2013-12-14 11:41:02 - Fast Market Research recommends "Czech Republic Information Technology Report Q1 2014" from Business Monitor International, now available
The Czech IT market is 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. However, the development of the IT market continues to be held back by the weak macro picture nationally, with further disruption from the eurozone crisis a downside risk. Consumer and business confidence remains weak, curtailing big-ticket investment, while fiscal austerity is squeezing the value of public sector contracts. While there are many challenges, the Czech IT market remains attractive, with key growth areas including tablets, the rapid development of the cloud services market, and security software and solutions.
Headline Expenditure And Forecasts
Computer Hardware Sales: CZK35.6bn in 2012 to CZK36.2bn
in 2013, an increase of 1.9% in local currency terms. Desktop and notebook sales declined faster than expected in 2013 as retail spending has been hit by stagnant wages and unemployment.
Full Report Details at
- www.fastmr.com/prod/723559_czech_republic_information_technology ..
Software Sales: CZK19.7bn in 2012 to CZK20.5bn in 2013, an increase of 4.2% in local currency terms. Demand for security software solutions in both the consumer and business markets is a growth area, while the enterprise software market has a mixed outlook as deployments transition from on-premise to cloud delivery.
IT Services Sales: CZK31.1bn in 2012 to CZK32.2bn in 2013, a local currency increase of 3.6%. Cloud computing services are growing in popularity, with the potential for growth in the SME market particularly strong.
Key Trends And Developments
The Czech Republic is emerging as an innovative centre for security software and solutions. The most well-known domestic brand is Czech-founded AVG Technologies, which rose to prominence via its free antivirus software for PCs and Android tablets and smartphones, but has found success in monetising these services, as well as expanding the enterprise market. To strengthen its enterprise products it has made several acquisitions in 2013, including PrivacyChoice, a privacy monitoring application firm; and LPI Level Platforms, a system management software company. Another local company in the security sphere is InveaTech, a network and security solutions provider, which has grown rapidly since being spun off from university research in the Czech Republic; its revenue more than doubled in 2012 as it expanded across Europe. Both AVG Technologies and InveaTech are included in BMI's new competitive landscape for the Czech Republic IT market.
The squeeze on the device market is in contrast to the fast growth of software and services spending. In 2013, sales of desktops and notebooks declined rapidly due to weak business and consumer confidence, as well as tough competition from low-cost Android based tablets that have proven popular with consumers. There is a positive for Microsoft partner vendors in challenging times as demand grows for ultra-thin notebooks and hybrids/convertibles. These are nascent markets, but BMI believes there is significant growth potential for multi-use case devices once mass market price points are reached, which we expect to occur in the short-to-medium term.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Wireline SWOT
- Business Environment
- Table: Czech Republic IT Industry - Historical Data And Forecasts (CZKmn unless otherwise stated)
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
- Table: Czech Republic - Economic Activity
Industry Risk Reward Ratings
- Table: Europe IT Risk/Reward Ratings, Q1 2014
- IT Services
Industry Trends And Developments
- International Companies
- Table: Lenovo
- Table: Foxconn CZ
- Local Companies
- Table: AVG Technologies
- Table: InveaTech
- XANADU/CAD Studio
- Europe Overview
- Demographic Outlook
- Table: The Czech Republic's Population By Age Group, 1990-2020 ('000)
- Table: The Czech Republic's Population By Age Group, 1990-2020 (% of total)
- Table: The Czech Republic's Key Population Ratios, 1990-2020
- Table: The Czech Republic's Rural And Urban Population, 1990-2020
- Industry Forecast Methodology
- Risk Reward Rating Methodology
- Table: It Risk Reward Rating Indicators
- Table: Weighting Of Components
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