2021 China’s Database Industry Report

Source:iresearchJune 24,20214:56 PM Overview Scale of China’s Database Market

The market scale reached 24.71 billion yuan in 2020

Market size: According to iResearch's statistic, in 2020 the scale of China’s database market reached 24.71 billion yuan, growing by 16.2% YoY. China's database market grows fast from 2020 to 2022 because of multiple reasons: 1) Favorable policies. The government encourages the development of domestic database vendors; 2) Rising demand. Domestic production and digital transformation lead to rising demand; 3) Products and services of the suppliers, startups, and cross-industry firms are maturing; 4) Chinese enterprises are increasingly willing to pay for basic software and their expenditure on IT has been rising, which is conducive to the long-term development of the market.

Characteristics of the Development of China's Database Market 

Various kinds of databases are booming. Relational databases are the mainstream.

With the development of the Internet, various types of data have been exploding, and innovative business scenarios are emerging, promoting the innovation of technology and product architecture of suppliers. Since the 2010s, database vendors of various types and adopting different technical routes have emerged, and the Chinese database market has been booming. However, from the perspective of commercial value, the revenue of the Chinese database market is still mainly from relational databases. The NoSQL databases mainly adopt the open-source model, which results in secondary development and service costs.


Characteristics of the Development of China's Database Market (2)

Supported by favorable policies, Chinese vendors are quickly expanding their market shares

have been rising year by year.  Among the domestic vendors, a group of traditional domestic database vendors established around 2000, such as Dameng, Kingbase, GBASE, and Shentong, have good performance in recent years. They develop from purchasing source code and using open source to independent research and development. Their strength has been increasing, and they have begun to rapidly expand into other industries such as energy, power, and transportation. In addition, startups, cloud vendors and ICT vendors have also been working in the database market in recent years, and the domestic group is increasingly strong. In contrast, although foreign database vendors such as Oracle, Microsoft, IBM, etc., still have a high market share in the core scenarios of OLTP, their overall market share is gradually falling. 

Characteristics of the Development of China's Database Market (3)

The growth rate of public cloud database will fall

The databases of the public cloud deployment model in China have been growing rapidly in the past three years and accounted for 32.7% of the market in  2020. The growth rate will fall but there’s still room for expansion.  From the perspective of application logic, databases serve data and data services businesses.  Business innovation and changes of data are also fed back to the database market. Currently, cloud database is mainly used in the Internet industries and Internet scenarios of traditional industries. In the future, the increasing business innovation is likely to increase the demand for cloud databases.

Characteristics of the Development of China's Database Market (4)

Startup vendors keep emerging thanks to new technologies such as HTAP and NoSQL

With new technology architecture like NewSQL, SQL on Hadoop, NoSQL, a group of startup vendors established around 2015 adopt the idea of open source or vertical field commercialization to gradually increase their market influence. They are performing well in the Internet, finance, IoT, and other industries. Although their market share is small, their revenue is growing at the highest rate in China's database market and is expected to be 10 times larger by 2025. The tracks of startup database vendors tend to converge. A small group of outstanding vendors with core technology advantages and high-value application scenarios will gain more and more market shares.


Contents

Market size: According to iResearch's statistic, in 2020 the scale of China’s database market reached 24.71 billion yuan, growing by 16.2% YoY. China's database market grows fast from 2020 to 2022 because of multiple reasons: 1) Favorable policies. The government encourages the development of domestic database vendors; 2) Rising demand. Domestic production and digital transformation lead to rising demand; 3) Products and services of the suppliers, startups, and cross-industry firms are maturing; 4) Chinese enterprises are increasingly willing to pay for basic software and their expenditure on IT has been rising, which is conducive to the long-term development of the market.

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