The Internet Services industry in China contains establishments that focus on providing internet services, hat includes basic internet access (i.e. internet service providers or ISPs) and its application services. These includes; the art of advertising online, search engines, web portals, internet games and blogs, and instant messaging.
Till date, China is till leading the world in internet services and they are ready in maintaining such standard through consistent support from the Chinese government and the entire nation.
The businesses that involve e-commerce are not within the scope of the industry’s job description. The product and services of this industry includes; Basic internet access services, Online advertising, Web portals, Search engines, Instant messaging, E-commerce transactions, Online games, and other internet application services. The activities of the industry range from Providing basic internet access services
(internet service providers, or ISPs), to Providing application services, that includes web portals, search engines, and internet content.
The revenue generated by the internet services industry between 2020 and this year has increased rapidly since the beginning of the COVID-19 pandemic. The pandemic situation in the country was serious in the first quarter of 2020 and this led to the compulsory lockdown of the country, hereby causing the entertainment and education industry to channel their resources into online businesses. In 2020 alone, the revenue generated by the industry over the years peaked $705.7 billion.
The domestic market in the industry have continued to experience rapid expansion as a lot of internet services have become popular. Services like microblogging and WeChat have become extremely popular since 2010, which has created a lot more opportunities for the industry’s development. Also, the process of developing mobile apps have strongly increased, which has contributed to industry’s growth. The number of those who use the internet in the country is speculated to increase at a significant rate over the next five years, which would increase the concentration on the industry during these period. Large scale establishments in the industry are expected to expand while still maintaining their leading positions in a lot of segments in the industry.
The key external drivers that have spurred industry’s growth over the years among others include Pervasive Technology - Internet Connections, Service Prices - Internet Prices, The Systems and Technology of the Industry Sector, and Key Attitudinal Changes in the Information Age. Among the products and services of the industry, the segment that account for the major revenue generated is the Basic internet access service segment. It accounts for about 43% of the industry’s total revenue.
Major market concentration includes internet users within the age range of under 19 years to over 50 years. On the supply chain for the industry, the key buying and key selling companies are the companies linked to the industry that assists in it’s efficient delivery of services. The key buying companies includes; Commercial Banks in China, Market Research in China, and Households in China while the Key Selling Industries includes; Computer Manufacturing in China, Computer Network Equipment Manufacturing in China, and Software Development in China.
The statistics of the industry reveals that the number of established and budding businesses presently stands at 49,764 with the number of skilled labour employed by the industry standing at 1,178,659. The companies that hold the largest share of the industry in the market are referred to as the biggest companies in the internet service industry in China. They include; Alibaba Group, Baidu.com, Inc., Netease.com, Inc., Tencent Holdings Limited, Qihoo 360 Technology Co. Ltd., SINA Corporation, and Sohu.com Inc. As more markets have moved online, the revenue generated by the internet service industry is projected to rise by a rate of 15.1% in 2021 to be equal to a sum of $812.3 billion.