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Sweden Information Technology Report Q2 2011

Sweden Information Technology Report Q2 2011

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Additional Information

Price	$530.00
Publisher	Business Monitor International
Date of Report	Apr 15, 2011

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Quick Overview

Market Overview The Swedish IT market is the largest in the Nordic region and despite economic headwinds it is projected to grow at a compound annual growth rate (CAGR) of 5% over 2011-2015. The addressable domestic market for IT products and services is forecast by BMI to reach US$16.00bn in 2011 and US$19.63bn by 2015.
The IT market should achieve solid single-digit growth in 2011, consolidating the recovery in 2010 from the effects of the economic crisis, although public sector demand was more stable. Swedish IT spending is expected to increase in 2011 with a boost from computers for schools purchases, a new digital agenda and growing interest in cloud computing services.
Industry Developments In early 2011, the government was consulting on the development of the Swedish Digital Agenda. The new agenda, like the consultations, is expected to be broad and cover areas ranging from the use of IT in healthcare to widening digital participation and using IT to generate jobs.
Swedish computer purchases are expected to grow to about 550,000 units by 2012, according to vendors’ projections. The increased rate of procurement is being driven by a transition towards the provision of a computer for every student in Swedish schools.
Competitive Landscape IT services vendors continued to report good results in 2010. Capgemini’s Sogeti Sweden subsidiary reported strong growth of 19% in December. European IT services provider Logica noted a pickup in its professional services business and revenues growth in Sweden in H210.
One factor behind the upturn was a revival of profitability in the key financial services segment. The drive to leverage emerging technologies such as cloud computing will support IT spending in the financial services sector. In April 2010, IBM signed a six-year IT services agreement with Nordea, the leading bank in the Nordic region.
Computer Sales BMI forecasts that Sweden’s addressable computer hardware market will be worth US$3.4bn in 2011, up from less than US$3.2bn in 2010. Total PC revenues, including notebooks, desktops and accessories, are estimated at nearly US$2.7bn and are expected to rise to US$3.4bn by 2015 at a CAGR of 6%.
In 2011, Swedish PC sales are expected to receive a boost from school computer purchases, while business sales should also grow, building on a stabilisation of the enterprise market in 2010 after global economic headwinds affected demand the previous year.
Software Sweden’s market software sales are forecast by BMI at US$5.1bn in 2011 and despite the uncertain economic conditions revenues are expected to rise to nearly US$5.9bn by 2015. The software CAGR over 2011-2015 should be about 4%. Drivers of software spending by Swedish companies include increasing the efficiency of global supply chains and logistics functions.
Cloud computing services such as software-as-a-service (SaaS) are likely to be used more in Sweden over BMI’s forecast period. Among the early adopters in the market is the hotel chain Scandic.
Services Sweden’s IT services spending is forecast to reach US$7.5bn in 2011, up from US$7.2bn in 2010. The economic crisis and political uncertainty had an impact in 2009, with projects put on hold, but demand stablised in 2010. The CAGR for this sector is expected to be 5% over the forecast period as the market reaches over US$9.4bn in 2015.
Demand for IT services such as systems integration (SI) and consulting made a moderate recovery in 2010 after the economic crisis meant reduced spending in some key IT services verticals that had previously driven IT spending. In 2011, there should more spending by sectors such as financial services, retail and telecoms.

Table of Contents

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 7
Sweden IT Sector SWOT ....................................................................................................................................................................................... 7
Sweden Political SWOT ........................................................................................................................................................................................ 7
Sweden Economic SWOT ...................................................................................................................................................................................... 8
Sweden Business Environment SWOT ................................................................................................................................................................... 8
IT Business Environment Ratings .................................................................................................................. 9
Europe .................................................................................................................................................................................................................. 9
Table: Regional IT Business Environment Ratings ............................................................................................................................................. 12
Europe IT Markets Overview ......................................................................................................................... 13
Sweden Market Overview .............................................................................................................................. 19
Government Authority ......................................................................................................................................................................................... 19
Background ......................................................................................................................................................................................................... 19
Hardware ............................................................................................................................................................................................................ 21
Software .............................................................................................................................................................................................................. 23
Services ............................................................................................................................................................................................................... 25
Vertical Focus: Banking And Financial Services ................................................................................................................................................ 27
Industry Developments ....................................................................................................................................................................................... 29
Industry Forecast Scenario ........................................................................................................................... 31
Market Trends ..................................................................................................................................................................................................... 31
Drivers ................................................................................................................................................................................................................ 32
Segments ............................................................................................................................................................................................................. 33
Table: Swedish IT Sector (US$mn unless otherwise stated) ................................................................................................................................ 33
Internet ............................................................................................................................................................................................................... 35
Table: Internet Sector, 2008-2015 ...................................................................................................................................................................... 35
Macroeconomic Forecast ................................................................................................................................................................................... 37
Table: Sweden – Economic Activity .................................................................................................................................................................... 39
Competitive Landscape ................................................................................................................................ 40
Hardware ............................................................................................................................................................................................................ 40
Software .............................................................................................................................................................................................................. 40
IT Services .......................................................................................................................................................................................................... 42
Country Snapshot: Sweden Demographic Data ......................................................................................... 44
Section 1: Population .......................................................................................................................................................................................... 44
Table: Demographic Indicators, 2005-2030 ....................................................................................................................................................... 44
Table: Rural/Urban Breakdown, 2005-2030 ...................................................................................................................................................... 45
Section 2: Education And Healthcare ................................................................................................................................................................. 45
Table: Education, 2002-2005 ............................................................................................................................................................................. 45
Table: Vital Statistics, 2005-2030 ....................................................................................................................................................................... 45
Section 3: Labour Market And Spending Power ................................................................................................................................................. 46
Table: Employment Indicators, 2001-2006 ......................................................................................................................................................... 46
Table: Consumer Expenditure, 2000-2012 (US$) ............................................................................................................................................... 46
Table: Average Annual Wages, 2000-2012 ......................................................................................................................................................... 47
BMI Methodology .......................................................................................................................................... 48
How We Generate Our Industry Forecasts ......................................................................................................................................................... 48
IT Industry .......................................................................................................................................................................................................... 48
IT Ratings – Methodology ................................................................................................................................................................................... 49
Table: IT Business Environment Indicators ........................................................................................................................................................ 50
Weighting ............................................................................................................................................................................................................ 51
Table: Weighting Of Components ....................................................................................................................................................................... 51
Sources ............................................................................................................................................................................................................... 51