2013-12-12 14:44:08 - Recently published research from Business Monitor International, "Bulgaria Information Technology Report 2014", is now available at Fast Market Research
The Bulgarian IT market is one of the least developed in Europe, with relatively low penetration of hardware among consumers and enterprises. It also trails many of its regional peers in terms of adoption of new technologies such as cloud computing and Big Data analytics. Despite these challenges, and the drag on short-term performance due to economic weakness, there are positives for the medium-term outlook. The low PC penetration rate means there is potential for vendors to tap into demand from first-time buyers and upgrades/replacements - in contrast to more developed markets. We expect adoption of cloud services to accelerate as end-users become better educated and supporting telecoms infrastructure improves. Finally, there is scope for Bulgaria to expand rapidly as
an outsourcing destination, but in the short-term the shortage of skilled labour continues to be a bottleneck for faster development.
Full Report Details at
- www.fastmr.com/prod/723536_bulgaria_information_technology_repor ..
Headline Expenditure Projections
* Hardware Sales: BGN1.088bn in 2013 to BGN1.119bn in 2014, +2.9% in local currency terms. Sales of hardware in the retail market constrained by weak consumer outlook including stagnant wages, weak housing market and constrained access to credit. Low-cost tablets are the area of outperformance, with sales booming in 2013 and 2014 at the expense of notebooks.
* Software Sales: BGN184mn in 2013 to BGN196 in 2014, +6.6% in local currency terms. Demand for enterprise software deployments expected to increase as economic conditions improve in 2014 and into 2015. The extent to which enterprises will be turned to cloud services in order to cut costs is however uncertain.
* Services Sales: BGN314mn in 2013 to BGN333mn in 2014, +6% in local currency terms. The outsourcing market in Bulgaria has considerable potential for growth, however the shortage of skilled labour continues to act as a barrier to faster growth.
Key Trends & Developments
* The Bulgarian hardware market has experienced the same trends as much of Central and Eastern Europe, with sales of desktops and notebooks in 2013 cannibalised by tablets. The influx of low-cost Android based tablets has proven a serious drag on notebook sales as consumer make purchasing decisions based on price and ease of use. However, desktop and notebook vendors still have a growth opportunity from first-time buyers, with PC penetration in Bulgaria far behind the EU average at the end of 2012. BMI believes the first wave of tablet purchases was largely supplementary to already owned productivity devices, and it is uncertain that first-time buyers will be satisfied with the current functionality of tablets. With this in mind the area of hybrids/convertibles will be an interesting area of the market in 2014, and could see vendors carve out a space within the tablet market.
* The software and services market in Bulgaria remain undeveloped next to the hardware market. However enterprise and public sector investments in software and adoption of IT services will see growth outperform in the medium term. Areas such as Software-as-a-Service and outsourcing are expected to expand rapidly as companies look to cost efficient means of improving efficiency and international competitiveness. An enabler for this trend is the large scale investment in data networks by telecoms operators, for domestic and international connectivity, that are vital for such services.
Report Table of Contents:
BMI Industry View
- IT SWOT
- Business Environment
- Table: Bulgaria IT Industry - Historical Data And Forecasts (BGNmn unless otherwise stated)
- Table: Telecoms Sector - Internet - Historical Data & Forecasts
- Economic Activity
- Table: bmi_country} - Gdp By Expenditure
Industry Risk Reward Ratings
- Table: Europe IT Risk/Reward Ratings, Q1 2014
Industry Trends And Developments
- Table: Distributors For Leading Brands
- Table: Regulatory Authorities
- Microsoft Corporation
- Table: IBM Acquisitions, 2012 (Total Value, US$3.964bn)
- Europe Overview
- Demographic Outlook
- Table: Bulgaria's Population By Age Group, 1990-2020 ('000)
- Table: Bulgaria's Population By Age Group, 1990-2020 (% of total)
- Table: Bulgaria's Key Population Ratios, 1990-2020
- Table: Bulgaria'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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