Cloud Computing in China - Statistics & Facts

Cloud computing utilizes the remote data centers available for users to store, access and process data over network, which significantly reduce the computing burden on the users' computers and allow the mobility and flexibility of the work. The technology is being rapidly developed in various sector and is already generating over five billion of dollars in revenue annually. Generally three main type of business models available for cloud computing include Software as a Service (Saas), Platform as a Service (Paas) and Infrastructure as a Service (Iaas). Meanwhile, data can be stored from public cloud, private cloud and hybrid cloud, where the private cloud has higher workload for enterprises on average currently.

Typically, Saas segment dominates the cloud computing market in countres like United States for example, but this is not the case for China. Paas accounts for almost double of the Saas segment at around 61 percent of the Chinese market. The Iaas market size was estimated to exceed 69 billion yuan in 2021, with Alibaba Cloud being the biggest market player generating over one billion U.S. dollars of revenue in China in 2017. Being the second biggest segment in the market, Saas's market size grew from almost 3.5 billion yuan in 2013 to over 15 billion in 2017 in China. Regarding the Paas market in China, the market size doubled in size from 2016 to 2017 and was forecasted to reach 13.5 billion yuan in 2021.

In 2017, around half of the companies in China were still not applying cloud computing, while around 35 percent had been utilizing public cloud aplications. Among all the industries in China, manufacturing and finance sector were the two with the highest penetration rate of Saas, at over ten percent in 2018. Despite the promising growth of the cloud computing market, users worldwide had expressed a few factors as challenges for cloud computing usage, such as lack of resources or expertise and security.

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Cloud computing in China

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