Business Monitor International


China Information Technology Report

Published 10 September 2014

  • 88 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
China Information Technology Report

BMI View: China continues to outperform in terms of IT spending growth and IT sector development. Despite rapid growth in the past decade the market remains attractive with strong growth prospects resulting from (inter alia) the size of population, rising incomes, relatively low market penetration and a supportive poli tical environment . IT spending growth in China is expected to outperform on a regional and global basis, with a CAGR of 9. 7 % forecast 2014-2018 as IT spending increases as a share of GDP . However, China's IT market is not without its challenges as the pool of first-time buyers diminishes and vendors continue to struggle in the face of ongoing high levels of piracy, cyber security issues , intense competition for price-sensitive consumers and uncertainty generated by regulatory decisions . BMI believes that t he outlook is positive overall , with the caveats mentioned above.

Headline Expenditure Projections

  • Computer Hardware Sales: CNY527.7bn in 2013 to CNY579.5bn in 2014, +9.8% in local currency terms. PC volume growth - including desktops, notebooks and tablets - will drive strong value growth in 2014.

  • Software Sales: CNY73.5bn in 2013 to CNY80.5bn in 2014, +9.6% in local currency terms. We restated historical data for the software market downwards in the Q4 update to better reflect the drag of piracy on spending growth.

  • IT Services Sales: CNY174.5bn in 2013 to CNY196.6bn in 2014, +12.6% in local currency terms. China is a large outsourcing market and we expect outsourcing activities increasingly to concentrate on high value activities such as software development over the medium term.

Key Trends And Developments

The contribution of government policy to the development of China's IT market and local IT industry has been highly significant and BMI expects this to continue over the medium term. One example is the push to develop the cloud computing industry. China's Ministry of Industry and Information...

Table of Contents

BMI Industry View
7
SWOT
9
IT SWOT
9
Wireline SWOT
11
Political
13
Economic
14
Business Environment
15
Industry Forecast
16
Table: IT Industry - Historical Data And Forecasts
16
Wireline
21
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (China 2011-2018)
21
Fixed Line
21
Broadband
22
Macroeconomic Forecasts
24
Economic Analysis
24
Table: China - Economic Activity
28
Industry Risk Reward Ratings
29
Table: Asia-Pacific Risk/Reward Ratings - Q3 2014
31
Market Overview
32
Hardware
32
Software
42
Services
51
Industry Trends And Developments
58
Regulatory Development
64
Table: Government Authority
64
Regulatory Developments
66
Competitive Landscape
68
International Companies
68
Table: Apple
68
Table: Foxconn
69
Local Companies
70
Table: Inspur
70
Table: Yonyou Software
71
Table: Neusoft
72
Company Profile
73
Kingdee International Software Group
73
Regional Overview
76
Demographic Forecast
80
Table: China's Population By Age Group, 1990-2020 ('000)
81
Table: China's Population By Age Group, 1990-2020 (% of total)
82
Table: China's Key Population Ratios, 1990-2020
83
Table: China's Rural And Urban Population, 1990-2020
83
Methodology
84
Industry Forecast Methodology
84
Sources
85
Risk/Reward Ratings Methodology
86
Table: It Risk/Reward Ratings Indicators
87
Table: Weighting Of Components
88

The China Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.

BMI's China Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in China.

Key Benefits

  • Benchmark BMI's independent IT Industry forecasts for China to test other views - a key input for successful budgetary and strategic business planning in the Chinese IT market.
  • Target business opportunities and risks in China's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in China.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.

Regional Overview

Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).

Country Market Overview

Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.

BMI Industry Forecasts

Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

BMI Macroeconomic Forecast

BMI forecasts for all headline macroeconomic indicators to end-2018 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Competitive Landscape

Full analysis of the competitive landscape within the hardware, software and services sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc