Overview and Market Forecast of China's Indigenous IT Innovation (Xinchuang) Industry

Definition and Scope : Xinchuang (information technology application innovation) aims to achieve autonomous, controllable IT infrastructure in China, covering chips, sensors, basic software, and application software, forming the foundation for digital economy, information security, and new infrastructure.

Industry Chain : The sector is divided into four major blocks—hardware (core chips and infrastructure), software (basic software and cloud platforms), practical applications (enterprise solutions), and information security, which permeates the entire ecosystem.

Development History : Initiated in 2019, Xinchuang evolved through five stages—awakening, start‑up, acceleration, reliability, and overall layout—driven by national policies and research institutions, with major enterprises leading implementation.

Current Market Situation : In 2019‑2020 the overall market size reached 19.5 billion CNY and 27.5 billion CNY respectively, a 40.88% year‑over‑year growth. The domestic substitution rate varies across sub‑segments, with CPU and OS having low rates (0.5% and 1.2% in 2020) and significant growth potential.

Segment Analyses :

CPU: 153 models priced mainly below 3000 CNY, dominated by Intel and AMD; domestic chips like Loongson lack clear market quotes.

Storage Chips: DRAM usage shifting from mobile devices to servers, with server share projected to reach 48% by 2025.

Operating Systems: Domestic OSes (e.g., Kylin, Tongxin) have improved compatibility with major hardware vendors and enterprise software.

Databases: Account for 40% of user demand; procurement share reaches 34% of total IT spend.

Middleware: Growth rate exceeds 100%; market size projected at 149.6 billion CNY in 2020, with domestic share expected to rise.

Cloud Platforms: Public‑cloud adoption grew to 41.6% of enterprises in 2019, indicating rapid cloud market expansion.

Information Security: Market size reached 1498.24 billion CNY in 2020, a 15.09% YoY increase; domestic security revenue estimated at 781 billion CNY (2019) and 974 billion CNY (2020).

Competitive Landscape : Beijing leads with a complete Xinchuang ecosystem (26 companies), followed by Tianjin (7 companies). Domestic firms are increasingly benchmarking against international giants such as Intel, Microsoft, IBM, and Oracle.

Future Outlook : Forecasts suggest the Xinchuang market could exceed 2 trillion CNY by 2026, with compound annual growth rates around 39%. Full domestic substitution is expected across CPUs, OSes, storage chips, and other core components, driving a secure, self‑reliant IT ecosystem that will support cloud computing, IoT, AI, and big‑data applications.

All data are referenced from the Qianzhan Industry Research Institute reports and do not represent the views of the publishing account.