Croatia Information Technology Report 2013
- ID: 2373702
- January 2013
- Region: Croatia
- 66 pages
- Business Monitor International
Croatian IT spending is estimated by BMI at around US$1.0bn in 2012, with low single-digit growth from US$1.0bn in 2011, when the IT market remained affected by the economic situation. EU entry in 2013 should provide a boost to IT investments, and although IT spending will remain constrained in H113 due to economic headwinds, an improvement is expected in the second half of the year. The market is forecast to offer areas of opportunity in 2013, particularly related to EAS software and EUfunded modernisation projects, and growth should be faster after 2014 as the economy recovers.
However, with Croatia's economy struggling to lift itself from recession, pre-crisis 2008 IT spending levels are not expected to be regained until towards the end of our five-year forecast period.
Headline Expenditure Projections
Computer hardware sales: US$531mn in 2012 to US$542n in 2013, -2% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors and strong tablet sales have constrained sales of traditional notebooks.
Software sales: US$173mn in 2012 to US$181mn in 2013, +5% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors but the SME market for EAS software represents an opportunity.
IT services sales: US$306mn in 2012 to US$319mn in 2013, +4% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors but EU entry should drive IT services spending, particularly from government.
Croatia scored 51.8out of 100.0. Croatia has risen one place to ssixth in our latest Europe RRR table, behind Russia, but ahead of Serbia, Hungary and Turkey.
Key Trends & Developments
- The government is expected to be the fastest-growing Croatian IT spending vertical over the 2013-2017 period, due largely to EU-driven modernisation projects, which could see the government's IT spend double by 2015. The combined government sector also remains the largest spender on IT products and services, unsurprising bearing in mind that the state still owns a wide range of companies across sectors like transport, telecoms, oil and gas, media and insurance.
- Communications is another of the largest IT-spending verticals in Croatia, accounting for around 25% of total ICT spending. Telecoms companies such as Vipnet are rolling out LTE mobile services, which will continue to drive IT spending on both the Capex and Opex sides. IT spending accounts typically for around 20% of total Croatian bank Capex/Opex spending. In 2013, spending on IT will be driven by support of new services and customer acquisition and key trends will include mobile banking.
- Tablets should also receive a boost from the roll-out of high-speed mobile networks in the country. BMI estimates that tablets will capture around 20% of the Croatian PC market in 2013 in terms of volume, although this will depend in large part upon pricing. Tablets have already emerged from their early-adopter phase and while they are not yet mainstream devices, take-up will grow as more services tailored to tablets are introduced in Croatia SHOW LESS READ MORE >
Executive Summary 5
Table: Croatian IT Use 6
SWOT Analysis 7
Croatian IT Sector SWOT 7
Croatian Telecommunications Industry SWOT 8
Croatia Political SWOT 9
Croatia Economic SWOT 9
Croatia Business Environment SWOT 10
Europe Risk/Reward Ratings 11
Table: Europe Risk/Reward Ratings 13
Europe IT Markets Overview 14
IT Penetration 14
Sectors And Verticals 19
Market Overview 23
Government Authority 23
End-User Analysis 30
Industry Developments 31
Industry Forecast 34
Table: Croatia IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017 36
Industry Forecast Internet 37
Telecoms Sector - Internet - Historical Data & Forecasts 37
Competitive Landscape 39
IT Services 41
Macroeconomic Forecast 43
Table: Croatia - Economic Activity, 2011-2016 45
Company Profiles 46
Microsoft Corporation 46
Oracle Corp 51
M San Group (M San Grupa) 55
HG Spot 56
Country Snapshot 58
Table: Croatia's Population By Age Group, 1990-2020 ('000) 59
Table: Croatia's Population By Age Group, 1990-2020 (% of total) 60
Table: Croatia's Key Population Ratios, 1990-2020 61
Table: Croatia's Rural And Urban Population, 1990-2020 61
BMI Methodology 62
How We Generate Our Industry Forecasts 62
IT Industry 62
IT Ratings - Methodology 63
Table: IT Business Environment Indicators 64
Table: Weighting Of Components 65