June 13, 2025, Beijing​ — Against the backdrop of deep integration between the digital economy and the real economy, China’s enterprise digital service industry has entered a new phase of rapid development. Three core trends are currently driving the sector: intensified policy support, accelerated implementation of industry-specific solutions, and the deep convergence of cloud services and AI technologies.

​Policy Dividends Unlock Momentum for SME Digital Transformation​
The joint “Digital Transformation Pilot Cities for SMEs” initiative by the Ministry of Finance and MIIT has yielded significant results. Following Handan City’s inclusion in the third batch of pilots, the central government has allocated over ¥300 million in reward funds to support digital transformation in over 20 cities nationwide. For example, ​Guozhi Technology (Hebei)​​ built the “Yonggu’an” industrial internet platform, integrating order management, mold resources, and warehousing across the supply chain. This boosted production efficiency by 25% and improved on-time order delivery rates from 90% to 100%

. In Lanzhou, pharmaceutical firm ​Longyuanfeng​ upgraded its ERP and WMS systems, reducing operational costs by 2% and shortening quality incident response times by 30%

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​Market Size Surpasses ¥1 Trillion, Cloud Services Lead Growth​
According to the China Enterprise Digital Services Market Analysis Report, China’s digital service market reached ¥450 billion in 2023, with a projected value of ¥680 billion by 2025 (CAGR >16%). Cloud services (IaaS/PaaS/SaaS) dominate, accounting for ¥270 billion in market size, where Alibaba Cloud, Huawei Cloud, and Tencent Cloud hold over 70% share

. Globally, the enterprise digital operations market is expected to hit $1.1 trillion in 2024, driven by IoT and blockchain adoption

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​Technology Convergence Deepens: Supply Chain and Manufacturing Lead Innovation​
Enterprise digital services are advancing into niche segments:

• ​Supply Chain Digitization: ​Zenyun Technology​ secured clients like XCMG and Duoning Bio in 2025, using its SRM platform to streamline procurement processes, achieving 15–20% cost reductions

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• ​Smart Manufacturing: ​Haier’s COSMOPlat​ optimized energy consumption by 12% for an automotive parts manufacturer through IoT-enabled production monitoring

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• ​AI Empowerment: Microsoft’s Copilot Vision expanded AI image analysis capabilities, while ​Volcano Engine’s Doubao​ reduced its large model price by 63%, enabling low-cost SME adoption

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​Challenges and Solutions: Balancing Data Security and Ecosystem Development​
Despite growth, 62.6% of SMEs remain in early-stage digital transformation, hindered by strategic gaps and technical limitations

. To address this, local governments are rolling out “lightweight, agile” solutions. Handan, for instance, nurtured 20 provincial-level service providers and built 15 public platforms to foster cross-enterprise collaboration

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​Future Outlook: Scenario-Driven and Global Expansion​
The scenario-based application market is projected to reach ¥1.3 trillion in 2025, driven by customized demands in manufacturing and retail. Meanwhile, ​Huawei Cloud​ and ​Alibaba Cloud​ are accelerating ASEAN market entry, with Chinese digital service providers’ overseas revenue expected to rise from 8% (2023) to 15% (2027)

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​Expert Insight​
“Digital transformation has shifted from optional to imperative,” stated a researcher at the China Academy of Information and Communications Technology. “Future competition will hinge on domain expertise and seamless tech integration—vertical specialists will lead the market.”