Cloud infrastructure services spend in China grew by US$2.1 billion or 55% YoY in Q1 2021, reaching US$6.0 billion, according to data from Canalys.
China was the second-largest cloud infrastructure services market after the US, accounting for 14% of global investment, up from 12% in Q1 2020. Visit here for AI Cloud market share.
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 40% share, though its growth slowed to 38% in the quarter. Huawei Cloud made the most gains during Q1 2021, growing 116% with a 20% market share. It grew strongly thanks to Internet customers and government projects, as well as key wins in the automotive sector.
Tencent Cloud was third with a 14% market share. It expanded in healthcare, retail, education, and transportation, according to Canalys. Baidu AI Cloud was the fourth-largest cloud service provider, accounting for 7% of total spending in Q1 2021.
Baidu had ongoing success with large financial service customers, and also grew in the government, enterprise, Internet, transportation, and healthcare sectors.
China Cloud Infrastructure Spend Growth
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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