MIIT’s 2021 figures show the software and IT services industry in good shape: over 40,000 enterprises above designated size posted RMB 9.50 trillion in software business revenue, up 17.7% year on year, with a two-year compound growth rate of 15.5%.
Profit totalled RMB 1.19 trillion, up 7.6%, and the main-business profit margin rose 0.1 percentage points to 9.2%.
Xu Yaqian of CCID Research Institute attributes the steady growth to the digital economy: the pandemic pushed stay-at-home and online business into the fast lane, lifting software demand, while manufacturing digitalisation sped up – the CNC rate for key processes and the adoption rate of digital R&D tools reached 55% and 74.4% respectively, and industrial digitalisation drove software growth in turn.
Segment performance
Software products: revenue of RMB 2.44 trillion, up 12.3%, 2.2 points faster than 2020. Industrial software earned RMB 241.4 billion, up 24.8% – 7.1 points above the industry average – and is entering a fast-growth period as integration deepens, supporting both the software industry chain and manufacturing upgrades.
IT services grew fastest: RMB 6.03 trillion, up 20.0%, 2.3 points above the industry average. Cloud and big data services earned RMB 776.8 billion, up 21.2%, raising their share by 4.6 points. Information security products and services earned RMB 182.5 billion, up 13.0%, 3 points faster than 2020.
MIIT’s 14th Five-Year software and IT services development plan, issued in November, backs the industry’s expansion. Xu expects Q1 2022 to continue the trend, with steady scale growth, continued structural optimisation and stronger supply capacity for key products in critical areas.
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