China poised to leapfrog Japan to rank as No 2 market behind US for information technology goods and services
Spending on business and government expenditure tipped to hit US$224 billion on mainland this year, about 10 per cent more than in neighbouring Japan
Unfazed by a lingering economic slowdown, China is on pace to overtake Japan this year as the world’s second-largest market for information technology goods and services, behind the United States.
Business and government expenditure on technology, including telecommunications services, in mainland China is forecast to reach US$224 billion this year, compared with US$203 billion in Japan, according to new data from Forrester Research.
We forecast 16 per cent of China’s total tech purchases, or more than US$11 billion, will go to business technology this year - a 25 per cent increase over 2015
The US will remain the top global market for tech goods and services as enterprises there are predicted to spend a massive US$1.13 trillion in purchases this year.
In the Asia-Pacific, China would become the region’s biggest enterprise tech market ahead of Japan, Forrester analysts said.
“We believe that 2016 will see organisations in China accelerate their digital transformation initiatives by rapidly increasing their business technology investments,” Charlie Dai, a principal analyst at Forrester, told the South China Morning Post.