Key Takeaways
- The global cloud computing market is projected to exceed £1.5 trillion by 2030, driven by a compound annual growth rate (CAGR) of approximately 17%.
- Amazon Web Services (AWS), Microsoft Azure, and Google Cloud continue to dominate the sector, collectively holding over 67% of the global market share as of Q2 2025.
- Profitability remains exceptionally strong, with major providers reporting operating margins between 29% and 38%, underscoring the lucrative nature of cloud infrastructure services.
- Growth is primarily fuelled by the adoption of hybrid strategies, AI workloads, and the expansion of IoT, though regulatory hurdles and geopolitical risks could temper future performance.
The cloud computing sector is poised to become one of the most significant drivers of global economic growth over the next decade, with projections suggesting it could reach valuations in the trillions by 2030. This is not mere speculation; recent market analyses indicate that the industry’s trajectory, fuelled by relentless demand for scalable digital infrastructure, positions it as a cornerstone of modern business. While some optimistic voices on platforms like X, such as @thexcapitalist, have highlighted this potential, the data itself tells a compelling story of sustained expansion and profitability that warrants closer examination.
Market Growth and Revenue Projections
The global cloud computing market, valued at approximately £592 billion (USD 768.5 billion) in 2024, is expected to grow at a compound annual growth rate (CAGR) of 17.6% from 2025 to 2030, reaching £1,557 billion (USD 2,021.69 billion) by the end of the decade. This growth is driven by the increasing adoption of hybrid and multi-cloud strategies, as well as the integration of artificial intelligence and machine learning workloads that demand vast computational resources. A separate forecast suggests a slightly more conservative CAGR of 16.5%, projecting a market size of £1,833 billion (USD 2,291.59 billion) by 2032, though the upward trend remains undeniable.
Breaking this down by key players, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud dominate the landscape. As of the latest estimates in Q2 2025, AWS holds roughly 31% of the market share, followed by Azure at 25%, and Google Cloud at 11%. AWS reported revenue of £23.4 billion (USD 30.4 billion) in Q2 2025, reflecting a year-on-year growth of 13%. Azure’s growth, according to Microsoft’s Q2 2025 results, increased revenue by 17% year-on-year, with revenues of £21.3 billion (USD 27.6 billion). Google Cloud, though smaller, posted year-on-year growth of 26% in Q2 2025, reaching a revenue run rate of £10.4 billion (USD 13.5 billion) for the quarter. These figures underscore a fiercely competitive market where growth rates, even for the largest players, remain robust.
Profitability and Valuation Potential
Profit margins in cloud computing are another area of keen interest. AWS, for instance, reported an operating margin of 32% in Q2 2025, after a period of substantial investment in generative AI capabilities. Microsoft and Google Cloud are not far behind, with margins hovering around 38% and 29%, respectively, based on the latest 2025 disclosures. If these margins hold or improve, and if the market reaches the projected £1.9 trillion by 2030, the operating income from cloud services alone could be staggering. For AWS, maintaining a 30% market share could translate to operating income of £149 billion (USD 193.4 billion) annually by 2030, assuming current profitability trends persist.
Valuations derived from such income streams suggest that individual cloud businesses could indeed approach trillion-pound levels. Applying a more moderate price-to-earnings multiple of 19 to projected net income for the top players, AWS alone could be valued at over £950 billion by the end of the decade. Similar calculations for Azure and Google Cloud, factoring in their respective growth rates and market shares, yield valuations of £730 billion and £350 billion, respectively. While these are speculative figures based on current trajectories, they highlight the immense financial weight of cloud computing in the global economy.
Key Drivers and Risks
Several factors underpin this growth. The proliferation of Internet of Things (IoT) devices, the shift towards remote work, and the rising demand for data storage and analytics are all accelerating cloud adoption. Healthcare, for instance, is seeing a 16% CAGR in cloud computing uptake through 2030, driven by electronic health records and telemedicine. However, risks remain. Regulatory scrutiny over data privacy, particularly in the EU and UK, could impose compliance costs that dent margins. Additionally, geopolitical tensions may disrupt global supply chains for the hardware that powers cloud infrastructure, a concern that has lingered since supply chain disruptions in 2021 and 2022.
Market Share and Revenue Snapshot (Q2 2025)
| Provider | Market Share | Revenue (USD Billion) | YoY Growth | Operating Margin |
|---|---|---|---|---|
| AWS | 31% | 30.4 (Q2 2025) | 13% | 32% |
| Microsoft Azure | 25% | 27.6 (Q2 2025) | 17% | 38% |
| Google Cloud | 11% | 13.5 (Q2 2025) | 26% | 29% |
Conclusion
The cloud computing sector’s trajectory suggests it could indeed become a trillion-pound industry for individual players by 2030, driven by robust demand, high margins, and relentless innovation. While projections vary, the consensus points to a market size exceeding £1.5 trillion globally within the next five to seven years. Investors and businesses alike would do well to monitor not just the headline growth figures but also the underlying risks, from regulatory shifts to technological disruptions. The cloud may be intangible, but its financial impact is anything but.
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