INTERNATIONAL POSITION AND PROSPECTS FOR 2015-2025
So far, good condition of the Polish economy, large domestic demand, independent currency and sufficient human resources allow relatively safe conditions for domestic as well as foreign investment in the ICT sector. However, such secure environment is but a fraction of all the opportunities which the leaders of the market can be provided with. For instance, access to the qualified staff and support from the EU institutions and the government induce the creation of an effective network of shared service centers and R&D hubs. Therefore, products designed and fabricated in Poland are absolutely outstanding on the regional and global scale, as evidenced by international achievements of Polish companies. Thanks to innovative approach they managed to successfully enter their market niches, e.g. in the segment of video games, business apps, and telemedicine. This situation is a tangible proof of a considerable advantage that startups and new investors can seek for in the ICT sector.
Polish ICT sector has found itself among the fastest growing ones in Europe in recent years, reporting 8.64% average annual growth in 2009-2014. It has increased in the last five years by 16.72%. Poland is successfully striving to keep up with the biggest European economies while preserving its advantage resulting from low labor costs and benefits from the EU funding. Such a unique environment enables companies and investors to benefit from the large and developed market as well as still present above-average growth potential. High dynamic of the ICT sector is reflected in its value of production, which increased by 20.57% in 2010-2016. At the same time, the share of the ICT sector in Polish GDP is still relatively low, which demonstrates great potential for development. In Poland, it is responsible for 6.06% of GDP, while in some leading countries such as Germany, Czech Republic and France it constitutes 8.15%, 8.43% and 7.33% of GDP respectively. This would mean that the projected growth of Polish ICT sector may reach about 12 billion USD provided that Poland succeeds in equalling the leaders.
Furthermore, the Polish ICT industry notes growing international importance thanks to intensified export. In the past years, the value of export grew steadily, reaching 51.8 billion PLN in 2014. The main segments in this area are telecommunications equipment and consumer electronics. Prospects of the sector are optimistic. It is reasonable to forecast a stable or even dynamic development of most areas of the ICT sector.
Looking to the future, the segments which may become crucial for Polish enterprises should also be identified. Independent experts, basing on reliable market data, suggest that Poland has a good chance to achieve international prominence in such segments as:
- Production of hybrid cars and intelligent transport;
- Games industry;
- Internet of Things;
- Telemedicine and medical equipment.
These industries can repeat the success of Polish segment of BPO centers and SSC. In most of the above, Poland already boasts certain success on the global scale and Polish products can successfully compete with global leaders. The primary driving force for development of the sector should be steady investment in innovation and intensified spending on R&D.
Polish ICT industry reveals its unique position on the map of Europe and the entire world. This is the promise of significant growth, but also of the possible challenges faced by investors and entrepreneurs. The aspiring entities may use these conditions for their own advantage to gain the competitive position within the framework of the Polish market with the prospect for international expansion.
This is a summary of the report "Growth perspective for Polish ICT sector by 2025", available here.