Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Software and services spending growth is forecast to drive the South Korean IT market
throughout the medium term. Penetration of cloud computing and Internet of Things solutions will increase,
driven by the strength of the South Korean ICT ecosystem, which includes global leading vendors and
government support. The hardware outlook is more mixed, where hybrid notebooks are expected to record
volume growth, but tablets face a growing threat from phablets that have proved hugely popular.
Latest Updates & Industry Developments
? Computer Hardware Sales: KRW11.5trn in 2016 to KRW12.3trn in 2020, a compound annual growth
rate (CAGR) of 1.5%. PC saturation and threat to tablet replacement spending by the trend towards larger
and more powerful smartphones will be a drag on growth, but hybrid notebooks should be a bright spot.
? Software Sales: KRW6.3trn in 2016 to KRW7.8trn in 2020, a CAGR of 5.3%. Advanced solution
demand from key verticals such as financial services will offset the price squeeze from emerging market
vendors and cloud solutions.
? IT Services Sales: KRW8.8trn in 2016 to KRW11.2trn in 2020, a CAGR of 6.1%. A base of local
vendors and supportive government policies means South Korea is positioned well for cloud computing
and Internet of Things growth.