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China to invest 800b yuan on 5G in next 5 years

chinadaily.com.cn | Updated: 2020-11-11 11:29
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People visit an intelligent production line at the booth of Siemens at the Intelligent Industry and Information Technology exhibition area during the third China International Import Expo in Shanghai on Nov 6, 2020. [Photo/Xinhua]

By the end of 2022, more than 60 percent of China's top 1,000 enterprises will deploy application scenarios based on 5G and edge computing, which will accelerate the pace of post-epidemic recovery and innovation, according to an industry prediction report released on Tuesday.

"It will drive investment growth of 5G infrastructure and internet of things solutions," according to the report, titled 2021 China ICT Market Predictions, issued by International Data Corporation, a global market intelligence company.

The report projected China's investment in 5G will exceed 800 billion yuan in the 2021-2025 period, and its expenditures on internet of things will total over 6 trillion yuan over the next four years.

"Although the most serious stage of the epidemic crisis is over, recovering from economic chaos and adapting to more lasting social and business changes will dominate IT investment decisions and reshape its priorities for the next five years," IDC China managing director Kitty Fok said. "Technology will lead us to the next normal and play a greater role."

According to the latest forecast from IDC, the scale of China's ICT market (including the third platform and innovative accelerator technology) will reach $711.1 billion in 2021, up 9.3 percent compared with 2020, and return to relatively high growth after the epidemic. Total expenditures on digital transformation in 2021-2024 will reach $1.5 trillion, with an average annual growth rate of 17 percent.

Wu Lianfeng, IDC China vice-president and chief research analyst, stressed changes in China's ICT market will be closely connected with key words in the 14th Five-Year Plan (2021-25) and industry users' focus on the digital economy and consumption upgrades during the 14th Five Year Plan period.

By 2024, 45 percent of repetitive tasks will be automated or enhanced through the use of "digital employees" supported by AI, robotics and robotic process automation, the report predicted.

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