We forecast a CAGR of 7.0% for the Chinese IT market over 2017-2021. Growth will be drivenby local players, and we believe nationwide initiatives to speed up technological integration in traditionalindustries will provide significant support to growth, despite economic uncertainty. We highlight cloudcomputing and the Internet of Things (IoT) as being key to market expansion over the medium term owingto their immense potential for industrial application. That said, we reiterate that foreign vendors will be ina less favourable position to tap such growth opportunities, as local companies and national interests arefiercely guarded.
Latest Updates And Industry Developments
Computer Hardware Sales: CNY676.3bn in 2017 to CNY878.8bn in 2021, a compound annual growthrate (CAGR) of 6.8% in local currency terms. Market maturity means growth will be slower than in thedecade to 2013, but rising incomes provide an upside for vendors focusing on higher-price and -marginPCs in the retail market.