2013-12-25 22:42:43 - Recently published research from Business Monitor International, "China Information Technology Report Q1 2014", is now available at Fast Market Research
IT spending growth in China is expected to outperform on a regional and global basis, with a CAGR of 9.2% forecast over the 2013-2017 period. A supportive economic and policy environment, low penetration of key products and services, and the meta-trend of urbanisation and infrastructure investments by the government will continue to drive demand. However, China's IT market is not without its challenges as the pool of first-time buyers diminishes and vendors struggle in the face of high levels of piracy, cyber security issues and price-sensitive consumers. The outlook is still positive, but as China develops, its IT market evolves and vendors offering mobile PCs and services firms with strong cloud computing product portfolios are expected to perform better.
- www.fastmr.com/prod/754500_china_information_technology_report_q ..
Headline Expenditure Projections
Computer Hardware Sales: CNY500.0bn in 2012 to CNY533.1bn in 2013, +6.7% in local currency terms. The shift from desktops and notebooks to cheaper tablets is limiting increases in market value, though unit volume growth is sustained.
Software Sales: CNY99.4bn in 2012 to CNY114.0bn in 2013, +14.7% in local currency terms. Enterprise investment in software as they modernise will be the key driver of growth, particularly implementation of enterprise software among SMEs.
IT Services Sales: CNY165.3bn in 2012 to CNY185.5bn in 2013, +12.2% in local currency terms. China is a large outsourcing market and we expect outsourcing activities to increasingly be geared to high value activities over the medium term.
Key Trends And Developments
* The tablet market is booming in China, with volumes driven higher due to the average price of devices declining through 2012 and 2013. We expect Android-based tablets from local manufacturers such as Lenovo and Huawei to make inroads with price-sensitive consumers and ultimately eclipse Apple's iPad installed base. Apple is trying to fight back in an important market for the vendor, implanting measures such as the provision of consumer credit and direct delivery from manufacturing partners, but its volumes will nonetheless remain under pressure from lower-priced competition. Meanwhile, the growth of tablet sales will continue to squeeze vendors operating in the desktop and notebook market. As notebook sales are cannibalised by tablets, unit growth of traditional forms will be constrained. There will also be a squeeze on margins, as notebook vendors are forced to lower prices to compete with tablets.
* A key issue for the development of the IT market in China is that of cyber security, which could impact development at the international and domestic level. There was a sharp increase in identity theft, phishing scams and mobile malware in H113 - all of which have the potential to undermine consumer confidence. Meanwhile, there are continuing reports of incidents at the international level, particularly between the US and China. BMI believes the inability of the authorities to combat criminal activity could also result in a loss of confidence in its capacity to deal with larger-scale and more serious threats to enterprise systems.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Wireline SWOT
- Business Environment
- Table: IT - Historical Data & Forecasts (CNYmn)
- Table: Broadband - Historical Data And Forecasts
- Economic Analysis
- Table: China - Economic Activity
Industry Risk Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings - Q1 2014
Industry Trends And Developments
- Table: Government Authority
- Regulatory Developments
- International Companies
- Table: Apple
- Table: Foxconn
- Local Companies
- Table: Yonyou Software
- Table: Neusoft
- Lenovo Group Ltd
- Table: Strategic Partnerships & Acquisitions
- Kingdee International Software Group
- Demographic Outlook
- 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
- Industry Forecast Methodology
- Risk Reward Rating Methodology
- Table: It Risk Reward Rating Indicators
- Table: Weighting Of Components
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.