2013-12-13 10:44:55 - Recently published research from Business Monitor International, "Chile Information Technology Report Q1 2014", is now available at Fast Market Research
Chile stands out in Latin America due to the high level of GDP per capita, but another key factor driving the development of its IT market is the policy initiatives of the government. The launch of the 2013-2020 Digital Agenda Imagine in May 2013 is the next step in trying to encourage entrepreneurship, innovation, digital inclusion, education and services, and applications. The government's policies are helping the IT market continue growing once low-hanging fruit such as rising PC penetration opportunities, which are diminishing, by encouraging uptake of emerging technologies such as business intelligence and cloud computing. Additionally, the government's commitment to continue investing and improving infrastructure that encourages IT development will maintain the country's strong growth trajectory.
Full Report Details at
- www.fastmr.com/prod/723547_chile_information_technology_report_q ..
Headline Expenditure Projections
Computer Hardware Sales: CLP863bn in 2013 to CLP1.142trn by 2017, CAGR of 7.5% in local currency terms. Chile's PC penetration rate is higher than its regional peers, meaning relatively slow growth, but large opportunities remain in the upgrade/personal device market, with low-cost Android tablets as supplementary devices proving a popular trend in the consumer market.
Software Sales: CLP219bn in 2013 to CLP320bn by 2017, CAGR of 10.1% in local currency terms. Spending on enterprise software continues to grow as enterprises modernise and look to increase international competitiveness. However, piracy of software remains a drag on the market.
IT Services Sales: CLP783bn in 2013 to CLP1.149trn in 2017, CAGR of 10.3% in local currency terms. There has been major investment in data centres in recent years by major international providers including HP and IBM, as they look to tap into growing demand for cloud services from major verticals including utilities, financial services, government, telecoms and retail.
Key Trends & Developments
One feature of the government's drive to promote the development of the IT market that is starting to yield results is Chile's 2010 project 'Start-Up Chile'. By 2013 many local tech startups had received investment from international venture capital firms through the programme, with several now looking to expand internationally. Examples of the burgeoning startup scene in Chile include Doist, a provider of productivity software for individuals and groups, game developer IguanaBee, and business intelligence solutions and training provider Metric Arts. Metric Arts has already won business with major Chilean enterprises since being founded in 2007 and is included in BMI's new competitive landscape for the Chilean IT market.
In contrast to the optimism surrounding Chile's startup scene, the desktop and notebook market continues to decline. Desktop sales have been in relative decline for several years in the face of competition from notebooks and netbooks. However, the arrival of tablets, particularly low-cost Android devices from 2012, has squeezed both desktop and notebook sales. Chile's high PC penetration rate means that the market should be receptive to tablet sales growth for several years as consumers buy tablets to supplement their existing productivity oriented devices. These trends have seen a shift in market shares in Chile, with Samsung overtaking HP in traditional form factors due to the popularity of notebooks prior to 2012, and we expect Samsung, along with Chinese vendors such as Lenovo, Huawei and low-cost OEMS to benefit most from the boom in tablet sales.
Report Table of Contents:
BMI Industry View
- Wireline SWOT
- Business Environment
- Table: Chile IT Sector - Historical Data & Forecasts, 2010-2017 (CLPmn)
- Table: Chile Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017
- Macroeconomic Forecast
- Table: Chile - Economic Activity
Industry Risk Reward Ratings
- Table: Americas IT Risk/Reward Ratings, Q1 2014
- IT Services
Industry Trends And Developments
- Table: Government Authority
- International Companies
- Table: IBM
- Table: Samsung Electronics
- Table: Hewlett Packard
- Local Companies
- Table: Metric Arts
- Table: Chile's Population By Age Group, 1990-2020 ('000)
- Table: Chile's Population By Age Group, 1990-2020 (% of total)
- Table: Chile's Key Population Ratios, 1990-2020
- Table: Chile'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
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