With most internet users in the world, China still have internet penetration is less than 40%. This, combined with an increase in affordable web services and the growing acceptance of Transact online, shows continued strong growth for the Chinese Internet services industry. Over the past five years, the industry’s revenue increased at an annual average rate of 13.2%.
Particularly rapid growth is stimulated by booming domestic demand internet service, such as the number of internet users in China is estimated to have increased by an annual average of 18.5% from 2006 to 2011. The industry is expected to grow to $ 57.72 billion by 2016, according to IBISWorld, a publisher of America’s greatest industry research.
The development of new rural information service will be an important driver for the Internet service industry in China. The Government attaches great importance to rural development new service information by making a significant investment, which would encourage consumption and demand for the hardware, software and internet services in these regions less advanced in China.
Internet penetration is growing in China and the largest population of the world will continue to attract foreign investment in China’s industry–with foreign companies which are expected to make almost a quarter of the industry’s revenue, according to IBISWorld. Foreign investment is expected to improve in this industry in the future, for international companies seeking to diversify geographically thanks to the difficult operating environment in other parts of the world. Foreign companies are expected to acquire a well managed and profi Chinese internet service providers in the next few years.
For more information, including the level of profitability, market share, product segmentation and more, download the report IBISWorld’s the Internet service industry in China.