Canalys: China's cloud market up by 58% to US$2.3 billion in Q2 as local competition heats up

Shanghai (China), Bengaluru (India), Singapore, Reading (UK) and Portland (US) – Wednesday, 11 September 2019

The cloud infrastructure services market in China grew rapidly in Q2 2019 according to the latest Canalys research, with total spending up 58% year on year at US$2.3 billion. Alibaba Cloud remained the dominant cloud service provider, accounting for 43% of the market, more than the next four combined. But its growth, at 47%, was lower than its main China-based competitors. Tencent Cloud was the second largest cloud service provider, growing 88%. Amazon Web Services (AWS) was third, up 48%. Baidu Cloud retained its fourth-place position after gaining strong traction and growing 92%, which helped it close the gap on the top three. 

“Outlay on cloud infrastructure services continues to increase among Chinese organizations, particularly startups, government agencies and enterprises, which have become more ambitious in growing their digital capabilities to capture opportunities in the country’s massive Internet and mobile-based consumer market,” said Daniel Liu, Canalys Research Analyst. “Competition in China has intensified, mainly due to local cloud service providers, including Alibaba Cloud, Tencent Cloud and Baidu Cloud. Boosting revenue from cloud services is a top strategic priority for these companies amid growing domestic demands.”

Competition is becoming more intense, with the big four and smaller local providers aggressively investing in their market presence. Alibaba Cloud is the clear leader in China, though the other local cloud service providers are gaining share. Tencent Cloud’s digital payments, egovernment and advertising initiatives have helped it diversify from its long-standing specialization in the gaming and video-streaming verticals. Baidu Cloud has invested in its cloud business, including it in the company’s focus on developing artificial intelligence platforms, where it has found opportunities in the local telecommunications, manufacturing and autonomous vehicle sectors. This all offers significant potential growth. AWS has also increased its focus on China, appointing a new leader for its Chinese operations, with the aim of strengthening sales and marketing, as well as relationships with channel partners and government departments.

For more information, please contact:

Canalys China
Daniel Liu: [email protected] +86 158 0075 6471

Canalys Singapore
Sharon Hiu: [email protected] +65 9777 9015
Yih Khai Wong: [email protected] +65 9712 7835

Canalys UK
Matthew Ball: [email protected] +44 7887 950 505
Alastair Edwards: [email protected] +44 7901 915 991

Canalys USA
Marcy Ryan: [email protected] +1 650 862 4299
Alex Smith: [email protected] +1 650 799 4483

About Canalys

Canalys is an independent analyst company that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. We stake our reputation on the quality of our data, our innovative use of technology and our high level of customer service.

Receiving updates

To receive media alerts directly, or for more information about our events, services or custom research and consulting capabilities, please contact us. Alternatively, you can email [email protected].

 

Please click here to unsubscribe

 


 

Copyright © Canalys 2019. All rights reserved.

China: Room 310, Block A, No 98 Yanping Road, Jingan District, Shanghai 200042, China
India: 43 Residency Road, Bengaluru, Karnataka 560025, India
Singapore: 133 Cecil Street, Keck Seng Tower, #13-02/02A, Singapore 069535
UK: Diddenham Court, Lambwood Hill, Grazeley, Reading RG7 1JQ, UK
USA: 319 SW Washington #1175, Portland, OR 97204 USA
email: [email protected] | web: www.canalys.com

 

 

For more information:
e-mail [email protected]

 

PDF download

 Canalys: China's cloud market up by 58% to US$2.3 billion in Q2 as local competition heats up

 


Share this article