American players dominate the European cloud computing market


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According to Synergy Research Group, the European cloud market exceeded €7.3 billion in Q2 2021. This result is nearly four times higher than in 2017. However, it is worth noting that the vast majority of this revenue belongs to American companies. Local, European players generate only a small part of the cloud computing market revenue.

Amazon, Microsoft and Google

The cloud computing market has been developing dynamically for several years, and the COVID-19 pandemic has only strengthened this trend. The market itself is already worth around EUR 7.3 billion, but as the Synergy Research Group notes, only a small percentage of this revenue belongs to European suppliers. The clear market leaders are the three largest American cloud operators, Amazon, Microsoft and Google, who are responsible for 69% of revenues.

This does not mean, however, that companies from the old continent do not increase their revenues. Their value is growing steadily year after year, but the growth is still smaller compared to American operators. In Q2 2021, local players more than doubled their results compared to earlier periods, but at the same time their market share fell from 27% to well below 16%. An example here is Deutsche Telekom, whose share of the cloud computing market in Europe is estimated at around 2%. It is followed by such operators as OVHcloud, SAP, Orange.

Analyzing the performance in the European cloud computing market, revenue from services provided via cloud infrastructure (including IaaS, PaaS and hosted private cloud services) in the European market for the last four quarters is approximately €26 billion, up 27% from the previous period. The segments responsible for the largest share of revenue are IaaS and PaaS, which account for as much as 80% of the total market. In turn, the most rapidly growing area is PaaS platforms with database, IoT and analytics services.

The picture for the next five years

Moreover, according to John Dinsdale (principal analyst at Synergy Research Group), the situation in this market will certainly not change over the next five years. American companies have recently spent around 14 billion euros on investments in cloud infrastructure, thus confirming their strong position on the market.

,, (…) european cloud service providers still have a chance to grow. The key for them is to focus on solutions that have more stringent data sovereignty and privacy requirements and on customer segments that require a strong local support network” – adds John Dinsdale.

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