Danish State Visit to Croatia

Zagreb, 21 - 24 October 2014

Information technology

While the negative performance of the IT sector in Croatia in the last three years presented a serious concern for the stakeholders – it recorded a noticeable decrease during each year in the period 2009-2012 – the expectations regarding the future of the Croatian IT market are very high. The local branch of the market research agency IDC estimates that the market will grow by as much as 15 percent for the next year and 50 percent by 2016, reaching EUR 1.2 billion. Full EU membership will provide the much needed sources of funding for IT projects in the government sector, which should be the fastest-growing segment of the market.

The public sector is the largest user segment, representing 23 percent of the IT spending in Croatia. It is followed by the financial sector (21 percent) and telecommunications sector (18 percent). Retail sales actually recorded a mild growth in 2013 thanks to the marketing activities and special offers, but they represent only 9 percent of the total IT spending in Croatia.

IT Services
31% EUR 233.5 million in 2012 to 243.4 million in 2013, +4%
(EU entry should drive IT services spending particularly from government)
Hardware sales
52% EUR 405 million in 2012 to 413.6 million in 2013, +2%
(Tablet sales have constrained sales of traditional notebooks)
17% EUR 132 million in 2012 to EUR 138 million in 2013, +5%
(SME market for EAS software represents an opportunity)

(Source: figures for the total market size - IDC Adriatics; figures for exports are estimates based on the percentage of exports for the top 10 companies in the sector; figures for imports from the Croatian Customs Directorate)

Opportunities for Danish companies:

  • The cloud computing sector is growing at 40 percent per year. It is the fastest growing segment of IT consumption in the country. The highest demand is on PaaS. It was estimated by the Association of Croatian Independent Software Exporters (CISEx) that during 2013-2014 there could be about 10,000 new jobs opened by IT start-ups in Croatia, primarily related to offering cloud solutions to the public sector as well as to small and medium businesses.
  • While IT spending in the financial and telecommunications sectors will probably remain at the same level or even slightly decrease, the largest expectations are tied to the public sector (e.g. Healthcare sector), which should apply the EU funds to the IT projects and thus contribute to the growth of the market. It is reasonable to expect that IT spending related to all types of transportation infrastructure will either grow or remain on the same level. For instance, Croatian Railways should complete the procurement of an Asset Management System in 2013 and a large airport construction project (construction of the new terminal at Zagreb airport; expected to start in 2014) will require IT equipment and services.
  • IT support, installation and training services will continue to record increased demand.