China is expected to surpass Japan as the largest spender on IT Goods and services in the Asia region by 2013, according to a new report from Boston-based analyst firm IDC Financial Insights.
IDC's latest IT forecast report predicts that IT spending in China will reach $173 billion in 2013, exceeding Japan's market by 4 percent. IDC attributed the IT spending growth in China to two key areas: growing demands of consumer IT, and the IT opportunities brought about by the government's Five-Year Plan.
Specific drivers of China's IT spending growth include healthcare programs and cloud services programs, and IT infrastructure upgrade plans by several municipal governments, according to IDC.
The report also found that "smart grids" will drive IT investment in China. The initial pilot phase of the Chinese smart grid program has ended, and the project will be launched in a wider scope nationwide to drive higher IT market growth, said IDC.
According to Lianfeng WU, associate vide president of IDC China, the explosion of personal consumer technology devices in the country will also create IT investment opportunities.
"Personal consumer electronics will become more intelligent and expand toward small and medium-sized cities," said Yu in a written statement. "Consumption upgrade, smart home, and intelligent auto, as well as intelligent housing and property management, will fuel the rapid growth of manufacturing and retail businesses as well as the service sector in the industrial chain, resulting in strong IT demand. The personal consumer IT market is expected to exhibit growth of 29.8 percent in 2012, with smart terminals being a growth engine; and rapid growth of personal devices such as smartphones and tablet computers will continue."
Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio