Frost & Sullivan: China To See Unparalleled Urban Growth With 13 Mega Cities, 4 Mega Regions And 6 Mega Corridors By 2025
Augmenting the growth in innovative business models and unique business solutions is the widespread growth in connectivity and digital infrastructure within the country. An ambitious space exploration plan and investment in broadband infrastructure and mobile connectivity will convert China into one of most connected economies in the world. "A connected China will also see about 7 billion connected devices by 2025 ranging from mobile phones and gaming consoles to cars and televisions," predicts Archana Amarnath. Individuals will be highly connected through mobile technology and social media. China is expected to have 1.7 billion mobile phone subscribers in 2025, with at least 70 per cent to adapt 3G or later services. Social networking users will more than double to reach 791.7 million in China by 2025 from 318.8 million in 2011.
In a bid to support this growth momentum, the Chinese government has announced to invest US$2.73 trillion on fixed assets of infrastructure such as power supply, railway, roads, urban public transport, water transport, water conservation, aviation and telecommunications between 2011 and 2015.
With infrastructure support and a favourable corporate environment, industries such as Logistics and Retail will flourish over the next decade. China's logistics industry is expected to become the world's largest in 2016, and is expected to hit US$1 trillion revenue mark by 2020. Retail sales, on the other hand, will hit US$15.8 trillion in 2025, overtaking Japan to be the second largest retail market in the world by 2015.
With so many growth opportunities, China is undoubtedly the most crucial economic centre of the east. In fact, China's growth is the main catalyst in the rise of Asia. However, understanding the composition and major trends of a country like China is more difficult than most because of its sheer size and complexity. Frost & Sullivan aims to bridge the gaps in understanding by offering an insight into the Mega Trends that shape China. Mega Trends, which are characteristically futuristic, macro and comprehensive, offers an exhaustive insight into the key drivers shaping China and provides a visionary outline of the country's future.The 'Macro to Micro' scenario analysis carried out by Frost & Sullivan presents the micro impact of each Mega Trend on a business and helps design the company's future strategy for product and technology planning in China. Urbanisation, for example, at the micro level, creates many investment opportunities in smart infrastructure and new market / business opportunities for innovative products targeting urban households. By understanding the entire eco system of the Mega Trend, the most important segment of the value chain can be identified, which will redefine the company's competitive position in the market.
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