This year IT service market & technology prediction

For the first time this year, the Korean software (SW) solution market is expected to reverse the hardware (HW) market. In the era of the `Fourth Industry Revolution`, it was analyzed that the demand for solutions such as Big Data, Artificial Intelligence (AI), Internet of Objects (IoT) and Cloud will be driven by speeding up digital transformation efforts regardless of the public and private sectors.

Kim Chang-hoon, vice president of IT market research firm KRG, presented the prospect at the `IT Service Market in 2018 Seminar on Technology Outlook,` held by the IT Service Industry Association at Yeouido-dong Privilege Hall, Seoul,

The domestic IT market this year is expected to recover solidly, reaching KRW 22.3 trillion, 4.0% larger than last year.

Especially, the SW & solution market is expected to grow by KRW 7.4% to 4.78 trillion and HW to grow by 1.5% to KRW 4.62 trillion. The SW & solution market last year is expected to surpass this year after reaching KRW 4.45 trillion and HW (KRW 4.55 trillion) market size.

Kim Chang-hoon, vice president, stated, "The SW solution market surpasses the HW market, which means that the paradigm of the domestic IT market is changing."

The SW & solution market grew by an average of 6.7% each year, which was KRW 3.51 trillion in 2013. Meanwhile, HW recorded a cumulative negative growth rate (-13.1%) for the same period, and the market decreased from KRW 5.1 trillion in 2013 to KRW 4.55 trillion last year.

SW & the growth of the solution market is due to the fact that SW is the foundation of convergence technology that enables the fourth industrial revolution such as AI, big data, cloud, security and block chain.

Digital innovation is being promoted using convergence technologies in all areas including public finance, manufacturing, distribution logistics and social overhead capital (SOC).

Especially, most of Korean companies are trying new business models related to AI. 80% of global companies are investing an average of 7.6 billion won in AI, due to the widespread application of AI to healthcare, finance, manufacturing, and public administration.

In the big data field, relational database management system (RDBMS) and aware SW platform market are getting bigger. Over 1,000 large companies account for 60% of total big data demand, and demand is growing in banking, manufacturing, government agencies and professional services.

In the cloud sector, domestic IT service companies are targeting the market through strategic alliances with global companies. It is spreading from game companies to start-ups to large corporations, and cloud adoption rate of public institutions is expected to increase to 40% this year. Kim diagnosed that the existing hardware-centric IT infrastructure is moving quickly to the cloud.

Block chains are also being applied to all industries in Korea. A consortium of maritime logistics chains, formed last year by 15 companies including Hyundai Merchant Marine and Samsung SDS, applied block chain technology to exports from Busan to Qingdao and Dalian ports in China. Medical information • In the field of food safety, block-chain technology is also being applied.

By Lim Seong Yeop starleaf@


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