Canalys: China's cloud service spending reached $7.8 billion in Q3, followed by Alibaba Cloud, Huawei Cloud, Tencent Cloud and Baidu Intelligent Cloud
Dec 12, 2022| December 12 - Spending on cloud infrastructure services in the Chinese mainland rose 8 percent year on year to $7.8 billion in the third quarter of 2022, accounting for 12 percent of global cloud spending, according to the latest Canalys report. Annual growth has slowed for three straight quarters since the first quarter of 2022, falling below 10 percent for the first time. In the quarter, the four leading cloud vendors in China remained Aliyun, Huawei Cloud, Tencent Cloud, and Baidu Intelligent Cloud, according to the report. After their 8% growth in the quarter, the top four cloud heads together accounted for 80% of total spending.
In the third quarter of 2022, Alibaba Cloud accounted for 36% of total spending after achieving 4% year-over-year growth. This is the first time Aliyun's growth has fallen into the single digits.
With a 19% market share, Huawei Cloud is the second largest cloud service provider in Q3 2022. The vendor's growth in the quarter outpaced the overall growth in cloud services spending in China, with a slight gain in market share.
In the third quarter of 2022, Tencent Cloud held 16% of the cloud market in China. Tencent Cloud remains committed to scaling back loss-making projects and focusing on improving profitability.
Baidu Intelligent Cloud ranked fourth, with a market share of 9% and an annual growth of 12%. Baidu Intelligent Cloud has grown faster than China's overall cloud market for three quarters in a row.
According to Canalys, about 60 percent of the customers of the top three cloud vendors in the global cloud services market -- Amazon Cloud Technology, Microsoft Azure, and Google Cloud -- are from traditional industries. In the next phase, the cloud market in China is expected to be driven by enterprise customers in traditional industries. "However, one of the major difficulties for Chinese cloud vendors is that they still struggle to convince traditional industries to move to the cloud, especially those with a low degree of digitalization."
