Foreign investment in this industry is increasing.
San Francisco, CA (PRWEB) October 13, 2013
In the decade to 2008, the Computer Network Equipment Manufacturing industry in China expanded rapidly due to increasing numbers of network users across China and around the world, stronger demand for switches, the development of broadband services, the development of information systems in many industries, and strong export demand. Over the five years through 2013, revenue for the industry has been growing at an annualized rate of 11.3% to an estimated $33.3 billion in 2013, says IBISWorld.
The top four companies in this Computer Network Equipment Manufacturing industry in China – Askey Technology, Huawei-3Com Technologies, CVIC Software Engineering, and SerNet Technologies – are estimated to account for about 17.8% of total industry revenue in 2013, which indicates a low industry concentration level, says IBISWorld. However, in some product markets, the concentration is high. For example, in the router market, the market share of Huawei-3Com alone is almost a third.
Computer network equipment is considered an important new technological product in China, and the government encourages enterprises to manufacture these products, says IBISWorld. Foreign company groups continue to set up factories or establish joint ventures with domestic companies due to the large potential of the Chinese market and the country's lower labor costs. At the same time, local companies are expanding into foreign markets.
With the further development of networks, large-scale enterprises will invest more into the research and development of new technologies and products, says IBISWorld. However, as more companies become network solution providers to increase profit, this may create opportunities for the remaining and new firms to increase market shares.
For more information, visit IBISWorld’s Computer Network Equipment Manufacturing industry in China industry report page.
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IBISWorld Industry Report Key Topics
The Computer Network Equipment Manufacturing industry produces computer network equipment, including routers, switches, network safety equipment, WLAN equipment, fiber optic access equipment, ADSL equipment, hubs, modems and network cards.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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