IDC: The size of China's ICT market will exceed 688.8 billion US dollars in 2027, with a five-year compound growth rate of 4.9%.

Recently, IDC predicted that the size of China's ICT market in 2027 will be close to $688.84 billion, with a five-year compound annual growth rate (CAGR) of 4.9%. The consumer end has been significantly impacted by geopolitical and epidemic factors, resulting in slower growth. However, consumer ICT spending is recovering, and by 2024, the end market will see a rebound. From an enterprise perspective, the size of China's enterprise ICT market in 2023 is expected to be around $243.29 billion, a 6.5% increase from 2022, consistently higher than GDP growth. Since 2022, China's enterprise ICT market has been growing at a compound annual growth rate of 8.7%, with the market size approaching $350 billion by 2027. This is mainly due to the increasing investments in digitization, artificial intelligence, cloud, and other areas by enterprises and organizations. More enterprises are continuing to invest in digital infrastructure construction, and are using technology to hedge against inflation through digital transformation and strategies. In terms of growth, enterprise ICT hardware spending continues to exceed GDP growth, with a five-year compound annual growth rate of 8.7%, which accelerates even more when equipment spending is removed. Furthermore, the demand for compute power in generative artificial intelligence is a major driver of ICT market growth. Enterprises are continuously strengthening their investments in data storage and computing infrastructure. IDC predicts that the five-year compound annual growth rate of investments in enterprise servers and storage in China from 2022-2027 will be 8.5%. In addition, the proportion of cloud computing deployment models in the enterprise IT market will continue to increase, gradually entering the era of full cloud IT. IDC data shows that IaaS spending in China continues to grow faster than other hardware spending, with a five-year CAGR of 17.4%. Industry Insights The financial services industry remains the main sector for ICT spending, with investments in software, hardware, and services relatively evenly distributed. With the rapid development of financial technology, traditional financial institutions and emerging technology companies are actively adopting advanced technological solutions to improve efficiency, reduce costs, and enhance user experience. Additionally, the software and information services industry are also major sectors for ICT investment. IDC predicts that from 2022 onwards, the compound annual growth rate of the software and information services industry will be 9.9%, with an investment size of around $50 billion by 2027. Enterprise Size Insights Very large enterprises (1000+) are still the main force driving ICT spending, accounting for over 20% of ICT investments. Large enterprises (500-999) are growing rapidly, while small and medium-sized enterprises are accelerating their IT spending. Influenced by the epidemic and the development of AI technology, more and more small and medium-sized enterprises are increasing their digitalization ratios to empower their development through digitalization.