European Cloud Providers See Revenue Growth, but not Market Share

American hyperscalers continue to dominate the European cloud industry. Local providers are growing, but real competition is not yet in sight.

The European cloud market is on the rise, but it’s not necessarily the local providers benefiting, according to figures shared by Synergy Research Group. Despite revenue growth, European cloud providers are not able to chip away at the market share of American hyperscalers. The combined share of European providers remains around fifteen percent.

American Dominance

Synergy Research Group reveals the dynamics in the European cloud industry. The European market grew to 61 billion euros in 2024 when combining the revenue from major local IaaS, PaaS, and SaaS services. For the first half of 2025, that amounts to 36 billion euros. The revenue figure grows year over year, but it does not translate into more market share for European providers.

The “big three” Microsoft, Google, and AWS have a stranglehold on the European market. Together, they account for a 70 percent market share, compared to fifteen percent for all European providers combined. The largest European players like SAP, Orange, Deutsche Telekom, and OHVCloud individually do not exceed two percent.

Notably, in 2017, a third of the European market was still served by local parties. But since then, American hyperscalers have heavily invested in local data centers and cloud services, tipping the balance in their favor. Since 2022, the market share of European providers has remained around fifteen percent, even though the market is growing.

Sovereignty

The American dominance is receiving more attention from policymakers, especially since Donald Trump returned to the White House. Trump is causing economic and technological tensions between the European Union and the United States. Ambitious plans are being announced by European institutions to reverse the trend, which do not always seem realistic.

Companies will first need to carefully consider which provider they partner with. American providers promise sovereignty, but Microsoft recently admitted that it cannot actually fulfill that promise. Only a European provider can guarantee that data remains in Europe.

Synergy Research analyst John Dinsdale considers it unlikely that the sovereignty push will lead to a dramatic turnaround. “The cloud market is a game of scale. No European company comes close to the American leaders. Although many European cloud providers will continue to grow, it is unlikely they will significantly shift the balance in terms of overall European market share”.