Bangladesh IT Market Moves Forward Despite Social & Political Landmines, Springboard Research Finds
Announcement posted by Springboard Research 01 Sep 2005
In spite of mounting social and political upheavals, the Bangladesh IT market continues to overcome challenges and post solid growth, reveals Springboard Research. A recent Springboard Research study on the Bangladesh IT market found that domestic IT spending amounted to US$235 million in 2004, an increase of 9% over the previous year.
"Amid natural disasters, economic setbacks, political instability and social unrest, the nascent Bangladesh IT market has managed to continue moving forward", said Dane Anderson, Vice President for Springboard Research. "The August bombings are yet another challenge for the market to overcome, but amidst the volatility public programs, NGO support, multinational vendor investment and a resilient business community are generating IT market growth."
The IT market in Bangladesh is heavily dependent on hardware, which represents more than 75% of total IT spending. The software market is stifled by the early state of market development and prevalent piracy, which exceeds 90% in the consumer market.
The government sector accounts for over 40% of total spending, and NGO investment is a major driver for market expansion. Besides these two key market segments, the finance and telecommunications industries are vital. Collectively, these four segments represent over 70% of total IT spending in the country.
"The boost provided by NGOs such as the World Bank and ADB in Bangladesh is crucial to the continued development of the market", said Mr. Anderson. "The multi-million dollar investments from these bodies drive spending in the government, finance, education and small and medium business (SMB) market segments, making them a particularly important growth catalyst".
Personal computers, which represent the largest portion of the market, registered shipments in excess of 135,000 in 2004. The PC market is led by the commercial desktop segment- which represents over 70% of total shipments- followed by the consumer desktop market with a 26% share. Similar to other emerging markets, assembled PCs and small local brands represent roughly 75% of total PC shipments in the country. Among branded players, the market is led by HP, IBM and Dell.
Key challenges for the market in the next 5 years will continue to be social and political uncertainties. Furthermore, a lack of IT skills in the country and poor IT education are also growth inhibitors. However, low PC penetration (1 PC installed for every 232 people in the country), economic growth commonly above 5% and several government and NGO programs will continue to push the market forward. Although forecasts were made before the latest bout of civil unrest, Springboard forecasts PC shipment growth in excess of 10% over the next several years.
"Amid natural disasters, economic setbacks, political instability and social unrest, the nascent Bangladesh IT market has managed to continue moving forward", said Dane Anderson, Vice President for Springboard Research. "The August bombings are yet another challenge for the market to overcome, but amidst the volatility public programs, NGO support, multinational vendor investment and a resilient business community are generating IT market growth."
The IT market in Bangladesh is heavily dependent on hardware, which represents more than 75% of total IT spending. The software market is stifled by the early state of market development and prevalent piracy, which exceeds 90% in the consumer market.
The government sector accounts for over 40% of total spending, and NGO investment is a major driver for market expansion. Besides these two key market segments, the finance and telecommunications industries are vital. Collectively, these four segments represent over 70% of total IT spending in the country.
"The boost provided by NGOs such as the World Bank and ADB in Bangladesh is crucial to the continued development of the market", said Mr. Anderson. "The multi-million dollar investments from these bodies drive spending in the government, finance, education and small and medium business (SMB) market segments, making them a particularly important growth catalyst".
Personal computers, which represent the largest portion of the market, registered shipments in excess of 135,000 in 2004. The PC market is led by the commercial desktop segment- which represents over 70% of total shipments- followed by the consumer desktop market with a 26% share. Similar to other emerging markets, assembled PCs and small local brands represent roughly 75% of total PC shipments in the country. Among branded players, the market is led by HP, IBM and Dell.
Key challenges for the market in the next 5 years will continue to be social and political uncertainties. Furthermore, a lack of IT skills in the country and poor IT education are also growth inhibitors. However, low PC penetration (1 PC installed for every 232 people in the country), economic growth commonly above 5% and several government and NGO programs will continue to push the market forward. Although forecasts were made before the latest bout of civil unrest, Springboard forecasts PC shipment growth in excess of 10% over the next several years.