BMI View: We revised down our growth outlook for IT spending in 2016 in the Q216 update to reflect a weaker economic outlook, but our core scenario nonetheless continues to be for strong growth over the medium term. We envisage a CAGR of 5.6% 2016-2020 to CZK99.6bn, with stronger performance in US dollar terms due to koruna appreciation. A strengthening currency is positive for economic confidence, for growth of household purchasing power that will support retail PC volume growth, as well as upside for increasing PC average selling prices as the middle class becomes more affluent. The software and services markets will still outperform, with the extent and sophistication of enterprise and public IT utilisation, and adoption of emerging technologies such as cloud computing and smart services positives in the Czech market .
Latest Updates & Industry Developments
Computer Hardware Sales: CZK30.2bn in 2016 to CZK33.6bn in 2020, a compound annual growth rate (CAGR) of 2.8% in local currency terms. Desktop market will underperform, but strong retail sales of notebooks and tablets expected as household incomes rise register significant increases.
Software Sales: CZK18.9bn in 2016 to CZK24.7bn in 2020, a CAGR of 6.9%. Cloud delivery models will result in some price erosion, but this drag will be offset by a deepening of the enterprise applications market to more SMEs.
IT Services Sales: CZK31.1bn in 2016 to CZK41.4bn in 2020, a CAGR of 7.4%. Growing demand from enterprises and the public sector for outsourcing and cloud service will underpin IT services spending growth outperformance over the medium term.
|Retail PC Outlook Boosted By Purchasing Power Growth|
|Czech Household Income Breakdown (USD) (2016-2020)|
|f = BMI forecast. Source: BMI, CZSO|
The Czech Republic Information Technology Report features BMI Research's market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.
BMI's Czech Republic Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Czech Republic.
- Benchmark BMI's independent IT Industry forecasts for Czech Republic to test other views - a key input for successful budgetary and strategic business planning in the Czech IT market.
- Target business opportunities and risks in Czech Republic's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Czech Republic.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the IT sector and within the broader telecommunications, political, economic and business environment.
BMI Industry Forecast
Historic data series (2010-2013) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
- IT Sector: Industry value (USDmn); IT sector contribution to GDP (%); value of hardware, software and services industry (USDmn); PC, peripherals and software imports and exports (USDmn); PC, peripherals and software sales (USDmn); number of PCs (‘000); PCs per 100 inhabitants; internet users (‘000); internet users per 100 inhabitants; broadband subscribers (‘000); broadband subscribers per 100 inhabitants.
- Economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).
Information Technology Risk Reward Index
BMI’s Risk Reward Indices provide technology manufacturers, service providers, and IT vendors/leasing agents looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Country Market Overview
Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.
BMI Macroeconomic Forecast
BMI forecasts for all headline macroeconomic indicators to end-2019 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.
Full analysis of the competitive landscape within the hardware, software and services sectors.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Cross-border analysis of country markets in the region, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).
The information Technology Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.