China Targets Trillions in AI-Powered Consumer Sectors by 2027

China Unveils Ambitious AI-Driven Consumer Growth Strategy

China has announced a comprehensive plan to significantly expand its AI-powered consumer sectors, aiming for a market scale worth trillions of yuan by 2027. This strategic initiative, spearheaded by the Ministry of Industry and Information Technology (MIIT) and five other government departments, seeks to integrate artificial intelligence across key consumer goods industries, including eldercare products, intelligent connected vehicles (ICVs), and consumer electronics. The overarching goal is to stimulate domestic consumption and modernize the retail landscape.

Strategic Vision and Market Targets

The newly unveiled 'Three-Year Action Plan for Optimizing the Consumer Environment' outlines a clear roadmap for this ambitious growth. By 2027, China intends to cultivate three trillion-level consumer fields and ten 100-billion-level consumer hotspots. This effort is part of the broader 'AI Plus' initiative, issued by the State Council, which aims for AI adoption to exceed 70 percent across key industries by the same year. The plan emphasizes a shift from merely increasing production quantity to enhancing product quality and value, ensuring that supply better aligns with evolving consumer demands.

Beyond the three primary sectors, the plan also identifies several other high-growth 'hotspot' categories to reach 100 billion yuan each. These include:

• Goods for children and infants
• Smart wearables
• Cosmetics
• Fitness equipment
• Pet food and products
• Civilian drones
• Trendy collectibles and 'guochao' fashion

This multi-pronged approach is designed to foster new consumption scenarios and business models, such as live e-commerce and instant retail, thereby injecting strong impetus into China's economy.

Key AI-Empowered Sectors in Focus

The three core sectors earmarked for trillion-yuan growth are set to undergo significant transformation through AI integration:

Eldercare Products

With China's population aged 60 and above reaching 310 million by the end of 2024, accounting for approximately 22 percent of the total population, the demand for eldercare solutions is rapidly increasing. The plan promotes the development of AI-enabled monitoring, health diagnostics, and assistive devices. Examples include eldercare service robots, smart glasses with automatic focus adjustment, and exoskeleton rehabilitation devices. Shanghai has already opened China's first 'AI+elderly care' experience center, showcasing nearly 200 advanced products tailored for seniors.

Intelligent Connected Vehicles (ICVs)

China aims for ICVs to generate 1 trillion yuan ($142 billion) in consumption by 2027. The strategy focuses on enhancing the adaptability of supply and demand, moving beyond sheer volume to products that precisely match consumer needs. This includes developing advanced driver assistance systems (Level 2 systems are now in over 60 percent of new passenger vehicles), smart cockpits, and new energy vehicles (NEVs). The Ministry of Commerce is also piloting reforms to expand the used car market and aftermarket services, such as vehicle modification and RV camping, to further stimulate consumption across the entire auto value chain.

Consumer Electronics

The consumer electronics market is already the world's largest, with an estimated size of USD 212.9 billion in 2025. AI is expected to drive significant growth, particularly in smart home devices, AI smartphones, and wearables. By 2027, AI smartphones are projected to account for over 50% of the Chinese market. Products like smart refrigerators that recommend shopping lists, AI glasses with navigation services, and smart robotic vacuum cleaners are becoming commonplace. Leading Chinese manufacturers are actively incorporating AI into product development, manufacturing, and services, with the smart home appliance market expected to reach RMB 790 billion (USD 110.7 billion) by 2025.

Government Support and Implementation

The action plan, unveiled on November 26, emphasizes strengthening the integrated empowerment of artificial intelligence across the entire process of product development, manufacturing, and marketing. Officials, including He Yaqiong from the MIIT, have highlighted that AI-empowered products are already catalyzing consumer spending and reshaping consumption patterns. The government's strategy involves fostering an environment conducive to boosting consumption through strengthened policy support, fiscal and financial backing, and addressing the specific needs of diverse population groups. This concerted effort aims to ensure that consumption plays a steadily increasing role in driving economic growth through 2030.