Ukrainian IT market worth €1bn
In 2010 IT products and services sales bounced back. Ukraine got some economic recovery after the financial crisis and political stability after the presidential and local elections. According to the latest report by the research company PMR, the value of the Ukrainian IT market grew last year by 29.6%, and crossed €1bn. In terms of local currency the dynamic was even more impressive and neared 35%. Market growth was driven by hardware sales, specifically by purchases of the notebooks, which increased in value by more than two thirds year on year. However, IT services and the sales of software licenses also showed a double digit growth.
Overall, during the last two years since 2008, when the market reached its maximum, IT spending in Ukraine lost approximately 40% of their value if measured in Euro. The economic crisis in the country impacted both private consumers and companies which reduced IT budgets. Public IT spending on IT under the national programmes dropped twice in 2009 and the number of programmes was reduced to 15 from 18 in 2008. Spending from the local budgets was also limited to maintenance and support. “Ukrainian government even issued a letter in 2010 forbidding regional authorities to buy computers” – adds Pawel Olszynka, an IT&Telecoms market analyst at PMR.
In 2009, there was actually one significant IT project in the country related to the development of IT infrastructure for Donbass Arena, the sport stadium built for Euro 2012 Football Cup. Ukrainian corporate sector recovered IT spending only in 2010, implementing mainly the postponed projects due to uncertainty related to the economic crisis.
One of the key features of the Ukrainian IT market is its very strong hardware orientation. Last year, an estimated share of hardware sales in the total sales on the Ukrainian IT market reached almost 80%, while IT services and software had 12.7% and 7.5% shares, respectively. Significant share of the hardware in total IT spending became one of the reasons for sharp market decline in 2009 when the customers massively postponed an upgrade of their computers for better times or cancelled new spending on the hardware.
The share of hardware spending in the total demand for IT products and services in Ukraine also indicates low hardware market maturity, especially in the households. In 2010, there were approximately 20-21 personal computers per 100 of population in the country. This means that hardware spending will continue playing an important role in Ukraine during the next several years. One the other hand the low hardware maturity in the country also explains high volatility of the sales on the market. The decline in the sales in the segments of software and IT services was much smaller in comparison to the hardware sales in 2009. Hardware sales experienced a sharp decline in the retail segment, and smaller contraction of corporate IT spending helped to maintain software and services market. Still, in 2010, when Ukrainian economy gained some stability, consumers restarted to buy laptops pushing the market up.
In 2011-2012 the Ukrainian IT market is expected to maintain its dynamic growth. The Euro 2012 soccer cup, industrial cooperation projects with Russia and also the recovery of banking financing are expected to drive economic recovery and, as a result, demand for IT. Two years of crisis led to an accumulation of significant so-called postponed demand for IT systems, which is going to come to the IT market in 2011-2012. The managers of Ukrainian IT companies PMR canvassed have also recently become more optimistic and confident in the sales growth in 2011-2012.
For further information chceck PMR report:IT market in Ukraine 2011 http://www.pmrpublications.com/online_shop/IT-market-Ukraine-2011.shtml
PMR (www.pmrcorporate.com) is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern European countries as well as other emerging markets. PMR's key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). Being present on the market since 1995, employing highly skilled staff, offering high international standards in projects and publications, providing one of most frequently visited and top-ranked websites, PMR is one of the largest companies of its type in the region.
ul. Dekerta 24, 30-703 Krakow, Polska
tel. /48/ 12 618 90 00, fax /48/ 12 618 90 08
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Ukrainian IT market worth €1bn here
News-ID: 186388 • Views: 1863
More Releases from PMR Ltd
60% of Polish SMEs use IT services
Approx. 60% of small and medium sized enterprises use IT services in Poland. Some 30% of SMEs declare to employ people responsible for IT. The number of portable computers used by SMEs has been growing. On average, there are five such computers per one SME. The proportion of companies which use EU funds to finance ICT development has gone down over the last two years. Use of IT services According to the
Ukrainian IT industry to keep on growing in 2012-2013
In the last two years Ukrainian IT market has been recovering after a sharp decline experienced in 2009. The market will continue to record double digit growth rates in 2012-2013. The macroeconomic and political situation will remain of crucial importance in the country. Current situation and key trends According to the latest report “IT market in Ukraine 2012. Development forecasts for 2012-2017” published by PMR, a market research company, the total
Retail grocery market to provide €117bn in 2014 in the CE region
PMR estimates that in 2011 the grocery market in six Central European (CE) countries was worth nearly €107bn, 2.8% more than the previous year when expressed in local currencies. The increase was generated foremost by the discount stores and supermarket segments, and was driven by the skyrocketing prices of foodstuffs. Schwarz Group, which operates the Lidl and Kaufland chains, is a leading grocery player in the CE region – as
Hungarian construction market to recover in 2013-2014
After a poor 2009-2012 for the Hungarian construction industry, from 2013 a visible market recovery is expected. The growth in 2013-2014 will result from the intense execution of EU co-financed infrastructure investments as well as some revival in building construction, particularly in non-residential buildings. According to the research company PMR’s latest report, entitled “Construction sector in Hungary 2012 – Development forecasts for 2012-2014”, weak macroeconomic environment, falling investment demand and poor
More Releases for Ukrainian
Ukrainian bearing plant discovers Turkish market
In 2018, Kharkov Bearing Plant (HARP) share export was 64 %. This year the company is going to increase this index up to 70 %. HARP is going to begin 2019 with the entering the Turkish market. The first steps for this will be a debut participation of HARP in the international agricultural exhibition AGROEXPO, which will take place in Izmir on February 7-10. “Turkey is a prospective market for
Ukrainian HARP enters Canadian market
Within demonstration tour Discover HARP, Kharkov Bearing Plant (HARP) starts to move further to the Canadian market. On September 11-13, the leading domestic producer of bearing products will take part in the largest agricultural exhibition of the North American continent – Canada's Outdoor Farm Show. HARP will become the only Ukrainian producer, which will present the bearings for agricultural sector at this event. “70-years production experience allows us to satisfy the
LOZOVA MACHINERY JOINED THE UKRAINIAN AGRIBUSINESS CLUB
LOZOVA MACHINERY joined the Ukrainian Agribusiness Club (UCAB) and became the only domestic producer of the agricultural implements among the association members. “To be the first and the best is that LOZOVA MACHINERY is seeking to and what unites our company and UCAB”, – Roman Girshfeld, Vice President Sales and Marketing, points out. The own unique developments and patented solutions, implemented in LOZOVA MACHINERY tools, allowed the company to be the first,
Ukrainian biofuel industry receives tax benefits
By the 18-th of January 2010 the Ministry of Industrial Policy of Ukraine received 7 requests to proceed with a concessionary import of equipment, used within the industry of renewable fuels. Following information has been provided by the press-service of consulting company FuelAlternative. On January 1, 2010 Ukrainian government validated a law “On making changes and additions to the tax policy of Ukraine in order to facilitate production and
New member of Ukrainian Hi-Tech Initiative
21 May 2007, Kiev. Ukrainian Hi-Tech Initiative membership increased with a new company – “Krendls” (Dnepropetrovsk). “Krendls” is the European software development company located in Ukraine with the representative office in Germany. The company started its operation in 2006. Now it is a dynamically growing company providing fast and highly-functional solutions for B2B and B2C segments. Main development interests of “Krendls” are closer partnership with European companies as well as
Mirasoft Group Enters Ukrainian Hi-Tech Initiative
Mirasoft Group became a member of the Hi-Tech Initiative – Ukrainian Alliance of Offshore Software Development and IT companies. Thus the company confirms its status of an active player of Ukrainian IT industry and undertakes further to invest into development of IT society in the country on the ground of the long time experience of successful work in the industry. Mirasoft Group membership in Hi-Tech Initiative is a harmonic sequel of