BMI View: Due to high labour costs BMI believes Australian enterprises could be among the early adopters for AI applications such as IBM's Ask Watson service, which has already been trialled by ANZ Bank. Emerging technologies aside the growth outlook is relatively weak in Australia. This is in part a consequence of market maturity, meaning growth will underperform the APAC average, which is weighted to emerging markets but there is also macroeconomic downside as BMI expects economic growth to slow over the medium term.
Headline Expenditure Projections
Computer Hardware Sales: AUD7.9bn in 2013 to AUD8.2bn in 2014, up 3.6% in local currency terms. Slowdown in tablet demand due to market saturation will be offset by a stabilisation in desktop and notebook sales in 2014 due to XP support withdrawal and design innovation in the hybrid notebook market.
Software Sales: AUD4.3bn in 2013 to AUD4.7bn in 2014, up 8.8% in local currency terms. Security software will outperform, particularly for small and medium-sized enterprises (SMEs) and consumers - but it is XP enterprise upgrades that will make software the outperforming segment in 2014.
IT Services Sales: AUD9.2bn in 2013 to AUD9.7bn in 2014, up 6.3% in local currency terms. IT services will be fastest growth area of the IT market over the medium term, with cloud services the key growth driver as local companies try to use efficiencies enabled by the National Broadband Network (NBN).
Key Trends And Developments
After a sustained boom since 2012 the Australian tablet market appears to have peaked, in-line with BMI's expectations. High-street consumer electronics retailer JB Hi-Fi reported that sales in July 2014 fell by 5.5% year-on-year (y-o-y), mainly due to a significant slump in demand for new and replacement tablet computers. We believe this data reflects the level of consumer satisfaction with existing products and the slower rate of innovation by leading vendors such as Apple and Samsung that have...
The Australia Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's Australia Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Australia.
- Benchmark BMI's independent IT Industry forecasts for Australia to test other views - a key input for successful budgetary and strategic business planning in the Australian IT market.
- Target business opportunities and risks in Australia's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Australia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.
Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
Country Market Overview
Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.
BMI Industry Forecasts
Historic data series and forecasts to end-2018 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
BMI Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2018 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Full analysis of the competitive landscape within the hardware, software and services sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.