China ICT Market Size

China ICT Market Analysis

The Chinese ICT Market is anticipated to register a 7.5% CAGR growth over the studied time period. China's information and communication technology (ICT) market is one of the economy's most dynamic areas. Future development will be powered by integrating ICT technology into and transforming conventional businesses as China's ICT market matures and specific sub-sectors driving growth (for example, smartphones) are projected to become saturated.

• Significant obstacles balance substantial prospects for foreign businesses in China's ICT market. Due to fast-developing domestic competition, foreign corporations no longer hold a disproportionately large market share in several of China's ICT subsectors. Chinese companies have a knack for mastering technologies and upending markets, frequently by providing low costs. American businesses are collaborating more to stay competitive. Few people purchase ICT for the first time as the market matures. Due to the shifting of production, the country's cost advantages have also decreased.
• China's rapid expansion of the ICT industry has been fueled by the country's expanding internet and mobile phone user bases. Over 1.68 billion mobile phone subscriptions were registered in China as of August 2022, according to the National Bureau of Statistics of China. Since 2011, the number of mobile phone users in China has increased dramatically, reaching a new high of more than 1.6 billion users in March 2021. One of the main drivers of expanding the region's studied market is the steadily growing mobile phone sector.
• China has the most significant number of internet users in the world, surpassing countries like India and the United States. According to World Population reviews, China had 1.02 billion internet users compared to its population of 1.45 billion in January 2022. As the internet is an essential tool for communication, education, and business worldwide, having a large internet user base directly compliments the ICT Market in any region.
• However, the continuing supply chain disruptions, raw material price fluctuation, and shortage in chips and semiconductors are impacting the growth of the Chinese ICT Market; moreover, it is expected that these disruptions will continue in the coming years. This will further hamper the market as production and sales of ICT are impacted by this, especially in the consumer electronics, PC, laptop, and smartphone industries.
• Theonset of COVID-19 significantly impacted the market; lockdowns in a number of areas and major cities like Shenzhen and Shanghai affected industry and the supply chain. These have been largely eased, but a rising pandemic wave and new limitations that follow continue to pose a risk to local sales as well as to domestic and foreign supply chains, hurting the Chinese ICT sector as a whole.