Qingdao Innovent AI Technology Group Co., Ltd. (referred to as Innovent AI) successfully went public on January 27, 2022, with a global issuance of 44,744,400 shares at a price of HK$26.30 per share, raising a net amount of HK$1.07 billion.
During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the company accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the company's competitive advantages, assisting the company, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), facilitating communication with the Hong Kong Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the company in responding to various questions from the Hong Kong Stock Exchange regarding the industry.
Global and China Artificial Intelligence Market Overview
Artificial intelligence is an important field of computer science that focuses on simulating human thought and decision-making through machines. With the continuous development of global digital transformation, artificial intelligence will gradually become one of the most important driving forces for corporate digital transformation. According to a Frost & Sullivan report, global spending related to artificial intelligence reached $233.5 billion in 2020, accounting for 5.4% of total global IT expenditure, and it is expected to reach $769.7 billion by 2025. The annual compound growth rate from 2020 to 2025 is expected to be 26.9%, accounting for 13.6% of total global IT expenditure.
Global IT Spending (by Solution Type)
2016 - 2025 (estimated)
Source: Frost & Sullivan report
China is rapidly developing into one of the leading countries in the global artificial intelligence market. According to a Frost & Sullivan report, China's artificial intelligence market size reached 185 billion RMB in 2020, accounting for 12.2% of the global artificial intelligence market. It is expected that by 2025, it will exceed one trillion RMB, increasing its share of the global artificial intelligence market to 20.9%.
Market scale of China's artificial intelligence market
2016 - 2025 (estimated)
Source: Frost & Sullivan report
Overview of the Chinese Enterprise-level AI Market
The artificial intelligence market can be divided into two main categories based on the customer groups it serves: public service AI solutions and enterprise-level AI solutions. Compared to public service customers, enterprise-level customers have more diverse needs for AI solutions and exhibit a lower degree of product and service homogenization compared to public service AI solutions. Therefore, the enterprise-level AI solution market in China has higher growth potential. According to a Frost & Sullivan report, the market size of the enterprise-level AI solution market in China reached 1394 billion yuan in 2020, accounting for 75% of China's overall AI market. It is expected that by 2025, the market size of the enterprise-level AI solution market in China will grow to 8366 billion yuan, accounting for 80% of China's overall AI market.
Market scale of enterprise-level artificial intelligence in China
2016 - 2025 (estimated)
Source: Frost & Sullivan report
According to a Frost & Sullivan report, Chinese enterprise-level artificial intelligence solution providers can be divided into traditional digital solution providers, AI technology-driven solution providers, and internet enterprise groups. Among them, traditional digital solution providers mainly offer solutions centered around hardware or traditional software. Internet enterprise groups include those that provide artificial intelligence solutions as part of their rich product and service offerings, while AI technology-driven solution providers represented by iFlytek focus on providing a series of solutions centered around artificial intelligence technologies. In terms of revenue in 2020, iFlytek is the third-largest AI technology-driven solution provider in the Chinese enterprise-level artificial intelligence solution market.
Overview of the Artificial Intelligence Solutions Market for China's Manufacturing Industry
In the process of continuous development of the Chinese economy, manufacturing will continue to be an important part of the development of China's real economy. At the same time, the digital transformation of manufacturing will accelerate continuously. According to a Frost & Sullivan report, China's IT expenditure on manufacturing reached 331 billion yuan in 2020, accounting for 0.3% of the overall market size of manufacturing. In the future, with the widespread application of digital solutions, this proportion is expected to grow to 0.4% by 2025, and overall IT expenditure on manufacturing will increase to 565.7 billion yuan by 2025.
China's manufacturing IT expenditure, 2016 - 2025 (forecast)
Source: Frost & Sullivan report
According to a Frost & Sullivan report, the market scale of artificial intelligence solutions for China's manufacturing industry reached 9.1 billion yuan in 2020. It is expected that by 2025, the market scale of artificial intelligence solutions for China's manufacturing industry will reach 64.9 billion yuan, with an annual compound growth rate of 48.3% between 2020 and 2025.
Market scale of AI solutions for China's manufacturing industry
2016 - 2025 (estimated)
Source: Frost & Sullivan report
According to a Frost & Sullivan report, in terms of revenue in 2020, iFLYTEK is the largest AI technology-driven provider in the manufacturing industry's artificial intelligence solution market in China, and also the largest AI technology-driven provider in the manufacturing industry's artificial intelligence solutions market provided by third-party solution providers.
Overview of the Artificial Intelligence Solutions Market in China's Financial Services Industry
In recent years, due to the strong support from the state for promoting a healthy and open financial environment, China's financial services industry has experienced stable and high-quality development. Moreover, China's financial services industry is undergoing a new round of digital transformation driven by emerging technologies such as cloud computing, artificial intelligence, blockchain, and big data. With multiple government incentives and the strong demand of financial institutions for more digital and intelligent infrastructure, IT spending in the financial services industry has been steadily increasing. According to a Frost & Sullivan report, the IT expenditure of Chinese financial institutions reached 189.7 billion yuan in 2020 and is expected to reach 371.5 billion yuan by 2025, with a compound annual growth rate of 14.4% from 2020 to 2025.
IT expenditure of Chinese financial institutions2016 - 2025 (estimated)
Source: Frost & Sullivan report
According to a Frost & Sullivan report, the market size of AI-based IT infrastructure solutions in China's financial services industry in 2020 was RMB 1.5 billion, accounting for 2.1% of its potential market size. The financial services industry in China is one of the early sectors to begin digital transformation and is expected to continue investing heavily in the construction and maintenance of IT infrastructure (mainly data centers) in the future. With the growing demand for AI solutions, Chinese financial service providers will invest more resources to upgrade their traditional IT infrastructure to AI-based ones.
Frost & Sullivan has extensive research experience in the TMT industry and has assisted well-known enterprises in successfully listing on the capital market. Successful listing cases include: SenseTime Technology (0020.HK), Qinhuai Data (NASDAQ: CD), Mingyuan Cloud (909.HK), Weimeng Group (2013.HK), Wanka Yilian (1762.HK), AsiaInfo Technology (1675.HK), Feisida (8342.HK), Aurora Mobile (NASDAQ: JG), Jingguan Holdings (8606.HK), Weixin Jinkē (2003.HK), Huifu Tianxia (1806.HK), Atlinks (8043.HK), Zioncom (8287.HK), ISP Global (8487.HK), Vobile (3738.HK), Aibo Technology (2708.HK), iClick (NASDAQ: ICLK), Shengye Capital (6069.HK), Anling International (8410.HK), Anke Systems (8353.HK), Junmeng International (8062.HK), Future Data (8229.HK) and YASIB Backup (8290.HK), etc.
Recommended Reading
02. Frost & Sullivan assists Qinhuai Data in successfully going public in the US (NASDAQ: CD)
07. Frost & Sullivan assists Feida in successfully listing on the Hong Kong Stock Exchange (8342.HK)
08. Frost & Sullivan Assists Aurora Mobile in Successful Listing on NASDAQ (NASDAQ:JG)
17. Frost & Sullivan assists iClick in successfully going public in the US (NASDAQ: ICLK)
Frost & Sullivan helps Junmeng International successfully go public in Hong Kong (8062.HK)
