TrendChina to become world's largest electronic authentication service market
China’s electronic authentication service industry is a late comer to the space, but as is the case with many other components of the Chinese economy, the industry will soon become world leader
It appears that every second report on global business trends now opens with the words: “China will soon become the world’s largest provider of or market for…” — all one has to do is provide the noun at the end of that sentence. We have no choice but jump on this bandwagon: China will soon become the largest electronic authentication service market. Yes. These are the conclusion of recently released a report by CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong
(Hong Kong Stock Exchange: HK08235). Here are some of the highlights:
* China’s electronic authentication service industry will see rapid growth in
the next three to five years and it will be contributing more to the information
economy. In the next five years, China’s electronic authentication service market will grow from 1.64 billion Yuanin 2006 to 6.49 billion Yuan in 2011 and the annual growth rate would be above 28%. The quantity of electronic authentication certificates will grow from 4.7 million in 2006 to 17.56 million in 2011, and the annual rate of growth will be above 27 percent. Of the total, the quantity of personal digital certificates issued should enjoy the fastest growth rate, increasing from 1.2 million in 2006 to 6.3 million in 2011, more than 30 percent of the gross certificate market. The business scale of the digital certificate market will reach 3.37 billion Yuan and that of the personal digital certificate market scale should reach 560 million by 2011.
The growth in the electronic authentication service industry will be translated most noticeably into electronic authentication applications in the following areas: On-line taxation; electronic customs declaration; on-line banking; purchasing by invitation to tender; electronic contracts; server authentication; and software and book authentication;
China’s electronic authentication service industry started late, and software products mainly depend on foreign manufacturers, but the domestic manufacturers are somewhat competitive on system integration. CCID estimates that the market scale of electronic authentication software would grow from 710 million Yuan in 2006 to 3.12 billion Yuan in 2011 and the annual rate of growth is above 25 percent. What is more, the electronic authentication technologies enjoy good application prospects on community service, secure e-mail, and on-line file transfers.
