The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The investment opportunities of big data technology in the country are expected to register a CAGR of 30% over the forecast period. China’s growth trajectory has begun to slow in spite of the government’s efforts to provide stimulus. The labour costs have risen to make China lose its cost advantage to countries such as Vietnam and Cambodia. To remain ahead of the curve, China’s economy will have to shift to a higher value with big data as one of the tools to empower this shift.
- Big data has enormous potential to revolutionise Chinese economy. China has the world’s largest consumer market. The world’s workshop, China, is producing countless goods for export. Big data can offer critical insights into China’s highly valued consumer market and assist Chinese firms trying to engage in high-value economic activities.
- The other factor that further underscores the importance of big data for Chinese firms is the amount of data that China produces today on account of being the second largest economy of the world. For instance, Tencent Holdings reports that its data hoard contains 15 times as much information as the world’s largest library. WeChat app, Tencent’s flagship product, alone has some 760 million people, registered users.
Scope of the Report
Big Data Analytics (BDA) is the complex process of scrutinizing large and varied data sets to uncover information in the form of hidden patterns, unknown correlations, market trends and customer preferences that can aid enterprises to make informed business decisions. It is a form of advanced analytics, that involves complex applications with the use of solutions such as predictive models, statistical algorithms and what-if analysis backed by high-performance analytics systems.
Key Market Trends
Use of Big Data in the Chinese Automotive Industry to Increase Exponentially Driving the Market Growth
- Industry players across China are increasingly using sales data to come up with solutions to target potential customers. Firms across China are collaborating in areas like new car design, development, and smart manufacturing to drive an industry facing increasing challenges and pressures in the form of cost pressures, competition, globalisation, market shifts, and volatility. Big data firms across China have begun offering services to automobile companies.
- For instance, relying on its experience in manufacturing and its big data technologies, Lenovo is making efforts to drive China’s manufacturing enterprises to transform and upgrade. The biggest personal computer giant Lenovo and domestic automaker Haima will join forces to promote the use of big data and artificial intelligence technology in the auto manufacturing industry.
- China also happens to be the largest electric vehicle market in the world. The Chinese government has already mandated the collection of real-time data on electric vehicles driving on its roads, a practice that could provide a leg up in the development of self-driving technology. Data collection is essential to being competitive in the development of self-driving vehicles. The Ministry of Industry and Information Technology has stated this data is to address the large number of accidents involving electric cars and other new-energy vehicles and can be used to increase safety.
Need for Customer Analytics to Stimulate the Market Growth
- Given the massive size of China’s consumer markets, the total amount of data generated is already huge and will only grow in the future. Big data is the solution way to handle such data loads efficiently and is proving vital for companies competing in the marketplaces.
- The companies across China are focussing on developing tomorrow’s smart supply chains that will leverage data, natural language processing, image recognition and machine learning to anticipate consumer’s needs better and achieve the highest efficiency possible by using technology. For instance, retail giant, JD.com created a model based on its consumer data that creates a profile for every individual that tracks their favourite brands, marital status and more. This data will act as a point of reference for their future marketing strategies and help JD create a personalised shopping experience for customers.
- Customer analytics will hold importance across industries like BFSI, Automotive, Healthcare, where the B2C component still accounts for higher market share and provides significant opportunities for growth. However, the retail sector and online retail sales, in particular, will need customer analytics the most given the value of the industry and the increasing competition in the market space. According to the National Bureau of Statistics of China, a government agency, online retail sales in China totalled about USD 1.33 trillion in 2018, an increase of 23.90% compared with 2017.
The Chinese big data space is in a highly competitive phase. Several startups have come up in the past decade, leaving their imprint on the market. For instance, big data firm Terark founded in 2015, created Terark Database, which is said to have exceeded similar products of Facebook and Google. Several such startups have challenged the earlier dominance of a few significant players making this market a fragmented one. This has also led to major consolidation in this industry with major players trying to gain market share and smaller enterprises looking to scale up. The increasing competition from the west has also forced Chinese companies to look for opportunities across the globe and not limit themselves to China. Some of the recent developments are as follows:-
- April 2019 - ByteDance, famous as the parent company of TikTok and Toutiao apps, announced the acquisition of Beijing-based big data firm Terark for an undisclosed sum, allowing it to broaden its customer base to market leaders such as Alibaba Group. Terark has solutions that can compress data into much a smaller space, and have a faster search speed.
- January 2019 - Alibaba acquired a Berlin-based startup Data Artisans for USD 103 million. Data Artisan provides distributed systems and large-scale data streaming services for enterprises. Data Artisans was founded in 2014 by the team leading the development of Apache Flink, an open source widespread, large-scale data processing technology.
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