Internet Services in China: Strong Growth Attracts Foreign Firms

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With the most internet users in the world, China still has internet penetration of less than 40%. This, combined with increased affordability of web services and growing acceptance of making transactions online, indicates continued strong growth for China’s Internet Services industry. The industry is forecast to grow to $57.72 billion in 2016, according IBISWorld, America’s largest publisher of industry research.

IBISWorld Market Research

IBISWorld Market Research

With the most internet users in the world, China still has internet penetration of less than 40%. This, combined with increased affordability of web services and growing acceptance of making transactions online, indicates continued strong growth for China’s Internet Services industry. Over the past five years, industry revenue increased at an average annual rate of 21.2%.

The rapid growth was mainly stimulated by booming domestic demand for internet services, as the number of internet users in China is estimated to have increased by an annualized rate of 29.8% from 2006 to 2011. The industry is forecast to grow to $57.72 billion in 2016, according IBISWorld, America’s largest publisher of industry research.

The development of new rural information services will become an important driver for the Internet Services industry in China. The government attaches great importance to the construction of new rural information services by making significant investments, which will stimulate consumption of and demand for hardware, software and internet services in these less developed regions in China.

China’s growing internet penetration and world’s largest population will continue to attract foreign investment in the Chinese industry -- with foreign companies estimated to make up nearly one-quarter of industry revenue, according to IBISWorld. Foreign investment is expected to increase in this industry in the future, as international companies seek to diversify geographically due to the difficult operating environment in other parts of the world. Foreign firms are expected to acquire well-managed and profitable Chinese internet service providers in the next several years.

For more information, including profit levels, market shares, product segmentation and more, download IBISWorld’s report on the Internet Services industry in China.

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The Internet Services industry in China comprises enterprises that provide internet services, including basic internet access (internet service providers or ISPs) and application services, such as online advertising, web portals, search engines, instant messaging, internet games, blogs, B2B services and C2C (consumer to consumer) e-commerce.

Internet Services in China Report Key Topics
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.

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Jordan Ho
IBISWorld
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