Canalys: China Cloud Market Report for Q2’21
On September 14, Canalys released a report on China’s cloud computing market for Q2’21.
China’s cloud infrastructure market grew by 54% in Q2’21, reaching $6.6 billion USD.
Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu Smart Cloud have maintained their dominance in the Chinese market, with an overall growth of 56%. These four major cloud service providers grew by 56% overall in Q2’21, accounting for 80% of total cloud computing expenditures.
Among them, Baidu Smart Cloud’s growth rate is higher than the overall market growth rate, and the overall growth rate of all four cloud providers. In Q2, Amazon Cloud Technology, Microsoft Azure, and Google Cloud ranked among the top three. These three major cloud service providers accounted for 61% of the total expenditure in Q2’21. Alex Smith, Canalys VP said: “In 2021, both large tech companies and small start-up companies in China will face certain pressures, but Chinese tech companies can always rely on their domestic markets, especially when access to the Western markets is blocked.” The reason that the four leading cloud service providers maintained their strong growth in 2021, is because digital transformation, AI, and smart industries are still on the agenda of enterprises and governments, which lead to local demands remaining strong. According to Canalys’ report, among the four leading cloud service providers, Alibaba Cloud continued to lead the market with 33.8% market share, its Previous annual growth rate was 30%; Huawei Cloud maintained its second-place position in the Chinese infrastructure market with 19.3% market share. Huawei Cloud recently announced the appointment of its new CEO Pingan Zhang. Driven by smart tourism, government, and finance, Tencent Cloud’s growth has accelerated once more, ranking third with a market share of 18.8%. Baidu AI Cloud ranks fourth with a market share of 7.8%, mainly focusing on simplifying AI technology.