EITO Newsletter June 2009

In the beginning of June we have released new data and analyses on IT and telecom markets in Europe. This includes up-to-date estimates for 2009 and forecasts for 2010.

All segments have been updated except for the IT equipment data. Those are scheduled to be updated within the next weeks.

All 1-year-subscribers can access the data now in the member section of the portal.

The DigiWorld Summit 2009, which is taking place on 18 and 19 November in Montpellier, France, will be devoted this year to the theme of “Open Innovation”.

Now its 31st year, the DigiWorld Summit has earned a reputation over the years as one of Europe’s foremost events for taking stock of the changes at work in the mobile, broadband, Internet and television sectors.

EITO is an official partner of this event. As a member of ACSEL you are eligible for a 25% discount. To take advantage of it, please download the special form and return it to the address indicated on the form, either by fax or by the post.

The European high-tech market is set for a rapid rebound following a growth intermission.We project a 1.7% decline in sales of information and communications technology products and services in the EU in 2009 to €716.6 billion. Next year the market is seen rebounding 0.3% to €718.6 billion. Though exposed to the effects of the economic crisis, the European high-tech industry will not be hit as hard as many other sectors.

The IT and Telecom sector thus is faring significantly better than the overall economy. The EU Commission and OECD anticipate the European Union’s gross domestic product (GDP) to contract by 4% this year. The EU telecommunications market will amount to €362 billion, nearly unchanged versus the previous year’s level after a 0.1% decrease for 2009. Major shifts are underway however among the different market segments. Europe-wide, fixed voice telephony services will fall 6.8% to €70.2 billion. Consumers are increasingly switching from fixed to mobile and internet telephony. Both wireless and fixed-line data services are booming. Sales from internet access fees are projected to rise 7.2% in 2009 to €36.3 billion. The mobile telephony market will stagnate at €109 billion despite an increasing number of users. Cut-throat price competition and regulations emanating from Brussels are weighing on mobile providers’ sales. Driven by the recovery of the mobile phone market EITO expects that the telecom market will grow 1.0% in 2010 to €365.7 billion.

The IT market volume will decline 2.2% in 2009 to €296 billion, dragged down by a projected 6.6% fall in sales of IT hardware to €85.7 billion. Hardware sales are plagued by falling prices and companies putting off IT investments. Software and IT services are only down a moderate 0.3% to €210.4 billion. Right now the amount of IT spending being done varies according to the user segment. While buying is restrained on the part of manufacturing and automotive sectors, which have been sharply impacted by the crisis, the public sector and utilities are spending more. Companies are more selective in their investing behavior, but are more than ever interested in enhancing efficiency through new technologies. This is reflected in an expected 5% increase in sales of outsourcing services Europe-wide, to €65.8 billion. In 2010 the overall IT market will increase 0.6% up to €297.9 billion. In 2010 the overall IT market is forecast to resume growth of 0.6% to €297.9 billion.