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According to a recent report by Omdia, the Chinese AI cloud market reached 22.3 billion yuan in the first half of 2025. Alibaba Cloud leads the market with a 35.8% share, exceeding the combined share of the second to fourth-place vendors, cementing its position through a "full-stack AI" strategy.

The report defines the AI cloud market to include three key areas: IaaS (AI infrastructure), PaaS (AI development platforms), and MaaS (model services), with a specific focus on Generative AI (GenAI), excluding traditional AI services like NLP and computer vision. Omdia highlights that GenAI is driving a market boom, with an expected growth of 148% in 2025, projecting the market to reach 193 billion yuan by 2030.

Based on Omdia’s findings, the Chinese AI cloud market size was 20.83 billion yuan in 2024 and is expected to hit 51.8 billion yuan in 2025, marking a period of explosive growth. In the first half of 2025, the top five players captured over 75% of the market share: Alibaba Cloud (35.8%), Volcano Engine (14.8%), Huawei Cloud (13.1%), Tencent Cloud (7%), and Baidu AI Cloud (6.1%).

Omdia forecasts a compound annual growth rate (CAGR) of 26.8% for the market from 2025 to 2030. Future growth will be driven by multi-agent collaboration, context engineering, AI security, and large-scale API calls. The MaaS layer is predicted to see the fastest growth, with a CAGR over 72% and a market size of 17.7 billion yuan by 2030.

Omdia concludes that providing high-performance, differentiated AI cloud services requires sophisticated engineering and vertical integration, capabilities at which leading vendors like Alibaba Cloud excel, enabling them to continue leading the market.