Business Monitor International


China Information Technology Report

Published 22 May 2014

  • 88 pages
 
$1,295.00
China Information Technology Report

BMI View: China's IT 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 and intense competition looking to price-sensitive consumers. BMI believes that t he outlook is positive overall , with the caveats mentioned above.

Headline Expenditure Projections

  • Computer Hardware Sales: CNY532.6bn in 2013 to CNY584.7bn in 2014, +9.8% in local currency terms. The change in consumption mix from desktops and notebooks to cheaper tablets is limiting increases in market value, though unit volume growth continues.

  • Software Sales: CNY114bn in 2013 to CNY123bn in 2014, +8.1% in local currency terms. Modernisation initiatives from both the public and private sectors will drive demand for enterprise software, while the process of informatisation among the vast pool of SMEs will also be an area of strong growth.

  • IT Services Sales: CNY185.3bn in 2013 to CNY210.8bn in 2014, +13.8% 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

In late 2013 the government announced a series of reforms in several areas of the economy that will take place through the forecast period and on to2020. Major reforms include urbanisation development, strengthening institutions and reform of the one-child policy, all of which are expected to boost growth and increase private sector...

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

Executive Summary

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-2017 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-2017 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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