Boston, MA -- (SBWIRE) -- 09/21/2012 -- BMI View: South Korean IT spending is expected to reach US$18.7bn in 2012, up 5%, with consumer and business segment IT growth expected to moderate as its economy remains subdued throughout the year. However, South Koreans have experienced a rapid increase in per capita incomes (in US dollar terms) in recent years, and as the economy remains on a solid growth track, despite a forecast deceleration in 2012, we believe South Koreans will increasingly choose to spend on IT products due to a substantial increase in their disposable incomes. There will be a number of key drivers and growth trends including cloud computing, IT outsourcing and industry-specific software applications.
Headline Expenditure Projections
Computer hardware sales: US$4.5bn in 2011 to US$4.5bn in 2012, +0% in US dollar terms. Forecast in US dollar terms is unchanged, but form factors such as tablets will provide growth areas in 2012, as well as Microsoft's Windows 8 operating system
View Full Report Details and Table of Contents
Software sales: US$6.3bn in 2011 to US$6.6bn in 2012, +6% in US dollar terms. Forecast in US dollar terms unchanged, with the trend in the South Korean software market being towards specialised verticalspecific application packages.
IT Services sales: US$7.1bn in 2011 to US$7.6bn in 2012, +6% in US dollar terms. Forecast in US dollar terms unchanged as vendors and service providers are investing heavily in the cloud computing market.
Risk/Reward Ratings: South Korea's score was 64.5 out of 100.0. South Korea ranks fourth in our latest Asia RRR table, behind Australia, Singapore and Hong Kong, but still ahead of China, Taiwan and the Philippines. The country also benefited from a relatively high Country Structure score of 75.
Key Trends & Developments
- South Korean government agencies are adopting cloud computing and The Ministry of Public Administration and Security is investing in cloud technologies for national computing resources. The Ministry of Knowledge Economy has launched a study of how to combine green IT with cloud platforms. New cloud computing offerings, which should fuel further demand from companies to utilise this technology and drive investment in data centres.
- Demand from the financial segment should also be a growth area, with financial services institutions investing in more customer-orientated strategies and streamlining complex operating environments. Growing demand for cloud computing services will also generate opportunities and investments in data centres.
- IT spending in export-dependent South Korea will remain vulnerable to continued uncertainty in the global economy. We see consumer demand decelerating in 2012 because of mounting consumer debt and we have revised our forecast downwards. Corporate IT spending should also moderate, due to a weaker outlook for the export sector in 2012, and a forecast slowdown in China.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Computer Technology research reports at Fast Market Research
You may also be interested in these related reports:
- South Africa Information Technology Report Q3 2012
- Egypt Information Technology Report Q3 2012
- Australia Information Technology Report Q3 2012
- Hong Kong Information Technology Report Q3 2012
- United Arab Emirates Information Technology Report Q3 2012
- Poland Information Technology Report Q3 2012
- Malaysia Information Technology Report Q3 2012
- Saudi Arabia Information Technology Report Q3 2012
- United Kingdom Information Technology Report Q3 2012
- France Information Technology Report Q3 2012