According to the research findings of Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') on China's public cloud market, the market reached 19.71 billion yuan in Q3 2019, a year-on-year increase of 64.3%. Market enthusiasm continues to climb, and market concentration has further improved. In the next five years, driven by the development and application of new technologies such as AI/IoT/5G/big data/blockchain, as well as favorable policies, the scale of China's public cloud market will further grow. Frost & Sullivan expects that the market scale of China's public cloud is expected to reach 525.65 billion yuan by 2023.
Looking at the IaaS market, the top five vendors account for 73.8% of the total market share. Alibaba Cloud continues to maintain its leading position, Tencent Cloud ranks second, Huawei Cloud rises to third, and Tianyi Cloud and Kingsoft Cloud are respectively ranked fourth and fifth. Alibaba Cloud continues to hold its industry-leading position by virtue of its revenue advantages in new retail, cloud video, cloud gaming, and other fields. In the future, it will further expand into enterprise markets mainly focused on government affairs, finance, and manufacturing industries. Tencent Cloud's operating income has further expanded, mainly due to increased usage from existing customers, expansion of customer bases from education, finance, and retail industries, maintaining a high penetration rate in the gaming and video industries, and the enhancement of its comprehensive solution capabilities has also promoted revenue growth. Huawei Cloud has made its debut among the top three in the market for the first time, mainly by virtue of its strengths in full-stack technology, industry-specific solutions, localized services, security, reliability, etc., which have won favor with government and enterprise markets. At the same time, it has made further breakthroughs in niche markets such as internet, finance, and genomics.
Source: Frost & Sullivan Research
In terms of the PaaS market, Alibaba Cloud, Tencent Cloud, AWS, Huawei Cloud, and Tianyi Cloud together account for 75.4% 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 AWS are fourth and fifth respectively.
Source: Frost & Sullivan Research
From the perspective of the overall development trend of the public cloud market, artificial intelligence has become an important driving force in China's public cloud industry. All sectors are accelerating the deep application of AI technology for service efficiency and experience improvement, intelligent operation and maintenance, intelligent security protection, and cost reduction. The integrated and convenient AI service capabilities based on the cloud have become an important direction for public cloud service providers to compete in. With the advent of the 5G era, application scenarios such as AR/VR/cloud gaming will accelerate implementation, driving the development of related cloud services; the integration capabilities of cloud computing, artificial intelligence, and 5G technology have become another major competitive direction for public cloud service providers.
