Olympics Driving Applications Market in China
Thanks mainly to Beijing Olympics happening during August 8-24, China has been leading the Asia/Pacific (excluding Japan) Applications market since last year. The consumer-centric industries such as retail, travel, and hospitality in China are investing in tech systems to streamline their business operations to handle swelling consumer rush during the forthcoming sports event.
Plus, the strong stock markets in China and the booming consumer demands are encouraging enterprises to invest more in IT. In 2007, China continued to lead by contributing a whopping 29% to the regional Applications market valued at $6.43 billion.
Released today, these are the findings of a study: “Asia/Pacific (Excluding Japan) Applications 2008-2012 Forecast and Analysis” done by tech market researcher, IDC. The market, the study says, is expected to grow steadily at a five-year compound annual growth rate (CAGR) of 11.6% to reach $11.16 billion by 2012.
“Compliance and Risk Management will drive demand in Content Management Applications, as enterprises in the region are deploying policies to improve corporate governance,” says Sheila Lam, senior market analyst of Asia/Pacific Enterprise Applications Research at IDC.
The APEJ Applications market in 2007 was dominated by Enterprise Resource Management, with 25.2% market share and a value of $1.6 billion. Followed closely is Content Applications with 21.7% of the market. Services Industry Applications market was the third largest with a value of $1.1 billion. The fastest growing market segment is Product Supply Chain Applications, with a five-year CAGR of 14.5%, and the market size is expected to grow from $690.4 million in 2007 to $1.4 billion by 2012.
Looking ahead, Alan Tong, senior research manager of Asia/Pacific Enterprise Applications Research at IDC comments, “We anticipate that the recent downturn in the US economy would slow down demand of the Applications market in APEJ in 2008 with greater impact in countries such as Korea, Taiwan, New Zealand, and Singapore.”
Besides China, others like Australia, Korea, and India are among the growing markets for Applications.