European Cloud Providers’ Local Market Share Now Holds Steady at 15%

RENO, NV, July 24, 2025

New data from Synergy Research Group shows that European service providers more than tripled their local cloud revenues from 2017 to 2024. However, over that same period the European cloud market grew by a factor of six, reaching €61 billion (US$70 billion) in 2024. European cloud providers’ market share dropped from 29% in 2017 to 15% in 2022, though it has stayed relatively constant at around 15% since then. The main beneficiaries of the market growth have been Amazon, Microsoft and Google. These three leading global cloud providers now account for 70% of the regional market. Among the European cloud providers, SAP and Deutsche Telekom are the leaders, each accounting for 2% of the European market. They are followed by OVHcloud, Telecom Italia, Orange and a long list of national and regional players. The balance of the European market is accounted for by smaller US and Asian cloud providers. Synergy estimates that European cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were €36 billion in the first half of 2025, with full-year 2025 revenues set to grow by around 24% from 2024. Public IaaS and PaaS services account for the bulk of the market and they continue to grow more rapidly that hosted private cloud services. AI is increasingly driving the market, with growth of 140-160% in generative AI-specific services such as GPUaaS and GenAI PaaS. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates are 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, a 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.”