Singapore Information and Communications Technology Industry Report - 2014

Singapore Information and Communications Technology Industry Report - 2014

This report profiles Singapore’s information and communications technology (ICT) industry, discussing market trends and outlook through 2014 and beyond. The report also highlights leading players in the sector including Singapore Telecommunications Ltd, StarHub Ltd and M1 Ltd.

Singapore’s ICT or infocomm industry saw a period of high growth during the last decade. Among the major Southeast Asian nations, Singapore had the highest penetration rate of mobile cellular subscriptions. The government has played a proactive role in promoting the country’s ICT industry. Its vision is to transform Singapore into an intelligent nation (iN2015) powered by infocomm by 2015. As part of the iN2015 master plan, Singapore is looking into deployment of seamless, trusted and intelligent infrastructure that can support and enhance the sector. Next Generation National Infocomm Infrastructure (Next Gen NII) is part of this initiative, which comprises a nationwide ultra-high speed fiber access infrastructure called the Next Generation Nationwide Broadband Network (Next Gen NBN) accompanied by a countrywide wireless network.

The ICT sector comprises five major segments: hardware, software, telecommunication services, information technology services, and content services. Hardware was the dominant segment in terms of total revenues as of 2013. Singapore is suited for hardware production because of its high-quality manufacturing systems that is backed by an established ecosystem of component manufacturers, EMS companies and logistics service providers. Singapore is also home to more than 80 of the top 100 software and services companies. Many companies, including the top 15 software firms, have regional or Asia Pacific headquarters in the country. IT services consisting of network and data management services form the backbone of the ICT sector. The advent of smart phones has brought a spurt in data related revenues for telecommunication firms. On the other hand, fixed line services are slowly but gradually losing subscriber base in the country.

The future of Singaporean ICT sector will be driven by cloud computing, social media, mobile devices and data usage of subscribers. Data traffic is growing at an exponential rate due to the rising popularity and use of social media and mobile applications. Advent of smart phones and tablets is further fuelling the rise in this traffic. The rise in penetration of smart phones and growing data usage will also require investment in infrastructure and network management services.

Key Points:

• Hardware was the dominant segment accounting for around 71% of total revenues as of 2013. The segment grew at a CAGR of 21% during 2007-13 and was responsible for driving the sector's growth. Other segments accounted for the remainder 29% and saw a subdued growth of 4.3% during the same period.

• 8% of the ICT industry’s revenue came from the software segment as of 2013. Software revenues are primarily generated from selling or licensing software.

• 8% of the ICT industry’s revenue came from the telecommunication services segment as of 2013. The annual revenue of the telecommunication services segment grew at a CAGR of 4% over the last six years.

• Singapore’s ICT sector saw a story of contrasting fates in 2013. While there was steep growth in the revenues of the hardware, content services and IT services segment; the growth of telecom services and software segment remained subdued.<

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-Singapore
2.2 Hardware segment
2.3 Software segment
2.4 Telecommunication services segment
2.4.1 Mobile cellular services
2.4.2 Fixed line services
2.4.3 Internet and broadband services
2.5 IT services segment
2.6 Content services segment
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Singapore Telecommunications Limited (SingTel)
3.1.2 StarHub Limited (StarHub)
3.1.3 M1 Limited (M1)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts

Table 1: World mobile cellular subscription statistics
Table 2: Key ratios of the leading players

Chart 1: Mobile cellular penetration rate across major Southeast Asian countries Chart 2: Size of Infocomm industry of Singapore
Chart 3: Breakup of infocomm industry of Singapore by segment revenue share
Chart 4: Size of the domestic market of Infocomm industry of Singapore
Chart 5: Size of the export market of Infocomm industry of Singapore
Chart 6: Constituent parties in parliament
Chart 7: Cost of business start-up procedures in 2013
Chart 8: Percentage change over previous year- GDP by Sector
Chart 9: Annual trade balance of Singapore
Chart 10: Current account balance of Singapore
Chart 11: Annual fiscal balance of Singapore
Chart 12: Average monthly USD to SGD exchange rate
Chart 13: Inflation during FY13-Singapore
Chart 14: GDP by sectors at factor prices
Chart 15: Percentage change over previous year- Infocomm sector
Chart 16: Annual revenues earned by the hardware segment
Chart 17: Breakup of ICT export revenue of Singapore by segments
Chart 18: Annual revenues earned by the software segment
Chart 19: Employed infocomm manpower in Singapore
Chart 20: Annual revenues earned by the telecom services segment
Chart 21: Mobile cellular penetration rate in Singapore
Chart 22: Mobile data usage in Singapore
Chart 23: Breakup of mobile subscriptions in Singapore by technology
Chart 24: Fixed line penetration rates
Chart 25: Breakup of fixed line subscriptions in Singapore by user type
Chart 26: Method of internet access by proportion of subscriptions
Chart 27: Broadband subscriptions in Singapore
Chart 28: Annual revenues earned by the IT services segment
Chart 29: Breakup of ICT domestic revenues by segments
Chart 30: Annual revenues earned by the content services segment
Chart 31: Y/Y growth in different segments of the Singapore ICT industry
Chart 32: Breakup of SingTel’s EBIDTA by regions
Chart 33: Net sales of SingTel
Chart 34: Profit margins of SingTel
Chart 35: Breakup of StarHub’s revenue by segment
Chart 36: Net sales of StarHub
Chart 37: Profit margins of StarHub
Chart 38: Breakup of M1’s revenue by segment
Chart 39: Net sales of M1
Chart 40: Profit margins of M1

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