Mexico Information Technology Report Q1 2013
- ID: 2364050
- December 2012
- Region: Mexico
- 72 pages
- Business Monitor International
BMI projects that Mexican IT spending will grow by about 6% in US dollar terms in 2013 to US$16.3bn. While we remain optimistic about the long-term market trajectory, we expect a moderation in 2013 as the economic outlook remains uncertain. Government spending will be one vendor focus, with a substantial information society budget and the roll-out of national and local projects that were previously delayed because of the economic situation. As Mexico's economy expands over the next five years some fundamental drivers, including rising PC penetration and US corporate demand for IT outsourcing, should ensure growing IT demand.
Headline Expenditure Projections:
Computer hardware sales: US$7.1bn in 2012 to US$7.5bn in 2013, +5% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst adjustment but migrations to Windows 8 should provide a boost to hardware upgrades in 2013.
Software sales: US$2.9bn in 2012 to US$3.1bn in 2013, +7% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment although much will depend on the success in bringing down illegal software use, which at 63% is well above OECD levels.
IT services sales: US$5.4bn in 2012 to US$5.8bn in 2013, +6% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment with sectors such as government, telecoms and financial services providing the greatest opportunities for vendors.
Mexico's score is 61.8 out of 100.0. Mexico ranks joint fourth in the Americas region in our latest RRR table, alongside Brazil and behind the US and Canada. The country ranked third for its Industry Rewards score, behind the US and Brazil and joint with Canada, but its overall rating was restrained by a relatively low Country Rewards score.
Key Trends & Developments:
- Mobility, smart devices, broadband and cloud services are among the trends encouraging more software spending by Mexican small and medium-sized enterprises (SMEs), which have to deal with increasing data flow. Government financial support for informatisation among enterprises should help to counteract the impact of margin pressures on IT budgets. The software sector's growth is driven partly by increasingly strong demand for solutions from SMEs. A lack of IT infrastructure contributes to the high failure rate among SMEs in many parts of the country.
- Mexico City and its surrounding area will remain the mainstay of the market. However,
Mexico's underpenetrated south east and Pacific regions are expected to offer growth opportunities over BMI's five-year forecast period, particularly in the south east. IT penetration in the public sector remains relatively low in the region and larger Mexican IT distributors have now taken notice of latent demand in this area.
- Interest in cloud computing should continue to grow in 2013. The economic crisis encouraged many organisations to look closer at cloud computing models such as Software-as-a-Service, and there are estimates that the majority of Mexico's large companies have conducted cloud pilots.
Vendors have reported faster than expected growth in demand for cloud services in some IT verticals, such as finance. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Mexico IT Sector SWOT 7
Mexico Telecommunications Sector SWOT 8
Mexico Political SWOT 9
Mexico Economic SWOT 10
Mexico Business Environment SWOT 11
Americas Risk/Reward Ratings 12
Table: Americas IT Risk/Reward Ratings 14
Americas IT Market Overview 15
IT Penetration 15
Market Overview 23
Government Authority 23
IT Services End-User Analysis 32
Industry Developments 33
Industry Forecast 36
Table: Mexico IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2010-2017 39
Industry Forecast Internet 40
Table: Telecoms Sector, Internet , 2010-2017 40
Competitive Landscape 42
IT Services 46
Macroeconomic Forecast 49
Table: Mexico - GDP Contribution To Growth, 2008-2016 52
Company Profiles 53
Sonda SA 53
Country Snapshot 64
Table: Mexico's Population By Age Group, 1990-2020 ('000) 65
Table: Mexico's Population By Age Group, 1990-2020 (% of total) 66
Table: Mexico's Key Population Ratios, 1990-2020 67
Table: Mexico's Rural And Urban Population, 1990-2020 67
BMI Methodology 68
How We Generate Our Industry Forecasts 68
IT Industry 68
IT Ratings - Methodology 69
Table: IT Business Environment Indicators 70
Table: Weighting Of Components 71