BMI View: Despite a deteriorating economic situation in Venezuela, with inflation at around 50 %, for example, the government decided to stay the course, posing further risks to an already-poor business environment. This will further shrink the private sector, exacerbate shortages and worsen market distortions. As a fairly small market in the region, it has plenty of opportunities for growth , with low PC penetration and government programmes to boost sales. However, because of ICT connectivity weaknesses and an environment that is adverse to innovation, there will little scope for international vendors to compete.
Headline Expenditure Projections
Computer Hardware Sales: From VEB6.6bn in 2013 to VEB7.5bn in 2014. The weaker growth environment, as well as the ongoing depreciation of the bolívar, resulted in a downgrade to our forecast for 2014 as it increases the price of imported hardware. Cheap computer programmes, and the PCs for schools programmes is a driver of unit shipments.
Software Sales: From VEB1.8bn in 2013 to VEB2.1bn in 2014. High levels of software piracy and the government's commitment to open source software will limit opportunities for proprietary software vendors.
IT Services Sales: From VEB1.6bn in 2013 to VEB1.9bn in 2014. We expect around 75% of demand will come from large companies, with the oil sector still significant despite the fall in oil prices. However, there is medium-term potential for IT services sales to SMEs, particularly cost-saving cloud computing services.
Venezuela's score remained flat in the Q214 update with the impact of the ongoing dereciation of the bolívar already factored into our forecasts.
Key Trends & Developments
The outlook for the PC market has worsened with the ongoing depreciation of the bolívar, however opportunities still exist in the market. Venezuelan computer shipments are forecast to continue to grow due to the government's affordable computer programmes, computers for...
The Venezuela 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 Venezuela 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 Venezuela.
- Benchmark BMI's independent IT Industry forecasts for Venezuela to test other views - a key input for successful budgetary and strategic business planning in the Venezuelan IT market.
- Target business opportunities and risks in Venezuela's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Venezuela.
- 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.