Expanded internet coverage, 3G and 4G mobile technologies are driving industry growth.
San Francisco, CA (PRWEB) March 02, 2013
Over the past five years, revenue for the Internet Services industry in China has been growing rapidly at an average annualized rate of 19.9% to $42.9 billion in 2012. Booming domestic demand is the result of high growth in the number of internet users in China over the period, says IBISWorld. Currently, the internet penetration rate in China is 39.9%, with mobile internet users accounting for over two-thirds of total users.
The application services segment has become more important to the Internet Services industry over the past five years. New application services such as blogs and wikis have become increasingly popular. E-commerce has been popular for several years, however, development has sped up since 2010, with group online shopping sweeping the country. Other services, such as search engines, online games and instant messaging have also been growing strongly.
The concentration level in the Internet Services industry is low but increasing rapidly. The top four companies – Tencent, Baidu, Netease, and Sohu – currently account for a quarter of total industry revenue in the year. IBISWorld anticipates that the large enterprises in the industry will continue to expand their businesses by acquiring smaller players over the next few years.
Over the next five years, IBISWorld forecasts that industry revenue will continue increasing strongly, driven by expanded internet coverage in rural China, thriving advertising services boosted by e-commerce, and the development of 3G and 4G mobile technologies.
For more information, visit IBISWorld’s Internet Services in China industry report page.
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IBISWorld Industry Report Key Topics
The Internet Services industry in China provides internet services, including basic internet access (i.e. internet service providers or ISPs) and application services, such as online advertising, web portals, search engines, instant messaging, internet games, blogs, business-to-business (B2B) services and consumer to consumer (C2C) e-commerce.
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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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 every US industry. 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 or call 1-800-330-3772.