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Computer/Information Technology Equipment

Overview

Computer / Information Technology Equipment Market Unit: USD thousands

 

2011

2012

2013 (estimated)

2014

(estimated)

Total Market Size

2,300,000

2,500,000

2,600,000

2,750,000

Total Local Production

5,221,000

4,732,000

5,055,000

5,451,700

Total Exports

48,639,000

54,723,000

60,195,000

66,215,000

Total Imports

45,718,000

52,491,000

57,740,000

63,514,000

Imports from the U.S.

1,719,000

2,059,000

2,265,000

24,491,000

Exchange Rate: 1 USD

7.8

7.8

7.8

7.8

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Hong Kong Census and Statistics Department
Total Exports: Hong Kong Census and Statistics Department
Total Imports: Hong Kong Census and Statistics Department
Imports from U.S.: Hong Kong Census and Statistics Department

Hong Kong’s IT equipment (computer and parts) imports grew in 2012 by 14.8 percent to US$52 billion. The value of U.S. IT equipment exports to Hong Kong in 2012 was US$2 billion, an increase of almost 20 percent increase over 2011, and representing 3.9 percent of Hong Kong’s total IT imports.

Although there are no official statistics on software and IT services, Business Monitor International estimated that Hong Kong’s software and IT services sectors spent US$1.36 billion and US$1.64 billion in 2012, respectively.

Sub-Sector Best Prospects

For Corporate Users:

  • Infrastructure as a Service: Servers, Storage, Networks, and Clients.
  • Platform as a Service: Application Development Software, Application Testing Software, Application Deployment Software.
  • Software/Applications as a Service: Collaboration, Enterprise Resource Management, Supply Chain Management, Customer Relationship Management, Business Analytics.
  • Consulting, Training, Integration Service for end-users of Cloud Services.

For Consumers:

  • Netbooks, Notebooks, tablet computers, smart phones,
  • 3D computer devices such as 3D monitors, webcams, and digital frames etc.

Opportunities

Hong Kong’s total IT spending reached US$5.4 billion in 2012. Computer hardware, software and service sales recorded were US$2.4 billion; US$1.4 billion; and US$1.6 billion, respectively. Business Monitor International forecast IT spending in Hong Kong will reach US$5.75 billion in 2013, representing a growth of 5.5 percent from 2012.

This forecast, however, depends on a stable global economic outlook. The performance of mainland China is of particular importance. Regardless of the macroeconomic outlook, the key areas of growth will be in the launch of Windows 8, touchscreen tablets and the mobility trend which will fuel demand to utilize new technologies such as virtualization and cloud computing.

The launch of Microsoft Windows 8 in October 2012 opened a new wave of device innovation in the hardware market. Vendors in Hong Kong were quick to launch a host of PCs, and more importantly tablets to take advantage of the touch functionality of the new operating system. It is expected that more innovation will come from Windows 8 vendors in 2013 and 2014, which will further boost hardware sales.

The growth of the cloud computing market is expected to grow in 2013. Hong Kong offers a high quality network infrastructure to support the uptake of cloud services, while competition between international and local vendors will help increase uptake from end-users by pushing prices down. On the public side, the Hong Kong Government is planning to start building a larger-scale government cloud platform named GovCloud, which will host computing resources for 30 bureaus and departments. The Hong Kong Government has budgeted US$31 million for building the new system. When the system is operational, the government will migrate cloud-ready systems such as e-procurement, e-information management and e-HR management to the GovCloud.

A survey conducted by Computer World Hong Kong indicated that retail and manufacturing sectors will see an increase in their IT expenses as the rising numbers of Chinese travelers and shoppers are expected to fuel the growth of their businesses.

Although Hong Kong on its own is a relatively small market for U.S. IT exports, U.S. companies should consider Hong Kong as a gateway into the Mainland China market. A substantial amount of IT products imported to Hong Kong is re-exported to China. In 2012, about 70 percent of Hong Kong’s total exports of IT equipment (totaling US$38 billion) went to China.

Web Resources

Major Trade Shows:

International ICT Expo
Dates: April 13-16, 2013
Venue: Hong Kong Convention and Exhibition Center
Website: http://ictexpo.com

Associations:

Information and Software Industry Association
Contact: Reggie Wong
Tel: (852) 2622-2867
Fax: (852) 2622-2731
Email: info@isia.org.hk
Website: www.isia.org.hk

Hong Kong Information Technology Federation Ltd.
Contact: Francis Fong, President
Tel: (852) 3101-8197
Fax: (852) 3007-4728
Email: francis.fong@hkitf.org.hk
Website: www.hkitf.org

Hong Kong Wireless Technology Industry Association Ltd.
Contact: To Cheung, Chairman
Tel: (852) 2370-3130
Fax: (852) 8208-8782
Email: contact@hkwtia.org
Website: http://www.hkwtia.org

Hong Kong Internet Service Providers Association
Contact: Lento Yip, Chairman
Tel: (852) 28201-1109
Fax: (852) 3011-3108
Email: lento@hkispa.org.hk
Website: www.hkispa.org.hk

ICT Journals in Hong Kong:

TelecomAsia (www.telecomasia.net)
ComputerWorld Hong Kong (www.cw.com.hk)
Hi-Tech Weekly (best-selling Chinese language magazine) (www.hitechweekly.com)

U.S. Commercial Service Hong Kong

Contact: Ms. Fanny Chau, Commercial Service
Tel: (852) 2521-3721
Fax: (852) 2845-9800
Email: fanny.chau@trade.gov
Website: www.export.gov/hongkong