China’s cloud infrastructure services market grew 67.0% year on year in Q1 2020, according to Canalys. Alibaba, Huawei, Tencent, and Baidu lead with a combined market share of 81%.
Cloud infrastructure services spending reached US$3.9 billion. China remained the world’s second-largest market, accounting for 12.5% of the overall total. This compares to 10.0% in Q1 2019, highlighting the increasing pace of cloud adoption in China as part of digital transformation projects.
The top four cloud service providers in China collectively accounted for 81.0% of the total spend in Q1 2020.
Alibaba Cloud continued to dominate, with 44.5% market share. Huawei Cloud and Tencent Cloud were the leading challengers, with shares of 14.1% and 13.9%. Baidu AI Cloud was the fourth-largest cloud service provider, increasing its share to 8.6%.
Alibaba Cloud announced plans to invest 200 billion yuan (US$28 billion) over the next three years to enhance its cloud software and hardware. Baidu also announced massive plans to increase its investment in AI, cloud computing, data centers (5 million intelligent cloud servers by 2030), and chips over the next decade.
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