Japan IT market to be headed for a double dip in 2011, says IDC
May 02, 2011 // Julien Happich
Japan's IT market had overcome the negative impact of the global financial crisis and was expected to experience another year of positive growth, but it now looks to be headed for a double dip in 2011. According to a new International Data Corporation (IDC) forecast, the central government, local governments, and corporations will prioritize their recovery efforts and postpone non-essential IT spending.
Meanwhile, the prospect of another period of economic stagnation is hurting corporate and consumer confidence, leading to a decline in capital expenditure and consumption, and to IT expenditure freezes. The disaster has also disrupted supply chains in many industries. Although every effort is being made to restore production levels, there are supply shortages of certain components and materials. Converged mobile devices (such as smartphones) will likely be impacted. IDC believes that Japan's IT market is being constrained not only by declining demand but also by limited components supply.
Accordingly, IDC now forecasts Japan’s IT market to reach 12.0165 trillion yen in 2011, with negative 4.5% year-over-year growth. All of Japan's IT market segments – IT services, packaged software, and hardware – are expected to experience negative when compared to 2010. The new forecast represents a substantial decline from 12.5879 trillion yen and year-over-year growth of 2.9% in 2010. Japan’s 2011 IT market was previously forecast (in February 2011) to be 12.6172 trillion yen with 0.6% year-over-year growth.
However, IDC forecasts that Japan’s economy will improve in 2012, buoyed by restoration demand and overseas demand from the U.S. and emerging markets. Overall IT spending will increase with the economic rebound and is forecast to reach 12.4327 trillion yen in 2012, enjoying a year-over-year growth of 3.5% as it bounces back from the 2011 decline.
A key to the recovery will be to resolve the power supply issues in eastern Japan in the mid- to long-term. Smart meters, smart grid networks, HEMS (Home Energy Management System) and the like are being promoted as ways to resolve some of these issues. "IT vendors will be expected to play an active role in developing and promoting smart grids, HEMS, and the like, based on cloud technologies," said Hideo Wada, Group Director of IDC Japan IT Spending/IT Services/Software & Security/Communications Group.
Visit IDC at www.idc.com
Volvo shows user interface for self-driving cars
October 05, 2015
Automated driving poses specific requirements to the user interface of the cars, in particular for the transition phases ...
Volkswagen has given engineering a black eye
MEMS platforms are way to go, says Bosch's Finkbeiner
Put FPGAs in your SoCs
Daimler tests self-driving truck on public highway
Silicon Labs prevails in Cresta patent dispute
October 02, 2015
Silicon Labs has announced that the U.S. International Trade Commission (ITC) has found no patent violation by Silicon Labs ...
Machine learning for every app
Heat helps rechargeable batteries extend lifetimes
Cyber threats against cars are here to stay, experts say
- Determine Balancing Current for the LTC3305 Lead-Acid Battery Balancer
- 3 Ways to Simplify Medical Device Testing
- Thread Networking Protocol Simplifies Connecting “Things” in the Home and Beyond
- High Voltage CMOS Amplifier Enables High Impedance Sensing with a Single IC
InterviewMEMS platforms are way to go, says Bosch's Finkbeiner
In the two years since we last interviewed Stefan Finkbeiner, CEO of Bosch Sensortec, the company has taken over from STMicroelectronics as the leading global supplier of MEMS components. Here he explains ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
This month, LabNation is giving away three of its SmartScope open source USB oscilloscopes, worth 229 Euros each, for EETimes Europe's readers to win.
Successfully funded through Kickstarter last year, the SmartScope is claimed to be the world's first test equipment designed to run on multiple operating systems and platforms such as smartphones, tablets and PCs. It is powered directly from... MORE INFO AND LAST MONTH' WINNERS...
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.