European cloud revenues have experienced significant growth, quadrupling since 2017. This surge has primarily been driven by the increasing influence of artificial intelligence. However, despite this growth, US technology giants hold a substantial 70% of the market share.
Recent data from Synergy Research Group indicates that European service providers have expanded their cloud revenues more than fourfold, resulting in a market worth €61 billion (approximately US$70 billion) by 2024. Despite this growth, the market share of local European cloud providers has decreased from 29% in 2017 to just 15% by 2022, a figure that has remained relatively stable since then. Major players in this growth include Amazon, Microsoft, and Google, who have greatly benefited from the expanded market.
Currently, SAP and Deutsche Telekom top the list of European cloud providers, each accounting for approximately 2% of the market. They are followed closely by Telecom Italia, Orange, and several other regional players. Lesser-known cloud providers from the US and Asia contribute to the remaining share of the market in Europe.
In the first half of 2025, cloud infrastructure services generated around €36 billion in Europe, with predictions indicating that full-year 2025 sales will see an increase of about 24% compared to 2024. Most of the European cloud industry is composed of public IaaS and PaaS services, which are expanding at a quicker pace relative to hosted private cloud services.
The UK and Germany lead in cloud market size across Europe, while countries such as Ireland, Spain, and Italy exhibit the fastest growth rates. Synergy Research points out that the rise of AI is driving this market shift, with services tailored specifically for generative AI witnessing impressive growth rates of 140-160%.
John Dinsdale, Chief Analyst at Synergy Research Group, emphasizes the dominance of US companies in this landscape, noting that no European firm has managed to achieve similar levels of investment or growth. He cautions that any attempt by European companies to challenge this supremacy would require overcoming the significant investment efforts of US cloud providers, which consistently allocate around €10 billion quarterly to European capital expenditure. While many European cloud providers are poised for continued growth, their market share is unlikely to change in the near future.
Welcome to DediRock, your trusted partner in high-performance hosting solutions. At DediRock, we specialize in providing dedicated servers, VPS hosting, and cloud services tailored to meet the unique needs of businesses and individuals alike. Our mission is to deliver reliable, scalable, and secure hosting solutions that empower our clients to achieve their digital goals. With a commitment to exceptional customer support, cutting-edge technology, and robust infrastructure, DediRock stands out as a leader in the hosting industry. Join us and experience the difference that dedicated service and unwavering reliability can make for your online presence. Launch our website.