According to the "China Financial Cloud Market (2023 H2) Tracking" report recently released by IDC, the scale of China's financial cloud market reached 4.72 billion US dollars in the second half of 2023, an increase of 2.1% year-on-year (calculated in RMB, an increase of 5.6% year-on-year to 34.06 billion yuan).
According to the latest "China Financial Cloud Market (2023 H2) Tracking" report published by IDC, the scale of China's financial cloud market reached 4.72 billion US dollars in the second half of 2023, an increase of 2.1% year-on-year (calculated in RMB, an increase of 5.6% year-on-year to 34.06 billion yuan). The market's growth rate has declined significantly compared to previous periods due to slower growth in the infrastructure market, resulting in slower market growth. The forecast data for the financial cloud market for the next five years has also been adjusted in this issue.
IDC's financial cloud market research covers infrastructure services provided to the financial industry, dedicated/private cloud infrastructure, and cloud platforms and solutions for the financial industry. The scope of the market research is defined as follows:
Financial cloud infrastructure market analysis
In the second half of 2023, the scale of the financial cloud infrastructure market was 3.1 billion US dollars, a year-on-year decrease of 1.3% (calculated in RMB, an increase of 2.1% year-on-year to 22.36 billion yuan). This is also the first time in the financial cloud market research that the year-on-year growth rate in US dollar terms has been negative. Among them, the public cloud infrastructure service market size is 1.1 billion US dollars, an increase of 2.5% year-on-year (calculated in RMB, an increase of 6.1% year-on-year to 79.4 billion yuan). The revenue of enterprise-built private cloud infrastructure market is 2 billion US dollars, a year-on-year decrease of 3.3%, a quarter-on-quarter increase of 21.0% (calculated in RMB, a year-on-year increase of 0%, a quarter-on-quarter increase of 26.1%).
From the data, it can be seen that the growth rate of the enterprise-built infrastructure market is lower than expected, and the uncertainty of the market supply environment is the main reason affecting revenue growth. Although the demand for software and hardware products from the head users of the financial cloud is still strong, the call for cost reduction and efficiency enhancement and the unstable domestic and international policies have led to constant adjustments in the direction and timing of infrastructure construction offline, and budget cuts or transfers to 2024 are not uncommon. With the continuous release of demand for financial users to build their own infrastructure, the continuous improvement of self-developed product capacity and the gradual stability of policies, the financial cloud infrastructure market is expected to restore a rapid growth rate in 2024, driving the overall development of the financial cloud market.
Financial cloud solution market analysis
In the second half of 2023, the overall market size of financial cloud solutions was 1.62 billion US dollars, an increase of 9.2% year-on-year (calculated in RMB, an increase of 13.0% year-on-year to 11.7 billion yuan). Among them, the revenue of platform solutions market was 730 million US dollars, an increase of 10.3% year-on-year (calculated in RMB, an increase of 14.1% year-on-year to 5.27 billion yuan); the revenue of application solution market was 890 million US dollars, an increase of 8.4% year-on-year (calculated in RMB, an increase of 12.2% year-on-year to 6.43 billion yuan). The financial cloud solution market is also affected by the overall cloud computing market environment, with slower growth rates than in the past, but the overall market size remains on a stable growth trend.
Platform solution market analysis
The financial cloud platform solution market has the highest growth rate among all sub-markets, with the top five markets accounting for a total of 74.0% of the market share, a year-on-year decrease of 6.4 percentage points in market concentration. The thick accumulation of ISV service providers in the platform-layer solution market is the main reason for the decline in market concentration, but cloud vendors still dominate the market in product development, technological innovation and other areas.
Alibaba Cloud is the first in the financial industry to implement the "AI-driven" concept, return to the "public cloud first" strategy, firmly establish the direction of "cloud-native" as the future of cloud technology, and explore new developments in its own financial cloud; Tencent Cloud is committed to deepening the intelligent transformation of the financial industry scene, relying on the financial "mixed large model", and making significant progress in domestic distributed databases, financial risk control, intelligent customer service and other versatile fields; Huawei Cloud starts from the actual needs of financial users, puts its advantages in the big data field and platform-level solutions as the core nodes of carrying on and lifting the overall financial solution capacity through combining the concept of "cloud + application" with intelligent operation; Baidu Intelligent Cloud strengthens the projection of AI large model in the financial industry scene, based on the comprehensive capability of its platform, makes an effort to bridge the "last mile" of financial user intelligent scene, and values the overall AI ecological environment construction of the financial industry; JD Cloud, in combination with its own e-commerce advantages, driven by the "digital intelligence" capability, provides financial users with integrated financial solutions across all channels and processes.
Application solution market analysis
In the second half of 2023, the year-on-year growth rate of the financial cloud application solution market ranked second among the financial cloud sub-markets, with the top five markets accounting for a total of 28.4% of the market share, a year-on-year increase of 1.4 percentage points, and an increase in market concentration. Under the pressure of the overall economic recovery, top application solution service providers have enhanced their ability to capture application market demand by relying on accumulated customer trust and control over industry trends, and have increased their market share.
AI large model capabilities are being integrated into the financial user business scenario, and emphasis is placed on the feedback of intelligent practices. Yusys technologies strengthens cooperation with financial users in the big data and other fields to help customers achieve comprehensive "digital intelligence" transformation.
According to Cui Tingting, research manager of the IDC China Enterprise Research Department, the growth rate of the cloud computing market will slow down in the second half of 2023 due to the overall economic recovery environment. Financial users will be more cautious about their investments in IT due to poor performance growth and budget tightening. However, it is worth noting that with the continuous improvement of the industry's self-research ability, the continuous maturity of the cloud-native ecosystem, and the continuous landing of innovative scenarios related to AI large models, IDC still maintains a relatively optimistic expectation for the financial cloud market in 2024.
In 2024, as the year of data asset, the circulation of data factors and the construction of data governance capabilities will become a new capital investment hotspot in the IT market. As an industry with years of data technology accumulation, the financial industry will become the front line of trial data solutions and drive the comprehensive development of the social data system through its own rapid iteration. Financial cloud, as a powerful support module for data-class solutions, will usher in a new peak of growth in the next few years.