Philippines Information Technology Report Q1 2013
- ID: 2355084
- December 2012
- Region: Philippines
- 65 pages
- Business Monitor International
BMI expects the Philippines IT market will grow by around 12% in 2013. BMI has upwardly revised its market estimate after the PC market grew strongly in H112, following a dip at the end of 2011. Over our five-year forecast period, the Philippines IT market should achieve regional outperformer status. The Philippines has lower PC penetration than many other Asian countries and offers correspondingly high growth potential over the forecast period, particularly with support from government ICT programmes.
Headline Expenditure Projections:
Computer hardware sales: US$2.2bn in 2012 to US$2.4bn in 2013, +10% in US dollar terms. Forecast in US dollar terms downwardly revised following slower PC market growth in Q212, but the market fundamentals remain strong.
Software sales: US$401mn in 2012 to US$460mn in 2013, +15% in US dollar terms. Forecast in US dollar terms unchanged, but signs of growing adoption of cloud solutions by the Philippines business process outsourcing (BPO) industry could provide a new phase of momentum.
IT services sales: US$1.0bn in 2012 to US$1.2bn in 2013, +16% in US dollar terms. Forecast in US dollar terms unchanged and the Philippines is reporting strong growth in demand for software services outsourcing.
The Philippine's score was 43.7 out of 100.0, up from 43.1 in the previous quarter, although with a low IT Market score dragging down Potential Returns. The Philippines stayed in seventh place in our latest RRR table, but has potential to rise over time due to rising PC penetration.
Key Trends & Developments:
- Demand from outside Manila will continue to drive market expansion. More vendors, such as Lenovo and Toshiba, are signing up new distributors and opening stores nationwide. Cebu is seen as a gateway to provinces in Visayas and Mindanao. Meanwhile, PCs for schools programmes will be another driver for the Philippines computer market.
- The government will continue to push an e-government agenda in areas including customs,
health, elections and education. Meanwhile, the government's digital agenda, aimed at boosting computer penetration, also continued to be implemented.
- The consumer segment will continue to drive PC market growth. Recent wage rise for civil servants have helped to facilitate consumer spending on big-ticket items such as PCs.
Remittances, a key source of income, held up better than expected during the global economic slowdown but the more expensive peso has moderated their impact. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Philippines IT Sector SWOT 7
Philippines Telecoms Environment Industry SWOT 8
Philippines Political SWOT 9
Philippines Economic SWOT 10
Philippines Business Environment SWOT 11
Asia Pacific IT Risk/Reward Ratings 12
Table: Asia Pacific IT Risk/Reward Ratings, Q113 15
Asia Pacific IT Markets Overview 16
IT Penetration 16
IT Growth and Drivers 18
Sectors And Verticals 20
Industry Forecast 24
Table: Philippines IT Sector - Historical Data & Forecasts, 2010-2017 27
Industry Forecast Internet 28
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017 28
Competitive Landscape 30
Software And Services 32
Internet Competitive Landscape 36
Table: Regional Broadband Penetration Overview 36
Macroeconomic Forecast 37
Table: Philippines - Economic Activity, 2011-2016 40
Company Profiles 41
Microsoft Corporation 46
Country Snapshot 57
Table: Philippines' Population By Age Group, 1990-2020 ('000) 58
Table: Philippines' Population By Age Group, 1990-2020 (% of total) 59
Table: Philippines' Key Population Ratios, 1990-2020 60
Table: Philippines' Rural And Urban Population, 1990-2020 60
BMI Methodology 61
How We Generate Our Industry Forecasts 61
IT Industry 61
IT Ratings – Methodology 62
Table: IT Business Environment Indicators 63
Table: Weighting Of Components 64