The software market in China maintained steady increase in recent years, and the market scale was USD 2.65 billion in 2004; it is forecasted that it will amount to USD 6.23 billion in 2009, and the CAGR in the following five years will be 18.7%.

Currently, foreign manufacturers still dominate domestic software market. Among the top ten mainstream manufacturers in the software market in 2005, seven were foreign manufacturers, whose market shares accumulatively accounted for more than 80%.

The domestic IT service market scale was RMB 82.3 billion in 2005, and it will increase 20.4% annually from 2006 to 2010.

From the perspective of industry, domestic software companies have certain development opportunities in the application software field. In the aspect of customers, domestic software companies may form competitive advantages in application software of the government department and middle and small enterprises market. Presently, some domestic enterprises have become leaders in some segmented fields, such as Shanda in online game field, UFIDA and Kingdee in middle and small enterprise management software, Kingsoft and Rising in security software, etc.