The market analysis firm Canalys released the results of the domestic cloud sector in China for the third quarter in early December: Alibaba retains its leading position, the market shares of Tencent and Huawei are falling, Baidu is gaining a place, Microsoft Azure and Amazon Web Services are in ambush.
Huawei and Tencent lose market share, Alibaba and Baidu gain
Figures to make Europe salivate, the big Chinese Tech companies have 80% of their domestic cloud market. The turnover of the sector is up by 43% over the year to reach 7.2 billion dollars.
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Good figures linked to the digitization of Chinese companies, encouraged by the government. Growth is however below 2020 where the confinement effect caused by the Covid had played a full role.
Four Chinese Tech giants own 80% of the market. Alibaba remains firmly in first place on the Chinese cloud podium with 38.3% market share, compared to 33.8% in the previous quarter. Behind Huawei and Tencent fell with respectively 17% and 16.6% against 19.3% and 18.8% previously. Baidu continues to nest, going from 7.8% share to 8.2%.
The dynamic is on the Tom Thumb side of the ranking, with 64.7% growth, helped by the AI offers from the Baidu cloud. Huawei and Tencent, despite their loss of market share, are at about 50% growth, the first thanks to its new products, the second thanks to its large customers. Alibaba is at 33.3% growth.
Global cloud market leaders eye China
Well-established Chinese cloud players would do well to watch their American rivals. AWS and Azure, respectively 33% and 18% market share globally, are eyeing the Middle Kingdom.
AWS announced its upcoming expansion of its Ningxia region in central China, and plans to launch a zone in Beijing. Azure wants to double its cloud capacity in China in 2022, through a partnership with local company 21Vianet.
Blake Murray, analyst for Canalys, estimates according to The Register that ” The renewed interest in US-based hyperscalers comes mostly from the fact that mainland China is the second largest market in the world “.
The latter believes that the obstacles to entering the Chinese cloud market, such as mandatory partnerships, do not taint the interest in ” its status as the fastest growing market in the world due to the rapid digitalization of its economy “.
Globally, according to Synergie Research Group, Alibaba has 5% of the market, making it the fifth player in the sector, behind AWS, Azure, Google and IBM, Tencent has 2% of the market, like Oracle and after Salesforce and its 3% of market share. No European actor at the rendezvous to note that they are not necessarily helped.