China Enterprise ICT Market Analysis and Future Outlook by Segments (Hardware, Software and IT Services)

China Enterprise ICT Country Intelligence Report 2024

The China Enterprise ICT Country Intelligence Report by GlobalData summarizes key findings from GlobalData’s ICT Customer Insight Survey carried out in H1-2024 and GlobalData’s Market Opportunity Forecasts to 2028: China. It reveals an executive-level overview of how the overall ICT budgets and their allocations towards various segments have changed for enterprises in the country in 2024 compared to 2023 and ICT revenue opportunity with detailed forecasts of key indicators up to 2028. The report provides a detailed analysis of China’s enterprise ICT market trends and growth drivers based on GlobalData’s ICT Customer Insight Survey and GlobalData’s Market Opportunity Forecasts.

The report also discusses the market growth inhibitors impacting China’s overall ICT market. It sheds focus on enterprise ICT budget allocations and ICT revenue opportunities covering 18 solution areas, segmental analysis, vertical analysis, review of key macroeconomic and regulatory trends, and government initiatives. The report also includes a brief profile of some of the key ICT vendors within the country.

GlobalData’s ICT customer insight survey reveals a positive outlook for enterprise ICT spending in China, with most respondents, more than 81% from the country, claiming that there has been an increase in the enterprise ICT budget in 2024 compared to 2023. This is over 56 percentage points (p.p.) higher than the percentage who claim that there was an increase in their ICT budget in 2023-24 compared to 2022-23. This upward trend is paving the way for a promising opportunity for optimistic growth in ICT revenue. The rise in investment signifies enterprises’ willingness to allocate a budget toward technological advancements.

Annual Change in Enterprise ICT Budget Allocation in China (2022-23 vs. 2023-24)

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China’s overall ICT market was pegged at over $589 billion in 2023 and is expected to grow at a CAGR of more than 10% during 2023-2028 to reach over $956 billion in 2028 driven by China’s focus on smart manufacturing along with government’s push for a diverse digital economy is increasing the demand for ICT products and services. Additionally, the digitalization of national governance systems, widespread 5G infrastructure, and extensive use of digital applications will boost the overall ICT market in China.

China Total ICT Revenue Opportunity ($billions) 2023-2028

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ChinaEnterprise ICT Market Overview

China Enterprise ICT Market Regulatory Highlights

• Made in China
• 14^th Five-Year Plan (14^th FYP) 2021-2025
• Dual Gigabit Network
• New AI Regulation, etc.

China Enterprise ICT Revenue Opportunity – Segment Analysis

GlobalData’s survey findings suggest that enterprise ICT budget allocations for all ICT products and services areas in China have increased in 2024 compared to 2023. For ‘ICT services,’ more than 61% of respondents claim that their enterprises ICT budget allocation have increased in 2024 compared to 2023.

Annual Change in Distribution of Enterprise ICT Spending, by ICT Products/Services

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According to GlobalData, China’s ICT market would see the majority share of its revenue come from the IT services segment over the forecast period. The report also discusses the enterprise ICT revenue opportunity across IT software and IT hardware segments over the forecast period.

• IT Services
• IT Software
• IT Hardware

China Total ICT Revenue Opportunity, by segment ($billions) 2023-2028

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China Enterprise ICT Market Dynamics – Trends, Drivers, and Challenges

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China Enterprise ICT Technology Revenue Opportunity and Spending Priorities – Key Solution Areas

Networking can be regarded as the most attractive market as enterprises in China are increasing their investments in networking solutions to optimize private networks for cloud and applications access. The revenue opportunity for networking in China was pegged at over $100 billion in 2023 and is estimated to grow at a CAGR of more than 6% between 2023-28. According to GlobalData’s customer insight survey, more than 61% indicated their enterprises would invest in networking in the next two years.

China Total ICT Revenue Opportunity, by Solution Areas ($billions) 2023-2028

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Networking Technology Investment Priority – Current vs Next Two Years

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China Enterprise ICT Technology Revenue Opportunity – Key Verticals

The manufacturing sector is the largest independent end-use vertical segment for the ICT market in China in terms of revenue contribution, and it will remain so over the forecast period. ICT revenue from the manufacturing sector reached over $74 billion in 2023 and is set to grow at a CAGR of more than 9%. The government’s strategic initiatives, such as ’Made in China 2025,’ aimed at transforming the country into a global manufacturing leader through innovation and technological advancement and the widespread adoption of technologies such as AI, ML, and IoT to automate production, along with Industry 4.0 technologies, drive higher demand for ICT solutions from the manufacturing sector.

China Total ICT Revenue Opportunity, by Verticals ($billions) 2023-2028

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China ICT Vendors – Company Snapshot

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Scope

The country intelligence report provides an in-depth analysis of the following –

• The macroeconomic and regulatory context and government initiatives in China.
• Enterprise ICT market outlook: Analysis as well as historical figures and forecasts of revenue opportunities from ICT segments, ICT solution areas, end-use verticals, and enterprise size bands.
• Enterprise ICT Budget Allocations – 2023 vs 2024: Overview of survey findings regarding changes in the overall enterprise ICT budget allocations in 2024 compared to the previous year and across ICT segments, ICT solution areas, existing vs new IT projects.
• Enterprise ICT growth drivers, market trends and challenges
• IT hardware segment revenue and budget allocations outlook: Analysis as well as historical figures and forecasts of revenue opportunities from ICT hardware solution areas and budget allocations by ICT hardware categories.
• IT software segment revenue and budget allocations outlook: Analysis as well as historical figures and forecasts of revenue opportunities from ICT software solution areas and budget allocations by ICT software categories.
• IT services segment revenue and budget allocations outlook: Analysis as well as historical figures and forecasts of revenue opportunities from ICT services solution areas and budget allocations by ICT services categories.
• Enterprise Technology Priorities: Overview of survey findings on enterprise investment priority for key solution areas in current vs next two years.
• Company landscape: analysis of the market position of leading ICT providers in China market.
• Underlying assumptions behind our published base-case forecasts, as well as potential market developments that would alter, either positively or negatively, our base-case outlook.
• The survey was conducted in H1 2024 via an online methodology, with respondents all having ICT decision maker responsibility (typically CIOs and IT Managers). GlobalData plans to repeat the survey in H1 2025, to monitor ICT budget changes on an ongoing basis.

Key Highlights

• ICT market growth in China will be primarily driven by favorable government policies, 5G network rollouts and innovation initiatives by enterprises.

• China’s overall ICT market was pegged at more than $589 billion in 2023 and is expected to grow at a CAGR of more than 10% during 2023-2028 to reach more than $956 billion in 2028.

• GlobalData’s ICT decision makers survey reveals a positive outlook for enterprise ICT spending in China, with a majority of respondents, about 81% from the country, claiming that there has been an increase in the enterprise ICT budget in 2024 compared to 2023.

• Networking can be regarded as the most attractive market as enterprises in China are increasing their investments in networking solutions to optimize private networks for cloud and applications access. The revenue opportunity for networking in China was pegged at over $100 billion in 2023 and is estimated to grow at a CAGR of more than 6% between 2023-28.

• The manufacturing sector is the largest independent end-use vertical segment for the ICT market in China in terms of revenue contribution, and it will remain so over the forecast period. ICT revenue from the manufacturing sector reached over $74 billion in 2023 and is set to grow at a CAGR of more than 9%.

Reasons to Buy

• This Country Intelligence Report is based on GlobalData’s IT Customer Insight Survey carried out annually covering key ICT decision makers from enterprises across various industry verticals in China and GlobalData’s Market Opportunity Forecasts to 2028, to offer a thorough, forward-looking analysis of China’s enterprise ICT investment priorities and ICT revenue opportunity market.
• Accompanying GlobalData’s IT Customer Insight Survey and Market Opportunity Forecasts to 2028, the report examines the assumptions and drivers behind ongoing and upcoming trends in China’s enterprise ICT market.
• The report offers a thorough analysis of enterprise ICT investment trends and how it has changed this year compared to previous year.
• The report also presents an analysis of enterprise ICT budget allocations by various spending areas, business functions and product/service categories and how they have changed this year compared to previous years.
• The report also presents an analysis of enterprise ICT revenue opportunity by various solution areas, enterprise size band, end-use verticals, and segment over the forecast period 2023-2028.
• With more than 50 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
• The report provides insights in a concise format to help executives build proactive and profitable growth strategies.
• The report provides an easily digestible market assessment for decision-makers built around research gathered from the local IT decision makers, which enables executives to quickly get up to speed with the current and emerging trends in enterprise ICT investment priorities.