China Information Technology Report Q2 2016

China Information Technology Report Q2 2016

BMI View: Data for 2015 and the forecast for 2016 were revised down in the Q216 update but our corescenario continues to be for an expanding Chinese IT market and local industry. Despite heighteneduncertainty we expect a stronger growth trend in 2016 as the hardware market gains momentum andenvisage a CAGR of 8.1% for 2016-2020 as a whole. A hard landing is a downside risk, but under our corescenario we envisage broad based income growth, enterprise modernisation, and government support forthe IT industry, and particularly emerging technologies such as cloud computing and the internet of thingswill drive market expansion over the medium term. The overall outlook is positive but opportunities will notbe distributed evenly and challenges for foreign vendors operating in China as it pursues its nationalinterest will remain a factor.

Latest Updates And Industry Developments

Computer Hardware Sales: CNY592.1bn in 2016 to CNY735.5bn in 2020, a CAGR of +5.2% in localcurrency terms. Market maturity means growth will be slower than the decade to 2013, but risingincomes has upside for vendors to focus on higher price and margin PCs in the retail market.

Software Sales: CNY100.8bn in 2016 to CNY164.5bn in 2020, CAGR of +11.9%. Rising labour costsand broader dynamic of enterprise modernisation will underpin increased software spending, while clouddelivery models offering lower costs and more flexibility will deepen the market.

BMI Industry View
Industry Forecast
Latest Developments
Structural Trends
Table: IT Industry - Historical Data And Forecasts (China 2013-2020)
Industry Risk/Reward Index
Table: IT RRI Score Breakdown By Region
Table: Asia Pacific IT Risk/Reward Index - Q2 2016
Market Overview
Cloud Computing
Table: China Cloud Vendor Developments, 2015
IT Services
Industry Trends And Developments
Regulatory Development
Table: Government Authority
Regulatory Developments
Competitive Landscape
International Companies
Table: Apple
Table: Foxconn
Local Companies
Table: Inspur
Table: Neusoft
Table: Yonyou Software
Regional Overview
Demographic Forecast
Table: Population Headline Indicators (China 1990-2025)
Table: Key Population Ratios (China 1990-2025)
Table: Urban/Rural Population & Life Expectancy (China 1990-2025)
Table: Population By Age Group (China 1990-2025)
Table: Population By Age Group % (China 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components

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