Video Cloud Market Reached 4.62 Billion US Dollars in 1H 2023

According to the latest report "China Video Cloud Market Tracker, 1H 2023" released by International Data Corporation (IDC), the size of the Chinese video cloud market reached 4.62 billion USD in the first half of 2023, showing a year-on-year decline of 7.0%. This decline can be attributed to various factors such as the slowing growth of post-pandemic end-user entertainment demand and industry clients reducing IT expenditure. In comparison to the same period in 2022, the video cloud infrastructure market declined by 8.4%, while the solution market experienced a slight decline of 1.4%.

Looking back at the first half of 2023, over half of the top comprehensive video platforms and entertainment live-streaming platforms faced short-term performance pressure due to the slowdown in downstream end-user entertainment demand. They demanded higher requirements for cost reduction and efficiency improvement. Although this led to the utilization of resources such as edge cloud, it still couldn't compensate for the adverse effects caused by the decline in bandwidth. On the other hand, internet content “videoization” is emerging with new scenarios. In the first half of 2023, several latecomer platforms launched many video dramas, ushering in a wave of video adaptation of online novels and placing greater demands on almost all video cloud products and services.

At the same time, the export of audio and video products and services is bringing more growth, and the more complex overseas operating environment has brought higher product and service premiums. Chinese audio and video products, polished by the billion level of domestic playback, have accumulated certain advantages in terms of technical products and experience. The double-digit growth of the overseas market has to some extent offset the negative impact of the decline in domestic customer usage; In addition, new trends have emerged in the application and implementation of audio and video products in traditional industries, including more private or hybrid deployment solutions, establishing closer partnerships with industry ISVs, and empowering government and enterprise customers with "AI+audio and video".

In the first half of 2023, the market size of China's video cloud infrastructure reached 3.66 billion US dollars. Among them, the market size of video content distribution networks and video public/private cloud infrastructure reached 1.74 billion and 1.92 billion US dollars, respectively. In terms of competition pattern, market concentration remains at a high level. In the video content distribution network market, Alibaba Cloud, Huawei Cloud, Tencent Cloud, Baidu AI Cloud and China Telecom have increased their total share month on month, reaching 61.6% in this period; In the video public cloud and private cloud infrastructure market, Alibaba Cloud, Tencent Cloud, Huawei Cloud, Baidu AI Cloud and China Telecom saw a slight decline in their combined share on a month on month basis, which was 75.0% in this period.

In the first half of 2023, the market size of video cloud solutions in China reached 960 million US dollars. In terms of competitive landscape, five public cloud service providers, one vertical industry audio and video service provider, and one top user transformation cloud computing service provider continue to dominate the solution market in this period, with a total market share of 73.6% among the seven service providers mentioned above.