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CN 6211 | Industry Report

Software Development in China Industry Data and Analysis

RW
Rachel Wang
Analyst Beijing, China May 2025

The Software Development industry has grown strongly over the past five years. Industry revenue is expected to increase at an annualized 8.5% over the five years through 2025, to $675.2 billion. This trend includes anticipated revenue growth of 6.5% in the current year. Strong demand from downstream software users and the government, along with solid pricing, have supported the industry's performance over the past five years.The industry's development has also been supported and encouraged by the Chinese Government, with the government instituting several policies to support the industry. The government's 14th Five-Year Plan (2021 to 2025) listed software development as a key component, with the government encouraging innovative, technology-based reforms. This plan had supported the software industry's continued growth.Profit is expected to account for 12.5% of industry revenue in 2025. Industry profit has decreased in recent years due to the intensified market competition, technological progress and standardization, changes in customer demand, rising labor costs, the popularity of open source and free software, accelerated technological iteration, etc.China's software exports have been volatile, mainly due to changes in the international environment and the impact of adjustments in the overseas market focus of Chinese software companies. In the past five years to 2025, industry exports are expected to decrease at an average rate of 1.4%, to $71.5 billion, and representing 7.7% of industry revenue in 2025.Government assistance and improving technology are forecast to support the industry's continued strong development over the next five years. In addition, domestic software will further accelerate the replacement of foreign software with the improving technological capabilities of domestic software developers. Industry revenue is projected to increase at an annualized 6.5% over the five years through 2030, to $926.2 billion.

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What's included in this industry analysis

IBISWorld's research coverage on the Software Development industry in China includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.

About this industry

What's this industry report about?

The Software Development industry in China operates under the industry code 6211. The Software Development industry in China comprises establishments that primarily provide software products, including applications software, system software and support software. Industry operators also provide software-related services, such as software design, testing, outsourcing, programming and analysis. Related terms covered in the Software Development industry in China include embedded system software, basic software and industrial software.

What's included in this industry?

Products and services covered in Software Development industry in China include Software products, Embedded system software and Information security products and services.

What companies are included in this industry?

Companies covered in the Software Development industry in China include Huawei Technologies Co., Ltd., Alibaba Group Holding Limited and Haier Group Co., Ltd.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Software Development industry in China.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Software Development industry in China.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Software Development industry in China.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Software Development industry in China. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Software Development industry in China. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Software Development industry in China. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Software Development industry in China. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Software Development industry in China.

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Frequently Asked Questions

What is the market size of the Software Development industry in China in 2026?

The market size of the Software Development industry in China is $675.2bn in 2026.

How many businesses are there in the Software Development industry in China in 2025?

There are 39,848 businesses in the Software Development industry in China, which has declined at a CAGR of 0.2 % between 2020 and 2025.

How may import tariffs affect the Software Development industry in China?

The Software Development industry in China is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Software Development industry in China?

The Software Development industry in China is likely to be impacted by export tariffs with exports accounting for a moderate share of industry revenue.

Has the Software Development industry in China grown or declined over the past 5 years?

The market size of the Software Development industry in China has been growing at a CAGR of 8.5 % between 2020 and 2025.

What is the forecast growth of the Software Development industry in China over the next 5 years?

Over the next five years, the Software Development industry in China is expected to grow.

What are the biggest companies in the Software Development industry in China?

The biggest companies operating in the Software Development industry in China are Huawei Technologies Co., Ltd., Alibaba Group Holding Limited and Haier Group Co., Ltd.

What does the Software Development industry in China include?

Software products and Embedded system software are part of the Software Development industry in China.

Which companies have the highest market share in the Software Development industry in China?

The company holding the most market share in the Software Development industry in China is Huawei Technologies Co., Ltd..

How competitive is the Software Development industry in China?

The level of competition is high and increasing in the Software Development industry in China.

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