IDC: Ten predictions for China's ICT market in 2021

On November 10, IDC recently released the "Top Ten Predictions for China's ICT Market in 2021" (hereinafter referred to as the Forecast). The forecast pointed out that the scale of China's ICT market (including third-party platforms and innovation accelerator technologies) in 2021 will reach US$711.1 billion, a year-on-year increase of 9.3%. It is estimated that the total expenditure on digital transformation from 2021 to 2024 will reach US$1.5 trillion, with an average annual growth rate of 17%.

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In addition, IDC also predicted the development trend of the ICT market, and conducted scientific analysis and summary from the perspectives of digitalization, 5G, artificial intelligence, edge computing, etc. The following are the top ten trends:

First, China’s characteristics in the field of technology are becoming more and more obvious

By 2025, driven by the new infrastructure, dual circulation, and scientific and technological self-reliance strategies, governments and enterprises will continue to accelerate digital transformation, and China's digital economy will account for more than 70% of GDP. China's core technologies and patents in the fields of chips, databases, operating systems, artificial intelligence, enterprise core application solutions, smart homes, etc. will account for an increasing proportion.

Second, the value of data has become more important than ever before

By 2023, 50% of large Chinese organizations will adopt a "data supermarket" strategy to unify data storage, access and governance functions to provide a consistent data experience and maximize data value. 90% of Chinese provinces and cities will set up big data bureaus to break down data silos and create value.

Third, contactless connected commerce redefines customer experience

By 2021, as traditional physical interactions become a thing of the past, 60% of organizations in China will achieve customer empathy at scale by delivering user experience through automated operations and contactless methods.

Fourth, invest in creating remote work capabilities for employees

By 2023, more than 60% of large Chinese companies will invest in creating remote work capabilities for their employees, enabling them to complete their work independently and in real time to respond to emergencies like the epidemic, ensure business continuity, and practice the concept of future work.

Fifth, enterprises are accelerating their migration to the cloud, driving large-scale data center construction

By the end of 2021, 60% of Chinese companies will have established a mechanism to move to cloud-centric infrastructure and applications, twice as fast as before the COVID-19 pandemic. It is expected that by the end of 2024, the number of medium and large data centers in China will exceed 80,000.

Sixth, 5G and edge computing application scenarios are accelerating deployment

By the end of 2022, more than 60% of China's top 1,000 companies will deploy application scenarios based on 5G and edge computing, accelerating post-epidemic recovery and innovation, and driving growth in spending on 5G infrastructure and IoT solutions.

Seventh, artificial intelligence accelerates the application and deployment of various automation scenarios

By 2024, 45% of repetitive work tasks will be automated or augmented using “digital workers” powered by AI, robots and RPA. 60% of IT departments at China’s top 1,000 companies will adopt automated operations practices to transform their IT workforce to support scaled innovation.

Eighth, Chief Trust Officer helps companies build future trust

By 2025, more than 50% of large enterprises in China will establish the role of Chief Trust Officer, and 80% of Chief Trust Officers will require suppliers to combine security and risk capabilities to measure corporate trust, including supplier relationships and employee reputation.

Ninth, acquire digital technology capabilities through investment and mergers and acquisitions

By 2024, driven by national science and technology innovation policies and the goal of developing digitally enhanced products and services, 30% of China's top 1,000 companies will acquire at least one digital technology company to ensure they have differentiated skills and IP and move towards a leading role.

10. The rise of an ecosystem of digitally connected expansion

By 2025, driven by a turbulent environment, 60% of China’s business leaders will leverage digital platforms and ecosystems to adapt their value chains to new markets, industries and partners, and continuously create new products, services and business models.

IDC FutureScapes' analysis and interpretation of technology, market and ecosystem can help CIOs better understand future trends and the impact of IT organizations on the enterprise. The report also aims to provide guidance to CIOs in a complex and changing environment and provide feasible and executable suggestions. Every year, IDC has a series of key external drivers that will affect the direction of enterprises in the next few years. Based on these drivers, FutureScape makes ten predictions, analyzes the impact on IT enterprises, and provides relevant suggestions for the next five years.

In conclusion:

The year 2020, which is about to end, has brought more challenges to society. This year, the Chinese ICT industry has been trying to adapt. In comparison, 2021 will bring more challenges to the Chinese ICT industry, but also more opportunities. As Ms. Jinjie Huo, President of IDC China, said, from a global perspective, the external driving factors affecting the economic and technology markets in 2021 include: accelerated disruption by the epidemic, adjustment of innovation strategies, the next new normal, intelligence everywhere, geopolitical risks, rethinking globalization, digital ecological platforms, future trust crises, redefining customers, aggravation of the digital divide, future work transformation, and building learning organizations. Technology will lead us to the next normal and play a greater role.