Asia

ICT Market is Picking Up Growth Driven by Emerging Market Economies

According to a new EITO report released September 20, 2017, demand for information and communications technology (ICT) is picking up speed across Europe. ICT revenues in EU member states are expected to increase by 1.8 percent to 683 billion Euros in 2017.

Last year, the increase was slightly lower with 1.3 percent. As in the past few years growth is mainly driven by the market for information technology. Sales of IT hardware, IT services and software are expected to increase by 3 percent to 389 billion Euros. The telecommunications market is, growing at a much slower rate of 0.3 percent to 294 billion Euros. The software and IT services segments are showing the strongest growth, with an increase of 5.4 and 2.7 percent, respectively.

“The solid growth in sales of software and IT-services reflects the ongoing digitization of the economy as a whole. Companies from all industries invest in digital technologies, such as cloud computing and big data”, says Axel Pols, Managing Director at Bitkom Research.

“In the telecommunications market, the decline of the past year was stopped because a 2.2 percent increase of investments in telecom equipment offset a 0.4 percent decrease of spending on telecom services.”

Within the European Union, Hungary will record the strongest ICT market growth in 2017, with an expected increase of 5.2 percent. Unshaken by the Brexit decision, the United Kingdom is also among the top performers, with a plus of 3.5 percent to 140 billion Euros. At the other end of the spectrum, the Greek ICT market, already affected by the crisis, is forecast to decline by 1.0 percent.

 

According to the EITO forecast, ICT revenues worldwide will rise by 3.3 percent to 3.2 trillion Euros. The market for information technology grows 3.4 percent to 1.4 trillion Euros, which is only slightly higher compared to the telecom market with a gain of 3.3 percent to 1.8 trillion Euros.

 

“The growth of global telecom revenues is mainly driven my emerging market economies”, explains Axel Pols. By international comparison the ICT markets continue to grow fastest in India (plus 9.0 percent) and China (8.5 percent). The US is still by far the world’s largest ICT market with a plus of 3.0 percent to 979 billion Euros.

 

Source:  2017/18 of the European IT Observatory (EITO)

© The Expo Review

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