2012-10-26 05:13:30 - New Computer Technology research report from Business Monitor International is now available from Fast Market Research
BMI View: China's IT spending growth is forecast at around 13% in 2012, which is a modest slowdown compared with 2011. Despite this expected deceleration in IT investment and retail spending over the next year, an expansion in consumer credit, and a modernisation drive in sectors such as education, healthcare and manufacturing should keep the market in positive trend territory. The government's 12th five-year plan calls for significant modernisation of China's computing infrastructure. Meanwhile, China's strategy to develop the western areas of the country should support demand for IT products and services, even if the developed east coast economy hits a slowdown.
Headline Expenditure Projections
Computer hardware sales: US$72.6bn in 2011 to US$80.3bn in 2012, +11% in US dollar terms. Forecast upwardly
revised in US dollar terms due to macroeconomic factors, with smaller towns and rural areas driving growth, and the arrival of the Windows 8 operating system and Ivy Bridge processor expected to provide a boost in H212.
Full Report Details at
- www.fastmr.com/prod/464458_china_information_technology_report_q ..
Software sales: US$13.6bn in 2011 to US$16.0bn in 2012, +17% in US dollar terms. Forecast upwardly revised in US dollar terms due to macroeconomic factors and the growing global ambitions of any Chinese companies, as well as the still booming domestic market, are fuelling investments in software.
IT Services sales: US$22.9bn in 2011 to US$26.6bn in 2012, +17% in US dollar terms. Forecast upwardly revised in US dollar terms due to macroeconomic factors, with growing demand for software and solutions in second and third tier cities, as enterprises invest to meet the challenges posed by growing demand for their services.
Risk/Reward Ratings: China's score was 48.6 out of 100. China remains sixth in the Asia region in our latest RRR table, ahead of India, Thailand and Vietnam but still behind more developed Asian markets such as Singapore, Australia and Malaysia. The country's relatively low Market Risk score offset the boost from its IT market size, but China should continue to ride up the rankings over time.
Key Trends & Developments
* Growth in 2012 has decreased slightly, owing to government economic cooling measures and uncertainty about the global economic situation. Headline retail figures remained healthy for much of 2011, but BMI expected this growth to moderate. In early 2012, there were concerns that high consumer price inflation could hit demand for durable goods like computers.
* By the end of BMI's five-year forecast period, the rural PC and notebook market could account for as much as 35-40% of total China computer sales. The subsidy programme will continue to boost demand from the vast, under-penetrated rural areas. Lower-tier cities and towns are expected to be the fastest growing segment of the PC market in 2012, although this has placed pressure on prices.
* Under the latest five-year plan, China has made it one priority to improve computing infrastructure, including funding the development of cloud computing. The country has observed that its generally sub-optimal IT infrastructure compared with the US and Europe has hindered business development in the mainland. Growing interest in cloud computing will be further stimulated by government pilot programmes in five cities.
Report Table of Contents:
- Chinese IT Industry SWOT
- Chinese Telecoms Sector SWOT
Asia Pacific IT Risk/Reward Ratings
- Table: Asia Risk/Reward Ratings, Q412
Asia Pacific IT Markets Overview
- IT Penetration
- IT Growth and Drivers
- Sectors And Verticals
China Market Overview
- Government Authority
- Hong Kong
- 2012 Outlook
- Rural PC Subsidy
- Telecoms Operators
- Form Factors
- Table: China Computer Production
- Enterprise Software
- Cloud Computing
- Domestic Software Industry
- IT Services
- IT Services Industry
- IT Services Segments
- Table: End-User Analysis, China's IT Sector, 2006
- Industry Developments
- Table: China IT Sector - Historical Data & Forecasts (US$mn Unless Otherwise Stated), 2009-2016
Industry Forecast Internet
- Table: China Telecoms Sector - Internet - Historical Data & Forecasts, 2009 - 2016
- IT Services
- Internet Competitive Landscape
- Kingdee International Software Group
- Table: Selected Dell Mergers And Acquisitions
- Lenovo Group Ltd
- Table: China's Population By Age Group, 1990-2020 ('000)
- Table: China's Population By Age Group, 1990-2020 (% of total)
- Table: China's Key Population Ratios, 1990-2020
- Table: China's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- Transport Industry
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