Overview of the Chinese Software Industry Which Reached Total Value of $633 Billion

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c92375) has announced the
addition of "China: Software Industry" to their offering.

The report provides an overview of the Chinese market for
software, with focus on five key emerging markets beyond already
established cities such as Shanghai, Beijing, and Guangzhou. The
report focuses on the business-to-business (B2B) market in two
segments: software products and software services.

Summary

China software market. The software market in China has been
growing at 44% CAGR (Compound Annual Growth Rate) between 2003 and
2006, reaching a total value of $633 billion in 2006. There are over
10,000 software companies in China, of which about 5% are foreign. The
industry is very fragmented with the top 100 players accounting for
only about 30% of the total revenue. In general, Chinese software
companies focus on the low-mid market, and are stronger in application
software (e.g. antivirus software), while foreign companies dominate
in the system software segment.

Key trends. The industry is expected to consolidate over the next
few years, and there is likely to be increased M&A (mergers and
acquisitions) activity. This is in line with strong government
incentives to encourage the growth of the industry and attract foreign
investment in this sector. However, software piracy is still a major
problem; it affects the markets for end-consumers and small-medium
companies most.

Prospective industries and best prospects. Key industries for
software are manufacturing, finance, telecoms, and the public sector,
which together account for about 60% of total industry revenue. The
best prospects for American exports are high-end products requiring a
certain degree of customization, ranging from 3G software to
Enterprise Resource Planning (ERP) software. For services, best
opportunities are high value-added services such as complex IT
solutions or service-oriented architecture4.

Market access. China market offers good opportunities for US
companies but not without challenges; establishing a local presence is
generally necessary in order to compete with the many foreign
companies already well-established in China. Software industrial parks
are good potential locations for US companies to locate in, while
prospective customers are likely to be concentrated in other
specialized or high-tech industrial parks (e.g. chemical industry
parks, logistics parks).

Key emerging markets. Besides the established Tier I markets,
there are opportunities in rapidly growing Tier II cities such as
Shenzhen, Tianjin, Hangzhou, Qingdao and Ningbo, which all house
high-prospect industries for software and a large potential customer
base. Shenzhen is an important finance and electronics manufacturing
base. Hangzhou and Ningbo have both invested in hi-tech industrial
parks and research & development. Tianjin and Qingdao are both trying
to become centers for IT industries in North China. Other emerging
markets, not analyzed in this report, include Xi'an, Dalian, Nanjing
and Chongqing.

Key Topics:

- Introduction

- Executive Summary

- Industry Overview

- Market Overview: Shenzhen

- Market Overview: Tianjin

- Market Overview: Qingdao

- Market Overview: Hangzhou

- Market Overview: Ningbo

- Trade Events

- Resources & Key Contacts

- Methodology

- About the Author

For more information visit
http://www.researchandmarkets.com/reports/c92375

Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets.com
Fax: +353 1 4100 980

Copyright Business Wire 2008