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China to see stable growth in ICT spending amid AI boom: IDC

Xinhua | Updated: 2024-05-16 16:19

Visitors experience a smart cockpit of an Aito M9 vehicle at the 2024 Beijing International Automotive Exhibition in Beijing, China, April 25, 2024. [Photo/Xinhua]

BEIJING - China's spending on information and communications technology (ICT) is projected to experience steady growth as various industries adopt the latest wave of digital transformation driven by artificial intelligence (AI).

According to global market research firm International Data Corporation (IDC), China's ICT spending is expected to increase by 9.8 percent year-on-year in 2024, surpassing the global average by two percentage points.

IDC further predicts that the growth rate of ICT spending in China may reach 10.2 percent year-on-year in 2025, continuing to outpace the global average.

"We are observing that the ICT sector is entering a new phase of transformation characterized by extensive integration of AI," said Wu Lianfeng, IDC China's vice-president and chief research analyst, during the IDC Directions 2024 event held in Beijing on Wednesday.

According to Wu, many Chinese firms have prioritized leveraging AI to drive business growth.

In particular, the financial sector and retail industry in China are expected to witness a compound annual growth rate of over 20 percent in spending on digital transformation from 2024 to 2027.

IDC also predicts strong growth in spending on generative AI in China. A recent study revealed that approximately 28 percent of the surveyed enterprises achieved a return on investment within one year after investing in generative AI.

In recent years, China has been actively promoting the integration of digital technologies across various industries. The government's work report for this year announced the launch of the AI Plus initiative, aimed at boosting the development of the digital economy.

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