The Top-5 Post-Corona Emerging Industries

While for so many industries the coronavirus pandemic has spelled disaster, for some sectors it has served as a launchpad for growth. These industries are now shaping a New Normal and it’s worth noticing them while formulating plans your future China operation. Why? because their thriving could catalyze the progress of your industry too.

1. Online education & e-learning

During the corona crisis, the number of e-learners has soared. Oliver Wyman, a management consulting company in the education industry, predicts an annual growth rate of 30-40% in China’s online after-school tutoring market over the next five years.

Disney English Language School’s manager, who recently had to close down in China, explains that the corona crisis has accelerated the unavoidable adoption of online teaching methods. Online education programs have taken the place of traditional learning institutions, which struggled during the crisis. Data proves that more than 50 million students in 30 provinces across China attended online classes delivered through the DingTalk messaging app.

2. Automation & robotics

In a reality where people can’t leave their homes, the need for mechanical and automatic services intensifies, in a wide range of industries.

A survey by The Association for Advanced Automation, which discusses the critical role played by automation processes during the corona crisis, shows that over the last couple of months there was a high demand for automation solutions and a multitude of opportunities brought by the crisis. Over the next 5 years the global industrial robotics market size is predicted to grow by 63%.

3. Computer software & AI

The corona outbreak has shifted almost all every day activities to virtual platforms. The digital infrastructures that enable all of these normally physical functions to be done properly are software and AI services. These two areas are considered as the foundation on which global business recovery is achievable, as they create solutions that allow an almost "normal" level of operation in a state of chaos.

Our clients have reported that there’s substantial demand for AI-based software solutions for optimizing processes in the Chinese market. Despite the corona crisis, their teams in China are very busy, and they project a significant growth in their China operations in the near future. The Chinese market is a significant growth engine for international software companies, and this is not going to change.

Read more about solutions for manufacturing and assembly in China.

4. Digital media & advertising 

Gaming apps, streaming platforms, and social media have long been a source of communication, social and leisure. For example, in April the social media app TikTok became the world’s most profitable non-gaming app.

These figures should be met with huge excitement for complementary industries that can benefit from the surge of digital media usage. The Chinese digital advertising market has been evolving for several years with no slowdown in sight.

Our clients who are operating in China in the Ad-tech industry have indicated an increase in demand for the services they provide. This is directly affected by the rising use of smartphones and has thus spurred a parallel growth in traffic for the advertisers who promote their brands or products on these apps. 

5. Cybersecurity 

It is estimated that the cybersecurity market will grow by almost 50$ billion by 2021. This is of no surprise, as the constant use of and reliance on computers and Internet services raise the risk of malicious cyber-attacks. It means that all users however big or small need to be aware of data and digital security, especially during this period in which so many of our daily functions are being digitalized.

Companies that we support in the Chinese cybersecurity industry anticipate a period of tremendous opportunities. We all feel that the market has returned to accelerated activity and businesses are trying to mitigate the damage that has been sustained.

As long as China continues to persist in the implementation of its 5G technologies so too will the internet consumption by private users and companies grow. According to new report, by the end of 2020 nearly 300 major cities in China will be covered by 5G technologies. And this is just the tip of the iceberg for the Chinese 5G market which is expected to generate revenues of about $70 billion by the end of 2020.

This pandemic hasn’t changed the plans of any of our clients and it doesn’t have to halt plans for any business considering an international expansion into China. In fact, this could be a real opportunity.

Read more about our Chinas business support and some steps to a solid business in China.

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