China Cloud Computing Market

China Cloud Computing Market, By Service (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS)), By Deployment (Public, Private, Hybrid), By Enterprise (Large Enterprises, Small & Medium Enterprises), By End User (BFSI, Telecom and IT, Media and Entertainment, Energy and Utilities, Manufacturing, E-Commerce, Government & Public Sector, Healthcare, Others) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: October 2021
  • Report ID: BWC21128
  • Available Format: PDF
  • Page: 118

Report Overview

China cloud computing market is flourishing at a high rate because of the expanding scope of AI and machine learning in China and the growing culture of remote working in organizations.

China Cloud Computing Market- Industry Trends & Forecast Report 2027

China cloud computing market was worth USD 13.0 billion in 2020 and is further projected to reach USD 83.8 billion by the year 2027, growing at a CAGR of 30.3% in the forecast period. The growth of the market is attributed to factors such as expanding scope of AI and machine learning in China and growing culture of remote working in organizations. In addition, increased investment in the development of cloud data centers in the country is likely to enhance the market during the projection period.

China Cloud Computing Market

Source: BlueWeave Consulting

China Cloud Computing Market- Overview

Cloud computing refers to a technology which offers real-time and on-demand availability of computer services such as data storage and computing power without the need for direct management. With cloud computing, users can access all of their computer resources, including storage and processing power, from anywhere, at any time. Additionally, by adopting cloud computing, enterprises can save money since they only have to pay for the cloud services they use rather than spending money on IT infrastructure and operations. Using cloud computing also eliminates the need to rack and stack IT components, which increases efficiency.

China Cloud Computing Market Forecast and Trends

Growth Drivers

Growing Preference for Hybrid Cloud Computing Services

Hybrid cloud computing services are gaining huge popularity among Chinese companies as they offer higher efficiency and flexibility, along with reduced prices. Hybrid cloud solutions are a mixture of on-premise infrastructure as well as private and public cloud solutions. SMEs pick hybrid cloud services because they do not require any initial infrastructure configuration, which saves money. Furthermore, other advantages of hybrid cloud computing services, such as improved agility and innovation and better administration of numerous suppliers and platforms, are proving beneficial to the growth of the China cloud computing market.

Cost Benefits of Cloud Computing

The benefits of cloud computing outweigh its drawbacks, which is why its market has grown so rapidly in China. Because cloud computing does not require initial investments in IT infrastructure and space, it reduces costs and can generate higher returns. Furthermore, it also offers advanced levels of data security as compared to on-site data storage and allows them to meet necessary government requirements. Furthermore, cloud computing proves to be convenient in offering flexibility to businesses in terms of expansion, further advancing the growth of its market.

Restraints

High Risk on Cybersecurity and Chances of Data Loss

Cloud computing offers several benefits to businesses, but the risks of cyberattacks and data theft, as well as losses, cannot be ignored. Cloud computing is associated with various cybersecurity risks such as data breaches, denial of service, insider threats, hijacking accounts, etc., which pose great threats to the adoption of cloud computing. Due to these issues, many Chinese businesses are reluctant to switch to cloud computing, which may hinder growth of the Chinese cloud computing market.

Impact of COVID-19 on China Cloud Computing Market

The sudden COVID-19 outbreak significantly halted the operations of several industries. Due to China being the origin point and hotspot of the virus' spread, Chinese companies in all sectors suffered severe losses.  Therefore, to overcome the setback brought by the pandemic and get their business operations back on track, several companies rapidly shifted towards cloud computing, which proliferated the China cloud computing market. Furthermore, with increasing remote working culture and the need for remote access of data in real-time, the need for cloud computing surged higher than ever, which is further contributing to the growth of the China cloud computing market.

China Cloud Computing Market - By Service

Based on services, the China cloud computing market is segmented into infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). The software as a service (SaaS) segment accounts for the largest share in the market. SaaS proves to be cost-effective as well as easy to deploy and maintain. Furthermore, an increasing number of small-scale industries in China opting for cloud computing prefer SaaS over other service types, thereby propelling the segment forward.

China Cloud Computing Market - By Deployment

Based on deployment, the China cloud computing market is categorized into public, private, and hybrid. Since many private companies have invested in building internal networks, the private deployment segment dominates the China cloud computing market. This type of deployment proves to be beneficial in terms of scalability, self-service, and elasticity. Additionally, those willing to pay for private deployments can also customize the platform according to their needs.

China Cloud Computing Market - By Enterprise

Based on enterprises, the China cloud computing market is segmented into large enterprises, and small & medium enterprises. The large enterprise segment holds the largest market share as big organizations with the highest financial capacities are investing towards offering efficiency, flexibility, along with lower operating costs through the use of the cloud in their business operations. However, small & medium enterprises are expected to grow at the fastest rate in the forecast period due to flourishing colocation data centers offering cloud services at lower costs.

China Cloud Computing Market—Competitive Landscape

The leading players in the China cloud computing market are Alibaba Cloud, Tencent Cloud, China Telecom Cloud, AWS China, Huawei Cloud, Kingsoft, Inspur Cloud, Baidu Cloud, Azure China, JD Cloud, and other prominent players.

Cloud computing is a highly concentrated market, with industry giants like Alibaba and Tencent offering services there. Despite this, the market offers lucrative growth opportunities to new players as it is still in its infancy. The market players aggressively invest in expanding cloud services and technological capabilities to grab a larger share in the market. Also popular in this market are competitive strategies like mergers and acquisitions, partnerships, joint ventures, etc.

Recent Developments

  • In September 2021, Huawei has established a new cloud computing business in South China's Shenzhen that includes network culture operations, internet live broadcast technology services, information network dissemination, and domain name registration services.
  • In March 2021, global tech giant Microsoft announced the opening of a new Azure cloud computing data center in China to establish the country’s footprint in the country.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, UAE, South Africa, Saudi Arabia

Product Service/Segmentation

By Service, By Deployment, By Enterprise, By End User, By Region

Key Players

Alibaba Cloud, Tencent Cloud, China Telecom Cloud, AWS China, Huawei Cloud, Kingsoft, Inspur Cloud, Baidu Cloud, Azure China, JD Cloud, and other prominent players.

 

By Service

  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (SaaS)

By Deployment

  • Public
  • Private
  • Hybrid

By Enterprise

  • Large Enterprises
  • Small & Medium Enterprises

By End-User

  • BFSI
  • Telecom and IT
  • Media and Entertainment
  • Energy and Utilities
  • Manufacturing
  • E-Commerce
  • Government & Public Sector
  • Healthcare
  • Others

Frequently Asked Questions:

Ans: China cloud computing market reached USD 13.0 billion in 2020.
Ans: The major factors driving the growth of the China cloud computing market are; growing preference for hybrid cloud computing services and cost benefits of cloud computing.
Ans: The key players in the China cloud computing market are: Alibaba Cloud, Tencent Cloud, China Telecom Cloud, AWS China, Huawei Cloud, Kingsoft, Inspur Cloud, Baidu Cloud, Azure China, JD Cloud, and other prominent players.
Ans: The BFSI segment accounted for the largest share in the China cloud computing market.
Ans: China cloud computing market is expected to grow at the CAGR of 30.3%.