China Data Monetization Market is projected to grow at a CAGR of 8.47%, to attain a market size of US$27.118 billion by 2027, from US$15.350 billion in 2020.
The major factors driving the market growth are the rising investments in the Cloud Computing and Data Centre sectors of the country. Companies are making huge investments in the ICT sector of the country, which is significantly contributing to the overall market growth. Additionally, growing awareness about the potential benefits of data monetization is also driving market growth. The market is segmented into four categories: offering, deployment model, enterprise size, and by end-user industry.
China’s Data Monetization Market Drivers:
One of the factors that are supporting the market growth is the rise in cloud computing. Major key players are supporting the cloud computing sector of the country, which is anticipated to drive the demand for data monetization across China. For instance, Alibaba is planning to invest US$ 28 billion over the next three years in its cloud computing infrastructure, such as data centres, and to support the development of technologies such as AI inference chips. The company has recently announced its partnership with China’s top three network providers, China Mobile, China Unicom, and China Telecom Corp. Walmart and Tencent-backed JD have recently joined the cloud computing arena and are significantly supporting the overall sector’s growth. Tencent has announced its partnership with Huawei for the development of a cloud gaming platform. The gaming platform will be hosted on Tencent’s own cloud infrastructure, which is anticipated to have a positive impact on the overall market growth.
Shanghai is considered one of the most advanced data centre markets in China. It has 41 colocation data centres and 56 cloud service providers. Furthermore, China is investing in technologies like Artificial Intelligence, Cloud, 5G, data analysis, data monetization, smart cities and many more, which are projected to drive the overall market growth during the forecast period. Recent initiatives and development undertaken by the cities of the country are significantly contributing to the market’s growth. For instance, Shanghai has announced a new development plan for its free-trade zone that is focused on the construction of 5G networks, Edge Computing, the Internet of Things, and improved data hubs. The local government of the country is boosting the digital economy by providing growth opportunities to major key players operating in the region to meet the region’s growth in cloud adoption. For instance, GDS Holdings Limited, which is a data centre operating company in China, has acquired a site in Pujiang County with an investment of USD 200 million. This site will be used for the development of a new data centre campus. Also, the company formed a joint venture with CITIC Private Equity Funds Management in order to acquire the Beijing Data Centre facility. China is making significant partnerships and collaborations with solution providers for the expansion of its data centre requirements, which is expected to drive the overall market growth in the coming years.
COVID -19 Insights
COVID-19 pandemic has slowed down the overall market growth in China due to the decline in investments in cloud computing and the ICT sector of the country. However, the market has been witnessing high growth since 2021 owing to growing partnerships and collaboration between major key players in the country. Many companies in the market are looking forward to expanding their business across the country, which is anticipated to have a positive impact on the overall market growth.
The market has been analysed through following segments:
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