China: From January to May, software business revenue was 3,618.4 billion yuan

According to the website of the Ministry of Industry and Information Technology, from January to May, China's software and information technology service industry (hereinafter referred to as the software industry) showed a steady and positive trend, and the software business revenue maintained rapid growth. The growth rate of total profit turned from negative to positive, and the export growth of the software business slowed down.


1. Overall operation


Software business revenue maintained rapid growth. From January to May, China's software business revenue was 3,618.4 billion yuan, a year-on-year increase of 10.6%, and the growth rate was 0.2 percentage points lower than that from January to April.

Figure 1 Software business revenue growth | Figure from the website of the Ministry of Industry and Information Technology, the same below
Figure 1 Software business revenue growth | Figure from the website of the Ministry of Industry and Information Technology, the same below

The growth rate of total profit turned from negative to positive. From January to May, the total profit of the software industry was 374.7 billion yuan, an increase of 1.9% year on year, and the growth rate turned from negative to positive (from January to April, it was down 1.4% year-on-year).

Figure 2 Growth of total profit in the software industry
Figure 2 Growth of total profit in the software industry

Export growth of software business continued to slow down. From January to May, the export of software business was 20.4 billion US dollars, a year-on-year increase of 2.7%, and the growth rate was 0.9 percentage points lower than that of January to April. Among them, the export of software outsourcing services increased by 12.6% year on year; the export of embedded system software decreased by 3.9% year on year.

Figure 3 Export growth of software business
Figure 3 Export growth of software business

2. Operation by field

The growth rate of software product revenue was steady with some declines. From January to May, the revenue of software products was 919 billion yuan, a year-on-year increase of 9.3% . The growth rate was 1.2 percentage points lower than that from January to April, accounting for 25.4% of the industry's revenue. Among them, the income from industrial software products was 83.8 billion yuan, a year-on-year increase of 10.8%.


Revenue from information technology services maintained rapid growth. From January to May, the revenue of information technology services was 2,345.7 billion yuan, a year-on-year increase of 12.1%, and the growth rate was 0.2 percentage points lower than that from January to April, accounting for 64.8% of the industry's revenue. Among them, cloud computing and big data services achieved total revenue of 362.8 billion yuan, a year-on-year increase of 8.8%, accounting for 15.5% of information technology service revenue; integrated circuit design revenue was 99.5 billion yuan, a year-on-year increase of 15.1%; e-commerce platform technology service revenue 333.4 billion yuan, a year-on-year increase of 17.0%; industrial Internet platform service revenue increased by 19.3% year-on-year.


Revenue growth from information security products and services slowed. From January to May, the revenue of information security products and services was 56.8 billion yuan, a year-on-year increase of 11.1%, and the growth rate was 1.3 percentage points lower than that from January to April.

Embedded system software revenue accelerated. From January to May, the revenue of embedded system software was 296.8 billion yuan, a year-on-year increase of 3.8%, and the growth rate was 3.3 percentage points higher than that from January to April.

Figure 4 The proportion of software industry classification revenue from January to May 2021 and 2022
Figure 4 The proportion of software industry classification revenue from January to May 2021 and 2022

3. Operation by Regions


The revenue of software business in the eastern region grew steadily, and the growth trend in the western region was outstanding.

  • From January to May, the software business revenue in the eastern region reached 3,002.3 billion yuan, a year-on-year increase of 9.9%, and the growth rate was the same as that from January to April;

  • The software business revenue in the central region was 154.4 billion yuan, a year-on-year increase of 13.4%, 2.8 percentage points higher than the overall growth rate of the entire industry;

  • The software business revenue in the western region was 391.2 billion yuan, a year-on-year increase of 16.6%, 6 percentage points higher than the overall growth rate of the entire industry;

  • The Northeast region completed software business revenue of 70.5 billion yuan, a year-on-year increase of 6.2%, and the growth rate was 4.6 percentage points higher than that from January to April.

  • The four regions' software business revenue accounted for 83.0%, 4.3%, 10.8%, and 1.9% of the country's total revenue, respectively.

Figure 5 Revenue growth of the software industry by region from January to May 2022
Figure 5 Revenue growth of the software industry by region from January to May 2022

Major software provinces developed steadily. From January to May, among the top 5 provinces in terms of software business revenue, Beijing, Guangdong, Jiangsu, Shandong, and Zhejiang recorded software revenue of 760.9 billion yuan, 691.9 billion yuan, 494.2 billion yuan, 325 billion yuan, and 325 billion yuan respectively. 292.8 billion yuan, an increase of 11.4%, 8.5%, 9.2%, 18.3% and 4.2% respectively. The total software business income of the five provinces (municipalities) was 2,564.8 billion yuan, accounting for 70.9% of the national proportion, a decrease of 0.3 percentage points compared with the same period last year.

Figure 6 Growth of the top ten provinces and cities by software business revenue from January to May 2022
Figure 6 Growth of the top ten provinces and cities by software business revenue from January to May 2022

The revenue growth of the software business in the central cities accelerated, and the profit decline continued to narrow. From January to May, the 15 sub-provincial central cities across the country achieved a software business income of 1.911 trillion yuan, a year-on-year increase of 9.2%, and the growth rate increased by 0.9 percentage points from January to April, accounting for 52.8% of the national software business income, accounting for 52.8%. From January to April, it increased by 0.9 percentage points. The total profit realized was 205.2 billion yuan, down 3.1% year-on-year, and the decline was 4.9 percentage points lower than that from January to April. Among them, the growth rate of software business revenue in Ningbo, Qingdao, Jinan, Xiamen, Xi'an, Guangzhou, Nanjing, and Dalian exceeded the overall growth rate of the entire industry.

Figure 7 Growth of software business revenue in sub-provincial central cities
Figure 7 Growth of software business revenue in sub-provincial central cities

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