China is well-known across the world as the hub of major commercial and business activity. Chinese companies are among the top ones in the entire world. They are also the leaders in diverse industries. Some of these include manufacturing, design, technology, medicine, and energy.
In addition, these industries are forecasted to show greater success in the future owing to the technological and innovative edge.
With the Covid-19 affecting the global industry landscape, China is facing a shift in its industry outlook and growth.
Here are a few industries that are predicted to be the fastest-growing industries in 2021:
The Online Shopping and E-commerce Industry
The E-commerce industry of China is one of the most dynamic and rapidly-changing ones. This is evident from the industry’s revenue growth of 18.5% from 2019-2020. Furthermore, it is likely to grow at an annualized rate of 22.5% over the next five years. It will reach the $1.8 trillion mark.
This rapid growth of the E-commerce industry can be attributed to the increasing popularity of online shopping. Another reason is the resulting companies’ development to shift from brick-and-mortar retail to online systems.
In addition, the number of mobile internet users has multiplied over the last 5 years. Moreover, with the spread of the Covid-19, more people are going to switch to online shopping. This number is likely to keep increasing in the coming years.
Internet Services
The internet spread in China have led to an exponential growth of the industry. The average industry growth for 2015-2020 was around 34.9%. This growth was displayed in the figures of 2020 when the industry showed a growth rate of 25.4%.
Due to the domestic users’ huge demand for the internet, internet users in China have increased manifold. This leads to higher usage rates than in the last decade. As lockdowns forced people to stay indoors, the number of internet users increased.
Consequently, the revenue of this industry during the first quarter of 2020 escalated high. This increase will continue as companies take their services online to serve the audience.
Read Also: Understanding the Impact of Internet on Language
Satellite Transmission Services
With the increase in demand for satellite broadcasting and transmission, this industry is going to to grow at an annual rate of 12.5%. Over the next 5 years, it will reach $834.2 trillion. This is a huge industry comprising 192 enterprises that employ over 4434 people.
The satellite transmission industry’s revenue growth over the last year was 15.3%. It shows an upward trend. Furthermore, the coverage of events including the Beijing Olympics, 2014 World Cup, and 2015 Beijing World Athletics has affected the performance of the industry. Thus, it’s more likely to experience a hike in the coming years.
The Online Games Industry
Perhaps Gaming is one of the most rapidly growing industries in China over the last few years. Many game developing enterprises in China produce and operate online games in recent times. In fact, most online game companies both create and operate their games while others sell licenses to agencies.
The online games industry in China showed an upward trend in the last five years (2015-2020). It showed growth of 15.3% and will grow further to reach $49.2 billion in the coming years. Moreover, this rising trend includes growth of 25.2% in the current year. This popularity of online games in China is largely to do with the Covid-19 pandemic situation.
Solar Power Generation
The advancement in technology is increasing the awareness of energy efficiency. As more people opt for energy-efficient means in their everyday lives, there is a hike in solar power usage. Thus people are switching to solar power generation over traditional power means owing to a rising household demand for electricity.
This has led to power supply shortages and ultimately a switch to solar power generation means. This is evident from the increase in the average industry growth rate of 2015-2020 of 20.9%. Moreover, it is expecting growth of 6.8% in the coming years. The future also holds growth in the solar power generation industry as environmental consciousness increases among the population.
The Last Word
China may be the hub of technological progress, but the last year had been challenging. Although the pandemic has now subsided, it impacted the industries in China, some positively and some negatively. Nevertheless, China is expected to go down the path of success in the coming years as well.