Tech Market to Grow with Political Reforms in Myanmar
Myanmar’s recent political reforms and 2012 election have cast a spotlight on the information and communication technology (ICT) potential of the nation, believes tech market researcher International Data Corporation (IDC).
With a population of over 60 million inhabitants, Myanmar is virtually one of the last untapped ICT markets in the Asia/Pacific region with fast rising potential, reveals IDC’s latest study, “Myanmar ICT Market 2012–2016 Forecast and Analysis: An Overview of the Next ICT Opportunities.” IDC made this announcement today, July 5.
For IT spend alone, IDC is expecting 15% year-on-year (YoY) growth in 2012, and the market is expected to reach US$268.45 million by 2016, representing a compound annual growth rate (CAGR) of 14% over the forecast period between 2011 and 2016.
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“Recent political reforms and the nation’s historic election in April 2012 have placed Myanmar on the watch list of investors looking for untapped business opportunities in Southeast Asia,” said Lam Nguyen, IDC Research Director for Indochina.
IDC believes that the nascent ICT market in Myanmar is poised to enjoy growth in two key areas in the next five years: telecommunication infrastructure development and business investments in IT.
The research firm further believes that telecommunications will lead the sector’s growth for years to come, but for this growth to take place, the introduction of new laws will be necessary to open up the market to foreign investments.
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In addition, progress in political reforms and ease of media censorship will also encourage businesses to improve processes and provide reliable connectivity, and for consumers to adopt technology.
Due to its population density, IDC foresees that Yangon and Mandalay will be the two leading IT hubs for foreign market-entry and IT consumption in next few years. As for industries, the leading major verticals will likely be the government, utility and energy, financial services, hospitality, and media sectors.
The ICT talent pool is also expected to grow with government initiatives such as ICTTI and eLearning, as the leaders in Myanmar prepare the nation to compete with other neighboring countries, says IDC.