According to the latest research report on China’s artificial intelligence cloud service market (2019) released by International Data Corporation (IDC), the market scale of China’s AI cloud service market will reach US $166 million in 2019, and the CAGR will reach 93.6% from 2018 to 2024. AI capability has become an important consideration for users to choose cloud services.
Overall market review
Affected by the active investment of cloud service manufacturers, driven by cloud native enterprises and the maturity of hybrid cloud technology, the AI cloud service market has maintained rapid growth in the past two years. In 2019, Chinese AI public cloud services accounted for about 10.3% of the AI software market, and American AI software public cloud services accounted for about 15.6% of the AI software market. Whether compared with the proportion of public cloud services in the overall software market or the proportion of AI public cloud services in the U.S. market, China’s AI cloud services will have a high growth space.
IDC said that in the current mainstream AI use cases, the application scenarios using AI public cloud services mainly include: Content Audit and recommendation system in the Internet industry, prediction and analysis of manufacturing supply chain, intelligent customer service of small and medium-sized enterprises in the financial industry, intelligent marketing, product recommendation, conversational customer service in the retail industry, passenger flow analysis, etc.
Market pattern analysis
IDC makes statistical analysis from the perspectives of AI product capacity opened on the public cloud, the number of active users in each subdivided technology field, API call volume in 2019 and the first quarter of 2020, SDK download volume, revenue scale, etc.
In terms of product quantity, most of the leading cloud service manufacturers provide rich AI capabilities on the public cloud. By April 2020, the number of AI capabilities opened by manufacturers on the public cloud. From the statistical data, Baidu Intelligent Cloud and Ali have the most open cloud capabilities. From the perspective of market share in 2019, in the AI public cloud service market, Baidu Intelligent Cloud market share is most in the lead, followed by Ali cloud, Tencent cloud, and other vendors include AWS, HUAWEI cloud, Microsoft Azure, Jin Shanyun, Jingdong cloud and so on. In terms of call volume and revenue, manufacturers will show certain advantages in different subdivided technology fields.
In the field of intelligent voice and conversational AI, Alibaba cloud has obvious advantages. Since 2017, Alibaba cloud has opened intelligent voice technology, launched a voice self-learning platform, focused on cutting-edge technology research and development internally, and built a partner ecosystem externally. In addition to realizing large-scale implementation, Alibaba cloud has also accumulated more than 30000 algorithm models in the voice field. Followed by Baidu intelligent cloud, whether it is smart speakers, home furnishing consumer product market or other enterprise market, Baidu intelligent cloud has established a wide customer base.
In the Natural Language Processing area, Baidu’s intelligent cloud is the only way to achieve a certain scale of commercialized revenue. Most other manufacturers have only started to open their paid natural language processing AI capabilities on the public cloud around 2020.
In the field of face and human body recognition, Tencent cloud relies on the ability of face core, special effects and face fusion, and its market performance is relatively leading, followed by Baidu cloud and Alibaba cloud.
In the field of image and video, baidu cloud has the most obvious advantages in terms of open product capability, API adjustment and commercial revenue. The second is Tencent cloud. Since Alibaba cloud launched the visual intelligence open platform in 2020, it has continuously opened various AI capabilities, and there will be high growth potential in the future. In the field of machine learning, relying on the accumulation of customer resources in the cloud service market and product training in recent 4 years, Alibaba cloud has established outstanding advantages in some application scenarios. Followed by Baidu cloud BML, Huawei cloud modelarts, AWS sagemaker, azure AML, etc. Tencent cloud began to open its paid machine learning products in January 2020, and will be able to serve online users with offline machine learning practices in the future.
Looking forward to future trends
As AI begins to penetrate into the core business of the enterprise, application scenarios will become more and more scattered, and continuous innovation and breakthrough in technology and application are more and more needed. Cloud service manufacturers have profound accumulation of customer resources, strong and sustainable R & D investment, and a large number of partners in the cloud service ecosystem, which will ensure their competitive advantage in the future AI market.
The competition in the AI cloud service market itself will become more intense after 2020, especially among manufacturers in the first tier. The future AI cloud service competition is not only the leading technology and the richness of products, but also the systematic competition at the levels of surrounding development tools and partner ecology.
Potential application scenarios in the future will be security in the commercial field, beauty in the field of mutual entertainment, industrial quality inspection, conference voice transcription, AI digital employees, RPA, machine translation, etc. Looking ahead, Lu Yanxia, assistant research director of IDC China, said: “the AI cloud service market will maintain rapid growth in the next five years. Cloud service manufacturers will also become an important force for AI technology breakthrough and application innovation. Technological innovation and breakthrough, large-scale replication of application scenarios and perfect ecological cooperation will help manufacturers expand market share.”
Editor in charge: Tzh