Consulting firm Frost & Sullivan said China’s combined infrastructure as a service (IaaS), platform as a service (PaaS), and model as a service (MaaS) market reached 59.6 billion yuan (US$8.79 billion) in 2025.

Alibaba Cloud generated 23.9 billion yuan (US$3.52 billion) in those segments, for a 40.1% market share.

The category spans layers from computing infrastructure and development platforms to hosted AI models.

Separately, research firm Omdia estimated China’s AI cloud services market at 51.8 billion yuan (US$7.64 billion) in 2025, up from 20.8 billion yuan (US$3.07 billion) in 2024.

The same Omdia ranking showed Alibaba Cloud with 35.8% of China’s AI cloud services market in the first half of 2025, ahead of the combined share of its three closest rivals.

ByteDance’s Volcano Engine held 14.8%, Huawei Cloud 13.1%, Tencent Cloud 7%, and Baidu AI Cloud 6.1%.

Alibaba later said cloud revenue grew 34% year on year in the quarter ended Sept. 30, while revenue from AI-related products posted triple-digit growth for a ninth straight quarter.

🔗 Source: Security Times

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