BMI View: W e expect IT market growth will accelerate in 2014 as the economic backdrop strengthens and strong demand for tablets is extended from 2013 . Higher levels of business and consumer confidence will boost spending, while deferred purchases from the previous period of uncertainty , particularly in enterprise software and IT services, will add to momentum. The pick-up in growth will cement the Czech IT market's status as a regional leader in Central and Eastern Europe, with a strong domestic skills base, investment by international firms, local entrepreneurship and high penetration of devices and solutions. We identify tablets, hybrids/convertibles, enterprise software, the rapid development of the cloud services market, and security s oftware and solutions as medium- term growth drivers.
Headline Expenditure And Forecasts
Computer Hardware Sales: CZK36.9bn in 2013 to CZK38.2bn in 2014, an increase of 3.6% in local currency terms. Notebook sales are expected to decline again in 2014, but the boom in tablet sales, and potential contribution of hybrids during the year will contribute to faster growth in 2014.
Software Sales: CZK20.5bn in 2013 to CZK21.4bn in 2014, an increase of 4.7% in local currency terms. Software is forecast to be the strongest segment of the IT market in 2014, with demand for enterprise software driving growth as confidence levels increase.
IT Services Sales: CZK32.5bn in 2013 to CZK34.0bn in 2013, a local currency increase of 4.7%. Demand for cloud computing solutions from SMEs will boost the IT services market through 2014.
Key Trends And Developments
In December 2013 a report from Chain Expert Electronics stated that since 2012 there had been a bifurcation of the PC market, with a decline in sales for mid-range devices, but strong sales at the premium and low end. The shift was attributed to wider macroeconomic changes, with a hollowing out of the middle class, but strong income growth at the top end of the spectrum.
The Czech Republic 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 Czech Republic 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 Czech Republic.
- Benchmark BMI's independent IT Industry forecasts for Czech Republic to test other views - a key input for successful budgetary and strategic business planning in the Czech IT market.
- Target business opportunities and risks in Czech Republic's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Czech Republic.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
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-2017 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-2017 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.