Cloud infrastructure services spend in China grew by 54% YoY in Q2 2021, reaching US$6.6 billion and led by Tencent Cloud, according to data from Canalys.
Tencent Cloud accounted for nearly 19% of total cloud infrastructure spending in China, but remained third behind Alibaba Cloud and Huawei Cloud, followed by Baidu AI Cloud. The top four collectively grew 56% and accounted for 80% of total cloud spending in China.
China Cloud Market Share
The top four cloud service providers in China were Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu AI Cloud, with a combined 80% market share by total expenditure.
Alibaba Cloud led China’s cloud market with a 33.8% share, though its growth slowed to 30% in the quarter. Huawei maintained its second-place position in China’s cloud infrastructure market during Q2 2021 with a 19% market share.
Tencent Cloud was third after its growth re-accelerated, driven by wins in smart tourism and government, as well as finance. Baidu AI Cloud was fourth with an 8% share after it grew 49%.
Cloud infrastructure services growth in China continued to outpace the rest of the world, supported by the government’s strategic priority in cloud computing.
China’s Public Cloud Services Market to Grow to 10.5% of global share by 2024
In 2020, the overall market size of global public cloud services (IAAs/PAAS/SaaS) reached US$312.42 billion, with a year-on-year growth of 24.1%, according to IDC.
The overall market size of China’s public cloud services reached US$19.38 billion, with a year-on-year growth of 49.7%, with the highest growth rate in all regions of the world. IDC predicts that the global share of China’s public cloud service market will increase from 6.5% in 2020 to more than 10.5% by 2024.
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