The China Software Innovation Report 2007, drafted by 10 top IT experts including Academician Ni Guangnan of the China Academy of Engineering, was formally released recently.  The report displays the high speed growth of the Chinese software industry and its readiness for a hyper explosive stage.

The report suggests the sales volume of China's software industry grew 23% year on year to 480 billion yuan in 2006.   The anticipated 20%-plus increase will bring the market for software to 580 billion yuan by 2007 and 1 trillion yuan by 2010.  The roadmap of the development of the industry is segmented into stages of infancy (late 1980s to early 1990s), budding (1991 to 1998), booming (1998 to 2003) and explosive (since 2003).

According to the report, more aggressive mergers and acquisitions of domestic software companies as well as full throttle industry integration has been witnessed since 2006.  In 2007, the trend was even more manifest.  Embedded software and software outsourcing are the pillars of the bursting growth.