25/07/2014 - Brazil is the fastest growing IT nation

EITO REPORT

• ICT sales in Brazil rise by 10.4 percent in 2014
• Industry grows by 4.1 percent to almost 3 trillion euros worldwide
• EU accounts for 21 percent of the global market

Berlin, 25 July 2014

Brazil is this year’s fastest growing IT nation. Sales of products and services in information technology and telecommunications are expected to increase by 10.4 percent to 122 billion euros in 2014. Last year, Brazil came second behind India; the Indian ICT market grew by 11.7 percent in 2013. With an increase of 7.8 percent to 56 billion euros, India is this year ranked only third in market growth behind China with an increase of 8.8 percent to 303 billion euros. These are the results of a recent study by the European Information Technology Observatory (EITO). “With the exception of Russia, the IT markets of the BRIC states are continuing to grow significantly faster than the world market. That’s good news for these emerging economies, as digitalisation creates additional growth and thus employment and prosperity”, says EITO Chairman Axel Pols.

Worldwide, the ICT industry is expected to grow by 4.1 percent to 2.96 trillion euros this year. The telecommunications market will show above-average growth of 4.5 percent to 1.79 trillion euros, according to the forecast; while sales of telecommunications infrastructure are set to increase significantly by 7.6 percent to 440 billion euros, telecommunication services will rise by only 3.6 percent to 1.35 trillion euros. Growth drivers here are mobile data services with an increase of 11.1 percent to 365 billion euros.

According to the forecast, information technology will grow by 3.4 percent to 1.17 trillion euros, but will see a significant spread between segments. While the software business is set to grow by 6.1 percent to 313 billion euros, sales of IT hardware will increase by just 0.8 percent to 354 billion euros. IT services are expected to rise by 3.7 percent to 506 billion euros. With almost 27 percent, the USA continues to hold the largest share of the ICT market in 2014. The EU claims approximately 21 percent, of which the UK and Germany account for equal global market shares of 4.2 percent each. The BRIC states Brazil, Russia, India and China combined make up 18 percent.

The new international EITO market report is available online: http://www.eito.com/internationalreports