China ICT Market (2026-2031) - Digital Transformation Driving Industry Growth
Dublin, Sept. 11, 2026 (GLOBE NEWSWIRE) -- "China ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
China ICT Market to Reach USD 1.35 Trillion by 2031 as 5G, Cloud and AI Adoption Accelerate
The China information and communications technology (ICT) market is projected to increase from USD 0.89 trillion in 2025 to USD 0.95 trillion in 2026. By 2031, the market is forecast to reach USD 1.35 trillion, expanding at a compound annual growth rate (CAGR) of 7.14% between 2026 and 2031.
China's ICT market growth is being supported by nationwide 5G deployment, enterprise cloud migration, artificial intelligence adoption and government-led digitalization initiatives. Continued investment in telecommunications infrastructure, data centers, edge computing and cybersecurity is creating sustained demand for hardware, software and technology services across public- and private-sector organizations.
5G Expansion Strengthens China's Digital Infrastructure
China's nationwide 5G rollout exceeded 101.4 million subscribers in 2024, while mobile internet usage reached 78.6%. Industrial parks and manufacturing facilities are increasingly deploying private 5G networks to support real-time quality control, connected production systems and autonomous guided vehicles.
The addition of 5G base stations is also increasing data traffic and expanding demand for edge servers, Internet of Things gateways and network management platforms. Telecommunications pricing models are evolving beyond bandwidth-based billing toward outcome-focused agreements linked to measurable productivity improvements. This transition is expected to generate recurring subscription revenue while supporting higher-value systems integration and managed service opportunities.
Digital China Policies Create Predictable ICT Demand
Government initiatives remain an important catalyst for the China ICT market. National digital-economy objectives include increasing the sector's contribution to gross domestic product to 45% by 2030. Common technical standards are helping reduce integration costs for smart cities, telemedicine platforms, digital public services and e-government systems.
The "Eastern Data, Western Computing" initiative is directing computing workloads toward western provinces, where lower energy costs can improve data center efficiency and balance regional capacity. Policies favoring local technology suppliers are also expanding opportunities for domestic semiconductor, server, networking and middleware providers. Together, these measures are establishing more predictable procurement and investment cycles throughout China's technology ecosystem.
Legacy Systems Continue to Limit Digital Transformation
Despite strong market prospects, legacy IT complexity remains a significant challenge, particularly among state-owned enterprises and heavy-industry organizations. Many institutions continue to rely on proprietary mainframe environments installed over several decades. Connecting these systems with cloud applications often requires customized middleware, specialized integration services and longer implementation timelines.
Procurement requirements that prioritize an established vendor track record can restrict opportunities for emerging software companies. Workforce retraining presents an additional challenge as organizations adapt existing procedures to automated and data-driven workflows. Cybersecurity requirements, data-sovereignty regulations and rising infrastructure complexity may also increase implementation costs and delay some technology projects.
Hardware Maintains Market Leadership
Hardware represented 42.65% of China ICT market revenue in 2025. Investment in 5G base stations, high-density servers, network equipment, data center infrastructure and edge gateways continues to provide the foundation for national digitalization. Smart-city, transportation and advanced manufacturing projects are supporting regular equipment replacement and infrastructure expansion.
Data center operators and major enterprises are also prioritizing domestically produced chips, servers and switching equipment to reduce supply-chain and export-related risks. This trend is expected to retain more technology spending within the domestic market and encourage further investment in local ICT manufacturing capabilities.
Software Emerges as the Fastest-Growing Market Component
China's ICT software segment is forecast to record a 10.09% CAGR, making it the fastest-growing component of the market. Platform-as-a-Service solutions are accelerating application development, while low-code platforms enable business teams to create and test digital services more efficiently. Demand for system infrastructure software is also rising as enterprises modernize legacy workloads and shift operations to cloud environments.
Integrated hardware and software platforms are becoming increasingly important as customers seek simplified procurement, deployment and support. Vendors offering processors, operating systems, cloud platforms and enterprise applications through unified contracts are well positioned to capture long-term digital transformation spending.
SME Technology Adoption Outpaces the Broader Market
Large enterprises accounted for 63.55% of the China ICT market in 2025, supported by substantial enterprise resource planning, supply chain management and customer relationship management deployments. These projects typically require extensive customization and integration, generating multi-year consulting, maintenance and recurring service revenue.
Small and medium-sized enterprises are expected to achieve the fastest expansion, with a projected CAGR of 10.32%. Tax incentives for qualifying software purchases, subscription-based cloud platforms and lower upfront infrastructure costs are improving access to AI analytics, cybersecurity and e-commerce tools. As more SMEs adopt digital services, they are expected to become an increasingly important source of growth for the China ICT market through 2031.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising internet and 5G penetration
4.2.2 Government "Digital China" and 14th Five-Year ICT plan
4.2.3 Accelerated enterprise cloud migration
4.2.4 AI?driven productivity gains across sectors
4.2.5 "XInc.huang" localisation push fuelling domestic demand
4.2.6 Carbon-informatisation mandates driving green ICT
4.3 Market Restraints
4.3.1 Legacy IT complexity in state-owned enterprises
4.3.2 Escalating cybersecurity/data-sovereignty risk
4.3.3 US export controls on advanced semiconductors
4.3.4 Fragmented provIncial procurement processes
4.4 Industry Value Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products
4.7.5 Intensity of Competitive Rivalry
4.8 Impact of Macroeconomic Factors on the Market
5 MARKET SIZE AND GROWTH FORECASTS (VALUES)
5.1 By Type
5.1.1 Hardware
5.1.1.1 Computing Devices
5.1.1.2 Network Equipment
5.1.1.3 Datacentre Infrastructure
5.1.2 Software
5.1.2.1 System Infrastructure
5.1.2.2 Enterprise Applications
5.1.3 IT Services
5.1.3.1 Consulting and Integration
5.1.3.2 Managed Services
5.1.4 Telecommunication Services
5.1.4.1 Mobile Services
5.1.4.2 Fixed-Line and Broadband
5.2 By Enterprise Size
5.2.1 Small and Medium Enterprises (SMEs)
5.2.2 Large Enterprises
5.3 By Industry Vertical
5.3.1 BFSI
5.3.2 IT and Telecom
5.3.3 Government and Public
5.3.4 Retail and E-commerce
5.3.5 Manufacturing
5.3.6 Energy and Utilities
5.3.7 Healthcare
5.3.8 Education
5.3.9 Transportation and Logistics
5.3.10 Other Industry Verticals
5.4 By Technology Domain
5.4.1 Cloud Computing
5.4.2 Artificial Intelligence
5.4.3 Cybersecurity
5.4.4 Digital Services (SaaS, PaaS)
5.4.5 Edge Computing
5.4.6 Internet of Things
5.4.7 Blockchain
5.5 By Region
5.5.1 East China
5.5.2 South China
5.5.3 North and Northeast China
5.5.4 Central China
5.5.5 West and North-west China
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
6.4.1 Alibaba Group Holding Ltd.
6.4.2 Huawei Technologies Co Ltd.
6.4.3 Tencent Holdings Ltd.
6.4.4 China Mobile Communications Group Co. Ltd.
6.4.5 Lenovo Group Ltd.
6.4.6 Baidu Inc.
6.4.7 JD.com Inc.
6.4.8 Xiaomi Corporation
6.4.9 ZTE Corporation
6.4.10 Inspur Group Co Ltd.
6.4.11 Hikvision Digital Technology Co Ltd.
6.4.12 Dahua Technology Co Ltd.
6.4.13 Sangfor Technologies Inc.
6.4.14 Venustech Group Inc.
6.4.15 H3C Technologies Co Ltd.
6.4.16 Kingsoft Cloud Holdings Ltd.
6.4.17 UCloud Technology Co Ltd.
6.4.18 Kingdee International Software Group Co Ltd.
6.4.19 Neusoft Corporation
6.4.20 iFlytek Co Ltd.
6.4.21 SenseTime Group Inc.
6.4.22 Cambricon Technologies Corp Ltd.
6.4.23 GDS Holdings Ltd.
6.4.24 FiberHome Telecom Technologies Co Ltd.
6.4.25 China Unicom
6.4.26 China Telecom
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 White-Space and Unmet-Need Assessment
For more information about this report visit
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment