27-Feb-2013Lebanon This Week - Issue 297
Lebanon's Information Technology Market to Reach $364m in 2013
Business Monitor International (BMI) estimated the size of the Lebanese Information Technology (IT) sector at $336.7m in 2012, constituting an increase of 6.8% from $315.4m in 2011. It projected the size of the Lebanese IT sector to increase to $363.8m in 2013. It is expected that the Lebanese IT market will benefit from new investments in telecommunications infrastructure. BMI forcast the market to grow at a compound annual rate (CAGR) of 12% during the 2013-17 period and to reach $571m in 2017.
BMI projected the size of Lebanese computer hardware market at $225.6m in 2013, which would account for 62% of the aggregate domestic IT market, followed by the IT services market at $92.8m (25.5%), and the legal software market at $45.5m (12.5%). It anticipated that the legal software market would grow by 10.4% in 2013, the IT services segment would expand by 9.2% and the computer hardware market would increase by 7.2% during the year.
BMI indicated that the expansion of the Lebanese computer hardware market in the coming years is contingent on positive economic growth, broadband infrastructure development and government programs. It noted that the Lebanese market has strong growth potential. BMI also identified the strengths of the sector as an IT literate and linguistically-skilled workforce, it pointed out that the sector presents significant opportunities, mainly due to telecoms and banking sectors' growing demand for IT products and services, as well as to the upgrade of IT products in large companies and government departments.
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