Email
Print
Hong Kong Software Development – Market Overview
Hong Kong has a robust ICT infrastructure and is consistently ranked among the best in the world in terms of digital competitiveness. According to the IMD World Digital Competitiveness Ranking 2020 published by the IMD World Competitiveness Centre, Hong Kong ranked 2nd in Asia and 5th in the world. The government's Innovation and Technology Fund (ITF) has provided an alternative source of funding for the IT industry. As of the end of 2020, the ITF had approved 1,269 applications for IT projects with total funding of HK$5.2 billion. In addition, in October 2021, IBM partnered with the Vocational Training Council (VTC), the largest vocational and professional education and training provider for learners of all ages, to include IBM SkillsBuild as part of their core learning on tech-related skills. Such factors are set to enhance the skills of software developers in Hong Kong. The Hong Kong Software Development market is analyzed to be EUR 6,590 million in 2021 and is projected to reach EUR 8,520 million in 2027, growing at a CAGR of 4.43 % during the forecast period of 2022-2027.
Hong Kong Software Development Market drivers
The Hong Kong government is increasingly adopting and promoting Artificial Intelligence technology in the region. In December 2020, the Innovation and Technology Bureau of Hong Kong launched the Smart Blueprint for Hong Kong (Blueprint 2.0), which is aimed to incorporate advanced technologies including AI, and big data analytics in public systems and also promote Innovation and Technology development in the region. Moreover, in June 2021, the Hong Kong Monetary Authority (HKMA) announced its new Fintech 2025 strategy, which is aimed to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy. Developments like these are some of the major factors that are driving the growth of the Hong Kong Software development market in the coming years.
Hong Kong Software Development – By Language
By language, the software market is further fragmented into Java, JavaScript, Python, C++, PHP, Scala, Ruby, LISA, Perl, SQL, Android, iOS, and others. Above all, the Python segment generated the greatest revenue in 2021 among other programming languages. Its high productivity and vast software ecosystem of the language make it a favorable choice among software developers in this region. Besides, various institutes in the region including Tecky Academy, and Preface, provide python certification and assist in mastering the concepts of Python and its libraries such as SciPy and Matlotlib among others.
Hong Kong Software Development – By Market Demand
With regard to market demand, the market is segmented by In-House on Payroll, hired from Secondment Providers, Hired Freelancers and Fully Outsourced. The in-house payroll segment accounted for the biggest revenue share in 2021 and is projected to hold its dominance for the next 5 years. The availability of a skilled workforce and highly educated background in the region is considered to contribute to the growth of in-house payroll segment in the Hong Kong software development market. The SalaryExpert reported that 63% of the software Developers had bachelor’s degrees, while 22% had a master’s degrees.
Hong Kong Software Development – By Deployment Type
By deployment type, the Cloud segment had the majority of overall market share in 2021 owing to the growing expansion strategies adopted by major players. For example, in June 2021, Tencent Cloud, the cloud business of Tencent, announced the launch of four new internet data centres (IDC) in Bangkok, Frankfurt, Hong Kong and Tokyo.
Hong Kong Software Development – By Business Size
With regard to business size, the enterprise business segment held the highest market share in the Hong Kong Software development market in 2021. The presence of key players in the region including Google, Amazon, Oracle and others coupled with the increasing government support to strengthen the sector is set to boost the growth of the enterprise segment. As a part of this, the 2022-2023 budget includes a special 100% Loan Guarantee for Enterprises and increases the maximum loan amount to 27 months of employee wages and rents, with the loan ceiling raised to $9 million.
Hong Kong Software Development – By End Use Industry
By end-use industry, the market is poised with respect to the end use industries to be processed including Banking and Financial Institutions, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing, and others. The Banking and Financial Institution segment generated the largest market share in 2021. According to a report by Hong Kong Monetary Authority, over 70 of the largest 100 banks in the world along with over 29 multinational banks have their regional headquarters in Hong Kong. Additionally, the growing government initiatives towards the growth of Fintech companies are set to boost the segment growth.
Hong Kong Software Development – Market Scope and Coverage
The base year of the study is 2021, with forecasts done up to 2027. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. These provide the key market participants with the necessary business intelligence and help them understand the future of the Hong Kong Software Development Market.
The report segments the Hong Kong Software Development Market on the basis of language, market demand, deployment type, business size and end-use industry as follows:
By Language: Java, JavaScript, Python, C++, PHP, Scala, Ruby, LISA, Perl, SQL, Android, iOS and Others.
By Market Demand: In-House on Payroll, Hired from Secondment Providers, Hired Freelancers and Fully Outsourced.
By Deployment Type: On-Premise and Cloud.
By Business Size: Small and Medium Business, Enterprise and Government.
By End-use Industry: Banking And Financial Institution, Insurance Firms, Media and Entertainment, Government, Defence, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing and Others.