BMI View: The development of Lebanon's IT market was disrupted by domestic political inertia andregional security risks over 2011-2016 - and although there are still significant downside risks remaining,we anticipate the IT market will move to a stronger growth trajectory from 2017. This should unlock pentupdemand, which will be strongest in the software and services segments but less so in hardware, whereproduct trends are unfavourable. We forecast total IT spending will increase at a CAGR of 5.2% over2017-2021.
Latest Updates And Industry Developments
Computer Hardware Sales: LBP281.3bn in 2017 to LBP308.0bn in 2021, +2.3% compound annualgrowth rate (CAGR) in local currency terms. The potential return to PC spending growth is challenged bysmartphones, which are eroding the tablet/low-end notebook use case, while demographics are also adrag.
Software Sales: LBP78.6bn in 2017 to LBP111.3bn in 2021, +9.1% CAGR in local currency terms.Upside potential exists in the form of investment from key verticals including tourism, financial servicesand ICT that will drive growth in demand for enterprise applications.
IT Services Sales: LBP203.3bn in 2017 to LBP269.4bn in 2021, +7.3% CAGR in local currency terms.Telecoms liberalisation and cloud services availability will boost spending by the financial services, BPOand tourism verticals.