According to IDC's latest forecast, the IT expenditure of China's digital-native enterprises, companies with operations, business models, and customer interactions rooted in cloud computing and data, is expected to reach a substantial $40 billion by 2026.
This projection is based on an anticipated compound annual growth rate (CAGR) of 23% over the next five years.
The year 2021 was extraordinary for these digital-native businesses, especially in China. Despite the global pandemic, these businesses, particularly in the med-tech, fintech, ed-tech, and e-commerce sectors, flourished due to their provision of digital services.
Yet, 2022 saw a deceleration in their growth due to macroeconomic uncertainties and geopolitical tensions, causing venture capitalists to rein in their investment strategies.
However, IDC considers 2023 a pivotal year for China's digital-native enterprises.
By 2025, IDC predicts that 40% of these businesses will shift their growth focus from speed to m...
Already subscribed? Sign in.
Don't Miss Out.
Invest with as little as one bottle of water per week.
Join other top analysts and business executives and navigate the unique market with China Internet Watch.
Cancel at any time