China Information Technology Report

Published 15 June 2015

  • 105 pages
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  • 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 due to a mix of economic strength and a forward-looking policy environment . Even after 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 penetration of devices and solutions and a supportive policy environment . IT spending growth in China is expected to outperform on a regional and global basis, with a CAGR of 8.8 % forecast 2015-2019 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, particularly in the rapidly developing cloud computing market . We believe t he outlook is positive overall , with the caveats mentioned above.

Headline Expenditure Projections

  • Computer Hardware Sales: CNY561.7bn in 2014 to CNY593.4bn in 2015, +5.7% in local currency terms. A stabilisation of the tablet market after declining volumes in 2014 will see growth accelerate slightly in 2015, but remain below the rate to 2013 when tablet sales boomed.

  • Software Sales: CNY100.1bn in 2014 to CNY109.6bn in 2015, +9.5% in local currency terms. Growth expected to dip in 2015 after OS upgrade demand was brought forward to 2014 by the withdrawal of Microsoft support for XP.

  • IT Services Sales: CNY209.0bn in 2014 to CNY241.9bn in 2015, +15.7% in local currency terms. Cloud computing adoption expected to accelerate in 2015 due to improvements in network infrastructure and the development of the local ecosystem under the stewardship of government initiatives.

Key Trends And Developments

BMI expects government support and policy initiatives...

Table of Contents

BMI Industry View
7
SWOT
9
IT SWOT
9
Wireline SWOT
11
Political
13
Economic
14
Operational Risk
15
Industry Forecast
17
Table: IT Industry - Historical Data And Forecasts (China 2012-2019)
17
Macroeconomic Forecasts
25
Economic Activity
25
Labour Market The Chief Barometer
27
Zhou Rumours Add New Wrinkle To Reform Story
28
Industry Risk Reward Ratings
29
Industry Risk Reward Index
29
Table: Asia Pacific Risk/Reward Index - Q2 2015
31
Market Overview
32
Hardware
32
Software
42
IT Services
52
Industry Trends And Developments
62
Table: Cloud Collaboration A Prominent Trend In H214
67
Regulatory Development
70
Table: Government Authority
70
Regulatory Developments
72
Competitive Landscape
75
International Companies
75
Table: Apple
75
Table: Foxconn
76
Local Companies
77
Table: Inspur
77
Table: Yonyou Software
78
Table: Neusoft
79
Company Profile
80
Lenovo Group Ltd
80
Table: Revenue By Region (USDmn)
83
Table: Operating Margin By Region (%)
83
Table: Strategic Partnerships & Acquisitions
85
Kingdee International Software Group
87
Table: Kingdee Revenue Breakdown (All CNYmn)
88
Regional Overview
90
Demographic Forecast
94
Table: Population Headline Indicators (China 1990-2025)
95
Table: Key Population Ratios (China 1990-2025)
95
Table: Urban/Rural Population & Life Expectancy (China 1990-2025)
96
Table: Population By Age Group (China 1990-2025)
96
Table: Population By Age Group % (China 1990-2025)
97
Methodology
99
Industry Forecast Methodology
99
Sources
100
Risk/Reward Index Methodology
101
Table: It Risk/Reward Index Indicators
102
Table: Weighting Of Components
103

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).

Coverag

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.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.

BMI Industry Forecast

Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

  • IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (‘000); PCs per 100 inhabitants; internet users (‘000); internet users per 100 inhabitants; broadband subscribers (‘000); broadband subscribers per 100 inhabitants.
  • Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

Information Technology Risk Reward Index

BMI’s Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

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 MacroeconomicForecast

BMI forecasts for all headline macroeconomic indicators to end-2019 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.

Regional Overview

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

Sources

The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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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