China passes Japan to become world's 2nd largest IT market
First place U.S. still has IT market 3x size of China, though the latter is seeing far more rapid growth, IDC says
Computerworld - China overtook Japan in IT spending this year to become the world's second largest IT market, according to market research firm IDC.
The U.S. remains the largest IT market in the world, still more than three times the size of China. But China's IT spending is increasing by double digits, and technology industry investment is a high priority there.
China's IT spending increased by 8.3% this year, nearly double that of the U.S., and is forecast to further grow by 14.1% next year, said Frank Gens, chief analyst at IDC.
The clearest evidence of China's interest in building a technology market is its development of the world's fastest supercomputer, topping the Top 500 list.
China's overall IT spending is projected to hit $204 billion in 2014, versus $686 billion in the U.S., said Gens.
U.S. IT spending grew 4.7% in 2013, and is forecast to rise by 3.8% next year.
China's IT spending will increase by $25 billion in 2014, the same dollar increase as in the U.S.
"It's going to be quite a while before it (China) closes the gap" with the U.S., said Gens, who expects China's IT growth rate to slow as it grows.
In 2013, China's IT spending will total $179 billion, beating Japan's $173 billion by $5 billion.
China's rate of spending says "that China is the place you have to be if you are in the IT market," said Gens.
In the global market, IDC expects global IT spending to rise by 5.1% next year to over $2.1 trillion.
The 2014 forecast for the global IT market would have been higher -- 5.6% -- if not for the steep decline in PC sales, said Gens.
PC sales account for about 10% of all global IT spending. IDC projects that PC revenue will decline by 9% this year, and by about 6% next year.
The PC revenue decline is reflected in PC shipments, which are down 10.1%, reported IDC.
Despite the revenue drag created by global PC sales, other segments of IT spending, including IT services and software, increased this year.
Server revenue declined by 3.5% this year but is expected to increase by 1.6% next year.
Gens said IT spending is rising, but users are shifting to cloud computing, mobile technology and big data, and IT managers will have to adapt.
In 2014, for instance, IDC expects that 25% to 30% of all servers will be shipped to cloud servers providers. By 2017, that percentage is expected to reach 43%.
Patrick Thibodeau covers SaaS and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov, or subscribe to Patrick's RSS feed . His email address is firstname.lastname@example.org.
- Microsoft's new CEO and his first-100-days plan
- Personal history may thrust new Microsoft CEO into visa debate
- As Dell cuts, Apple adds jobs in Austin
- Dell cuts 'small percentage' of workforce
- Lenovo's Motorola, IBM server buys will likely get strict U.S. security review
- Welcome to the era of radical innovation
- China passes Japan to become world's 2nd largest IT market
- BlackBerry sale might not include smartphones
- Tech hiring accounts for 10% of U.S. employment gains
- Gartner offers more data on PC decline and tablet surge
Read more about IT Industry in Computerworld's IT Industry Topic Center.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All IT Industry White Papers | Webcasts