China’s cloud computing industry will soon replace local deployment to a much larger extent. The software market presents potential in the corresponding development.

It is expected that by 2024, software spending that will be 4% higher than that in 2020 will comprise 29% of the country’s big data market, with the expected five-year CAGR at 26%.

At least three major software submarkets include “End-User Query, Reporting, and Analysis Tools,” and AI software platforms and relational data warehouses.

IDC estimated that in 2020, the three submarkets accounted for more than 50% of China’s big data software market and will only continue to increase by about 58% in 2024.

The three hot segments in China with an expected CAGR of 30%-50% in the next five years include artificial intelligence software, continuous analytics tools, and non-relational analytical data stores. Others include banks, communications, and local governments, making up 38% of the market expenditure in 2020 will take a leading edge until 2024.

IDC predicts the big data market will develop rapidly in three fields of health care, professional services, and local government. China expects that scenarios in the local governments will continue to grow exponentially with the promotion of digital government construction and other policies. Local governments will start investing in the smart-big screen, government data query, and analysis shared data exchange