IDC Report China's Smart Computing Service Market Booms in 2H 2023

TapTechNews July 9th news, the latest China Smart Computing Service Market (Second Half of 2023) Tracking report released by the International Data Corporation (IDC) shows that in the second half of 2023, the overall scale of the Chinese smart computing service market reached 11.41 billion yuan ($1.63 billion), with a year-on-year growth of 85.8%.

Smart computing service refers to infrastructure services mainly based on AI-specific computing power such as GPU, FPGA, and ASIC, mainly including smart computing integration services and smart computing infrastructure as a service (TapTechNews note: AI Infrastructure as a service, abbreviated as AIIaaS).

AIIaaS is further subdivided into GenAIIaaS (for generative AI) and Non-GenAIIaaS (non-generative AI, such as traditional rendering, simulation, and video networking inference and other business scenarios).

The market scale of smart computing integration services is 3.6 billion yuan ($0.52 billion); the GenAIIaaS market explosively grows from 0 to 1 in 2023, and the market scale reaches 3.22 billion yuan ($0.46 billion) in the second half of the year; the Non-GenAIIaaS market scale reaches 4.59 billion yuan ($0.66 billion), maintaining growth at a relatively low rate.

The smart computing integration service market shows the characteristics of one super and many strong. Relying on its leading chip capabilities and full-stack service capabilities, Huawei takes the lead in market share, and the top five also include H3C, Baidu, Cambricon, and China Electronics Cloud.

The market share of GenAIIaaS is relatively average, and the top five are ByteDance's Volcano Engine, Alibaba, SenseTime, Baidu, and Tencent.