In recent years, information consumption has emerged as a new and rapidly growing form of consumer behavior, driven by the expansion of internet infrastructure and the widespread adoption of digital technologies. As innovation in information technology accelerates globally, new products, services, and formats are continuously emerging in the information sector, creating fresh demand and turning into a major focus for consumers. This includes data usage, device purchases, and content consumption, all of which are expected to grow significantly as the trend toward ICT convergence continues. Over time, the share of information consumption in total consumer spending is likely to increase steadily.
China is currently at an important stage where the integration of consumer upgrades with informationization, industrialization, urbanization, and agricultural modernization is accelerating. As such, the country’s information consumption market is still in its early stages but shows strong potential for growth. The development of data flow, smart terminals, and diverse content platforms is just beginning, and there is little risk of overcapacity in the short term. Infrastructure supporting this growth, such as network equipment, is also expected to meet demand without significant excess capacity.
According to surveys, in 2012, the penetration rate of smart devices in China was only 16%, compared to around 45% in developed countries. This gap highlights the vast room for growth in China's information consumption market. With continued progress in informatization and urbanization, along with initiatives like smart cities and safe city projects, IoT and smart devices are becoming more prevalent in areas such as finance, education, and transportation. These developments signal substantial opportunities for further expansion in the field of information consumption.
Recently, the State Council issued "Several Opinions on Promoting Information Consumption and Expanding Domestic Demand," aiming to accelerate the growth of this sector. According to the document, by 2015, the scale of information consumption is expected to exceed 3.2 trillion yuan, with an average annual growth rate of over 20%. Related industries could generate more than 1.2 trillion yuan in additional output, with internet-based information consumption reaching 2.4 trillion yuan—showing an even higher growth rate of over 30% annually. E-commerce transactions are projected to surpass 18 trillion yuan, while online retail sales are expected to exceed 3 trillion yuan.
The next-generation information infrastructure, including broadband, convergence, security, and ubiquitous connectivity, is being established to support economic and social development. Urban households should have broadband access speeds of at least 20 Mbps, with some cities reaching 100 Mbps. Rural areas must also see improved broadband access, with a minimum of 4 Mbps, and 95% of administrative villages should be connected. Smart city initiatives are making significant progress, paving the way for more advanced urban management solutions.
The Opinions outline seven key areas for promoting information consumption and expanding domestic demand. They include policy support, infrastructure development, smart cities, the Internet of Things, cloud computing, smart security, intelligent transportation, and smart homes. These areas are expected to create numerous investment opportunities. Concepts like cloud computing, big data, and mobile video monitoring are gaining traction in the security industry, aligning well with the goals outlined in the document. Fields such as intelligent security, smart transportation, and smart homes are seen as key directions for future development.
The expansion of basic network infrastructure is particularly beneficial for the security industry, which relies heavily on video surveillance. As network speeds increase, high-definition video applications in smart city projects will become more widespread, and mobile video surveillance systems are expected to become a new growth area.
Among the key points related to the security industry in the Opinions, the first is the promotion of 4G licenses and the full-scale implementation of the three-network integration across the country. Second, the “Information for the People†project is being accelerated, with efforts to promote health cards, financial IC cards, and smart city pilot projects. Third, the government encourages the development of intelligent terminal products, promotes supply-side innovation, and supports the Beidou navigation system and e-commerce infrastructure.
The full implementation of triple-play services and the advancement of 4G technology are expected to bring significant changes to video surveillance transmission. The Opinions emphasize the need to accelerate two-way access between telecommunications and broadcasting services, and to expand these services nationwide starting from the second half of 2013. They also encourage the development of convergent services such as IPTV, mobile TV, and broadband cable services, aiming to foster collaboration across the industrial chain and enhance technological innovation in the three-network integration.
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