2014-01-03 11:50:07 - New Computer Technology research report from Business Monitor International is now available from Fast Market Research
Lebanon's IT market is forecast to be a regional outperformer over the medium term as strong economic growth underpins market expansion. The total size of the Lebanese IT market in 2014 is forecast to reach LBP595.4bn, an increase of 7.4% from 2013 and we forecast strong spending growth over the medium term. Several factors will drive market expansion, including rising incomes, declining device prices, improvements to telecoms infrastructure and modernisation by enterprises and the public sector. However, IT development in Lebanon is subject to significant uncertainty as a result of security issues, which could be destabilising depending on the conflict in Syria. Further, we identify the vulnerabilities of the Lebanese IT industry to cyber security threats, which could undermine confidence.
Report Details at
- www.fastmr.com/prod/754743_lebanon_information_technology_report ..
Headline Expenditure Projections
* Computer Hardware Sales: LBP366.2bn in 2014 to LBP481.2bn in 2017, +8.8% CAGR in local currency terms. Tablet sales are booming, supporting rapid growth in total PC units. However, with consumers increasingly opting for cheaper Android tablets, increases in market value will fail to keep pace with unit growth.
* Software Sales: LBP53.9bn in 2014 to LBP77.1bn in 2017, +12.4% CAGR in local currency terms. There is potential for strong growth in the software market, but piracy remains a major drag on market growth.
* IT Services Sales: LBP175.4bn in 2014 to LBP239.7bn in 2017, +10.2% CAGR in local currency terms. IT services will underperform software in the short term, but as telecoms infrastructure improves we expect outsourcing and cloud services to drive growth higher.
Key Trends And Developments
The poor quality and coverage of telecoms infrastructure, as well as high cost, has been a bottleneck on the development of the IT market in recent years. However, the situation is improving, with operators launching 4G LTE services in 2013, as well as increased international bandwidth lowering the cost of services. This should facilitate wider roll-out of networks and bring down cost to end-users. BMI believes this will be a positive development for the IT market, boosting device demand in the retail market, as well as opening up the potential of the cloud computing market and accelerating the development of Lebanon as an outsourcing destination.
Cyber security issues have the potential to be a disruptive factor in the development of the IT market. Lebanon is particularly vulnerable to cyber attacks, given its proximity to the Syrian conflict and the activities of Hezbollah. Lebanon has already been subject to a major attack in 2012, believed to be related to intelligence gathering on the financing of Hezbollah. BMI believes the risk of further attacks is significant, given regional tensions and the fact Lebanon's cyber defences trail far behind other countries in the region. A successful attack, particularly on critical infrastructure, would have the potential to undermine confidence in IT systems and solutions, which would stunt growth.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Business Environment
- Table: Lebanon IT Industry - Historical Data And Forecasts (LBPmn unless otherwise stated)
- Table: Telecoms Sector - Fixed Line And Internet - Historical Data & Forecast
- Economic Analysis
- Table: Lebanon - Economic Activity
Industry Risk Reward Ratings
- Table: MEA IT RRR - Q1 2014
- IT Services
Industry Trends And Developments
- Table: Government Authorities
- Table: IBM Acquisitions, 2012 (Total Value, US$3.964bn)
- Microsoft Corporation
- Oracle Corp
- Table: Oracle: Selected Acquisitions
- Table: Lebanon's Population By Age Group, 1990-2020 ('000)
- Table: Lebanon's Population By Age Group, 1990-2020 (% of total)
- Table: Lebanon's Key Population Ratios, 1990-2020
- Table: Lebanon's Rural And Urban Population, 1990-2020
- Industry Forecast Methodology
- Risk Reward Rating Methodology
- Table: It Risk Reward Rating Indicators
- Table: Weighting Of Components
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
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