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The China software market size reached around USD 29.64 Billion in 2024. The market is projected to grow at a CAGR of 11.20% between 2025 and 2034 to reach nearly USD 85.69 Billion by 2034. The market growth can be attributed to evolving geopolitical conditions and rapid technological advancements in software design. Moreover, the rising demand for cloud-based software solution is expected to propel the the market growth.
Base Year
Historical Year
Forecast Year
The increasing data production in China, especially in sectors like e-commerce, telecommunication, finance, and manufacturing, is surging the demand for software solutions that can process, manage, and analyse data effectively. As per China’s National Data Bureau, cumulative data production in China accounts for nearly 10.5% of the world’s total. With this rising data generation, the requirement for data security and privacy software focusing on threat detection and encryption, access control, and data loss prevention (DLP) is expected to surge.
In China, there is a growing adoption of Software-as-a-Service (SaaS) among businesses, especially SMEs, as an affordable alternative to traditional on-premise software. Benefits such as flexibility, scalability, as well as ease of deployment are further boosting the appeal of SaaS. Moreover, the introduction of favourable government initiatives supporting the growth of SaaS and cloud computing as part of the broader push for innovation and digital transformation is expected to drive the China software market development in the coming years.
The expansion of the ICT sector is surging the demand for software solutions to manage digital transformation, drive innovation, and improve operations. During January-October 2024, ICT companies in China reported a year-on-year growth of 11.4%, reaching CNY 2.32 trillion. As the ICT sector expands, investments in enterprise software like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Supply Chain Management (SCM) systems to streamline operations and improve efficiency are surging.
Value in USD Billion
2025-2034
China Software Market Outlook
*this image is indicative*
China Software Market Report Summary |
Description |
Value |
Base Year |
USD Billion |
2024 |
Historical Period |
USD Billion |
2018-2024 |
Forecast Period |
USD Billion |
2025-2034 |
Market Size 2024 |
USD Billion |
29.64 |
Market Size 2034 |
USD Billion |
85.69 |
CAGR 2018-2024 |
Percentage |
XX% |
CAGR 2025-2034 |
Percentage |
11.20% |
CAGR 2025-2034- Market by Region |
Southwestern China |
12.8% |
CAGR 2025-2034 - Market by Region |
Northwestern China |
12.0% |
CAGR 2025-2034 - Market by Deployment |
Cloud |
12.3% |
CAGR 2025-2034 - Market by Organisation Size |
Small and Medium Enterprises |
11.6% |
Market Share by Region 2024 |
Southcentral China |
27.2% |
The Ministry of Commerce reported that the digital retail industry in China made total sales worth USD 2.16 trillion in 2024. It also reported that the wholesale and retail industry collectively accounted for 10.2% of GDP growth and contributed nearly 13.8 trillion yuan in monetary terms. As key companies enhance their focus on providing superior shopping experiences to consumers, the demand for advanced software solutions ensuring a seamless consumer experience of product selection and checkout is expected to increase substantially. This is expected to drive the China software market development in the coming years.
The rising popularity of advanced driver assistance systems (ADAS) in the automotive industry pinpoints a seismic shift towards the rising appeal of software-driven passenger cars among consumers. For instance, Li Auto, a prominent automotive company, recorded a 182% growth in the number of unit deliveries in 2023. Rapid technological advancements have enabled Chinese automotive companies to provide ADAS-driven vehicles at a range of USD 30,000-40,000 to consumers, which is substantially lower than prices of Germany automobile manufacturers’ luxury models (USD 100,000). This is creating a favourable China software market outlook.
Increasing trend of AI integration; expansion of cloud computing; growing focus on cybersecurity; and rising demand for IoT and 5G software solutions are the major factors driving the China software market growth.
There is a growing integration of artificial intelligence across various sectors, including software. Companies are integrating AI into applications like chatbots, automation tools, and business solutions. Leading firms, including ByteDance and Tencent, are focusing on developing advanced AI models, enhancing user experiences, and creating new opportunities in areas like healthcare, finance, and entertainment. This is one of the key China software market trends.
China is witnessing significant growth in cloud computing services, driven by the demand for scalable infrastructure and data storage solutions. Major players like Alibaba Cloud and Huawei are expanding their cloud offerings, providing businesses with flexible, cost-effective solutions. This trend supports the rapid digital transformation of industries, including manufacturing, finance, and retail.
As digitalisation increases, the importance of cybersecurity has become a key trend in the market. Companies are investing heavily in enhancing their security infrastructure to combat growing cyber threats. The government is also enacting stricter regulations to ensure data protection, prompting software firms to focus on robust encryption, threat detection, and compliance solutions. This is accelerating the China software market growth.
With the rapid deployment of 5G networks, the market is witnessing an uptick in demand for Internet of things (IoT) solutions. Software providers are developing platforms that support real-time data analytics, smart devices, and automation across industries such as manufacturing, logistics, and healthcare. This trend is driving innovation in connected technologies, enhancing operational efficiency.
Evolving security concerns triggered by geopolitical tensions
As China seeks to replace foreign software products with domestic alternatives, the demand for word processing systems software is expected to witness steady growth. For instance, WPS Office (a rival of Microsoft Office Suite) reported achieving a daily active user base of nearly 100 million individuals in January 2025. In Q3 FY 2024, it posted a 10% year-on-year growth in profits that reached USD 164 million. The total number of office software users also surpassed 617 million users, thereby indicating higher consumer preference for made-in-China software products. This is propelling the China software market expansion.
Rising demand for ERP software
Under the “Made in China 2025” plan, the Chinese government aims to boost the production of high-end goods (such as aerospace equipment, medical devices, farming machines, and industrial robots) domestically. This is expected to necessitate the need to manage resource allocation effectively. Currently, 35% of Chinese enterprises use SAP ERP system, highlighting the rising demand for enterprise resource planning solutions. This is expected to propel the China software market growth over the forecast period.
The EMR’s report titled “China Software Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Type
Breakup by Deployment
Breakup by Organisation Size
Breakup by Industry Vertical
Breakup by Region
Based on deployment, the market is segmented into cloud and on-premises. Over the forecast period of 2025-2034, cloud-based software is expected to grow at a CAGR of 12.3% due to the growing demand for flexibility, scalability, and cost-effectiveness among organisations. The introduction of favourable government initiatives promoting digital transformation is also surging the demand for cloud-based software. Meanwhile, on-premise deployment of software is witnessing a strong demand among sectors requiring greater control over sensitive data.
CAGR 2025-2034 - Market by |
Deployment |
Cloud |
12.3% |
On-Premises |
XX% |
Major market players are focusing heavily on advancements in artificial intelligence (AI), with companies like ByteDance, Tencent, and emerging AI startups making significant strides. These companies are developing cutting-edge AI technologies, such as chatbots and AI-driven models, and investing in hardware like AI chips to enhance their computing capabilities, positioning themselves as global leaders in the rapidly evolving tech landscape. This is creating a favourable China software market outlook.
Tencent Holdings Ltd. was founded in 1998 and is headquartered in Shenzhen, Guangdong. It is an internet and technology company which provides entertainment, social media, and financial services.
Baidu Inc. was founded in 2000 and is headquartered in Beijing. It is an internet and artificial ...
Huawei Technologies Co., Ltd. was founded in September 1987 and is headquartered in Shenzhen, Chi...
Shinetech Software Inc. was founded in 2001 and is headquartered in New York, United States. It s...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the China software market report are SAP SE, Microsoft Corp., Oracle Corp., Adobe Inc., Neusoft Corp., and CentLing Technologies Co. Ltd., among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2024, the market reached an approximate value of USD 29.64 Billion.
The market is projected to grow at a CAGR of 11.20% between 2025 and 2034.
The market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a value of around USD 85.69 Billion by 2034.
The different regions considered in the market report include Shanghai, Zhejiang, Guangdong, Jiangsu, and Beijing, among others.
The major market trends include AI integration into software, expansion of cloud computing, growing focus on cybersecurity, and rising demand for IoT and 5G-based software solutions.
The different types of software in China are application software, system infrastructure software, development and deployment software, and productivity software.
The different industry verticals in the market include BFSI, retail, healthcare, government, and IT and telecom, among others.
Key players in the market are Tencent Holdings Ltd., Baidu Inc., Huawei Technologies Co., Ltd., SAP SE, Microsoft Corp., Oracle Corp., Shinetech Software Inc., Adobe Inc., Neusoft Corp., and CentLing Technologies Co. Ltd., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
REPORT FEATURES | DETAILS |
Base Year | 2024 |
Historical Period | 2018-2024 |
Forecast Period | 2025-2034 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
Breakup by Type |
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Breakup by Deployment |
|
Breakup by Organisation Size |
|
Breakup by Industry Vertical |
|
Breakup by Region |
|
Market Dynamics |
|
Competitive Landscape |
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Companies Covered |
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Datasheet
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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