Top China Cloud providers and their share in Q1: Canalys

Cloud infrastructure services spending in China grew 21 percent to $7.3 billion in Q1 2022, accounting for 13 percent of global cloud infrastructure spend, Canalys report.
Cloud spending growth in China in Q1 2022
The top four Cloud vendors in China are Alibaba Cloud, Huawei Cloud, Tencent Cloud and Baidu AI Cloud. The top four Cloud service providers have benefited from the expansion of cloud use and accounted for 79 percent (+19 percent) of total expenditure in China.

Leading Cloud vendors in China

Alibaba Cloud (36.7 percent), Huawei Cloud (18 percent), Tencent Cloud (15.7 percent) and Baidu AI Cloud (8.4 percent) are the top Cloud service providers in China.

Cloud vendor share in China Q1 2022
Alibaba Cloud is leading the cloud infrastructure services market in Q1 2022, accounting for 36.7 percent (+12 percent) of total spend.

Alibaba announced the opening of its data center in South Korea on 30 March 2022. Alibaba announced that 31 companies have joined its Cloud Native Accelerator Program, covering manufacturing, retail, healthcare and other key verticals.

Huawei Cloud is the second-largest cloud service provider in China in Q1 with 18 percent (+11 percent) market share. Huawei Cloud has won the cooperation of more than 100 enterprises through ecological integration with Huawei’s terminal business (PCs, smartphones and IoT) since it launched its “cloud-to-cloud collaboration” strategy last year.

Tencent Cloud, the third-largest Cloud provider in China, has 15.7 percent of the Cloud market. Tencent Cloud’s revenue fell slightly this quarter compared with the previous quarter, mainly due to its internal business restructuring and changes to its growth strategy.

There’s a gradual shift in Tencent Cloud’s strategic focus toward profitable growth rather than business volume growth. Tencent Cloud’s revenue was mainly from the creative, retailing and gaming industries, as its experience in pan-entertainment industries gives it a competitive advantage.

Baidu AI Cloud, the fourth largest Cloud provider, has 8.4 percent (+43 percent) share of the market in China. Baidu AI Cloud is increasing its adoption rate in manufacturing, water supply and energy through its Kaiwu Industrial Internet Platform. Baidu AI Cloud benefited from companies deploying a multi-cloud strategy, and also focused on expanding its reach into SMBs to increase market share.

“Cloud has become a popular choice for IT enterprises and cloud services are moving up the stack from data center offerings to more industry-specific solutions,” said Canalys Research Analyst Yi Zhang. “Strategies of multi-cloud deployments and multi-service provider delivery are common in the market, and cloud vendors and ISVs from vertical industries are looking to build more flexible portfolios.”

“Currently, China’s hyperscalers are expanding their abilities to provide solutions for specific industry customers,” said Canalys VP Alex Smith. “They are growing their bases of specialized ecosystem partners across different vertical industries to achieve both technical and industry-specific problem-solving capabilities.”

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