Huawei ranks second in Q4 2023 China Cloud service listing with 19% market share

Today, Canalys research firm has released the 2023 China Cloud service market report based on the fourth quarter and Huawei has obtained the second rank in this listing. The report also highlights the growth of cloud facilities in the region.

Canalys highlights that the overall cloud infrastructure expense in China has scored an increment of 22% YoY in Q4 2023 and accounted for $9.7 billion of worldwide cloud expenditure. The Chinese cloud market has grown by 16%, compared to 2022.

The report further shows that Huawei Cloud has achieved the second position in the Q4 2023 China Cloud service market ranking. The tech giant is running in the franchise with a 19% market share, delivering its cloud services in all sectors.

Alibaba Cloud has the highest market sharing rate in this listing – 39%. But the research firm says that the company has encountered a variety of difficulties while achieving this grade. Due to poor growth, Alibaba made price-cut-offs in its products.

Third rank goes to Tencent Cloud with 16% while the rest of the market has been taken by other cloud service vendors in the region. You can check the data and other related figures in the graph given below.

Q4 2023 China Cloud service market report (Image Credits: Canalys)

Canalys’s Take:

Yi Zhang – one of the analysts at Canalys organizations shares his thoughts on this subject and says that cloud vendors are currently dealing with challenges like maintaining growth as well as profit amid the market pressure and price reduction.

Generative AI growth is another factor that is creating stress for the cloud vendors in the region. Hence, they should boost their investments in advanced facilities:

“Beyond profitability concerns, they must also ramp up investments in emerging technologies. In such cases, effective collaboration with partners can help mitigate risks and gain access to partners’ expertise and resources. This will allow them to navigate competitive pressures and foster sustainable growth in the AI-powered future.”