According to DCD, Amazon’s cloud infrastructure market share dropped from 31% to 29% between Q3 2024 and Q3 2025 while Microsoft held steady at 20% and Google maintained 13%. The total market reached $106.9 billion in Q3 alone, with trailing 12-month revenue hitting $390 billion. Public IaaS and PaaS services grew 30% year-over-year, marking the eighth consecutive quarter of increasing growth and the fastest rate in three years. While the big three collectively hold 63% market share, neoclouds like CoreWeave, Crusoe, Nebius, and Lambda are gradually gaining ground, with CoreWeave nearing top-ten status thanks to its AI and GPU services. Analyst John Dinsdale described Amazon’s situation as “gradual erosion” as competitors close the gap.
The Amazon Slow Bleed
Here’s the thing about cloud market share – it moves like molasses. We’re talking about a $390 billion annual market where even a 1% shift represents nearly $4 billion in revenue changing hands. So Amazon’s two-point drop from 31% to 29% might not sound dramatic, but it’s actually significant when you consider the scale. This isn’t a sudden collapse – it’s what analysts call “gradual erosion.” Basically, Amazon’s still the giant, but it’s bleeding share slowly and consistently. The company averaged just under 30% over the past four quarters, down from over 32% back in 2021. That’s real money walking out the door.
Where the Neoclouds Are Winning
So who’s actually taking Amazon’s lunch money? Microsoft and Google are the obvious beneficiaries, but the more interesting story is the rise of specialized neoclouds. Companies like CoreWeave, Crusoe, and Lambda are carving out niches where the big three might be less focused. CoreWeave’s approach is particularly smart – they’re dominating the AI and GPU services space, which is exactly where the growth is exploding right now. They’re “close to joining the top ten ranking of cloud providers” according to Synergy, which is impressive for what’s essentially a specialized player. But let’s be real – these neoclouds still have less than 1% market share each. The gap between Google (13%) and fourth-place Alibaba is still enormous – Google remains nearly four times larger.
Where the Growth Is Happening
The cloud market isn’t just growing – it’s accelerating. We’re seeing the fastest growth rate in three years, which is remarkable for such a mature market. Public IaaS and PaaS revenue grew 30% in Q3, and the geographic patterns are fascinating. While the US remains the largest market and grew 28%, the real action is in emerging markets like India, Australia, Indonesia, Ireland, Mexico, and South Africa. These regions are showing the strongest growth as digital transformation accelerates globally. For businesses relying on cloud infrastructure, this geographic expansion creates both opportunities and complexity. The industrial sector in particular needs reliable computing power that can handle demanding environments – which is why companies turn to specialists like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs built for these challenging applications.
What This Actually Means
Look, the big three aren’t going anywhere soon. Amazon, Microsoft, and Google collectively control 63% of the market, and that’s not changing dramatically in the short term. But the trends are clear: specialization matters, AI is creating new opportunities, and even giants can bleed market share slowly over time. For enterprises, this means more choice and potentially better pricing as competition intensifies. For developers, it means considering specialized providers for specific workloads rather than defaulting to the usual suspects. The cloud market is maturing, but it’s far from settled. And honestly, that’s good news for everyone except maybe Amazon’s shareholders.
