The global market share of North America and the EU continue to yield

March 19, 2012 - PRLog -- TBK Consult has released the “BECH Index” for 2011 showing the share of world demand for IT related products and services for each country in the world. The share of North America dropped 3% and while South America gained 7,5% the two continents together lost 2% to the rest of the world.

Europe as a total gained 0,3%, but only because the growth in Eastern Europe picked up 7,9%. The EU region lost 3,7%.

China gained a 23,9% increase in it’s share of world demand while India recorded a 4,3% increase.

“Although the changes from 2009, when CIA defined a new basis for the numbers we use to calculate the index, clearly shows the shift away from the “old”[1] economies and to the “new” economies, we should not overlook the fact that the “old” economies still account for close to 75% of world demand. The remaining 25% is shared by more than 200 countries and China still only accounts for 4,7% of world demand. This is a share slightly larger than the UK, but still smaller than Germany. The political propaganda in Europe for businesses to spend more resources penetrating the BRIC[2] countries may apply to the large enterprises, but it makes absolutely no sense for smaller companies to travel so far away, when markets closer to home still offer much more opportunity."

The Middle East is showing a small increase, but the way the numbers are calculated plays in favour of oil producing countries. The African continent remains stable with 0,8% world demand of which South Africa represents close to 40%.

The BECH index is calculated and published annually based on the GDP and GDP per capita figures provided by the CIA World Factsheet https://www.cia.gov/library/publications/the-world-factbook/

[1] USA, Canada, EU, Australia, New Zealand and Japan.
[2] BRIC: Brasil, Russia, India and China

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TBK Consult is an international consulting company that supports the software industry with developing and implementing strategies for global growth.