IDC: The overall market size of public cloud services in China in the second half of 2023 is $20.48 billion USD

Zhitong
2024.04.26 04:15

In the second half of 2023, the overall market size of China's public cloud services reached 20.48 billion US dollars, with the IaaS market size at 11.55 billion US dollars, a year-on-year growth rate of 7.5%. The PaaS market size was 3.65 billion US dollars, with a year-on-year growth rate of 16.4%. According to an IDC report, the Chinese public cloud services market is entering a strategic adjustment period, and the forecast and analysis data for the next five years will also be adjusted accordingly. The main reason for the market growth slowdown is the sluggish growth of the IaaS market. Against the backdrop of poor growth in the cloud computing market, the overall health of the public cloud services market is improving. Alibaba Cloud, Huawei Cloud, China Telecom, Tencent Cloud, and China Mobile are the top five in the IaaS market, with a combined market share of 70.8%. The PaaS market remains the fastest-growing public cloud services market. Alibaba Cloud, Tencent Cloud, Huawei Cloud, AWS, and China Telecom are the top five in the PaaS market, with a combined market share of 64.9%

According to the Zhitong Finance and Economics APP, IDC's latest report "Tracking the Chinese Public Cloud Service Market (Second Half of 2023)" shows that in the second half of 2023, the overall market size of public cloud services in China (IaaS/PaaS/SaaS) was $20.48 billion. Among them, the market size of IaaS was $11.55 billion, with a year-on-year growth rate of 7.5% and a quarter-on-quarter growth rate of 2.3%; the market size of PaaS was $3.65 billion, with a year-on-year growth rate of 16.4% and a quarter-on-quarter growth rate of 10.1%. Looking at the IaaS+PaaS market, the year-on-year growth in the second half of 2023 was 9.5%. The Chinese public cloud service market is entering a period of strategic adjustment, and the forecasts for the next five years and the analysis data of the public cloud industry will also be adjusted accordingly.

IDC mentioned that in the second half of 2023, two major hotspots in the Chinese public cloud service market continued to ferment: the development of AI large models drove continuous social attention to the public cloud service market; the national macroeconomic guidance and the policy orientation of "Belt and Road" have led to a significant increase in the enthusiasm of Chinese companies to go global. From the current market research data, the market growth rate continues to decline, mainly due to the sluggish growth of the IaaS market. In the increasingly fierce competition among top cloud providers, they have successively undergone strategic transformations, shifting from pursuing total revenue growth to pursuing profit margin improvement or trying to narrow losses. Against the backdrop of poor growth in the cloud computing market, the overall health of the public cloud service market has improved.

In the IaaS market in the second half of 2023, Alibaba Cloud, Huawei Cloud, China Telecom, Tencent Cloud, and China Mobile were the top five in market ranking, with a total market share of 70.8%, a year-on-year decrease in market concentration of 2.0%. The market share of operators in the IaaS field is steadily increasing, providing continuous growth momentum for the overall market revenue.

In the second half of 2023, the PaaS market remained the fastest-growing public cloud service market. Alibaba Cloud, Tencent Cloud, Huawei Cloud, AWS, and China Telecom were the top five in market ranking, with a total market share of 64.9%, a year-on-year decrease in market concentration of 1.5%. Public cloud providers continue to shift their strategic development focus towards PaaS, and the increase in research and development investment brings positive feedback to market revenue, maintaining a rapid development trend in the Chinese public cloud PaaS market.

IDC China Enterprise Research Manager Cui Tingting stated that in 2023, as the first year after the epidemic, the overall recovery of the cloud computing market was not as expected, with continuous budget cuts by enterprises, and the market development has not completely shaken off the weak trend during the epidemic However, it is worth noting that with the rise of AI and the rapid development of intelligent computing services, the homogenization of the public cloud market is being broken. Different cloud vendors are actively combining their own strengths to conduct research and innovation, gradually forming their own characteristics, and to some extent covering emerging markets in different fields.

Represented by cloud vendors with an internet background, the AI research camp is at the forefront of research and development with a focus on general large-scale models, elastic intelligent computing capabilities, and full-stack hybrid cloud technology solutions. The AI resource camp, represented by software and hardware cloud vendors, operators, data center service providers, and product channel vendors, not only provides a solid resource foundation for the overall development of AI, but also escorts cloud computing users in areas such as data storage, data governance, and data security, allowing AI development to innovate within a safe and controllable range. The significant development of AI may trigger changes in the cloud computing market competition landscape, bringing new momentum to market development. The Chinese public cloud market will transition from "strategic adjustment" to a new phase of "rapid development"

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