China's software industry is projected to exceed 20 trillion yuan ($2.9 trillion) during the 15th Five-Year Plan period (2026–2030), according to a recently released report by the China Software Industry Association. The forecast highlights the sector's pivotal role in driving the nation's digital transformation and smart manufacturing initiatives.
Data from the 2025 Outlook Report on China's Software Industry Development reveals robust growth, with software business revenue hitting 2.15 trillion yuan in the first two months of 2026—an 11.7% year-on-year increase. Profits also rose 7.3% to 269.3 billion yuan during the same period.
Chen Baoguo, the association's executive deputy secretary-general, noted that software revenue has grown at an average annual rate of 13.8% since 2020, reaching 15.48 trillion yuan in 2025. This growth outpaces most major economic sectors, underscoring the industry's strategic importance.
The report emphasizes the software sector's critical role in advancing smart manufacturing, with over 8,200 advanced-level smart factories and 15 flagship facilities now operational. Industrial internet platforms currently connect more than 100 million sets of equipment nationwide, enabling flexible, data-driven production systems.
Xiong Jijun, Vice Minister of Industry and Information Technology, announced plans to launch an "AI plus software" initiative to accelerate intelligent upgrades in development processes, product innovation, and enterprise operations. The strategy will prioritize next-generation tools like smart industrial software and AI-powered operating systems.
