According to a report by Synergy Research Group, it was revealed that the European cloud market has grown exponentially since 2017, reaching a total of €5.9 billion in the third quarter of 2020.
Moreover, the report also stated that during that same period, European service providers have witnessed an increase in their cloud revenues.
Yet, their market share has gone from 26% to less than 16%. This is explained by the rise of American cloud players such as Amazon, Microsoft, and Google. Indeed, these three global cloud providers are slowly taking over the European market.
Hence, European cloud providers are focusing on customer segments and use cases with stricter data sovereignty and privacy requirements in order to get more traction in the market.
However, the three US cloud providers now possess 67 hyperscale data centers in Europe, putting European firms in a tough position. Besides, the European market is also the home of smaller US and Asian cloud providers, which are now starting to lose market share to these global players too.
Furthermore, IaaS and PaaS services now make up almost 80% of the market and it is very likely that they will only grow faster than any smaller private cloud providers.
The report expects that the full-year 2020 European cloud infrastructure service will be up 31% from 2019.