Software Development in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
6211Revenue
$1.6tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
8m
Businesses
47,937
Wages
$XXX.Xbn
Software Development in China industry analysis
The Software Development industry has grown strongly over the past five years. Industry revenue is expected to increase at an annualized 7.4% over the five years through 2024, to $1.6 trillion. This trend includes anticipated revenue growth of 10.3% in the current year. Strong demand from downstream software users and the government, along with solid pricing, have supported the industry's performance over the past five years. The industry's development has also been supported and encouraged by the Chinese Government, with the government instituting several policies to support the industry. The government's 14th Five-Year Plan (2021 to 2025) listed software development as a key component, with the government encouraging innovative, technology-based reforms. This plan had supported the software industry's continued growth.
Profit is expected to account for 14.7% of industry revenue in 2024. Industry profit has increased in recent years due to rising domestic demand, particularly for high value-added software services.
The industry offers consumer software products and services, and system integration services. The software service segment has increased rapidly in recent years and has become an increasingly important contributor to industry revenue growth. In particular, software outsourcing firms have improved, with more external clients from the United States and Europe seeking Chinese software service providers that offer low prices. Moreover, with the implementation of the Belt and Road Initiative, demand from developing countries in Western Asia and Central Asia is anticipated to increase. Consequently, industry exports are forecast to grow steadily over the next five years.
Government assistance and improving technology are forecast to support the industry's continued strong development over the next five years. In addition, more foreign enterprises are anticipated enter the local market by developing and expanding their intellectual property rights. Industry revenue is projected to increase at an annualized 7.7% over the five years through 2029, to $2.5 trillion.
Trends and Insights
- The industry is expected to increase at an annualized 7.4% to $1.6 trillion over the five years to 2024. It is mainly driven by growing demand from downstream industries, favorable government policies, and the continued development of the internet.
- The majority of industry products and services are used by telecommunications, finance, government, manufacturing and education companies. With the acceleration of China's information expansion processes and rapid improvements in technology, industry demand will continue to expand steadily in future years.
- The State Council has established 11 state-level software bases. The major software bases in China mainly lie in North China, East China and South China.
- The price of software services is one of the main areas of competition among firms in this industry in China. Most enterprises that require software products and services choose their providers by competitive bidding.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.4 % over the past five years, to reach an estimated $1.6tr in 2024.
Trends and Insights
Service products are being applied to an increasing number of downstream industries
- Rapid growth in China's Communications Equipment Manufacturing, Mobile Phone Manufacturing and Computer Manufacturing industries has supported the Software Development industry's strong performance.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The application of new generation information technology will drive further development of the industry
- To boost the national economy during the pandemic, China launched a major initiative of new infrastructure. The new infrastructure aims to upgrade and transform traditional industries, improve efficiency and reduce costs by strengthening the 5G communication network, artificial intelligence, industrial internet, the Internet of Things and other new infrastructure construction.
Biggest companies in the Software Development in China
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Huawei Technologies Ltd. | 61,218.6 | |
Alibaba Group Holding Limited | 14,891.0 | |
Neusoft Corporation | 3,309.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Software products, Software services and Systems software services. Software products is the largest segment of the Software Development in China.
Trends and Insights
Software services has grown rapidly over the past five years
- Software services include testing, software analysis, system maintenance, software outsourcing and other software consulting services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Wired Telecommunications in China
- Mobile Telecommunications in China
- Internet Services in China
- Online Games in China
International industries
- Software Publishing in the US
- Operating Systems & Productivity Software Publishing in the US
- Database, Storage & Backup Software Publishing in the US
- Business Analytics & Enterprise Software Publishing in the US
- Design, Editing & Rendering Software Publishing in the US
Table of Contents
About this industry
Industry definition
The Software Development industry in China comprises establishments that primarily provide software products, including applications software, system software and support software. Industry operators also provide software-related services, such as software design, testing, outsourcing, programming and analysis.
What's included in this industry?
Software productsSoftware servicesSystems software servicesCompanies
Huawei Technologies Ltd.Alibaba Group Holding LimitedNeusoft CorporationPurchase this report to view all 3 major companies in this industry.
Related Terms
EMBEDDED SOFTWARECUSTOMER RELATIONSHIP MANAGEMENT (CRM)INTEGRATED CIRCUIT (IC)Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry is expected to increase at an annualized 7.4% to $1.6 trillion over the five years to 2024. It is mainly driven by growing demand from downstream industries, fav...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The majority of industry products and services are used by telecommunications, finance, government, manufacturing and education companies. With the acceleration of China's in...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The State Council has established 11 state-level software bases. The major software bases in China mainly lie in North China, East China and South China.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The price of software services is one of the main areas of competition among firms in this industry in China. Most enterprises that require software products and services cho...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Software Development industry is highly fragmented. Many medium- and small-scale companies operate in the industry.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Huawei Technologies Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Alibaba Group Holding Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Neusoft Corporation's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Huawei Technologies Ltd., and factors influencing its performance in the industry
- Description and key data for Alibaba Group Holding Limited, and factors influencing its performance in the industry
- Description and key data for Neusoft Corporation, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The level of regulation is heavy. The Software Development in China is under the regulation and supervision of the Ministry of Industry and Information Technology of the Peop...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The major costs for firms in the Software Services Industry in China are purchases and R&D. Purchase costs include expenses for equipment, office supplies, copyright fees and...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Software Development industry in China in 2024?
The market size of the Software Development industry in China is $1.6tr in 2024.
How many businesses are there in the Software Development in China industry in 2024?
There are 47,937 businesses in the Software Development industry in China, which has grown at a CAGR of 2.1 % between 2019 and 2024.
Has the Software Development industry in China grown or declined over the past 5 years?
The market size of the Software Development industry in China has been growing at a CAGR of 7.4 % between 2019 and 2024.
What is the forecast growth of the Software Development industry in China over the next 5 years?
Over the next five years, the Software Development industry in China is expected to grow.
What are the biggest companies in the Software Development market in China?
The biggest companies operating in the Software Development market in China are Huawei Technologies Ltd., Alibaba Group Holding Limited and Neusoft Corporation
What does the Software Development in China include?
Software products and Software services are part of the Software Development industry.
Which companies have the highest market share in the Software Development in China?
The company holding the most market share in China is Huawei Technologies Ltd..
How competitive is the Software Development industry in China?
The level of competition is high and increasing in the Software Development industry in China.
