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IDC: Market size of China's AI cloud service reaches $166m in 2019

By Sun Chi | chinadaily.com.cn | Updated: 2020-07-15 14:01
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A visitor experiences artificial intelligence equipment at an exhibition in Yangzhou, Jiangsu province, on April 28. [Photo by Meng Delong/For China Daily]

The market size of China's artificial intelligence cloud service recorded $166 million in 2019, according to the latest AI cloud service report by the global market consultancy IDC on Tuesday.

As per the report, the compounded annual growth rate of the AI cloud service of China will reach 93.6 percent from 2018 through 2024. AI capability has become a vital factor for users when purchasing cloud service, IDC said.

AI cloud service saw high-speed growth in the last two years. In 2019, AI public cloud service accounted for 10.3 percent of China's AI software market, while the share in the United States stood at 15.6 percent. IDC said, no matter the share in the software market in China or its comparison with that in the US, China has a lot of room to improve.

In terms of product quantities, most of the leading cloud service providers have provided abundant AI capability in public cloud service. Statistics from IDC showed Baidu Cloud and Ali Cloud have been offering the most abundant services. In terms of market share in 2019, Baidu Cloud topped the rankings in AI public cloud service, followed by Ali Cloud and Tencent Cloud. AWS, Huawei Cloud, Azure, Kingsoft Cloud and JD Cloud were also on the list.

As AI penetrates into the core business of firms of all kinds, the application scenarios will increasingly diversify, needing constant innovation and breakthroughs in technology and application. Regarding the AI cloud service market, the competition will escalate to a higher degree in 2020, especially among top providers, IDC analyzed.

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