China ICT market to plunge 10% in Q1 amid coronavirus outbreak

Nieuws Algemeen China 18 FEB 2020
China ICT market to plunge 10% in Q1 amid coronavirus outbreak
The Chinese ICT market faces both opportunities and challenges amid the coronavirus outbreak, according to a report from IDC. The impact of the virus spread is expected to be significant in the first quarter of 2020, but gradually lessen in subsequent quarters – with a limited impact on the full-year economic growth. The digital economy enabled by ICT accounted for 37.8 percent of the Chinese economy in 2019. The macroeconomic disruption brought by the outbreak is expected to significantly affect China’s ICT market and generate a record decline of 10 percent in the first quarter of 2020.

The ICT market is expected to see a 30 percent fall for PC and smartphone sales, and greater than 15 percent fall for server, network and storage sales. AI and big data will be affected as well but will remain to grow, while emerging technologies such as IoT and security are forecast to see minimal declines.

The Chinese ICT market is expected to grow by 5.5 percent in 2020. 

The coronavirus outbreak is also expected to bring new opportunities for the ICT market, including opportunities for digital platforms and big data regarding the intelligentization and modernization of governmental operations; opportunities for new smart cities and parks about the decentralization of city clusters + central cities; opportunities for online healthcare services in relation to the acceleration of healthcare system digital transformation. 

The coronavirus situation is also forecast to create opportunities for online classroom and education, remote office and online activities, 5G industry applications, unmanned commerce and services, and fresh food e-commerce in relation to the accelerating rise of contactless businesses and services; as well as opportunities for supply chain management, manufacturing and service robots in relation to the acceleration China+1 global supply chain strategy.

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