China’s AI market is set to surpass $200 billion by 2029, driven by intelligent agents, AI-enabled SaaS, and enterprise digitalization
China’s AI Market on a Fast Track
With the national “AI Plus” initiative accelerating, China’s artificial intelligence market is expected to exceed $200 billion by 2029, up from $63.1 billion at the end of 2025, according to IDC China.
“The essence of AI lies not in advanced technologies, but in how people use them,” said Robert Xu, Chairman and CEO of Kingdee International.
The expansion is underpinned by growing hardware infrastructure, including cloud computing, intelligent agents, servers, and storage networks, which could reach nearly $300 billion by 2029, representing 15.1% of China’s ICT market.
Intelligent Agents Transform Enterprises
Intelligent agents are emerging as the core of enterprise AI applications:
- Automating routine tasks with greater speed and precision
- Supporting decision-making and corporate governance
- Enabling AI-enabled SaaS transformation across industries
Insight: These agents not only streamline operations but also open doors for software firms to expand globally.
Kingdee has leveraged this ecosystem, signing contracts with 463 overseas enterprises in 2025, establishing local service networks in Qatar, Vietnam, Thailand, Indonesia, and Malaysia. Key clients include Chin Hin Group Berhad, Skywin Energy, and PT Merdeka.
SaaS Evolution in the AI Era
The global SaaS market is projected to surpass $700 billion by 2029, growing at an average annual rate of 14.6%. China’s SaaS sector is expected to grow even faster at 17.3% per year, driven by the integration of AI technologies.
Kingdee’s AI Suite, released on March 11 in Shenzhen, provides large enterprises with:
- Comprehensive coverage across all domains and scenarios
- Live AI capabilities
- Globalization support for international operations
Takeaway: AI adoption is transforming enterprise software, making intelligent, scalable, and globally deployable systems the new standard.
ZH Sailing Insight
China’s AI ecosystem demonstrates three key trends:
- Rapid market expansion — projected growth to $200B+ by 2029
- Enterprise transformation — intelligent agents and AI-driven SaaS redefine business operations
- Global opportunity — local AI firms like Kingdee are leveraging technology and policy to expand internationally
For investors and tech observers: Understanding the AI market’s growth trajectory and enterprise adoption is critical to identifying opportunities in China’s fast-evolving digital economy.