Canadian ICT Market Will Be Similar To US In Growth Rates, But Differs In Product And Industry Mix

On the same day that we published our latest forecast for the European ICT market, Forrester has also published our forecast for the Canadian tech market (see June 8, 2011,“The Canadian Tech Market 2011-2012 -- Different From US In Industry Mix of Purchases; Similar Growth Rates").   The following are my key takeaways from this report:

  • The Canadian market for purchases of information and communications technologies (ICT) by businesses and governments is about 10% the size of the US ICT market, and only about 3% of the global ICT market.  Still, it is an important market because of the sophisticated level of its tech adoption (i.e., its readiness to adopt advanced technologies) and its proximity to the US market.  
     
  • Canada's ICT market growth rates of 6.2% in 2011 and 2012 growth of 8.1% in Canadian dollars will be very similar to the US ICT market growth in US dollars in the same periods.  With the Canadian dollar having gained strength against the US dollar, that means that US vendors will see even stronger Canadian revenue growth when they convert their Canadian sales back into US dollars. 
     
  • Communications equipment and software will have the strongest growth in 2011, at 10.5% and 8.4%, respectively.  Computer equipment growth of 4.4% and telecommunications services growth of 2.2% will be the weakest product categories.
     
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European ICT Market Will Grow More Slowly Than US Market, But With Wide Geographic Variances

I am in Barcelona, Spain, at our IT Forum EMEA event, where my colleague Peter O'Neill and I presented our latest forecasts for the tech market in Western and Central Europe.  In parallel, Forrester has just published our report with this and much more information (see June 8, 2011, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).  Here are the key conclusions that I would highlight from the report:

  • As a geographic unit, the market for business and government purchases of information and communications technologies (ICT) in Western and Central Europe will grow by 3.8% in 2011 (measured in euros), compared with 6.4% growth in the US (measured in US dollars).  Excluding slow-growing telecommunications services, the information technology (IT) market in Western and Central Europe will grow by 4.5% in euros vs. the 7.4% growth in US dollars in the US (see June 7, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).
     
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