World demand is on the move – The BECH Index 2014

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Looking-t-the-worldThe BECH Index reflects the relative share of global demand for information technology related products and services of each country in the world. Thus, with global demand = 100%, the BECH Index breaks down this demand by country. We have been calculating and publishing this index since 2010 and it is now widely used as a proxy for estimating market potential.

The world market is divided into 226 countries of which some of the bigger countries must be considered as several geographical markets. Talking about the USA as one market when you haven’t won the first customer or independent channel partner there yet may seem overly self-confident. For most information technology companies, the USA is at least 50 geographical markets, Germany is at least 14 markets (Bundesländer), France is at least 4 markets, the UK is 4 markets, the Nordics are 4 separate markets and so on.

BECH Index 2014

Table 1: The BECH Index for the Major Markets 2012-14

As can be seen from Table 1, world demand is on the move.

The Americas has a stable share of world demand, while Europe is loosing its share of global demand. Nevertheless, Europe continues to be a very interesting area with some of the biggest markets in the world and with a dramatic need for productivity improvements supported by all types of information technology solutions. The slight growth in the Middle East has most likely been negatively affected by the changes in the oil prices experienced lately and we should expect some changes here in the 2015 figures. China continues its growth and is now the second largest information technology market in the world.

I am sure you are wondering why we are releasing the BECH Index 2014 in 2016, but there are very valid reasons. We use national accounts statistics estimated and published by the CIA and can only produce our numbers when we have the data from our source.

Get the full whitepaper here: Entering Foreign Markets in the Information Technology Industry – The BECH Index 2014

 

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