Chinese cloud market sees huge rise, but still long way behind US giants


The cloud computing market in China is going from strength to strength but still has plenty of growing to do according to the latest research. Market analyst firm Canalys reports that the sector grew by 65% in the third quarter of this year, taking in $5 billion in revenue.

Despite the impressive growth, China’s cloud industry takes in less revenue collectively than Microsoft Azure alone, which banked $6.9 billion during the quarter. Currently, China’s cloud expenditure represents 13.7% of the global total, less than would be expected for a market of its size.

Nevertheless, 2020 has been a good year for the Chinese cloud market, with digital acceleration partly driven by the coronavirus pandemic. In response to the crisis, many domestic businesses have had to adopt cloud-based digital tools to keep employees connected and productive.

Here’s our list of the best cloud hosting providers
Also, see our list of the best web hosting providers for your website
Here’s our roundup of the best CDN providers around
Chasing top spot
Canalys estimates that cloud spend in China has grown by $2 billion year-on-year in 2020. Some of the biggest domestic players, the likes of Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu AI Cloud have shown performed strongly, expanding the customer bases in a range of industries.

Demand for cloud-based services reached new heights in China, as organizations reprioritized IT spending and accelerated digital transformation projects,” said Canalys Chief Analyst Matthew Ball. “Remote learning and working, as well as gaming, streaming, e-commerce and other online services continued to drive consumption of cloud infrastructure resources. This, combined with the digitalization of processes and operations within enterprises and government organizations, will maintain demand. Organizations have overcome challenges caused by the COVID-19 pandemic by using digital services developed by cloud service providers.”

Although the cloud market in China may still trail the US, the economic expansion taking place in the country, and the focus on digital transformation in the country, will surely result in continued industry growth.

Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments
Would love your thoughts, please comment.x