China’s youth population is driving demand for internet applications, fuelling the mobile data consumption market, reports Research & Markets.
In China, the share of young Internet users is huge in the overall internet user market, and it is a significant growth driver for internet services. In 2018, the total number of internet users in China reached 813.23 million, out of which the number of young Internet users under 20 was 22.4%. The user base is expected to reach 1184.63 million by 2027 - a CAGR of 4.2%.
Some of the major applications used by young internet users include online meal ordering, online travel bookings, live games, and live reality shows. E-commerce and online games applications have also grown significantly in the past year due to popularity among the young population. The driving forces behind the rapid growth of these segments among young users include continuous innovation, a focus on mobility, internationalisation, and competitiveness.
The significant increase in the demand for internet on things and other advanced technologies is anticipated to fuel mobile data consumption market growth. Smartphones are at the foundation of the IoT concept, and their high penetration in China has made them the driving force behind IoT adoption.
China’s government is pushing for increased development of advanced technologies such as industrial IoT with its Made in China 2025 strategy, which aims to promote the use of 5G, artificial intelligence, and data analytics to this end.
In 2018, mobile internet users reached 793.62 million, representing almost 97.59% of total internet subscribers in China. All these factors are enhancing the growth of mobile data consumption market. The increased demand for data consumption is driven by growing mobile applications such as instant messaging, online shopping, online streaming services, social networking, information services, financial services, sharing services and others.
The government has also awarded grants to technology heavyweights ZTE and Huawei, which have received a reported US$72M for technology development for 5G deployments. China's largest telecommunications providers intend to spend close to US$ 411B on 5G rollouts by 2030. IIoT will be 5G's most critical use case in support of China's Made in China 2025 initiative.
