2013-08-23 09:12:14 - New Computer Technology research report from Business Monitor International is now available from Fast Market Research
The UK IT market is being squeezed by fiscal austerity measures, fragile business and consumer confidence, and a decline in desktop and notebook shipments. However, there are areas of growth that are offsetting these pressures, such as demand for tablets, investment in datacentres and uptake of cloud computing services. Taking these factors into account UK IT spending is forecast to increase 2.2% to GBP53.339bn in 2013, a turnaround from the 0.6% contraction in 2012. The IT market should see improvements as the economy moves further out of recession over the medium term and we expect total spending will reach GBP59.975bn by 2017. There is, however, downside to this outlook, with flashpoints in the eurozone, including Spanish refinancing requirements, potentially derailing
the UK recovery.
Full Report Details at
- www.fastmr.com/prod/670565_united_kingdom_information_technology ..
Headline Expenditure Projections
* Computer Hardware Sales: GBP11.748bn in 2012 to GBP11.948bn in 2013, +1.7% in local currency terms. Desktop and notebook sales have been hit hard by the growth of tablet sales. However, the arrival of slimmer and higher spec notebooks, as well as hybrids/convertibles should rebalance growth over the medium term.
* Software Sales: GBP7.571bn in 2012 to GBP7.723bn in 2013, +2% in local currency terms. Software spending growth is occurring in key areas such as security solutions and big data analytics, while Windows upgrades are also a factor.
* IT Services Sales: GBP32.893bn in 2012 to GBP33.668bn in 2013, +2.4% in local currency terms. Fiscal austerity measures have squeezed IT vendors on price, but cloud services remain area of growth offsetting some of the impact of austerity measures.
The UK's score was 82.2 out of 100.0. The UK ranks first in our latest Europe IT RRR table, still ahead of Germany, France and Sweden.
Key Trends And Developments
* Although the UK market remains in a relatively weak condition due to low business and consumer confidence and cuts to government expenditure there are some key areas of growth. For instance, H113 saw major datacentre investments by leading global players. In May 2013 both Salesforce.com and Oracle announced investment in datacentres in the UK. The Salesforce datacentre will serve European markets, as the SaaS provider meets consumer demands for European datacentre presence due to concerns over the legal status of data on US servers. Meanwhile, Oracle's new datacentre will be dedicated to serving the government through the G-Cloud initiative, which is set to account for a growing share of government spending. BMI believes enterprise demand for European storage and the UK government's commitment to adopt cloud services where possible will drive further investment in the market.
* Another area of rapid change is the PC market, where tablets continue to hit sales of desktops and notebooks. The latest data show that desktop and notebook sales declined by almost 16% y-o-y to Q113, a rapid rate of decline, albeit slower than for Western Europe as a whole. Undoubtedly, the weak economy has played a role in declining shipments. However, competition from tablets is a much more significant factor. Apple dominated the tablet market, but there is increasing competition due to opportunities for vendors of desktops and notebooks to diversify into new form factors. Microsoft's Windows 8 (which introduced touch functionality to Windows vendors) and Intel's Haswell chipsets, released in June 2013, have opened the door to touch integration, slimmer design, longer battery life and higher performance - all of which will challenge traditional tablets by offering a new mix of convenience and functionality. BMI expects hybrids/convertibles will have limited impact in the UK in 2013, but they will be a growing force over the medium term, with evidence from some markets that consumers are already opting for these new designs.
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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