According to IDC’s “China Internet Market Tracking Report in the First Half of 2019”, the scale of China’s Internet market in the first half of 2019 was US$3.95 billion (about 26.8 billion yuan), an increase of 3.2% compared with the same period last year, and the growth trend has slowed down. Government, Internet, education and services have become the main industries driving the growth of the network market.
From the perspective of product growth rate, China’s switch market in the first half of 2019 increased by 2.3% year-on-year, mainly from the government, Internet and transportation industries. Due to various factors such as the macro environment, the Sino-US trade war and the weakening of Internet investment, the growth rate in the first half of the year fell sharply compared with the same period in previous years, and even negative growth occurred in the second quarter. Given the pace of Internet investment and the impact of the external environment, the switch market is forecast to maintain single-digit growth in 2019.
In the first half of the year, the router market increased by 3.6% year-on-year, mainly from operators, the Internet and the financial industry, and the growth rate fell sharply compared with the same period of previous years. As the main force in the router market, operators have continued to invest in and build networks in recent years. At present, the scale of 4G users has reached 1.23 billion, and the large-scale construction period is coming to an end. In the context of increasingly saturated traditional communication services and intensified competition in emerging fields such as cloud services and the Internet of Things, operators are taking advantage of their respective advantages to deepen cloud-network integration and speed up the cultivation of innovative business capabilities and scale expansion.
The WLAN market grew by 5.7% year-on-year in the first half of the year, mainly from the education, service and transportation industries, and wireless construction slowed down. In the mature wireless market, manufacturers are facing more intense competition. Mainstream manufacturers have released WiFi6 products and implemented them in multiple industries. They pay more attention to customer experience and services, optimize the channel system, and further cultivate the local and municipal markets.
From an industry perspective, the government, Internet, education and service industries have driven the development of China’s Internet market.
Accelerating the construction of digital government, leading the digital transformation of the government
Large-scale digital government projects are frequently launched, and ICT investment will usher in a new wave of construction. Government internal and external networks and government cloud will integrate traditional smart city construction, and large manufacturers with complete ecological platforms will have greater advantages to participate in it. Public security continues to invest, and the new generation of public security information network will usher in a construction explosion in the second half of 2019.
Internet industry growth slows down
Affected by the construction cycle and various factors, the investment of leading Internet companies in the first half of the year decreased. Combined with the investment plans of other Internet companies in the whole year, it is expected that the growth rate of the Internet industry will decline sharply in 2019.
Education informatization continues to deepen
Blessed by policy dividends, the construction and application of digital campuses has been accelerated, and school network access and bandwidth conditions have been further improved. With the popularization of digital resource services in colleges and universities, the demand for the network is not only the connection, but also the realization of the integration function; the innovation and development of smart education is carried out in an orderly manner, and the education metropolitan area network has carried out demonstration areas and informatization pilot construction in many places.
Service industry digital reconstruction of user experience
Digitization has also accelerated the change management of the service industry. Hotels, venues, supermarkets and other scenarios for personal services are actively carrying out informatization construction to improve consumer satisfaction and operational management efficiency. experience and discover new profit growth points. At the same time, companies that provide professional services to corporate clients are also exploring digitalization in order to promote business model changes.
Wang Zijian, senior analyst of IDC China’s network market, said, “With the further development of network technology and the reduction of the unit price of equipment, customers’ considerations in networking and digital construction have changed significantly, from the initial pure connection demand to the development of Demand for integrated functions such as simplified operation and maintenance, self-developed controllability, multi-cloud management, and IoT expansion. At this stage, product homogeneity is serious. In addition to continuing to improve product stability and enrich functions, network manufacturers need to further understand industry customers Business pain points, creating diversified solutions and flexibly connecting existing product solutions, in the stock market, only by getting closer to customers and truly solving problems for customers can we win more shares.”