According to the research survey of Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') on the Chinese public cloud market, the market reached 29.94 billion yuan in Q1 2020, a year-on-year increase of 47.4%. Market enthusiasm continues to rise, and competition within the industry is becoming increasingly fierce. The construction of new infrastructure represented by new technologies and applications such as 5G, big data, cloud computing, and artificial intelligence has played a significant role in promoting the growth of the Chinese public cloud market scale.
Looking at the IaaS market, the top five vendors account for 85.4% of the overall market share. Alibaba Cloud continues to maintain its leading position, Tencent Cloud ranks second, Huawei Cloud holds third place, and Tianyi Cloud and Kingsoft Cloud are ranked fourth and fifth respectively. Alibaba Cloud continues to maintain its position as the industry's leading enterprise and announced plans to invest 200 billion RMB over the next three years to improve its cloud software and hardware during the pandemic. Tencent Cloud ranks second in the industry, driving cloud business revenue growth by seizing opportunities in video, education, and retail industries. Huawei Cloud maintains third place in the industry, with the fastest growth rate in the first quarter, reaching a market share of 12.8%, further narrowing the gap with the top two players in the market. It has achieved product and service innovation in multiple fields such as digital R&D, intelligent anti-epidemic measures, online education, intelligent collaborative office, and intelligent operation and maintenance. As a central enterprise cloud, Tianyi Cloud continues to leverage its resource advantages, actively promoting cloud-network integration and the construction of a cloud security ecosystem. Kingsoft Cloud maintains its position among the top five in the industry due to the rapid popularization and application of its AI-driven, edge computing platform-supported video cloud solutions, which have been further expanded in areas such as gaming, education, and AIoT.
Top Five IaaS Service Providers in China's Public Cloud Market Share, Q1 2020
Source: Drawn by Frost & Sullivan Research
In the PaaS market, Alibaba Cloud, Tencent Cloud, Huawei Cloud, Tianyi Cloud, and Kingsoft Cloud together account for 85.9% of the market share. Alibaba Cloud continues to maintain its leading position, followed by Tencent Cloud in second place; Huawei Cloud ranks third; Tianyi Cloud and Kingsoft Cloud are ranked fourth and fifth respectively.
Top Five Service Providers' Market Share in the PaaS Layer of China's Public Clouds, Q1 2020
Source: Drawn by Frost & Sullivan Research
Against the backdrop of the new infrastructure era, public cloud services, as carriers of infrastructure, will be able to provide computing, storage, network, and other infrastructures in service form to customers more efficiently in the future, empowering the development of various industries and bringing about industrial transformation and intelligent upgrading. Under the wave of digital economy development, public cloud services will become an important booster for governments and enterprises to achieve intelligent upgrading. As the COVID-19 pandemic gradually comes to an end, the Chinese public cloud market is expected to maintain stable development in the future.
