Top potential market – application delivery controllers (ACD) in China

Top potential market - application delivery controllers (acd) in chinaMar. 17 – Better understanding Application Delivery Controllers [ADC] technology and its vital role in the business setting has raised up considerably among Chinese enterprises. Now China ranked the top of the potential market in the application market among ten Asian countries, mainly because of the huge population using smartphones and high percentage of business participation in mobile software.

China is the ‘top potential market’ in Asia for applications, the Asia application delivery controller market (ADC) posted revenue of $720.1 million in 2014, recording a steady year-on-year growth of 7.3% as service providers and enterprises continued to enhance their critical business application services. The study showed that China has rapid growth in social media and in applications, and China also performed well in the use of mobile payments and e-commerce. CA Technologies also announced the results of a global study on how business leaders are surviving disruption, leading change and winning in today’s application economy.

In today’s application economy, digital transformation has become pervasive in every aspect of business. The capability to provide customers with functionalities of application service availability and acceleration is a key feature that enterprises have looked at to enhance their critical business services to ensure the customer experience. Applications are becoming the primary mode for consumers to connect with businesses. With a high device penetration rate and rising smartphone subscriptions, the region is well-poised to leverage the application economy. Moreover, the large demographic of millennials who have grown accustomed to the transformative digital technologies that exist currently, will play an important role moving forward fueling the application economy further.

Chinese smartphone vendors on firm ground The top five smartphone brands with biggest market share are Samsung, Apple, Huawei, Lenovo and Xiaomi. The three top Chinese mobile makers jointly took a 17-percent share of the market in Q4 last year, up from 16.5 percent year-on-year. The rising of China independent design houses (IDH) plays an important role – Low-cost smartphones in emerging markets, and strong demand for premium smartphones, continued to be the driving factors. An aggressive pricing from local and Chinese brands in the mid-range and entry-level segments of emerging markets led to consumers upgrading more quickly to affordable smartphones. Some of China top-tier domestic brands, including Huawei and Xiaomi, have announced plans to introduce next-generation devices with new features and better quality.

China is the ‘top potential market’ in Asia for applications, China domestic vendors gain in smartphone boom, Chinese buyers increased their demand for handsets priced more than 2,000 yuan ($300). As Chinese consumers become increasingly choosy when buying a new mobile phone, vendors are having to release more premium products. Failing to do so will create challenges in both margin and market share. On average, Chinese users spend 170 minutes on their smartphone daily, which now outstrips their use of other devices such as TVs or personal computers. This highly engaging behavior has also resulted in people choosing smartphones with better performance. Experts are predicting that competition in the country’s high-end handset market is set to heat up even more, as Chinese makers target premium customers with flagship devices priced above 3,000 yuan. For China Application Delivery Controllers (ADC) Industry Report 2016-2019 available upon request, please contact with DCCC, or email to: info@dccchina.org