China's industrial software sector is currently undergoing a transformative phase, driven by the nation's push for technological self-sufficiency and industrial upgrading. The market has witnessed substantial growth, with domestic players gradually gaining ground against international competitors, although gaps remain in high-end applications. Key factors propelling this expansion include government policies such as "Made in China 2025," increasing digitalization across manufacturing, and rising demand for smart factory solutions. Looking ahead, the industry is poised for robust development, fueled by advancements in AI integration, cloud-based platforms, and the Internet of Things (IoT). However, challenges like talent shortages and intellectual property protection need addressing to fully realize its potential in the global landscape.