IT spending in Central, Eastern European to reach EUR 24bn by 2008
Spending on information and communications technology in Central and Eastern Europe has surpassed EUR 14.4bn in 2004, up 18.4 per cent on the previous year.
Mar 22, 2005
Spending on information and communications technology in Central and Eastern Europe (Russia, Poland, the Czech Republic, Hungary, Slovakia and Croatia) has surpassed EUR 14.4bn in 2004, up 18.4 per cent on the previous year, according to research from market advisory firm IDC. A combination of factors drove investments in IT in the region last year. Continuing economic reforms, privatisation, increased foreign direct investment, and greater demand from SMEs and home users for PCs and software all contributed to the growth of the region's IT markets. By 2008, IT spending is to top EUR 24bn in the region.
The manufacturing sector (process and discrete) is to constitute the largest share of IT spending in the CEE region during 2004. The transport, communications and utilities sectors together are to be responsible for the second largest amount of IT spending and the finance sector (including banking, insurance, and other financial services) the third largest. Together, the three sectors are expected to make up more than 55 per cent of IT investments in 2004. In terms of expenditure, other key segments in the CEE region include government administration, agriculture, construction and mining, and retail/wholesale.
The country with the largest population, Russia, accounted for nearly 44 per cent of IT spending in 2003 and is expected to constitute more than 47 per cent of spending in 2004, with the manufacturing, finance and government sectors leading in terms of IT spending over the next few years. At nearly 22 per cent in 2003 and an estimated 21.1 per cent in 2004, Poland came in second, with the manufacturing, finance, and communications verticals leading spending. The Czech Republic will be the third largest market in 2004 and Hungary the fourth.
Nevertheless, the rest of the region is to also exhibit solid IT market growth. Recent EU accession for the Czech Republic, Hungary, Poland and Slovakia is to continue to stimulate investment in IT as governments and the private sector implement changes to meet regulations and compete on newly opened international markets. Likewise, preparations for EU accession in Croatia and continuing economic growth in Russia are to fuel expanded use of IT.
The manufacturing sector (process and discrete) is to constitute the largest share of IT spending in the CEE region during 2004. The transport, communications and utilities sectors together are to be responsible for the second largest amount of IT spending and the finance sector (including banking, insurance, and other financial services) the third largest. Together, the three sectors are expected to make up more than 55 per cent of IT investments in 2004. In terms of expenditure, other key segments in the CEE region include government administration, agriculture, construction and mining, and retail/wholesale.
The country with the largest population, Russia, accounted for nearly 44 per cent of IT spending in 2003 and is expected to constitute more than 47 per cent of spending in 2004, with the manufacturing, finance and government sectors leading in terms of IT spending over the next few years. At nearly 22 per cent in 2003 and an estimated 21.1 per cent in 2004, Poland came in second, with the manufacturing, finance, and communications verticals leading spending. The Czech Republic will be the third largest market in 2004 and Hungary the fourth.
Nevertheless, the rest of the region is to also exhibit solid IT market growth. Recent EU accession for the Czech Republic, Hungary, Poland and Slovakia is to continue to stimulate investment in IT as governments and the private sector implement changes to meet regulations and compete on newly opened international markets. Likewise, preparations for EU accession in Croatia and continuing economic growth in Russia are to fuel expanded use of IT.