BMI View: Total IT spending is forecast to increase at a CAGR of 4.3% over 2017-2021, with the increaseunderpinned by higher levels of enterprise spending on software and services. Capability-enhancing andefficiency-generating solutions will be the main area of outperformance, while vendors can also benefitfrom targeting enterprises establishing in Hong Kong as a regional hub. The outlook is, however, weak forhardware spending because of PC market saturation, negative demographics and the threat posed bysmartphones to tablet and low-end notebook demand.
Latest Updates & Industry Developments
Computer Hardware Sales: HKD13.6bn in 2017 to HKD14.1bn in 2021, a CAGR of 0.8% in localcurrency terms. The lull that followed the tablet boom is drawing to a close, but with demandcannibalisation by smartphones affecting the market at the margins the growth outlook is subdued.
Software Sales: HKD13.9bn in 2017 to HKD17.3bn in 2021, a CAGR of 5.6% in local currency terms.
Data analytics and cybersecurity solution adoption by enterprises is a positive trend - with the financialservices, retail, and logistics industries all having positive outlooks.