Cloud infrastructure market in China increased 54 percent in Q2 2021 to $6.6 billion, Canalys report said on Monday.
Alibaba (33.8 percent), Huawei (19.3 percent), Tencent (18.8 percent) and Baidu (7.8 percent) are the Cloud market leaders in China.
Alibaba Cloud remained the market leader with a 34 percent share, after growing 30 percent on an annual basis.
Huawei maintained its second-place position in China’s cloud infrastructure market during the second quarter of 2021 with a 19 percent market share. Huawei recently announced a new CEO for Huawei Cloud, Zhang Ping’an.
Tencent Cloud was third after its growth re-accelerated, driven by wins in smart tourism and government, as well as finance.
Tencent Cloud’s Cloud infrastructure revenue grew 92 percent. Tencent Cloud accounted for nearly 19 percent of total cloud infrastructure spending in China. Tencent Cloud is remained third behind Alibaba Cloud and Huawei Cloud, and ahead of Baidu AI Cloud.
Baidu AI Cloud was fourth with an 8 percent share after it grew 49 percent. It continued to focus on simplifying AI technology for broader enterprise adoption.
The report said pressure is mounting on Baidu, Alibaba and Tencent as the Chinese government pursues a series of antitrust regulations and Internet-related policies.
“Chinese tech companies could rely on their local market, especially when access to lucrative Western markets was blocked. But increasing domestic regulatory pressures over the past nine months have been a frustrating headwind for those companies that have seen their cloud businesses grow over the past few years,” Alex Smith, Canalys Vice President, said.