China is one of the largest countries in the world. It also is a fast-growing economy with several Fortune 500 companies on its list. Be it manufacturing or any other industry, every business is thinking of setting up their business in China.
If you are also looking to start or expand your business in China, it is good to do market research and see if there's a demand for your product in the country. However, you can still open your manufacturing facility in China and export it to other countries.
That said, let's look at some of the fastest-growing industries in China.
In recent years, China's construction industry has grown significantly. This warrants high sales of plumbing pipes in the country. For instance, LESSO water supply pipes have seen unprecedented growth due to increased construction across the country.
The increase in the number of high-rise buildings in residential and commercial sectors will boost the demand for water supply pipes in the near future.
Demand for medical devices has multiplied many times in recent years. In fact, the medical device manufacturing companies have generated $26 billion in 2020. This is more than 18.2% more than the year before. The revenue is further expected to grow with a compound annual growth rate of 12.5%. If we talk about the domestic demand, it is expected to increase by 15.2% in 2021.
In recent years, the demand for online shopping has increased a lot. The primary reason for it is that it offers a myriad of options to buyers. Plus, it offers the convenience of buying products from the comfort of the home. That's not it. Online shopping has also made return and refund processes easier, giving customers much-needed security. With the introduction of 5G in China, the eCommerce industry is only going to grow in the coming years.
Just like other services, the courier industry is also on the boom. The expected revenue in the courier services industry is expected to rise by 17.6% by 2022. The primary reason for the growth in courier services is due to the convenience it offers to retailers and customers. Combined with eCommerce, the courier industry is expected to become even stronger.
Most internet services provider in China is expecting a 17-20% increase in revenue by 2022. As a result, the internet service industry is expected to reach $800 billion by the end of 2021. The primary reason for the surge in the internet services industry is the increase in demand in the past two years due to lockdown.
China has given a few prominent gamers to the world. It is also experiencing rapid growth in the gaming community. Game developers are selling their licenses to Chinese gaming agencies to promote and run their games. As per research, the gaming industry can grow by as much as 25% in the coming years.
Electric cars have been in demand in the last few years due to the increase in fuel prices. Even the Chinese Government is offering various subsidies and has created favorable policies for electric vehicle manufacturers. As a result, the country has seen an increase in the number of charging facilities.
The industry is expected to grow at 36.5% in the next five years and reach a value of over $110 billion. Besides, the industry profit margin is relatively high, averaging 11.4% in 2021.
According to the latest study, China's cafes, and bars industry is expected to generate $7 billion in 2021. Thanks to the ease of restrictions, people have started going out to bars and cafes in China. Besides, the rapid increase in emphasis on personal happiness is likely to contribute to the growth of the industry.
Being one of the superpowers, China offers a myriad of opportunities to business owners. Whether you're a retailer, manufacturer, or distributor, China has a solution for you. All you need to do is set up a business and start experiencing the growth.