2014 Singapore IT Report from Business Monitor International

Taken from

Singapore Information Technology Report
Published 10 October 2014

BMI View:   W e have a positive outlook for the growth of Singapore's IT market , which will underperform emerging market growth rates, but is expected to outperform against other developed markets. Strong income growth, exposure to the APAC growth story and government policy will all support IT market growth over the medium term. Growth from the sales of PC and devices will slow as high device penetration in the city state means little prospect for first time sales , but short replacement cycles and strong demand for premium devices will ensure it remains a lucrative market for vendors . Considering the government active push to promote Singapore as a destination for cloud, big data and analytics services, Singapore should be a strong contender in the data centre space against peers such as Australia, Taiwan, South Korea and Hong Kong.

Headline Expenditure Projections 

Computer hardware sales forecast to increase from SGD 2.926 bn in 2014 to SGD 3.333 bn in 2018, equating to a compound annual growth rate (CAGR) of 3.5% in local currency terms. The slowdown in tablet sales represents downside by a stabilisation in desktop and notebook volumes will see the market continue to grow over the medium term.

Software sales forecast to increase from SGD 1.436 bn in 2014 to SGD 1.733 bn in 2018, representing a CAGR of 5.2% in local currency terms. SME demand for basic enterprise software (particularly SaaS), complex deployments by large enterprises and investments in security software will all be growth areas.

IT Services sales forecast to increase from SGD 3.236 bn in 2014 to SGD 4.091 bn in 2018, equating to a CAGR of 5.9% in local currency terms. Growing demand for cloud computing, big data and analytics services from telecoms, healthcare, logistics and government will support IT services outperformance.

Key Trends And Developments

Like most developed markets, the boom in tablet sales has been the most prominent development in the PC market in recent years.