Sweden Information Technology Report Q1 2011
- ID: 1534092
- January 2011
- Region: Sweden
- 45 Pages
- Business Monitor International
Business Monitor International's Sweden Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Sweden's information technology industry.
The Swedish IT market is the largest in the Nordic region and, despite current economic headwinds, is projected to grow at a CAGR of 4% over the 2011-2015 period. The addressable domestic market for IT products and services is projected by BMI to reach US$19.3bn by 2015.
The IT market should consolidate a recovery in 2010 after contracting by around 6% in 2009 due to the economic situation, which hit business spending in particular. Demand from the public sector was more stable. Swedish IT spending is projected to record single-digit growth in 2011 with a boost from computer for schools purchases and growing interest in cloud computing services.
Industry Developments Swedish computer purchases are expected to grow to around 550,000 units by 2012, according to vendor projection. The increased rate of procurement is being driven by a transition towards the provision of a computer for each student in Swedish schools.
In November 2010, the Swedish Customs service (Tullverket) confirmed that import duty did not need to be paid on iPads privately imported into Sweden, as the device would be classified as a laptop computer,rather than a media player of ""other electronics product.""
Competitive Landscape In 2010 Capgemini succeeded in winning a tender for IT consultancy services from the Swedish Social Insurance Agency (Forsakringskassan.) The company won over competition from US giants HP and IBM. The agency said that it would award the contact on the basis of lowest average services price.The drive to leverage emerging technologies such as cloud computing will support IT spending in the financial services sector. In April 2010, IBM announced it signed a new six-year IT services agreement with Nordea, the leading bank in the Nordic region. The agreement, which runs through 2015, includes a commitment by IBM to help Nordea utilise cloud computing. Meanwhile, EDB Business Partner signed an agreement with FOREX Bank for the delivery of banking software solutions as a service.
Computer Sales BMI forecasts Sweden’s addressable computer hardware market will be worth around US$3.4bn in 2011,up from US$3.2bn in 2010. Total PC revenues, including notebooks, desktops and accessories, are expected to rise to US$3.3bn by 2015 at a CAGR of 4%.In 2011, Sweden PC sales are expected to receive a boost from school computer purchases, while business segment shipments should also grow, building on a stabilisation of the enterprise market in2010, after global economic headwinds had an impact on demand during the previous year.
Software In 2011, Sweden’s software market sales are projected by BMI at US$5.1bn and, despite the uncertain economic conditions, revenues are expected to rise to US$5.8bn in 2015. Software CAGR from 2011-2015 should be in the region of 4%. Drivers of software spending by Swedish companies include increasing the efficiency of global supply chains and logistics functions.The Swedish software market managed to record low single-digit growth in 2009, despite the economic headwinds. Cloud computing services such as Software-as-a-Service (SaaS) are likely to enjoy greater adoption in Sweden over BMI’s five-year forecast period. Among early adopters in the Swedish market is Swedish hotel chain Scandic.
Services Sweden’s IT services spending is forecast to reach around US$7.5bn in 2011. The economic crisis and political uncertainty had an impact in 2009, with projects being put on hold, but demand stablised in2010. Sectoral CAGR is projected at 5% over the forecast period, as the market reaches US$9.3bn by2015.
Demand for IT services such as systems integration and consulting made a moderate recovery in 2010, after the economic crisis had meant reduced spending in some key IT services verticals that had driven IT spending. The public sector was one segment where demand held up relatively well, but in 2011 there should more spending by sectors such as financial services, retail, and telecoms. SHOW LESS READ MORE >
- Sweden IT Sector SWOT
- Sweden Political SWOT
- Sweden Economic SWOT
Europe Regional IT Markets Overview
- Sweden Market Overview
- Government Authority
- Industry Developments
Industry Forecast Scenario
- Table: Sweden IT Sector (US$mn unless otherwise stated), 2007-2015
- Table: Sweden Telecoms Sector – Internet – Historical Data & Forecasts, 2007-2014
- Macroeconomic Forecast
- Table: Sweden – Economic Activity, 2008-2015
- IT Services
Country Snapshot: Sweden Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings – Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components