South Korea Information Technology Report Q2 2014

Apr 8, 2014 - Business Monitor International - 77 pages
Abstract Table of Contents Request Details Related
We have a positive outlook for the development of the South Korean IT market during 2014 to 2018. We forecast market value will increase at a CAGR of 7.3% over the forecast period to 2018 to reach a value of KRW31.3trn in 2018. Growth rates will be lower than emerging markets in APAC, but considering the advanced state of the South Korean market, these growth rates are robust. Our positive outlook is based on the continued strength of the hardware market, where demand is supported by short replacement cycles and demand for the latest innovative devices such as tablets and hybrids. Meanwhile, we also expect South Korea to strengthen its position as a leading enterprise IT market through the adoption of cloud computing services and emerging technologies such as machine-to-machine (or smart) infrastructure, and big data analytics.

Headline Expenditure Predictions
  • Computer Hardware Sales: KRW5,703bn in 2014 to KRW6,975bn in 2018; compound annual growth rate (CAGR) of +5.2% in local currency terms. South Korea was one of the first markets where demand for hybrid form factors gained momentum in 2013, and will make a positive contribution to value growth over the medium term.
  • Software Sales: KRW7,997bn in 2014 to KRW10,301bn in 2018, CAGR of 6.3% in local currency terms. The security software market is poised for strong growth due to tensions with North Korea, with local firms expected to benefit.
  • IT Services Sales: KRW9,865bn in 2014 to KRW14,057bn in 2018, CAGR of 9.2% in local currency terms. Emerging technologies such as cloud computing, big data analytics and the Internet of Things will add to demand for traditional IT services.
Key Trends And Developments

The South Korean government has maintained focus on supporting the development and adoption of emerging technologies to position the country as a regional, or even global, leader. In March 2014 the South Korean Science, ICT and Future Planning Ministry announced it would inject KRW4.9trn (US$4.6bn) in information infrastructure in 2014. Key areas targeted for investment in 2014 include KRW302bn for cyber security, KRW68bn for mobile technologies and KRW243bn for Internet of Things (machine-to-machine communications). BMI believes government financial assistance, combined with the gravitational effect of major domestic IT firms such as Samsung Electronics, LG and SK Hynix puts South Korea in a strong position to emerge as a regional hub for Internet of Things and cyber security over the medium term.

Cyber security is a pertinent issue in South Korea, and has been for a number of years due to tensions with its northern neighbour. Following another large-scale attack in June 2013, the government created a cyber security policy group, which is pursuing sector-specific initiatives (ie, requirements on the financial sector to build portioned networks), and is embarking on an effort to train large numbers of security experts. BMI believes the new proactive government approach, combined with growing demand from domestic enterprises, could see South Korea be a leading innovator in cyber security technology.

Order This Report

Once you’ve selected your preferred license option, hit ‘order now’ to complete the checkout process using any major credit card, check or wire/bank transfer.
MC, Visa, AMEX, Diners, Discovery, JCB

The Fast Market Research Advantage
Only the Best
All of our research is sourced from the most trusted and established global analysts and consultancies

Client Focused
From start-ups to multinationals, we focus on providing the right research to our diverse client base

Shop Securely
Our US-based customer service team and eCommerce systems adhere to highest data security standards

Industry-leading Customer Support
Individualized assistance from our expert staff is never more than an email or phone call away

About the Publisher
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including Daily Alerts, monthly regional Insights, and in-depth quarterly Country Forecast Reports.