The IT market in Montenegro remained almost flat in 2008, in U.S. dollars, having grown 0.7% year on year for a value of $79.55 million. According to a recent study by research company IDC, the market contracted 5.8% in local currency compared to the previous 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 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,” says Atila Madai, IDC Country Manager for Serbia and Montenegro. “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.”

The volume server market was Montenegro’s most dynamic IT segment in 2008, with 69.0% year-on-year value growth. 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 respectively by 4.1% and 1.1% year on year 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,” says Madai.

IDC expects the IT market in Montenegro to expand at a compound annual growth rate (CAGR) of 5.4% by 2013, to reach $103.33 million in that year.

IDC’s Montenegro IT Market 2009-2013 Forecast and 2008 Vendor Shares (IDC #ESQ14R9) presents the IT market in Montenegro and forecasts total IT expenditures by technology through 2013. The study contains market size, vendor market shares, and growth projections for hardware, packaged software, and IT services provision. It analyzes market trends and provides valuable insight into the main drivers of individual market segments.