Venezuela's IT market has contracted sharply in US dollar terms as a result of the severity ofthe economic crisis - with the new exchange rate regime and spiralling inflation contributing to productshortages and price rises far in excess of local wage growth. With economic activity losing even moremomentum in 2016 and households hit by shortages of even basic goods there will be no short termresumption of IT spending growth in USD terms. The nominal growth rate will however be sustained bydomestic inflation, where we forecast an IT spending CAGR of 64.6% over 2016-2020.
- Computer Hardware Sales: From VEF12.0bn in 2016 to VEF83.4bn in 2020, at a CAGR of 62.5%.Reduced demand for both imports and domestically-assembled PCs as price rises rapidly erodedaffordability.
- Software Sales: From VEF3.8bn in 2016 to VEF30.3bn in 2020, at a CAGR of 67.8%. All but essentialspending deferred in the short term, and over the medium term brain drain, piracy and weak enterpriseinvestment will all be drags on spending growth.
- IT Services Sales: From VEF3.4bn in 2016 to VEF27.4bn in 2020, at CAGR of 68.2%. An oil-centriceconomy means the IT services segment is underdeveloped, and while cost saving and flexibility offeredshould be positives; the outlook is also weak in this segment due to the depth of the crisis.
Table Of Contents
Venezuela Information Technology Report Q4 2016 BMI Industry View 7 SWOT 8 Industry Forecast 10 Latest Updates 10 Structural Trends 10 Table: IT Industry - Historical Data And Forecasts (Venezuela 2013-2020) 15 Industry Risk Reward Index 16 Table: Americas IT Risk/Reward Index, Q4 2016 19 Market Overview 20 Recent Developments 20 Hardware 20 Software 25 Cloud Computing 28 IT Services 31 Industry Trends And Developments 34 IT Hardware Trade 34 Table: Latin America IT Hardware Trade, 2010-2015 34 Table: Venezuela IT Hardware Trade, 2010-2015 35 IT Industry Analysis 36 Regulatory Development 40 Table: Regulatory Authority 40 Competitive Landscape 44 Venezuela IT Companies 44 IT Vendors - Americas, 2015 46 Table: Computer Hardware 46 Table: Software 47 Table: Cloud 48 Table: IT Services 48 Retailers 50 Table: Selected Electronics Retailers 50 Table: Selected E-Commerce Retailers 51 Regional Overview 52 Demographic Forecast 55 Demographic Outlook 2015 55 Table: Population Headline Indicators (Venezuela 1990-2025) 56 Table: Key Population Ratios (Venezuela 1990-2025) 56 Table: Urban/Rural Population and Life Expectancy (Venezuela 1990-2025) 57 Table: Population By Age Group (Venezuela 1990-2025) 57 Table: Population By Age Group % (Venezuela 1990-2025) 58 Methodology 60 Industry Forecast Methodology 60 Sources 62 Risk/Reward Index Methodology 62 Table: IT Risk/Reward Index Indicators 63 Table: Weighting Of Components 64