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IDCs Top 10 Predictions for Chinas ICT Market
Date:2014-2-17 15:51:17

IDC predicts that China’s information technology and communications (ICT) market in 2014 will reach US $396.7 billion, showing an increase of 11.1% YoY, with the IT market reaching US $204.8 billion, up 14.2% YoY, and the telecommunication services market size reaching US $191.9 billion, up by 7.9%.

Throughout 2013, the Chinese economy witnessed a weak recovery and market fluctuations. The Chinese economic growth rate in 2014 is expected to face downtrend pressure. Latest estimates from EIU show that China's economic growth rate for 2014 will be about 7.3%. Given China's sustained economic growth, the country will see a steadily growing ICT market.

2014 marks the first year in which China will fully implement the spirit of the 18th Third Plenary Session and carry out structural reforms. It is also the year with the most complicated political, social, and economic environment over the past two decades.

The ICT market is evolving from the second platform to the third platform represented by Cloud, Mobility, Big Data Analytics, and Social. Kitty Fok, IDC China's Managing Director, says: "Along with the rapid growth of demand from the emerging markets for third platform products and solutions, third platform based new products and solutions will see an explosive growth, and the entire ICT ecosystem will also undergo corresponding shifts. Third platform technologies will become the main driver behind the ICT growth over the next 20 to 25 years."

For the Chinese ICT market in 2014, IDC analysts made 10 predictions based on the complicated market environment:

Prediction 1: The 18th Third Plenary Session will Boost 2014 and the Future ICT Market in China

The 18th Third Plenary Session unveiled China’s second deepening reform, and at the meeting, it was pointed out that "the market plays a decisive role in the allocation of resources." It also started the reform of state-owned enterprises, and stressed the inviolability of private property. These measures will effectively stimulate the enthusiasm of private enterprises.

Expanding the Free Trade Agreement (FTA) pilots, opening more inland and bordering cities, and relaxing investment access, will play an effective role in China's foreign investment. In addition, easing the cap on permanent residential registrations, improving the healthy development mechanism of urbanization, and the policy of allowing both one-child parents to have a second child, will effectively support the healthy development of urbanization, and prolong the period of time for demographic dividend.

Based on latest economic indicators, IDC expects that in 2013-2020, China's average annual GDP growth will reach 7.2% and in 2020 China’s GDP will reach US $18 trillion, accounting for 17% of the world’s total.

Changes in the economic environment will benefit five vertical sectors, namely information related consumer goods industry, environmental protection industry, modern service industry, infrastructure, and strategic new industry. ICT markets in four key regions will also benefit, including the reform pilot areas in eastern China, industrial transfer areas in central and western China, inland and bordering open areas and renovation areas of old industrial bases.



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