World Demand for Information Technology is Still on the Move

 In Entering Foreign Markets, Featured

The USA is still the biggest market for information technology, but that will change within the next five years. China will overtake the USA as the world’s biggest market for almost anything.

These 25 countries make up more than 80% of world demand for information technology products and services with 204 countries sharing the remaining 19,56%. This doesn’t mean that these 25 markets are the most attractive as issues other than size may play a more important role.

The six countries USA, China, India, Japan, Germany and Russia make up over half of the world’s demand for information technology.

The world consists of 229 countries and many more markets

The world market is divided into 229 countries of which some of the bigger countries must be considered as several markets. Talking about the US 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 US is at least 50 geographical markets, Germany is 14 markets (Bundesländer), France is at least 4 markets, the UK is 4 markets, the Nordics are 4 markets and so on.

World demand is still on the move

The Americas have experienced a decline in this period due to an additional drop in the demand from Central and South America. Europe has stabilized its share of global demand with a slight increase in the European Union and in the rest of Europe. North America and Europe continue to be very interesting areas with some of the biggest markets in the world and because of increasing labor costs and public expenditure, there is a growing need for information analytics, process and cost optimization information technology-based solutions. The slight decline in the Middle East from 2017 is most likely an impact of the changes in the oil price. Future growth in the Middle East will require a restructuring of the economies away from the dependency on oil and gas. China continues its growth and has consolidated its position as the second largest information technology market in the world.

The growth in China has levelled off and our 2017 prediction that they would outgrow the USA as the world largest market in 2018 will not happen in this decade, but in the next for sure.

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