the same period, Google Cloud revenues increased 82% to $24,768 million in the quarter ended June 30, 2026. On share, Omdia put AWS at a 32% share of global cloud infrastructure in Q4 2025, ahead of Microsoft Azure at 22% and Google Cloud at 12%.

Key Takeaways

• Microsoft’s commercial remaining performance obligation increased 84% to $678 billion in the quarter ended June 30, 2026, and Oracle’s RPO rose to $664 billion in Q1 FY27.
• Oracle’s Cloud Infrastructure (IaaS) revenue grew 121%, and Google Cloud revenue rose 82%, against 37% growth at AWS in Q2.
• Amazon’s trailing twelve-month purchases of property and equipment, net of proceeds and incentives, rose 64% to $169,007 million by Q2 2026, while its free cash flow decreased to an outflow of $7.6 billion for the trailing twelve months.
• IDC expects United States public cloud spending to reach $647 billion in 2026, yet 52.74% of EU enterprises used paid cloud computing services in 2025.
• According to the Competition and Markets Authority (CMA), UK customers spent £10.5 billion on cloud services in 2024, with spending growing by nearly 30% each year since 2020.
• Flexera’s 2026 State of the Cloud Report shows wasted cloud spend rising to 29%, an increase for the first time in five years.

Editor’s Choice

• Global public cloud spending: more than $1 trillion forecast for 2026.
• AWS annualized revenue run rate: $169 billion in the second quarter of 2026.
• Microsoft Cloud revenue: $59.3 billion in the quarter ended June 30, 2026, up 27%.
• Azure revenue: surpassed $100 billion for the first time in Microsoft’s fiscal year ended June 30, 2026.
• Global cloud infrastructure spending: $110.9 billion in Q4 2025, up 29%.
• Worldwide IaaS market: $171,754.6 million in 2024, up 22.5%.

Cloud Services Market Size in 2026

• Software-as-a-service (SaaS) will be the largest public cloud deployment category in 2026, accounting for more than half of global spending.
• Platform-as-a-service (PaaS) will be the fastest-growing deployment model, expanding over 37% year over year in 2026.
• Banking, Software and Information Services, and Retail are the top spending industries, at 25% combined.
• Omdia measured global spending on cloud infrastructure services at $110.9 billion in Q4 2025, and Q4 2025 was the sixth consecutive quarter in which the market expanded by more than 20%.
• Omdia defines cloud infrastructure services as the sum of bare metal as a service (BMaaS), infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and container-as-a-service (CaaS) and serverless hosted by third-party providers.

Source: IDC (March 2026), Omdia (March 2026)

The two measures count different things: IDC sizes all public cloud services, including the SaaS market, while Omdia counts only the infrastructure layer of cloud computing spending.

About This Data

• Compiled from 14 sources: 5 company earnings releases and filings, 3 government and regulator publications, and 6 analyst forecasts and survey reports.
• Sources were published between July 2025 and September 2026; the Gartner vendor shares and the CMA’s UK spending figure cover 2024 and are more than 12 months old.
• Figures come from the original release, filing, or official statistic, such as Amazon’s Q2 2026 earnings release; derived figures are computed from them.
• Figures are reviewed on a rolling basis as sources publish new editions.

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Cloud Services Market Statistics by Region

• IDC expects United States spending to reach $647 billion in 2026, supported by large-scale enterprise migrations and hyperscaler AI infrastructure investment.
• Western Europe spending is driven by cloud modernization programs, sovereign cloud adoption, and regulatory-led investment in data protection and AI governance.
• In Asia/Pacific excluding Japan and China, APeJC spending is fuelled by expanding digital economies, midmarket cloud adoption, and government-led digital transformation initiatives.
• Middle East and Africa, Latin America, APeJC, Central and Eastern Europe, and Western Europe each have a five-year CAGR above 20%.
• The US figure equals no more than about 64.7% of a market forecast to surpass $1 trillion.

Recent Developments

• September 10, 2026: Oracle reported Q1 FY27 total revenues up 30% to $19.3 billion, with cloud revenues (IaaS + SaaS) up 62% to $11.6 billion.
• August 20, 2026: Alibaba reported AI Cloud and Compute Services revenue of RMB48,437 million ($7,139 million) for the quarter ended June 30, 2026, after combining Cloud Intelligence Group and T-Head.
• July 30, 2026: Amazon reported that AWS net sales increased 37%, its fastest growth in 18 quarters.
• July 29, 2026: Microsoft reported Intelligent Cloud revenue of $39.3 billion, up 32%, with Azure and other cloud services revenue up 43%.
• July 22, 2026: Alphabet reported Google Cloud revenue up 82% to $24,768 million for the quarter ended June 30, 2026.

Cloud Provider Market Share

• AWS remained the leader in the global cloud infrastructure market in Q4 2025, with a 32% market share and 24% year-over-year revenue growth. Omdia measures all cloud infrastructure services in one quarter, while Gartner’s 37.7% for Amazon below covers IaaS alone in full-year 2024.
• Microsoft Azure recorded year-over-year revenue growth of 39% in Q4 2025.
• The three largest providers held a combined 66% of global cloud infrastructure spending in Q4 2025.

The provider-level growth data in our AWS vs Azure vs Google Cloud comparison points the same way: The gap at the top is wide, but it is narrowing from below.

Which cloud providers are gaining or losing share?

Google Cloud expanded its market share to 12% in Q4 2025, while AWS’s growth accelerated to 24%. In Gartner’s IaaS data, Amazon held 39.0% of the market in 2023 before its share fell to 37.7% in 2024. Faster-growing rivals are taking share from AWS at the margin, though AWS still holds the largest share.

IaaS Market Share by Vendor

• The worldwide IaaS market grew 22.5% in 2024, reaching $171,754.6 million, according to Gartner.
• The top five IaaS providers accounted for 82.1% of the market in 2024; Gartner rounded each vendor’s share, so the five shares in the chart below add up to 81.9% and all six slices to 99.8%.
• Amazon continued to lead the worldwide IaaS market with revenue of $64,804.9 million and a 37.7% market share.
• Microsoft’s IaaS revenue grew 27.6% from 2023 to 2024, and Google’s grew 35.4%.
• Amazon was followed by Microsoft, Google, Alibaba and Huawei.

Cloud Revenue by Provider in the Latest Quarter

• AWS segment operating income was $16,621 million, compared with $10,160 million in the second quarter of 2025.
• Microsoft’s total revenue was $90.0 billion and increased 18% in the quarter ended June 30, 2026.
• Oracle’s software revenues were down 3% to $5.5 billion, reflecting customers’ continuing migration from on-premises software to the Cloud.
• Alibaba’s AI-related product revenue reached RMB12,376 million ($1,824 million, or $1.8 billion), its twelfth consecutive quarter of triple-digit year-over-year growth.

Source: Amazon, Microsoft, Alphabet, Oracle and Alibaba earnings releases (July to September 2026)

Each company draws its cloud line differently, so the column compares reported segments, not identical products.

Cloud Revenue Growth by Provider

• Oracle’s Cloud Infrastructure (IaaS) revenue grew 121% in Q1 FY27, the fastest rate in the table below.
• Oracle tied its revenue growth to the delivery of 850 MW of additional data center capacity.
• Alphabet CEO Sundar Pichai said Google Cloud’s growth was driven by demand for AI infrastructure and AI solutions, and that nearly 90% of the Fortune 100 use Gemini Enterprise.
• Amazon President and CEO Andy Jassy said AWS’s Q2 growth was its fastest in 18 quarters.
• Alibaba Group CEO Eddie Wu said Alibaba Cloud’s external revenue growth accelerated to 45%.

AWS Revenue by Quarter

• AWS segment sales increased 37% year over year to $42,232 million in Q2 2026.
• AWS growth excluding foreign exchange rose from 17% in Q1 2025 to 37% in Q2 2026.
• AWS operating margin was 39.4% of net sales in Q2 2026, up from 32.9% in Q2 2025.
• Jassy said Amazon’s AI and Chips businesses each eclipsed run rates of more than $25 billion.
• AWS added $11,359 million of quarterly net sales between Q2 2025 and Q2 2026.

Google Cloud Revenue and Operating Income

• Google Cloud segment operating income reached $8,814 million on revenue of $24,768 million in the quarter ended June 30, 2026, about 3.1 times its year-earlier level.
• That puts the segment’s operating margin at about 35.6%.
• Google Cloud’s growth was led by Google Cloud Platform (GCP) across enterprise AI Solutions and enterprise AI Infrastructure, as well as core GCP services.

Profit is now rising faster than revenue at Google Cloud, with operating income at about 3.1 times its year-earlier level against revenue growth of 82%.

Cloud Backlog and Remaining Performance Obligations

• Microsoft’s commercial remaining performance obligation increased 84% to $678 billion in the quarter ended June 30, 2026.
• That backlog equals about 11.4 times the quarter’s $59.3 billion of Microsoft Cloud revenue.
• Oracle booked more than $30 billion of additional AI cloud contracts in Q1 FY27.
• Oracle said customer demand for AI Cloud Training and Inferencing Services continues to grow faster than supply.
• Google Cloud reported a total backlog of $240 billion at the end of Q4 2025, up sharply from $157.7 billion in Q3.

Source: Microsoft and Oracle earnings releases (2026), Omdia (March 2026)

Why it matters: Microsoft’s commercial remaining performance obligation reached $678 billion and Oracle’s RPO reached $664 billion. Those are contracts customers have already signed, so new datacenter capacity is one limit on how fast that backlog becomes revenue.

Our Microsoft revenue and Azure data break out the segments behind that commercial figure.

Hyperscaler Capital Spending

• Amazon’s trailing twelve-month purchases of property and equipment, net of proceeds from sales and incentives, rose 64% to $169,007 million in Q2 2026.
• Amazon said the year-over-year increase of $66.1 billion in purchases primarily reflects investments in artificial intelligence.
• Microsoft’s additions to property and equipment totaled $115,948 million in the twelve months ended June 30, 2026, about 1.8 times the prior twelve months.
• Alphabet’s purchases of property and equipment were $44,924 million in Q2 2026, about 1.9 times the Q3 2025 level, the earliest quarter in the cash flow table of Alphabet’s Q2 2026 release.
• AWS expects capital expenditure to reach $200 billion in 2026, more than 50% above the nearly $132 billion recorded in 2025, according to Omdia.

By the numbers: Amazon’s free cash flow decreased to an outflow of $7.6 billion for the trailing twelve months, and Oracle’s free cash flow was negative $5 billion for Q1 as it invested in its Cloud Infrastructure business. The cloud build-out is being paid for ahead of the cash it returns.

Public Cloud Spending in India by Segment

• Gartner forecasts end-user spending on public cloud services in India to grow 28.1% to total $17,487 million in 2026, up from $13,656 million in 2025.
• IaaS is projected to grow 40% in 2026, followed by PaaS at 25.4%.
• PaaS is the largest spending category for Indian organizations in 2026, forecast to reach $6,414 million.
• Gartner predicts that by 2030, over 60% of enterprises will perform intensive AI model activity in one cloud but leverage it with their data in another, up from less than 10% today.

Australian Public Cloud Spending by Segment

• Australian organizations are expected to spend A$33,619 million on public cloud services in 2026, an increase of 17.9% from 2025.
• SaaS remains the largest spending category, forecast to reach A$16,377 million in 2026.
• IaaS spending will see the largest growth with an increase of 24.1%, followed by PaaS at 20.9%.

Source: Gartner (May 2026)

EU Enterprise Cloud Adoption by Country

• 52.74% of EU enterprises used paid cloud computing services in 2025, with an increase of 7.42 percentage points compared with 2023.
• In Finland, 79.21% of enterprises used paid cloud computing services, against 17.83% in Bulgaria.
• Among enterprises using paid cloud computing, some 85.15% relied on a cloud solution for their e-mail.
• Almost all EU enterprises (99%) with 10 or more employees and self-employed had internet access in 2025, against 52.74% that used paid cloud computing services.

Do large enterprises use more cloud than small firms?

Yes. 84.67% of large EU enterprises purchased paid cloud computing services in 2025, against 66.78% of medium-sized enterprises and 49.3% of small businesses. The gap shows where the next wave of cloud adoption sits: small firms, which have the most room to move.

UK Cloud Services Market Share and CMA Findings

• The CMA found that Microsoft has grown its share of the UK IaaS market while AWS’s share has decreased since 2020.
• The CMA estimated that if prices were on average 5% above well-functioning markets, UK customers would pay around £500 million more per year.
• On March 31, 2026, the CMA said it would launch a strategic market status (SMS) investigation into Microsoft’s business software ecosystem, commencing in May.
• Microsoft and Amazon set out actions on cloud egress fees and interoperability, and the CMA Board will review progress in 6 months.

Source: Competition and Markets Authority (July 2025)

Key finding: UK customers spent £10.5 billion on cloud services in 2024, and the CMA found the IaaS market highly concentrated around its two largest providers, Microsoft and AWS. Egress fees and interoperability shape how easily UK buyers can move between those two providers.

Cloud Cost Waste and FinOps

• Flexera’s 2026 report links the rise in wasted cloud spend to 29% with surging cloud-based AI workloads, while managing cloud spend remains a top challenge for 85% of organizations.
• More than three-quarters (76%) of large enterprises now spend over $5 million monthly on cloud services.
• For active enterprise workloads, AWS (83%) was slightly ahead of Azure (79%), and Google Cloud Platform remains a distant third.
• More than half (53%) of cloud leaders cite security and compliance as their top challenge for cloud-based AI initiatives.

Cloud financial operations (FinOps) teams are now the norm, yet waste rose anyway as 81% of organizations reported using generative AI, which suggests AI workloads are outrunning cost controls built for steadier compute.

Conclusion

Global public cloud spending is forecast to surpass $1 trillion this year, and the providers are scaling to match: AWS sales grew 37% in its latest quarter while Google Cloud revenues grew 82%. Backlogs in the hundreds of billions and capex rising faster than cash flow point to a market where new capacity is a large part of the growth story.

The next tests are whether the smaller clouds keep taking share and whether regulators loosen the switching costs that protect the leaders. Omdia forecasts global cloud infrastructure services spending to grow by 27% in 2026, and the CMA Board will review progress on egress fees and interoperability in 6 months.