Discussing China's Database Development: Research on the Development of China's Fundamental Software in a New Environment

Recently, at the main forum of the 25th China International Software Expo · China Database Industry Summit, Song Yu, Vice President of CCID Consulting Co., Ltd., shared a keynote speech titled "Research on the Development of China's Fundamental Software in a New Environment". Focusing on the current status and future trends of China's fundamental software industry in the new economic environment, he analyzed in detail the background of the new economic environment and the new requirements for the fundamental software industry from three dimensions: the new environment, the present situation, and the future outlook.

New Environment

Song Yu stated: Under the new environment, global economic growth remains at a low to medium speed, but China's economy shows clear signs of improvement. In the first half of the year, China's GDP grew by 5.5% year-on-year, with quarter-on-quarter growth for four consecutive quarters. The leading role of high-tech manufacturing growth continues to manifest, and the digital economy has become an important engine for global economic recovery and sustainable development. In the future, we should further promote the integration of the digital and real economies, empower the transformation and upgrading of traditional industries, foster new industries, new business forms, and new models, and continuously strengthen, improve, and expand the digital economy.

Meanwhile, as trade frictions intensify, many core technologies, especially basic hardware and software for key sectors, are more vulnerable to foreign blockades. The smooth replacement of critical products becomes particularly important. Therefore, it is imperative to improve the independent innovation system and build resilient industrial and supply chains.

The Present

Focusing on the present, the digital economy and independent innovation are developing rapidly, and the supporting role of the software industry, including fundamental software, is becoming increasingly prominent. At the same time, the digital economy era has raised new demands on fundamental software. While China's fundamental software industry shows promising trends, it still faces many challenges.

In 2022, benefiting from a favorable development environment and new market demand, China's database market maintained rapid growth. Driven by both favorable macro policies and technological innovation, its scale reached 28.66 billion yuan, with a growth rate of 28.2%. The database industry, characterized by high profit margins and high growth, has seen increasing investment enthusiasm, becoming a popular investment track both domestically and internationally. The competitiveness of local vendors continues to rise, as they expand their business across various industries, with their market share and market position steadily climbing.

Future Outlook

Looking to the future, Song Yu pointed out that growth remains the main theme of the fundamental software market. In the next three years, China's database management system market will continue to maintain high-speed growth. In 2023, the informatization of government affairs and industries will accelerate. The upgrading and replacement of existing databases will generate a large market, while the surge in data volume will also bring considerable growth expectations to the incremental market.

The technology route dominated by open-source models is gaining increasing influence in the global fundamental software field. Many outstanding open-source products are leading new technological trends and will become an important force driving the development of the software industry. With the development of emerging technologies and the enrichment of application scenarios, future requirements for databases will become more diverse and refined. Product differentiation will become a direction for future innovation. Product security will increasingly be valued by users, and vendors that focus on data protection as well as products with higher security will become mainstream in the market.