China Software Development Market - Forecast(2024 - 2030)

The Chinese ICT industry is gaining momentum and growing rapidly based on the stable development of the economy and the acceleration of digital transformation. Both central and local governments are addressing policies to encourage digital transformation. They are planning to invest heavily in developing related fields such as cloud computing, big data, artificial intelligence, 5G, network safety and data security. With the rapid development of the economy and science and technology in China, Software is being applied to the overall industry and daily life. The number of software companies in China increased every year from 2017 to 2019, increasing by 3,081 from the previous year to 40,857. It is expected to increase steadily in the future. The China Software Development market size is analyzed to be EUR 518 billion in 2021 and is projected to reach EUR 786 billion in 2027, growing at a CAGR of 7.65% during the forecast period of 2022-2027.

The Chinese government is steadily speeding up the development of the software industry. The authority had focused on facility manufacturing before. Now, it has gradually concentrated on developing high-tech technologies over the past decade. As a result, high-value-added industries such as software and IT services have been developed significantly. Besides, government policies and initiatives promoting development in IT software have been announced across all areas such as manufacturing, IoT, cloud computing, artificial intelligence and industrial Internet. The government considers IT as one of the 7 strategic industries that would help the country become a world-class, innovation-driven and high-tech society, by actively moving away from a cheap-labor manufacturing-based destination. The Chinese government has designated 20 cities as China Outsourcing Model Cities including Beijing, Shanghai, Dalian, Shenzhen, Tianjin, Hangzhou and Wuxi. These cities are now home to major outsourcing companies and IT services. Strong domestic demand and strategic growth planning like these are set to be the major factor that is driving the growth of the China Software development Market.

By language, the software market is further fragmented into Java, Python, C++, JavaScript, TypeScript, PHP, Bash, SQL, Android, iOS and others. Above all, the JavaScript segment generated the largest revenue in 2021 among other programming languages. Its popularity, simplicity and interoperability make it a favorable choice among software developers in this region. Some of the JavaScript developing enterprises operating in the region include WiredCraft, ThinkShip, QP Software and others.

Based on market demand, the market is segmented into categories such as In House on Payroll, Hired from Secondment Providers, Hired Freelancers and Fully Outsourced. The in-house on payroll segment accounted for more than 60% of revenue share in 2021 and is projected to hold its dominance for the next 5 years. The availability of a skilled workforce and highly educated background in the region is considered to contribute to the growth of the in-house on payroll segment in the China software development market. It is reported that 100% of the people hired as software developers in the sector held bachelor’s degrees.

By deployment type, the Cloud segment had the majority of overall market share in 2021, owing to the presence of major cloud computing companies in the country, such as Alibaba Cloud, Tencent Cloud, China Telcom Cloud, AWS China, Inspur and Kingsoft. Furthermore, the robust growth in China’s public cloud market is set to drive the growth of the underlying segment.

Based on business size, the enterprise business segment held the highest market share of the China Software development market in 2021. The growing support and investments by the Chinese government are set to boost the growth of the enterprise segment. In March 2020, NDRC and MOFCOM announced the revision of the Catalogue of Industries Encouraging Foreign Investment, in which tariffs on self-use equipment imported for foreign investment projects would continue to be waived within the investment quota. For projects beyond the investment quota, companies can make applications with the provincial development and reform commission to enjoy tariff relaxation.  

By end-use industry,  the market can be segmented into Banking and Financial institutions, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing, and others. As China is one of the largest manufacturers in the world, the manufacturing segment generated the largest market share in 2021. The robust resurgence of the sector from the COVID-19 crisis is projected to drive the growth of the software development market. Besides, the Chinese government launched the Made in China 2025 national strategic plan and industrial policy to further develop and accelerate the growth of the manufacturing sector. 

The base year of the study is 2021, with the forecast done up to 2027. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges and product analysis. These offer the key market participants the necessary business intelligence and help them understand the future of the China Software Development Market. 

The report segments the China Software Development Market on the basis of  language, market demand, deployment type, business size and end-use industry in the following manner:

By Language: Java, Python, C++, JavaScript, TypeScript, PHP, Bash, SQL, Android, iOS and Others.

By Market Demand: In-house on Payroll, Hired from Secondment Providers, Hired Freelancers and Fully Outsourced.

By Deployment Type: On-premise and Cloud.

By Business Size: Small and Medium Business, Enterprise and Government.

By End-use Industry: Banking and Financial Institution, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing and Others.