[May 16, 2012]

CCID Consulting: Industrial Software Market Expands 17.9% in 2011, With Rapid Growth of Innovative Apps

According to CCID Consulting's research on China's industrial software market, the overall size of the market reached RMB 61.634 billion by the end of 2011, an increase of 17.9% year-on-year. The industrial software market's rapid growth was driven by the state's policy of "integration of informatization and industrialization", as well as the industrial enterprises' rising attention to informatization.

Figure 1. Size and Growth of China's Industrial Software Market, 2009-2011

http://event.ccidconsulting.com/en/images/en-0515-1.jpg

Source (News - Alert): CCID Consulting, February 2012

Figure 2. Structure of China's Industrial Software Products in 2011

http://event.ccidconsulting.com/en/images/en-0515-2.jpg

Source: CCID Consulting, February 2012

Features of China's Industrial Software Market in 2011

(I) Three types of industrial software enterprises co-exist in China.

At present, the domestic industrial software companies are generally divided into three types: the first type of software companies were born out of the manufacturing industry, with a strong professional background, years of service experience, and advanced technical strengths.

The second type refers to the producers of general software. They have great market development potentials, but lack in unique industrial advantages.

The third type refers to the software companies developed by research institutes of colleges and universities. They are advantaged in basic research and hold more products with independent intellectual property rights than the other two types.

(II) Innovation applicatons continuously expand, but high-end fields are still underdeveloped.

Quite a few of China's major industries, including aerospace, aviation, automobile and high-speed rail, rely on industrial software for product design. However, over 90% of their products were developed using large-scale imported software. Many large domestic enterprises in China are also using imported management software. This is mainly due to the lack of domestically-produced high-end industrial software and original technologies and transnational corporations. On the whole, China does not hold much edge in the field of high-end industrial software.

2. Development Trend of Industrial Software in the Future

Figure 3. Forecast on the Size of China's Industrial Software Market, 2012-2014

http://event.ccidconsulting.com/en/images/en-0515-3.jpg

Source: CCID Consulting, February 2012

(I) Industrial software enterprises and traditional industrial enterprises will conduct a positive interaction with each other.

Domestic enterprises are in urgent need of a unified system platform to provide strong supports for their production management, which poses a higher demand on the software products. In this case, a positive interaction between industrial software enterprises and traditional industrial enterprises will be needed to achieve a win-win situation. This also will require the government to play a guiding role in enterprises' informatization. That is, the government is expected to establish state-level evaluation criteria, foster a batch of leading enterprises for demonstration purposes, and help promote key software products and technologies.

(II) Close attention shall be paid to improvement of standards.

The current industrial standards, to some extent, are limiting the development of China's domestic industrial software In the future, China's industrial software industry is expected to pay much attention to the improvement of standards to cope with the development of applications, as well as get more deeply involved in the formulation of standards for industrial software.

(III) Collaborative integration and socialization will be new trends.

Collaborative integration and socialization has changed the way of product development and made it possible for more global colloration among different enterprises. The integration of informatization and industrialization, for example, integrates the enterprise's various businesses with information technologies, making the information technologies a part of the enterprise's operation, its growth and the industrialization of the whole industry.

About CCID Consulting Co., Ltd.

CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM (News - Alert)) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi'an, Wuhan and Nanjing with over 300 professional consultants. The company's business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No.1 consultancy for enterprise management, and the No. 1 brand for informatization consulting in China.

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