Monday, January 7, 2013

Chinese search engine market is estimated to grow over 15 billion USD market size in 2015. Will Baidu be able to continue dominating this market?

Recently, Eguan published the report that is written about the result and forecast of Chinese search engine market from 2010 to 2015.

They estimated that its market scale will reach 15.1 billion USD(= 950.0 RMB) in 2015, its CAGR in the next 5 years will be about 50%.

Now Chinese search engine market is dominated by Baidu. 

According to the recent data of CNZZ, Baidu have 65.33% market share of it. As I reported before, they have 250,000 advertising customer, and they expected that it become more than 300,000 customer in the end of 2012. Their ads revenue was also estimated to reach 20 billion RMB(= 3.18 billion USD), it will be expected that their revenue will be also continued increasing in 2013.

As I wrote the above, Baidu have the big strength in the Chinese search engine market, but they also have some weak point and anxiety.

1. Mobile search engine market
As I reported before, Baidu have the big strength in its market. But it is the case of PC search engine, and they don't have the strength in the mobile engine market compared to it.
Of course, they already recognized this situation, and they already provided some solutions(such as mobile OS, mobile cloud, LBS division and so forth) for solving this challenge .

According to the report by CNNIC, mobile devices already became the top of all method connecting to the internet. And its trend will also continue this year,  so it can be said that the acceleration of mobile solution is the most important challenge for them in 2013.

Furthermore according to the rumor, Baidu may invest to Sina Weibo for enforcing their mobile solutions. Before, some resources said that Alibaba have a plan to invest to Sina Weibo, but it seems that it went back to square one.

2. Rivals
The biggest security company "Qihoo 360" joined the war of this market last year. They start to provide their search engine for PC "" from 2012 October , and also started to provide their search engine for mobile devices "" from 2012 November. And they are rapidly increasing their market share in only few months. According to the above report, they already got the second position in its market.

According to the news, they have a plan to cooperate with Google China in near future, so Baidu also must be watching carefully for their trend.

Source => People's Daily Online, Sootoo, Tencent Tech, CECRC