The Q2 2020 worldwide cloud infrastructure services market continued to surge, as spending grew 31% to US$34.6 billion, according to Canalys.
Overall, total expenditure was over US$3.5 billion higher than the previous quarter and US$8 billion more compared with Q2 2019 according to Canalys data. But growth rates continued to be constrained due to a slowdown in large projects, as the economic outlook weakened, and existing IT assets made to last longer.
Amazon Web Services (AWS) was the leading cloud service provider in Q2 2020, accounting for 31% share of total spending. Microsoft Azure reached 20% market share for the first time after a strong end to its fiscal year.
Google Cloud remained the third largest cloud service provider with 6%, after exceeding the US$2 billion mark, followed by Alibaba Cloud with 5%.
China Cloud Market
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.
China Public Cloud Market
In the first quarter of 2020, the overall market of China’s public cloud services (IaaS / PaaS / SaaS) will reach US$3.92 billion according to IDC, of which the IaaS market and PaaS market will grow by 57.6% and 64.6% respectively.
From the perspective of IaaS + PaaS market, the first quarter of 2020 increased by 58.7% year-on-year, slightly down from 61.9% in the fourth quarter of 2019.
In the first quarter of 2020, the trend of market centralization will be further strengthened. Alibaba Cloud, Tencent Cloud, Huawei cloud, China Telecom, and Amazon AWS are among the top five in the IaaS + PaaS market, with an overall market share of 77.5%.
Due to the growth of consumption of public cloud resources by Internet industries such as video, game, e-commerce, online education, medical and other industries, Alibaba Cloud, Tencent Cloud and China Telecom have all maintained a good growth rate.
Huawei Cloud continues to play its collaborative advantages, AI and 5G technology, and its ranking in IaaS market has also risen to the third. From the perspective of new entrants, China Mobile has joined the public cloud battlefield.
Video Cloud Market
China’s video cloud market is estimated by IDC to increase 48.67% year-on-year in 2020 and the country’s video cloud solutions market reached $4.62 billion in 2019 and is expected to reach $4.72 billion in 2024.
China’s video cloud solutions market grew faster than the cloud infrastructure market, with growth rates of 53.9%.
The top five cloud service providers in China’s video cloud market are Tencent Cloud, Alibaba Cloud, Baidu Cloud, Kingsoft Cloud, and Huawei Cloud, accounting for 64.9 percent of the market share.
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