China Information Technology Report

Published 15 June 2015

  • 105 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 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...

BMI Industry View
7
SWOT
9
IT SWOT
9
Wireline SWOT
11
Political
13
Economy
14
Operational Risk
15
Industry Forecast
17
Table: IT Industry - Historical Data And Forecasts (China 2012-2019)
17
Macroeconomic Forecasts
25
Economic Activity
25
Industry Risk Reward Ratings
30
Industry Risk Reward Index
30
Table: Asia Pacific IT Risk/Reward Index - Q315
32
Market Overview
33
Hardware
33
Software
43
Cloud Computing
54
Table: China Cloud Vendor Developments
59
IT Services
60
Industry Trends And Developments
66
Table: Cloud Collaboration A Prominent Trend In H214
72
Regulatory Development
73
Table: Government Authority
73
Regulatory Developments
75
Competitive Landscape
78
International Companies
78
Table: Apple
78
Table: Foxconn
79
Local Companies
80
Table: Inspur
80
Table: Yonyou Software
81
Table: Neusoft
82
Company Profile
83
Lenovo Group Ltd
83
Table: Revenue By Region (USDmn)
86
Table: Operating Margin By Region (%)
86
Table: Strategic Partnerships & Acquisitions
88
Kingdee International Software Group
90
Table: Kingdee Revenue Breakdown (All CNYmn)
91
Regional Overview
93
Demographic Forecast
96
Table: Population Headline Indicators (China 1990-2025)
97
Table: Key Population Ratios (China 1990-2025)
97
Table: Urban/Rural Population & Life Expectancy (China 1990-2025)
98
Table: Population By Age Group (China 1990-2025)
98
Table: Population By Age Group % (China 1990-2025)
99
Methodology
101
Industry Forecast Methodology
101
Sources
102
Risk/Reward Index Methodology
103
Table: It Risk/Reward Index Indicators
104
Table: Weighting Of Components
105

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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