Growth of Cloud Basic Services in China in Q1 2024

TapTechNews June 27th reported that Canalys stated that in the first quarter of 2024, the spending on cloud basic services in mainland China increased by 20% year-on-year to $9.2 billion (TapTechNews note: currently about 67.025 billion yuan).

The three giants in the Chinese cloud service market - Alibaba Cloud, Huawei Cloud, and Tencent Cloud, continue to hold a dominant position, occupying 72% of the entire market share, and the market share of these three decreased by 2% compared to the previous quarter.

Alibaba Cloud continuously remains the first with a 37% market share. In April 2024, Alibaba Cloud announced significant price reductions for its core products in 13 regions globally, with an average reduction of 23%, and in May disclosed that it will establish new data centers in five countries including South Korea, Malaysia, the Philippines, Thailand, and Mexico.

Huawei Cloud still holds the position of the second-largest cloud service provider with a 19% market share. Huawei held the Asia-Pacific Partners Joint Summit in April 2024 and cooperated with partners such as iFLYTEK, PwC, and KBQuest at the event.

Tencent Cloud occupies a 16% market share and ranks third. In order to keep up with the price reduction pace of Alibaba Cloud, Tencent Cloud significantly reduced the prices of its basic models by up to 70% in May.

The report also mentioned that operators led by China Telecom are gradually emerging in the cloud service market and are gradually encroaching on market share.

Reference