Slowed Growth In China's 2012 IT Spending Won't Carry Through Into The New Year

Ongoing global economic uncertainty has affected the Chinese economy by reducing demand for exports and shrinking domestic investments, resulting in turbulence in China’s tech market. My latest report, “China Tech Market Outlook: 2012 To 2013,” describes how Forrester has revised its 2012 growth forecast for this market from an original forecast of 13% in January 2012 down to 10% (measured in local currency). Major technology vendors, including both local and MNC vendors, have seen the growth of their China operations slow down.

However, the Chinese tech market is still one of the fastest-growing IT markets in the world. China’s $105 billion of annual technology spending ranks third in the world after the US and Japan. However, per-capita IT spending in China is only 4% of Japan’s and 3% of the US’s — highlighting the long-term potential in the country.


Some of the key findings for the tech market trends in China in 2012 and 2013 include:

  • Computer equipment and peripherals, as the largest segment for tech spending in China, will grow 8% in 2012 and 13% in 2013. Chinese customers continue spend on more hardware. Strong cloud momentum in China will drive significant new data center investments from telecom operators and local governments, with a positive impact on technology vendors selling servers, storage, networking, and other relevant technologies.
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