September 4 (SeeNews) - Montenegro's IT market is expected to shrink by at least 8.7% in 2009 after remaining almost flat in U.S. dollars at 79.55 million (55.8 million euro) last year, market intelligence and advisory company IDC Adriatics said.
In 2008, the market contracted 5.8% in the local currency, the euro, compared to the previous year, the company said in a statement posted on its website (www.idc-adriatics.com).
"The global economic crisis will greatly influence Montenegro's economy in 2009, severely impacting the IT market, which IDC believes will decline at least 8.7%, followed by 5.9% growth in 2010," IDC Country Manager for Serbia and Montenegro Atila Madai was quoted as saying in the statement.
"In 2011, IDC expects the economy to rise above the crisis, thus enabling the IT market to grow by 11.7% and even more in the two final years of the five-year forecast period," Madai said in the statement.
Last year, Montenegrin IT market spending was driven by continuous investments in the telecoms, finance, and government sectors. The IT market was also supported by increased household disposable income – fueled by growth of real wages and expanding credit in 2008. Several foreign investment-related projects pushed IT spending in the country.
The volume server market was Montenegro's most dynamic IT segment in 2008, with 69.0% year-on-year value growth, IDC said.
Notebook shipments grew 47.9%, while smart handheld devices increased 25.4%. Accordingly, volume servers increased 1.0 percentage point in share to reach 2.3% of the country's total IT market in 2008; notebooks grew 6.3 percentage points in share to 11.5%; and the share of desktops fell to 13.5% from 17.4% in 2007.
Software and IT services grew by an annual 4.1% and 1.1%, respectively, in 2008. Software comprised 11.7% and IT services made up 10.5% of total IT spending in the country.
"PC deliveries, particularly desktops, will be hit hard by slowing demand in 2009–2010. Migration from desktops to notebooks and increased sales of netbooks will drive the market onward," Madai said.
IDC expects the IT market in Montenegro to expand at a compound annual growth rate of 5.4% by 2013, reaching $103.33 million in that year.