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ICT Market Report 2016/17 Preface and Table of Contents

ICT Market Report 2016/17 © EITO in collaboration with IDC

Imprint Publisher

Bitkom Research GmbH Albrechtstraße 10 | 10117 Berlin

Register of companies: Amtsgericht Charlottenburg HRB 87370 BManaging Director: Dr. Axel PolsP +49.30.27576-560F +49.30.27576-51560www.bitkom-research.de

EITO SponsorsDeutsche Telekom AG | KPMG AG | Telecom Italia S.p.A.

With the support of:European Commission, DG Connect, DG GROW

Research PartnersThe report has been jointly prepared by IDC and the EITO Task Force on the basis of the information available as of June 2016.

EITO Task ForceEnrico Barella (Telecom Italia) | Antonio Cimorra (AMETIC) | Valerica Dragomir (ANIS) | Dana Eleftheriadou (EU Commission) | Andreas Fier (Deutsche Telekom AG) | Peter Heidkamp (KPMG) | Petar Indovski (MASIT) | Magali Merindol (DIGITALEUROPE) | Matthew Mille (TECH IN FRANCE) | Pierre Muckly (SWICO) | Axel Pols (Bitkom e.V.), Chairman | Loïc Rivière (TECH IN FRANCE) | Tiziano Rognone (ANITEC) | Yannis Sirros (SEPE) | Patrick Slaets (AGORIA) | Myriam Vassiliadou (SEPE) | Paulius Vertelka (INFOBALT)

EITO Project ManagementFranz Grimm | Katja Hampe

Layout and GraphicsKea Schwandt (Bitkom e.V.) | Katja Hampe (Bitkom Research)

Cover© gumpapa – fotolia.com

Copyright noteText, data, and tables/figures included in the EITO reports are subject to copyright law and must not be published without written permission of Bitkom Research. All excerpts of text, data, tables and figures rightfully used by third parties shall mention in a manner clearly visible for the reader the source of the publication and the year of appearance. If you wish to quote from this report, please provide us with a sample of the intended use of the information by e-mail to service@eito.com. This will enable us to ensure accuracy, currentness and the proper context.

Deutsche Telekom AG www.telekom.de

Telecom Italia S.p.A. www.telecomitalia.it

KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft, Wirtschaftsprüfungsgesellschaf-www.kpmg.com

The EITO project is sponsored by following companies and organizations (Gold sponsors):

ICT Market Report 2016/17 3 © EITO in collaboration with IDC

ICT Market Report 2016/17 4© EITO in collaboration with IDC

The EITO reports are prepared and distributed in cooperation with our partner organizations across Europe

Bitkom (Germany)Bundesverband Informationswirtschaft, Telekommunikation und neue Medienwww.bitkom.org

AGORIA (Belgium)Belgium Federation for the technology industrywww.agoria.be

AMETIC (Spain)Asociación multisectorial de empresas de la electrónica, las tecnologías de la información y la tecomunicación, de las telecomunicaciones y de los contenidos digitaleswww.ametic.es

ANIS (Romania)Employers' association of the software and services industry www.anis.ro

ANITEC (Italy)Associazione Nazionale Industrie Informatica,Telecomunicazioni ed Elettronica di Consumowww.associazioneanitec.it

DIGITALEUROPEEuropean umbrella organization for the digital technology industrywww.digitaleurope.org

TECH IN France (France)French Association of Software and Internet Companieswww.techinfrance.fr

INFOBALT (Lithuania)Association of the Lithuanian ICT industrywww.infobalt.lt

MASIT (Macedonia)Macedonian ICT chamber of commercewww.masit.org.mk

SEPE (Greece)Federation of Hellenic InformationTechnology & Communications Enterpriseswww.sepe.gr

SWICO (Switzerland)Schweizerischer Wirtschaftsverband derAnbieter von Informations-, Kommunikations- undOrganisationstechnikwww.swico.ch

ICT Market Report 2016/17 5© EITO in collaboration with IDC

PrefaceWe are happy to present the new edition of our ICT Market Report. Inside you find up-to-date information and insights on ICT market developments in Europe and beyond. The report was written before the British referendum on EU membership, therefore, we discuss its pos-sible impact but the outcome of the vote is not factored in our quantitative market forecasts. The Brexit is bound to negatively affect the European economy and ICT markets alike; to what extent, though, will also depend on further developments and decisions being taken in the UK and Brussels. Moreover, it is important to emphasize that the main market and technology trends that are analyzed in our new report remain valid and relevant despite the outcome of the British referendum.

As previous EITO reports the current edition is the result of a long-standing cooperation between Bitkom Research and a broad range of partners. Market data and analysis were provided by IDC, a leading global market intelligence firm. The report was produced in co-operation with a group of international ICT experts, the EITO Task Force. This group brings together experts from EITO partner associations across Europe, the EU Commission, well as our sponsors.

The ICT Market Report 2016/17 provides the reader with a big picture of key market trends as well as detailed information at the country level. The report focuses on developments in Europe while also covering major international ICT markets such as the U.S., Japan and China.

The report is structured as follows:

Section A examines the European ICT market. It includes two major chapters, the first present-ing an in-depth analysis of the market dynamics and trends in Western Europe and the second looking into developments in Central and Eastern Europe. Both chapters start with a compre-hensive analysis of developments at the regional level and then go on to present country find-ings. The scope of the country analyses varies. More detailed data and narrative are available for countries that are formally affiliated with the EITO project.

Section B includes ICT market data and forecasts for Brazil, China, India, Japan, Turkey, and the USA. Sections C presents data of the worldwide ICT market and Section D contains summary tables including all countries.

We are always interested in customer feedback. We are committed to continuous improvement to ensure our reports remain an important source of information and analysis for you, our cli-ents and readers.

Axel Pols Chairman, EITO Task Force

ICT Market Report 2016/17 6© EITO in collaboration with IDC

Table of ContentsImprint ___________________________________________________________________ 2 Preface ____________________________________________________________________ 5 Executive Summary _________________________________________________________ 12

A The European ICT Market _________________________________________________ 26

1 The ICT Market of Western Europe __________________________________________ 27

1.1 Western Europe: ICT Market Dynamics and KeyTrends ______________________ 27

1.1.1 Macroeconomic Developments Affecting the ICT Market ______________ 271.1.2 Key Technology Trends Reshaping the ICT Environment and Industry _____ 291.1.3 IT Market Developments by Segment _____________________________ 361.1.4 Telecommunications Market Development by Segment _______________ 42

1.2 Western Europe: Data Tables __________________________________________ 48

1.3 Western Europe: Country Analyses _____________________________________ 491.3.1 Belgium/Luxembourg _________________________________________ 491.3.2 France _____________________________________________________ 601.3.3 Germany ___________________________________________________ 721.3.4 Italy _______________________________________________________ 841.3.5 Greece _____________________________________________________ 971.3.6 Spain _____________________________________________________ 1091.3.7 Switzerland ________________________________________________ 1211.3.8 United Kingdom ____________________________________________ 132

1.4 Other Western European Countries: Data Tables __________________________ 1451.4.1 Austria ___________________________________________________ 1451.4.2 Denmark __________________________________________________ 1461.4.3 Finland ___________________________________________________ 1471.4.4 Ireland ___________________________________________________ 1481.4.5 Netherlands _______________________________________________ 1491.4.6 Norway ___________________________________________________ 1501.4.7 Portugal __________________________________________________ 1511.4.8 Sweden ___________________________________________________ 152

2 The ICT Market in Central and Eastern Europe ________________________________ 153

2.1 Central and Eastern Europe: ICT Market Dynamics and Key Trends ____________ 1532.1.1 Macroeconomic Developments Affecting the ICT Market _____________ 1532.1.2 Key Technology Trends Reshaping the ICT Environment and Industry ____ 1532.1.3 IT Market Developments by Segment ____________________________ 1572.1.4 Telecommunications Market Development by Segment ______________ 161

2.2 Central and Eastern Europe: Data Tables ________________________________ 166

2.3 Central and Eastern Europe: Country Analysis Serbia _______________________ 167

ICT Market Report 2016/17 7© EITO in collaboration with IDC

2.4 Other Central and Eastern European Countries: Data Tables _________________ 1772.4.1 Bulgaria __________________________________________________ 1772.4.2 Croatia ___________________________________________________ 1782.4.3 Czech Republic _____________________________________________ 1792.4.4 Estonia ___________________________________________________ 1802.4.5 Hungary __________________________________________________ 1812.4.6 Latvia ____________________________________________________ 1822.4.7 Lithuania __________________________________________________ 1832.4.8 Poland ____________________________________________________ 1842.4.9 Romania __________________________________________________ 1852.4.10 Russia ____________________________________________________ 1862.4.11 Slovakia ___________________________________________________ 1872.4.12 Slovenia __________________________________________________ 188

3 The ICT Market in the EU: Aggregate Data Tables ______________________________ 189

B The ICT Market in Non-European Countries __________________________________ 190

1 Brazil________________________________________________________________ 1912 China _______________________________________________________________ 1923 India ________________________________________________________________ 1934 Japan _______________________________________________________________ 1945 Turkey _______________________________________________________________ 1956 USA _________________________________________________________________ 196

C The Global ICT Market __________________________________________________ 197

D Summary Data Tables by Country __________________________________________ 199

Appendix ________________________________________________________________ 203

ICT Market Report 2016/17 8© EITO in collaboration with IDC

List of FiguresFigure 1: Global ICT market 2016, by country / region _______________________________ 15Figure 2: IT Budget Changes, 2014 and 2015 ______________________________________ 28Figure 3: Top Business Priorities in 2016 __________________________________________ 29Figure 4: Top Business Priorities in 2016 __________________________________________ 30Figure 5: Mobility as a Strategic Priority in Europe __________________________________ 31Figure 6: Use of Cloud Technologies in Western Europe ______________________________ 33Figure 7: Big Data Plans ______________________________________________________ 35Figure 8: Social Business Initiatives _____________________________________________ 36Figure 9: Belgium/Luxembourg, IT market value 2014-2017 __________________________ 49Figure 10: Belgium/Luxembourg, IT equipment market 2015-2017 _____________________ 50Figure 11: Belgium/Luxembourg, software market 2015-2017 ________________________ 52Figure 12: Belgium/Luxembourg, IT and business services market 2015-2017 _____________ 53Figure 13: Belgium/Luxembourg, telecommunications equipment market 2015-2017 ______ 54Figure 14: Belgium/Luxembourg, telecommunications services market 2015-2017 _________ 56Figure 15: France, IT market value 2014-2017 _____________________________________ 60Figure 16: France, IT equipment market 2015-2017 _________________________________ 61Figure 17: France, software market 2015-2017 _____________________________________ 63Figure 18: France, IT and business services market 2015-2017 _________________________ 64Figure 19: France, telecommunications equipment market 2015-2017 __________________ 65Figure 20: France, telecommunications services market 2015-2017 _____________________ 68Figure 21: Germany, IT market value 2014-2017 ___________________________________ 72Figure 22: Germany, IT equipment market 2015-2017 _______________________________ 73Figure 23: Germany, software market 2015-2017 __________________________________ 76Figure 24: Germany, IT and business services market 2015-2017 _______________________ 77Figure 25: Germany, telecommunications equipment market 2015-2017 ________________ 78Figure 26: Germany, telecommunications services market 2015-2017 ___________________ 81Figure 27: Italy, IT market value 2014-2017 _______________________________________ 84Figure 28: Italy, IT equipment market 2015-2017 ___________________________________ 85Figure 29: Italy, software market 2015-2017 ______________________________________ 88Figure 30: Italy, IT and business services market 2015-2017 ___________________________ 89Figure 31: Italy, telecommunications equipment market 2015-2017 ____________________ 90Figure 32: Italy, telecommunications services market 2015-2017 ______________________ 93Figure 33: Greece, IT market value 2014-2017 _____________________________________ 97Figure 34: Greece, IT equipment market 2015-2017 _________________________________ 99Figure 35: Greece, software market 2015-2017 ___________________________________ 101Figure 36: Greece, IT and business services market 2015-2017________________________ 102Figure 37: Greece, telecommunications equipment market 2015-2017 _________________ 103Figure 38: Greece, telecommunications services market 2015-2017 ___________________ 105Figure 39: Spain, IT market value 2014-2017 _____________________________________ 109Figure 40: Spain, IT equipment market 2015-2017 _________________________________ 110Figure 41: Spain, software market 2015-2017 ____________________________________ 112Figure 42: Spain, IT and business services market 2015-2017_________________________ 114Figure 43: Spain, telecommunications equipment market 2015-2017 __________________ 115Figure 44: Spain, telecommunications services market 2015-2017 ____________________ 117Figure 45: Switzerland, IT market value 2014-2017 ________________________________ 121Figure 46: Switzerland, IT equipment market 2015-2017 ____________________________ 122Figure 47: Switzerland, software market 2015-2017 _______________________________ 124Figure 48: Switzerland, IT and business services market 2015-2017 ____________________ 125

ICT Market Report 2016/17 9 © EITO in collaboration with IDC

Figure 49: Switzerland, telecommunications equipment market 2015-2017 _____________ 126Figure 50: Switzerland, telecommunications services market 2015-2017 _______________ 128Figure 51: United Kingdom, IT market value 2014-2017 _____________________________ 132Figure 52: United Kingdom, IT equipment market 2015-2017 ________________________ 133Figure 53: United Kingdom, software market 2015-2017 ____________________________ 135Figure 54: United Kingdom, IT and business services market 2015-2017 ________________ 137Figure 55: United Kingdom, telecommunications equipment market 2015-2017 _________ 138Figure 56: United Kingdom, telecommunications services market 2015-2017 ____________ 141Figure 57: Serbia, IT market value 2014-2017 _____________________________________ 167Figure 58: Serbia, IT equipment market 2015-2017 ________________________________ 168Figure 59: Serbia, software market 2015-2017 ____________________________________ 169Figure 60: Serbia, IT and business services market 2015-2017 ________________________ 170Figure 61: Serbia, telecommunications equipment market 2015-2017 _________________ 172Figure 62: Serbia, telecommunications services market 2015-2017 ____________________ 173

ICT Market Report 2016/17 10 © EITO in collaboration with IDC

List of TablesTable 1: Western Europe, ICT market value _______________________________________ 48Table 2: Western Europe, PC unit shipments ______________________________________ 48Table 3: Belgium/Luxembourg, ICT market value ___________________________________ 58Table 4: Belgium/Luxembourg, ICT unit shipments, CAPEX, subscribers __________________ 59Table 5: France, ICT market value _______________________________________________ 70Table 6: France, ICT unit shipments, CAPEX, subscribers ______________________________ 71Table 7: Germany, ICT market value _____________________________________________ 82Table 8: Germany, ICT unit shipments, CAPEX, subscribers ____________________________ 83Table 9: Italy, ICT market value _________________________________________________ 95Table 10: Italy, ICT unit shipments, CAPEX, subscribers _______________________________ 96Table 11: Greece, ICT market value ____________________________________________ 107Table 12: Greece, ICT unit shipments, CAPEX, subscribers ___________________________ 108Table 13: Spain, ICT market value _____________________________________________ 119Table 14: Spain, ICT unit shipments, CAPEX, subscribers ____________________________ 120Table 15: Switzerland, ICT market value ________________________________________ 130Table 16: Switzerland, ICT unit shipments, CAPEX, subscribers ________________________ 131Table 17: United Kingdom, ICT market value _____________________________________ 143Table 18: United Kingdom, ICT unit shipments, CAPEX, subscribers ____________________ 144Table 19: Austria, ICT market value ____________________________________________ 145Table 20: Austria, PC unit shipments ___________________________________________ 145Table 21: Denmark, ICT market value ___________________________________________ 146Table 22: Denmark, PC unit shipments __________________________________________ 146Table 23: Finland, ICT market value ____________________________________________ 147Table 24: Finland, PC unit shipments ___________________________________________ 147Table 25: Ireland, ICT market value ____________________________________________ 148Table 26: Ireland, PC unit shipments ___________________________________________ 148Table 27: Netherlands, ICT market value ________________________________________ 149Table 28: Netherlands, PC unit shipments _______________________________________ 149Table 29: Norway, ICT market value ____________________________________________ 150Table 30: Norway, PC unit shipments ___________________________________________ 150Table 31: Portugal, ICT market value ___________________________________________ 151Table 32: Portugal, PC unit shipments __________________________________________ 151Table 33: Sweden, ICT market value ____________________________________________ 152Table 34: Sweden, PC unit shipments ___________________________________________ 152Table 35: Central and Eastern Europe, ICT market value ____________________________ 166Table 36: Central and Eastern Europe, PC unit shipments ____________________________ 166Table 37: Serbia, ICT market value _____________________________________________ 175Table 38: Serbia, ICT unit shipments, CAPEX, subscribers ____________________________ 176Table 39: Bulgaria, ICT market value ___________________________________________ 177Table 40: Bulgaria, PC unit shipments __________________________________________ 177Table 41: Croatia, ICT market value ____________________________________________ 178Table 42: Croatia, PC unit shipments ___________________________________________ 178Table 43: Czech Republic, ICT market value ______________________________________ 179Table 44: Czech Republic, PC unit shipments _____________________________________ 179Table 45: Estonia, ICT market value ____________________________________________ 180Table 46: Estonia, PC unit shipments ___________________________________________ 180Table 47: Hungary, ICT market value ___________________________________________ 181Table 48: Hungary, PC unit shipments __________________________________________ 181

ICT Market Report 2016/17 11 © EITO in collaboration with IDC

Table 49: Latvia, ICT market value _____________________________________________ 182Table 50: Latvia, PC unit shipments ____________________________________________ 182Table 51: Lithuania, ICT market value __________________________________________ 183Table 52: Lithuania, PC unit shipments _________________________________________ 183Table 53: Poland, ICT market value ____________________________________________ 184Table 54: Poland, PC unit shipments ___________________________________________ 184Table 55: Romania, ICT market value ___________________________________________ 185Table 56: Romania, PC unit shipments __________________________________________ 185Table 57: Russia, ICT market value _____________________________________________ 186Table 58: Russia, PC unit shipments ____________________________________________ 186Table 59: Slovakia, ICT market value ___________________________________________ 187Table 60: Slovakia, PC unit shipments __________________________________________ 187Table 61: Slovenia, ICT market value ___________________________________________ 188Table 62: Slovenia, PC unit shipments __________________________________________ 188Table 63: EU 26, ICT market value _____________________________________________ 189Table 64: EU 26, PC unit shipments ____________________________________________ 189Table 65: Brazil, ICT market value _____________________________________________ 191Table 66: China, ICT market value _____________________________________________ 192Table 67: India, ICT market value ______________________________________________ 193Table 68: Japan, ICT market value _____________________________________________ 194Table 69: Turkey, ICT market value _____________________________________________ 195Table 70: Turkey, PC unit shipments ____________________________________________ 195Table 71: USA, ICT market value ______________________________________________ 196Table 72: World, ICT market value _____________________________________________ 198Table 73: ICT market value, by country (w/o Business Consulting & BPO) ________________ 200Table 74: IT market value, by country (w/o Business Consulting & BPO) _________________ 201Table 75: Telecom market value, by country ______________________________________ 202

ICT Market Report 2016/17 203 © EITO in collaboration with IDC

Appendix Methodology and definitionsThe methodology used to collect the data and data definitions are published on our websitewww.eito.com/method-reports-download.

Terms and conditionsAll terms and conditions published on the EITO website apply: www.eito.com/termsandconditions.

Customer FeedbackWe are always interested in customer feedback so please let us know which parts of the report you find particularly useful (data tables, analysis of key trends, country analysis, etc.) and which are of less interest to you. Send us an email at service@eito.com.

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