The Bangladesh IT market continued to power forward in 2005, overcoming broader national challenges to post solid growth. The PC market–the cornerstone of the country’s IT market–expanded 16.4% in 2005 to 162,400 units, generating a value of $129.4 million.
The market received a boost from economic growth, low PC penetration and government efforts to encourage automation, such as a drive to equip schools with computers in the country. A decrease in prices also helped fuel growth, especially in the laptop segment. The laptop market expanded 24.0% in 2005, followed in growth terms by X86 servers and desktops.
Another key market driver in the country is the growing attention the market is garnering from leading international IT vendors. Microsoft, Intel and HP were particularly active during the fourth quarter of the year with investments, training programs and product launches, all of which helped boost market demand.
Dane Anderson, vice president of Springboard Research, said, “As IT markets across the globe mature, international IT vendors are being pressed harder to generate growth”, “With one of the world’s largest populations, strong economic growth and a promising IT workforce, Bangladesh is increasingly on the radar screens of the world’s IT industry juggernauts.”
Locally assembled, often unbranded machines continue to dominate the market, holding over 75% PC shipment market share. Among international vendors, HP led the market with a 7.6% share of shipments in 2005, followed by Dell and Lenovo/IBM. A local brand increasingly viewed as a viable alternative to international players is Daffodil Computers, which made several strategic announcements in the fourth quarter of the year.
The large enterprise (companies with over 500 employees) and government sectors collectively accounted for almost half of total PC/Server shipments in 2005. NGOs are also an important source of funding for IT investment in the country, but spending is generally routed through the public sector. In the enterprise market, banks and telcos are largest the vertical industries for IT spending. The consumer and SME markets represent significant long term promise, but both segments are currently in the infancy stage.
In spite of possible political disruptions in 2006 and 2007, as well as concerns over social unrest and violence, the Bangladesh PC/Server market is expected to continue overcoming challenges to post healthy market growth. Springboard forecasts 21.6% PC shipment growth in 2006, and expects the market to maintain similarly strong levels of expansion throughout the forecast period.
Source:
Springboard Research
