China's software market grew 23.9 per cent last year to 28.5 billion yuan (about HK$26.7 billion) and will continue growing at about the same pace during the next few years, according to a government-backed information technology consultancy.
This growth was against a backdrop of lower spending globally on information technology and came despite China's reputation for software piracy.
Beijing-based CCID Consulting said China's software market last year was characterised by strong competition from domestic and foreign entrants, an increasing emphasis on services and a sharp increase in spending on security software.
Sales of network security products rose 61.8 per cent, more than any other category, with Beijing Topsec emerging the most popular domestic maker, the consultancy said.
'The joint effect of the May 1 battle between Chinese and American hackers, outbreaks of Code Red and Nimda virus and the [September 11] terrorist attacks expedited the rising concern about network security last year,' CCID said.
Demand for applications software remained strong. At 18.3 billion yuan, sales accounted for more than half the total last year. Platform software accounted for about 8.6 billion yuan and middleware the remainder, CCID said.
Some of the increased sales could be attributed to a continuing government campaign to have its offices replace unlicensed software with licensed packages.
