Menu
China passes Japan to become world's 2nd largest IT market

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

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 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 thre.

China's IT spending increased by 8.3 per cent this year, nearly double that of the US, and is forecast to further grow by 14.1 per cent 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 $US204 billion in 2014, versus $US686 billion in the US, said Gens.

U.S. IT spending grew 4.7 per cent in 2013, and is forecast to rise by 3.8 per cent next year.

China's IT spending will increase by $US25 billion in 2014, the same dollar increase as in the US.

"It's going to be quite a while before it [China] closes the gap" with the US, said Gens, who expects China's IT growth rate to slow as it grows.

In 2013, China's IT spending will total $US179 billion, beating Japan's $US173 billion by $US5 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 per cent next year to over $US2.1 trillion.

The 2014 forecast for the global IT market would have been higher - 5.6 per cent - if not for the steep decline in PC sales, said Gens.

PC sales account for about 10 per cent of all global IT spending. IDC projects that PC revenue will decline by 9 per cent this year, and by about 6 per cent 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 per cent this year but is expected to increase by 1.6 per cent 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 per cent to 30 per cent of all servers will be shipped to cloud servers providers. By 2017, that percentage is expected to reach 43 per cent.

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 pthibodeau@computerworld.com.

Read more about it industry in Computerworld's IT Industry Topic Center.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags managementConfiguration / maintenanceIT industryIDCNetworkinghardware systemsData Center

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments