CHART: Alibaba leads China’s cloud market, as service spend grew in Q2 2024

• Cloud spending in Mainland China reached $9.4 billion in Q2 2024, reflecting an 8% YoY increase.
• The top 3 cloud providers dominate the market, accounting for 71% of cloud infrastructure services.
• Leading cloud providers are enhancing their AI models and developing tailored industry solutions to meet rising demand.

Despite broader macroeconomic conditions leading to a deceleration in certain industries, organizations prioritizing digitalization have significantly expanded their cloud consumption, largely driven by advancements in AI technology.

This influence is becoming increasingly pronounced, with spending on cloud infrastructure services reaching $9.4 billion in Q2 2024, reflecting an impressive 8% year-on-year increase.

Recognizing AI as a key driver of business expansion, leading cloud providers are now focusing on integrating AI with cloud computing to tap into these new growth opportunities.

At the forefront of this transformation in Mainland China are Alibaba Cloud, Huawei Cloud, and Tencent Cloud, which have emerged as dominant players in the cloud infrastructure landscape, collectively accounting for a staggering 71% of the market.

Alibaba Cloud maintained its lead, capturing 36% of the market and achieving double-digit growth in its public cloud business in Q2 2024, driven by the success of its AI products. Huawei Cloud solidified its position as the second-largest vendor, increasing its market share to 19% with a steady 13% growth rate.

Meanwhile, Tencent Cloud ranks third, securing 16% of the market share. As the customer base for AI platforms offered by these providers continues to grow, expectations for substantial growth in the second half of the year are on the rise.