2014-01-05 23:14:41 - Recently published research from Business Monitor International, "Germany Information Technology Report Q1 2014", is now available at Fast Market Research
Despite the decline in sales of desktops and notebooks, as users substitute purchases to lower cost tablets, we still expect solid growth of 4% in German IT spending in 2013 to EUR47.6bn. We expect hardware spending growth will underperform as substitution for cheaper devices occurs. However, there is potential for stronger performance in the latter part of our five-year forecast period to 2017, if ultra-thin notebooks and hybrids/convertibles gain traction with consumers. Software and services have a more positive outlook with cloud computing, machine-to-machine communications and big data analytics being key drivers over the medium term. Cloud computing is a particularly interesting market segment, with opportunities for local providers or global firms with a local presence, to capitalise on the
negative impact of the Patriot Act and PRISM on perceptions of US providers.
Headline Expenditure Projections
Computer Hardware Sales: EUR12.3bn in 2012 to EUR12.5bn in 2013, and CAGR of 1.8% 2013-2017. Decline in desktop and notebook/netbook sales will be offset by growth in tablet and hybrid sales over the medium term.
Full Report Details at
- www.fastmr.com/prod/759062_germany_information_technology_report ..
Software Sales: EUR14.4bn in 2012 to EUR15.1bn in 2013, and CAGR of 3.3% 2013-2017. Political and economic uncertainty are weighing on corporate investments, but as confidence returns we expect sales growth to large enterprises and the Mittelstandt.
IT Services Sales: EUR19.1bn in 2012 to EUR20.1bn in 2013, and CAGR of 4.9% 2013-2017. We expect IT services will be the outperforming segment, with demand for cloud computing and big data services key opportunities.
Risk/Reward Rating: Germany's score was 80.0 out of 100.0. Germany ranked second in the Europe region in our latest RRR table, behind only the UK, and ahead of France. Key Trends And Developments
Germany's cloud computing market offers greater opportunities for local service providers in the wake of the revelations around the NSA's PRISM intelligence gathering operations. The revelations have in many end-users eyes confirmed fears existing since the Patriot Act, turning them away from US providers. A survey by the US-based Cloud Security Alliance estimated that US cloud providers offering file storage and computing in the cloud could lose 10% to 20% of the non-US market to rivals as a result of the PRISM scandal. Further, the survey found that 10% of non-US respondents had already cancelled a project with a US provider, while 56% would be less likely to use a US provider in future. Germany's cloud computing market is still in the early stages of development, but we expect the recent revelations will increase the onus on vendors to have a local presence in order to win new business. This should favour local providers, at least in the short-term until global players increase their local presence.
Another area of rapid development is the machine-to-machine (M2M) communication market, which is creating opportunities for IT software and service vendors to sell services to, or with, telecoms operators in this high growth area. In 2013 a number of significant partnerships have been announced that we expect to catalyse the market by offering end-to-end services including real-time utilities, enterprise software and asset tracking. Enterprise software giant SAP, which offers its whole business suite on its in-memory computing architecture HANA, partnered with Ericsson to sell end-to-end M2M services through mobile operators. Telecoms incumbent Deutsche Telekom, a global leader in M2M services, announced a partnership with global giant IBM to sell the latter's smarter cities services.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Wireline SWOT
- Business Environment
- Table: IT - Historical Data And Forecasts (EURmn)
- Table: Telecoms Sector - Internet - Historical Data & Forecasts
- Economic Analysis
- Table: Germany - Economic Activity
Industry Risk Reward Ratings
- Table: Europe IT Risk/Reward Ratings, Q1 2014
Industry Trends And Developments
- Table: Government Authority
- International Companies
- Table: Microsoft
- Table: IBM
- Domestic Companies
- Table: Software AG
- Table: T-Systems
- Table: MSG Systems
- Table: Materna Information & Communication
- Table: Allgeier IT Solutions
- Table: GFT Technologies AG
- Europe Overview
- Demographic Outlook
- Table: Germany's Population By Age Group, 1990-2020 ('000)
- Table: Germany's Population By Age Group, 1990-2020 (% of total)
- Table: Germany's Key Population Ratios, 1990-2020
- Table: Germany'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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