And the winners are China and India - The BECH Index 2020

tbkconsult

This whitepaper is based on the CIA national accounting estimates for 2019 and does not reflect the impact of the COVID-19 pandemic. The virus will no doubt claim a substantial portion of the expected economic growth in most countries, but it may not impact the overall distribution of industrial demand. We will not know for sure until we see the numbers in 2021.

The Americas have experienced a 15 per cent decline in the period 2014-2020.
The demand from Central and South America drops again in 2020, and the decline in demand from North America results in a net loss of 1.52 per cent for the area.

The European Union has lost 11 per cent of global demand in the same period, and after a slight increase in 2018, the decline continues in 2020. Russia, the sixth most prominent market, has lost 13.79 per cent since 2014. The loss in 2020 is 2.18 per cent.

North America and Europe continue to be very interesting areas with some of the biggest markets in the world. Because of increasing labour costs and public expenditure, there is a growing need for information analytics, and process and cost optimisation solutions.

The Middle East’s share of global demand has decreased continuously since 2017, and the region has lost 3.65 per cent in four years. Future growth in the Middle East still requires a restructuring away from the dependency on oil and gas and general liberalisation of the economy. I remain sceptical that they will be successful with such a transformation and predict a continued decrease in the region.

China continued its growth and has, with a 7.69 per cent growth from 2019 to 2020, become the most significant information technology market in the world pushing the USA to second place.

For 2020 the Asia Pacific region’s share of global demand increased 2.33 per cent. The most prominent growth area is India showing a 34 per cent increase in the period 2014-2019. However, from 2019 to 2020, India’s share of world demand declined 1.57 per cent.

And the winners are

CHINA and INDIA

THE BECH INDEX 2020

Hans Peter Bech

TBK PUBLISHING


© Hans Peter Bech, March 2020

First edition

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Published by TBK Publishing® (a division of TBK Consult ApS), CVR: DK27402917

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ISBN: 978-87-93116-44-3

TBK-WIPA-035


The BECH Index 2020

Table of contents:

Table of Contents 3

Target audience 4

Abstract 4

Author 4

Acknowledgements 4

The COVID-19 pandemic 5

China is now the largest market for IT products and services 6

Grow fast or die slow 6

How? 7

Where? 8

Table 1: The BECH Index for the Major Markets 2014-20 8

The Top 25 Markets 10

Table 2: Top 25 Information Technology Countries in the World 10

Table 3: The BECH Index for the Americas 2014-20 11

Table 4: The BECH Index for The European Union 2014-20 12

Table 5: The BECH Index for The Rest of Europe 2014-20 13

Table 6: The BECH Index for The Middle East 2014-20 14

Table 7: The BECH Index for Africa 2014-20 15

Table 8: The BECH Index for Asia Pacific 2014-20 16

The BECH Index 18

About the author 19

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The BECH Index 2020

Targeted audience

The target audience for this whitepaper is the board of directors, the

CEO and the sales and marketing executives of B2B information technology

companies with ambitions for achieving global market leadership.

Abstract

This whitepaper presents an estimation of the relative demand capacity

for B2B information technology and related services worldwide.

This estimation is called “The BECH Index.”

TBK Consult calculates the BECH Index annually based on data published

by The Central Intelligence Agency (CIA). The 2020 report is

based on the CIA estimates for 2019 and does not reflect the impact

of the COVID-19 pandemic. The virus will no doubt claim a substantial

portion of the economic growth in most countries, but it may not

impact the overall distribution of industrial demand. We will not know

for sure until we see the numbers.

The CIA is an independent agency responsible for providing national

security intelligence to senior US policymakers. The CIA is separated

into four basic components: the National Clandestine Service,

the Directorate of Intelligence, the Directorate of Science & Technology,

and the Directorate of Support. They carry out “the intelligence

cycle;” the process of collecting, analyzing, and disseminating intelligence

information to top US government officials.

Please observe that the CIA revises their assessments, which may

obsolete the BECH Index assessments for previous years.

OBS: The BECH Index for 2016 and onwards uses a new algorithm and the data

is therefore not compatible with previous BECH Index reports. All indexes in this

whitepaper have been recalculated.

Author

Hans Peter Bech, M.Sc. (econ.)

Acknowledgements

Thank you to Manuel Cunha for pointing out mistakes in our reginal

classification. The mistakes have been corrected retrospectively for

all the years in this report.

Data collection and proof reading: Emma Crabtree, ecr@tbkconsult.com

Design and lay-out: Jelena Galkina, info@kompot.ee

_____________________________________________________

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Source: https://www.cia.gov/about-cia/todays-cia/index.html

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The BECH Index 2020

The COVID-19 pandemic

The COVID-19 pandemic is changing the agenda for most businesses in all countries and it is

uncertain what the world will look like on the other side.

This whitepaper is based on the CIA national accounting estimates for 2019 and does not reflect

the impact of the COVID-19 pandemic. The virus will no doubt claim a substantial portion of the

expected economic growth in most countries, but it may not impact the overall distribution of

industrial demand. We will not know for sure until we see the numbers in 2021.

In general, the pandemic will stimulate the demand for numerous software products.

Anything associated with remote work

and virtual collaboration and meetings will

experience a surge in demand. People will

learn the benefits of skipping commuting

and travel and of working from home. They

will get familiar with the tools required to

do so. Business owners and executives

will appreciate the benefits of the reduced

need for real estate and they will discover

that most of their staff can actually manage

themselves.

Closing schools and other educational

institutions will enforce the implementation

of e-learning solutions. On the other side of

the pandemic we will have a population of

teachers and students that all have practical

experience with these tools. I will be surprised

if that does not have a positive impact on the

demand for e-learning platforms.

Maybe the greatest impact will be seen in the demand for healthcare related software. Anything from

EHR 2 -systems, global databases and analytics to public communication and e-learning systems will

see growing demand. While we on a global scale may disagree about much, none of us want another

pandemic. Most nations will co-operate in finding solutions that can stop or control the spread of

another contagious virus and reduce its impact. Software will play a major role in such initiatives.

As you read this whitepaper please remember that the figures and conclusions are based on pre-

COVID-19 statistics. The outcome of the pandemic may change the world, but we will not know for sure

until the beginning of 2021.

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2

EHR: Electronic Health Record

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The BECH Index 2020

China is now the largest market for IT products and services

We expected that the change would happen sooner, but based on the 2019 national accounting

estimates China has now become the largest IT-market in the world. With a share of 17.79 per cent

China has surpassed the USA, which represents 16.79 per cent of global demand. However, adding

Canada, North America still represents 18.23 per cent of the total market.

We don’t know yet how the current COVID-19 pandemic will impact the global economy and

especially China’s position. We anticipate that many companies will be forced to consider alternative

sources and that some of them will not return to China.

However, we expect that China will recover and maintain its position as the world’s largest market.

With or without the COVID-19 pandemic China remains a difficult market. For smaller software

companies there are still easier fish to catch.

Grow fast or die slow

The information technology industry is by nature a global industry.

In this industry we are blessed with low

cost of entry and simple supply chains. International

growth therefore comes much

easier than in most other industries.

Embarking on the global growth journey

is also a necessity. The combination of

simple supply chains, economy of scale

advantages and “crossing the chasm” 3

characteristics make the information technology

industry a “winner takes all” game.

Information technology companies either

grow fast or die slowly. 4

The market leader enjoys enormous advantages over number two, three and so on. Chances are

that number one will continue to increase her market share while the followers will lose out. It’s not

only the good old rule that the army with the most soldiers normally wins the battle. The information

technology industry is governed by some very specific dynamics that are best understood by studying

The Law of Diffusion of Innovation 5 and the Crossing the Chasm theory.

_______________________________________________________________________________________

3

See Crossing the Chasm, 3rd Edition: Marketing and Selling Disruptive Products to Mainstream Customers by

Geoffrey A. Moore.

4

Grow fast or die slow April 2014 by Eric Kutcher, Olivia Nottebohm and Kara Sprague, McKinsey&Company

5

https://en.wikipedia.org/wiki/Diffusion_of_innovations

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The BECH Index 2020

Because of the nature of information technology products, the market prefers buying from the market

leader. The first to reach the tipping point in a market gets caught by the tornado and suddenly

revenue generation isn’t the primary concern anymore. Demand will drive revenue and fulfillment

becomes the primary challenge.

How?

As information technology companies prepare for global growth the first question to answer is

“how?”

We discuss these issues in the first

three whitepapers in this series named

Entering a Foreign Market in the Information

Technology Industry 6 and in my

upcoming book Going Global on a Shoestring.

7

We recommend that B2B information

technology companies verify the viability

of their business models in their domestic

market first. When growing revenue

has been proven profitable, predictable

and scalable then it is time to conquer

foreign markets.

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These whitepapers are available for download from www.tbkconsult.com

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https://tbkconsult.com/product/the-book-going-global-on-a-shoestring/

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The BECH Index 2020

Where?

The second question asked before jumping to foreign markets is, “where we should go next?”

To help information technology executives make this decision based on facts rather than emotions,

TBK Consult calculates and publishes the BECH Index annually.

The BECH Index for a country reflects the demand capacity of the country and thus also reflects the

share of global demand for information technology related products and services.

Table 1: The BECH Index for the Major Markets 2014-20 8

Region 2014 2015 2016 2017 2018 2019 2020

North America 21,04% 20,49% 20,35% 18,60% 18,58% 18,50% 18,23%

South America 9,07% 8,95% 8,60% 8,25% 7,84% 7,98% 7,85%

Americas 30,12% 29,45% 28,95% 26,85% 26,43% 26,48% 26,08%

The European Union 19,20% 18,99% 19,00% 17,34% 17,44% 17,36% 17,08%

Rest of Europe

(incl. Switzerland)

6,73% 6,35% 6,30% 6,27% 6,42% 6,43% 6,30%

Middle East 5,12% 5,30% 5,27% 5,62% 5,58% 5,50% 5,42%

Africa 3,23% 3,31% 3,35% 3,77% 3,59% 3,61% 3,56%

EMEA 34,27% 33,95% 33,91% 33,00% 33,04% 32,91% 32,37%

Australia/NZ 1,24% 1,63% 1,20% 1,20% 1,18% 1,18% 1,17%

Japan 4,93% 4,67% 4,57% 4,45% 4,49% 4,46% 4,39%

China 13,42% 13,61% 14,18% 16,47% 16,85% 16,68% 17,97%

South Korea 1,54% 1,51% 1,50% 1,62% 1,57% 1,56% 1,53%

Taiwan 0,95% 0,93% 0,92% 0,97% 0,93% 0,93% 0,92%

India 5,34% 5,46% 5,68% 6,71% 6,78% 7,10% 6,99%

Rest of Asia 8,18% 8,80% 9,08% 8,73% 8,73% 8,69% 8,59%

Asia 35,61% 36,61% 37,14% 40,15% 40,53% 40,61% 41,56%

The World 100% 100% 100% 100% 100% 100% 100%

The world market is divided into 229 countries of which some of the bigger countries must be considered

as several markets. Talking about the US as one market when you haven’t won the first customer

or independent channel partner there yet may seem overly self-confident. For most information technology

companies, the US is at least 50 geographical markets, Germany is 14 markets (Bundesländer),

France is at least 4 markets, the UK is 4 markets, the Nordics are 4 markets and so on.

_______________________________________________________________________________________

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Please note that the numbers in this white paper are due to the application of a new algorithm which will differ

from BECH Index whitepapers from before 2016.

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The BECH Index 2020

As can be seen from Table 1, world demand continues moving east. The Americas have experienced

a 15 per cent decline in the period 2014-2020.

The demand from Central and South America drops again in 2020 and the decline in demand from

North America results in a net loss of 1,52 per cent for the area.

The European Union has lost 11 per cent of global demand in the same period and after a slight

increase in 2018, the decline continues in 2020. Russia, the sixth biggest market, has lost 13,79 per

cent since 2014. The loss in 2020 is 2,18 per cent.

North America and Europe continue to be very interesting areas with some of the biggest markets

in the world and because of increasing labor costs and public expenditure there is a growing need

for information analytics, process and cost optimization information technology-based solutions.

The Middle East’s share of global demand has decreased continuously since 2017 and the region

has lost 3,65 per cent in four years. Future growth in the Middle East still requires a restructuring

away from the dependency on oil and gas and a general liberation of the economy. I remain skeptical

that they will be successful with such a transformation and predict a continued decrease in the

region.

China continued its growth and has, with a 7,69 per cent growth from 2019 to 2020, become the

largest information technology market in the world pushing the USA to second place.

For 2020 the Asia Pacific region’s share of global demand increased 2,33 per cent. The most prominent

growth area is India showing a 34 per cent increase in the period 2014-2019. However, from

2019 to 2020 India’s share of world demand declined 1,57 per cent.

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The BECH Index 2020

The Top 25 Markets

These 25 countries make up more than 80% of world demand for information technology products

and services with 204 countries sharing the remaining 20%. This doesn’t mean that these 25 markets

are the most attractive as issues other than size may play a more important role. The six countries

USA, China, India, Japan, Germany and Russia make up over half of world demand for information

technology.

Table 2: Top 25 Information Technology Countries in the World

Rank

2016

Rank

2017

Rank

2018

Rank

2019

2 2 2 2 16,79% China

1 1 1 1 17,97% USA

3 3 3 3 6,99% India

4 4 4 4 4,39% Japan

5 5 5 5 3,39% Germany

6 6 6 6 3,07% Russia

7 7 7 7 2,64% Brazil

8 8 8 8 2,51% UK

9 9 9 9 2,44% France

12 10 10 10 2,16% Indonesia

11 12 12 11 1,92% Mexico

10 11 11 12 1,92% Italy

16 15 13 13 1,65% Turkey

Share 2020 Country Accumulated

15 13 14 14 1,53% Korea, South

13 19 15 15 1,47% Spain

14 14 16 16 1,44% Canada

17 16 17 17 1,29% Saudi Arabia

19 17 18 18 1,18% Iran

18 18 19 19 1,01% Australia

21 20 20 20 0,92% Taiwan

22 21 22 21 0,90% Thailand

23 23 23 22 0,86% Egypt

25 22 21 23 0,84% Poland

20 24 24 24 0,78% Nigeria

26 25 25 25 0,73% Pakistan

49,53%

62,35%

70,84%

76,68%

80,79%

Apart from China taking the leading position pushing the USA to second place, none of the other

countries have changed their position from 2019 to 2020.

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The BECH Index 2020

Table 3: The BECH Index for the Americas 2014-20

Country 2014 2015 2016 2017 2018 2019 2020

USA 19,31% 19,28% 19,16% 17,23% 17,25% 17,05% 16,79%

Canada 1,58% 1,57% 1,55% 1,52% 1,48% 1,46% 1,44%

North America 20,89% 20,85% 20,71% 18,75% 18,73% 18,51% 18,23%

Argentina 0,80% 0,86% 0,75% 0,72% 0,70% 0,70% 0,69%

Belize 0,00% 0,00% 0,00% 0,00% 0,00% 0,03% 0,00%

Bolivia 0,05% 0,05% 0,05% 0,06% 0,06% 0,06% 0,06%

Brazil 3,45% 3,34% 3,14% 2,78% 2,71% 2,68% 2,64%

Chile 0,38% 0,37% 0,37% 0,38% 0,36% 0,35% 0,35%

Colombia 0,55% 0,56% 0,56% 0,56% 0,56% 0,55% 0,54%

Costa Rica 0,08% 0,08% 0,08% 0,07% 0,07% 0,07% 0,07%

Cuba 0,18% 0,13% 0,12% 0,12% 0,11% 0,11% 0,11%

Dominican Republic 0,12% 0,12% 0,13% 0,14% 0,13% 0,13% 0,13%

Ecuador 0,16% 0,16% 0,15% 0,15% 0,15% 0,15% 0,15%

El Salvador 0,05% 0,05% 0,05% 0,05% 0,04% 0,04% 0,04%

Falkland Islands 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Guatemala 0,11% 0,11% 0,11% 0,11% 0,11% 0,11% 0,10%

Grenada 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Honduras 0,03% 0,03% 0,04% 0,04% 0,03% 0,03% 0,03%

Jamaica 0,03% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Mexico 1,97% 1,95% 1,95% 1,99% 1,84% 1,95% 1,92%

Nicaragua 0,03% 0,03% 0,03% 0,03% 0,02% 0,03% 0,03%

Panama 0,09% 0,08% 0,09% 0,09% 0,08% 0,09% 0,09%

Paraguay 0,05% 0,05% 0,05% 0,05% 0,05% 0,06% 0,06%

Peru 0,32% 0,32% 0,32% 0,34% 0,30% 0,33% 0,32%

Puerto Rico 0,10% 0,10% 0,09% 0,10% 0,09% 0,09% 0,09%

Uruguay 0,07% 0,07% 0,07% 0,06% 0,06% 0,06% 0,06%

Venezuela 0,53% 0,49% 0,45% 0,39% 0,30% 0,28% 0,28%

South America 9,13% 8,97% 8,62% 8,26% 7,83% 7,94% 7,78%

Americas 30,02% 29,82% 29,33% 27,01% 26,56% 26,45% 26,01%

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Table 4: The BECH Index for The European Union 2014-20

Country 2014 2015 2016 2017 2018 2019 2020

Austria 0,41% 0,43% 0,43% 0,37% 0,36% 0,36% 0,36%

Belgium 0,53% 0,52% 0,51% 0,48% 0,46% 0,46% 0,45%

Bulgaria 0,13% 0,13% 0,14% 0,12% 0,12% 0,12% 0,12%

Czech Republic (Czechia) 0,28% 0,33% 0,34% 0,29% 0,29% 0,29% 0,29%

Denmark 0,27% 0,26% 0,26% 0,25% 0,25% 0,25% 0,24%

Estonia 0,04% 0,03% 0,04% 0,03% 0,03% 0,03% 0,03%

Finland 0,23% 0,21% 0,20% 0,20% 0,20% 0,20% 0,20%

France 2,93% 3,44% 3,41% 2,54% 2,48% 2,47% 2,44%

Germany 3,72% 3,54% 3,52% 3,55% 3,45% 3,44% 3,39%

Gibraltar 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Greece 0,33% 0,31% 0,30% 0,27% 0,26% 0,26% 0,25%

Hungary 0,23% 0,22% 0,22% 0,23% 0,23% 0,23% 0,23%

Iceland 0,02% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Ireland 0,19% 0,18% 0,23% 0,27% 0,27% 0,27% 0,27%

Italy 2,30% 2,16% 2,11% 2,03% 1,96% 1,95% 1,92%

Latvia 0,05% 0,04% 0,04% 0,05% 0,05% 0,05% 0,04%

Liechtenstein 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Lithuania 0,08% 0,07% 0,07% 0,07% 0,07% 0,07% 0,07%

Luxemburg 0,06% 0,05% 0,05% 0,06% 0,06% 0,06% 0,06%

Netherlands 0,82% 0,78% 0,79% 0,76% 0,74% 0,74% 0,71%

Norway 0,32% 0,37% 0,36% 0,31% 0,31% 0,30% 0,30%

Poland 0,78% 1,14% 1,16% 0,88% 0,89% 0,86% 0,84%

Portugal 0,31% 0,29% 0,28% 0,27% 0,27% 0,27% 0,26%

Slovakia 0,14% 0,14% 0,14% 0,15% 0,14% 0,14% 0,14%

Slovenia 0,06% 0,06% 0,06% 0,06% 0,06% 0,06% 0,06%

Spain 1,66% 1,28% 1,27% 0,98% 1,50% 1,50% 1,47%

Sweden 0,42% 0,44% 0,44% 0,43% 0,42% 0,42% 0,41%

UK 2,90% 2,58% 2,62% 2,65% 2,55% 2,55% 2,51%

EU 19,20% 18,99% 19,00% 17,34% 17,44% 17,36% 17,08%

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Table 5: The BECH Index for The Rest of Europe 2014-20

Country 2014 2015 2016 2017 2018 2019 2020

Albania 0,03% 0,02% 0,02% 0,03% 0,03% 0,03% 0,02%

Andorra 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Belarus 0,13% 0,16% 0,15% 0,13% 0,13% 0,13% 0,13%

Bosnia and Herzegovina 0,04% 0,03% 0,04% 0,04% 0,03% 0,04% 0,03%

Croatia 0,09% 0,08% 0,08% 0,08% 0,08% 0,08% 0,08%

Cyprus, Republic 0,03% 0,01% 0,01% 0,03% 0,03% 0,03% 0,03%

Faroe Islands 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Georgia 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

Greenland 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Guernsey 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Isle of Man 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Jersey 0,01% 0,00% 0,00% 0,01% 0,00% 0,01% 0,01%

Kosovo 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Macedonia 0,03% 0,03% 0,03% 0,03% 0,02% 0,02% 0,02%

Malta 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Moldova 0,02% 0,01% 0,01% 0,02% 0,02% 0,02% 0,02%

Monaco 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Montenegro 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Romania 0,32% 0,46% 0,47% 0,37% 0,37% 0,38% 0,37%

Russia 3,56% 3,17% 3,17% 3,17% 3,16% 3,14% 3,07%

San Marino 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Serbia 0,08% 0,10% 0,09% 0,08% 0,08% 0,07% 0,07%

Switzerland 0,49% 0,42% 0,41% 0,45% 0,44% 0,44% 0,44%

Turkey 1,43% 1,30% 1,32% 1,46% 1,66% 1,68% 1,65%

Ukraine 0,37% 0,45% 0,40% 0,28% 0,27% 0,28% 0,27%

Rest of Europe 6,73% 6,35% 6,30% 6,27% 6,42% 6,43% 6,30%

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Table 6: The BECH Index for The Middle East 2014-20

Country 2014 2015 2016 2017 2018 2019 2020

Bahrain 0,05% 0,05% 0,05% 0,06% 0,06% 0,06% 0,05%

Egypt 0,81% 0,74% 0,79% 0,86% 0,88% 0,87% 0,86%

Iran 1,06% 1,03% 1,02% 1,13% 1,20% 1,20% 1,18%

Iraq 0,39% 0,36% 0,35% 0,46% 0,49% 0,46% 0,45%

Israel 0,27% 0,16% 0,17% 0,27% 0,26% 0,26% 0,25%

Jordan 0,08% 0,05% 0,05% 0,07% 0,07% 0,07% 0,07%

Kuwait 0,18% 0,28% 0,27% 0,22% 0,21% 0,20% 0,20%

Lebanon 0,08% 0,08% 0,07% 0,07% 0,07% 0,08% 0,08%

Oman 0,11% 0,11% 0,11% 0,14% 0,14% 0,14% 0,14%

Qatar 0,20% 0,24% 0,23% 0,26% 0,25% 0,25% 0,24%

Saudi Arabia 1,23% 1,40% 1,41% 1,41% 1,34% 1,31% 1,29%

Syria 0,06% 0,09% 0,04% 0,04% 0,04% 0,04% 0,04%

U.A.E. 0,47% 0,59% 0,61% 0,54% 0,51% 0,50% 0,50%

West Bank 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Yemen 0,11% 0,10% 0,07% 0,06% 0,05% 0,06% 0,06%

Middle East 5,12% 5,30% 5,27% 5,62% 5,58% 5,50% 5,42%

Table 7: The BECH Index for Africa 2014-20

Country 2014 2015 2016 2017 2018 2019 2020

Algeria 0,41% 0,41% 0,41% 0,46% 0,45% 0,43% 0,43%

Angola 0,09% 0,09% 0,09% 0,12% 0,12% 0,12% 0,11%

Benin 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Botswana 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

Burkina Faso 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Burundi 0,01% 0,01% 0,01% 0,00% 0,00% 0,00% 0,00%

Cameroon 0,05% 0,05% 0,05% 0,06% 0,06% 0,06% 0,06%

Cape Verde 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Central African Republic 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Chad 0,02% 0,03% 0,03% 0,02% 0,01% 0,01% 0,01%

Congo, Republic of the 0,01% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Cote d'ivoire 0,07% 0,08% 0,08% 0,07% 0,07% 0,07% 0,07%

Dem. Rep of the Congo 0,04% 0,05% 0,05% 0,05% 0,05% 0,04% 0,04%

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The BECH Index 2020

Country 2014 2015 2016 2017 2018 2019 2020

Djibouti 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Eq. Guinea 0,01% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Eritrea 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Eswatini 0,01% 0,01% 0,01% 0,01% 0,00% 0,01% 0,01%

Ethiopia 0,12% 0,11% 0,12% 0,12% 0,12% 0,12% 0,12%

Gabon 0,02% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

Gambia 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Ghana 0,10% 0,07% 0,08% 0,09% 0,09% 0,10% 0,10%

Guin. Bissau 0,00% 0,00% 0,00% 0,00% 0,02% 0,02% 0,02%

Guinea 0,01% 0,01% 0,01% 0,01% 0,00% 0,00% 0,00%

Kenya 0,10% 0,13% 0,13% 0,11% 0,10% 0,10% 0,10%

Lesotho 0,00% 0,00% 0,00% 0,01% 0,01% 0,00% 0,00%

Liberia 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Libya 0,10% 0,08% 0,07% 0,07% 0,02% 0,04% 0,04%

Malawi 0,02% 0,01% 0,01% 0,02% 0,02% 0,02% 0,02%

Mali 0,03% 0,02% 0,03% 0,02% 0,01% 0,02% 0,02%

Mauritania 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Morocco 0,17% 0,21% 0,22% 0,23% 0,22% 0,22% 0,21%

Mozambique 0,03% 0,03% 0,03% 0,03% 0,02% 0,03% 0,03%

Namibia 0,02% 0,02% 0,02% 0,02% 0,01% 0,02% 0,02%

Niger 0,02% 0,02% 0,02% 0,01% 0,01% 0,01% 0,01%

Nigeria 0,75% 0,83% 0,83% 0,86% 0,82% 0,80% 0,78%

Rwanda 0,02% 0,01% 0,02% 0,02% 0,02% 0,02% 0,02%

Saint Helena 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

São Tome and Principe 0,00% 0,00% 0,00% 0,00% 0,03% 0,00% 0,00%

Senegal 0,03% 0,03% 0,03% 0,03% 0,01% 0,04% 0,04%

Sierra Leone 0,01% 0,01% 0,01% 0,00% 0,01% 0,01% 0,01%

Somalia 0,00% 0,00% 0,00% 0,00% 0,01% 0,01% 0,01%

South Africa 0,38% 0,36% 0,36% 0,65% 0,62% 0,62% 0,61%

South Sudan 0,03% 0,03% 0,03% 0,01% 0,01% 0,01% 0,01%

Sudan 0,08% 0,08% 0,08% 0,13% 0,13% 0,12% 0,12%

Tanzania 0,10% 0,10% 0,10% 0,11% 0,11% 0,11% 0,11%

Togo 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Tunisia 0,11% 0,11% 0,11% 0,11% 0,11% 0,11% 0,10%

Uganda 0,06% 0,06% 0,06% 0,06% 0,06% 0,06% 0,06%

Western Sahara 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Zambia 0,05% 0,05% 0,05% 0,05% 0,05% 0,05% 0,05%

Zimbabwe 0,02% 0,02% 0,02% 0,02% 0,03% 0,03% 0,03%

Africa 3,23% 3,31% 3,35% 3,77% 3,59% 3,61% 3,56%

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The BECH Index 2020

Table 8: The BECH Index for Asia Pacific 2014-20

Country 2014 2015 2016 2017 2018 2019 2020

Australia 1,08% 1,48% 1,05% 1,05% 1,02% 1,03% 1,01%

New Zealand 0,16% 0,15% 0,16% 0,15% 0,15% 0,16% 0,15%

Australia/NZ 1,24% 1,63% 1,20% 1,20% 1,18% 1,18% 1,17%

Japan 4,93% 4,67% 4,57% 4,45% 4,49% 4,46% 4,39%

China 13,42% 13,61% 14,18% 16,47% 16,85% 16,68% 17,97%

Korea, South 1,54% 1,51% 1,50% 1,62% 1,57% 1,56% 1,53%

Taiwan 0,95% 0,93% 0,92% 0,97% 0,93% 0,93% 0,92%

India 5,34% 5,46% 5,68% 6,71% 6,78% 7,10% 6,99%

The Big Countries 26,19% 26,18% 26,85% 30,22% 30,62% 30,73% 31,79%

Afghanistan 0,05% 0,05% 0,05% 0,05% 0,05% 0,05% 0,05%

American Samoa 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Armenia 0,02% 0,02% 0,03% 0,02% 0,02% 0,02% 0,02%

Azerbaijan 0,09% 0,10% 0,10% 0,12% 0,12% 0,12% 0,11%

Bangladesh 0,45% 0,64% 0,66% 0,49% 0,50% 0,50% 0,49%

Bhutan 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Brunei 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Burma 0,19% 0,16% 0,18% 0,22% 0,21% 0,21% 0,20%

Cambodia 0,04% 0,05% 0,06% 0,04% 0,04% 0,04% 0,04%

Comoros 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Cook Islands 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

East Timor 0,00% 0,01% 0,01% 0,00% 0,00% 0,00% 0,00%

Fiji 0,01% 0,00% 0,00% 0,01% 0,01% 0,01% 0,01%

French Polynesia 0,01% 0,00% 0,00% 0,01% 0,00% 0,00% 0,00%

Guam 0,00% 0,01% 0,00% 0,00% 0,00% 0,00% 0,00%

Haiti 0,02% 0,02% 0,02% 0,02% 0,01% 0,01% 0,01%

Hong Kong 0,51% 0,31% 0,31% 0,44% 0,43% 0,43% 0,44%

Indonesia 1,88% 2,10% 2,15% 2,23% 2,21% 2,19% 2,16%

Kazakhstan 0,40% 0,23% 0,24% 0,38% 0,37% 0,37% 0,36%

Kiribati 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Korea, North 0,03% 0,05% 0,05% 0,03% 0,02% 0,02% 0,02%

Kyrgyzstan 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Laos 0,03% 0,04% 0,05% 0,03% 0,03% 0,03% 0,03%

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The BECH Index 2020

Macau 0,10% 0,03% 0,04% 0,06% 0,07% 0,07% 0,07%

Madagascar 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

Malaysia 0,61% 0,72% 0,76% 0,68% 0,69% 0,68% 0,67%

Maldives 0,01% 0,00% 0,00% 0,01% 0,01% 0,01% 0,01%

Marshall Islands 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Mauritius 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Micronesia 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Mongolia 0,03% 0,03% 0,03% 0,03% 0,03% 0,03% 0,03%

Nauru 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Nepal 0,06% 0,06% 0,06% 0,05% 0,06% 0,06% 0,06%

New Caledonia 0,01% 0,01% 0,01% 0,01% 0,01% 0,01% 0,01%

Niue 0,00% 0,00% 0,00% 0,00% 0,01% 0,01% 0,00%

Northern Mariana

Islands

0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Pakistan 0,77% 1,13% 1,15% 0,75% 0,75% 0,75% 0,73%

Palau 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Papua New Guinea 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Philippines 0,59% 0,66% 0,68% 0,66% 0,67% 0,66% 0,65%

Samoa 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Seychelles 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Singapore 0,47% 0,37% 0,38% 0,45% 0,44% 0,45% 0,44%

Solomon Islands 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Sri Lanka 0,19% 0,22% 0,22% 0,20% 0,22% 0,21% 0,21%

Tajikistan 0,02% 0,02% 0,02% 0,02% 0,02% 0,02% 0,02%

Thailand 0,91% 0,86% 0,93% 0,93% 0,92% 0,91% 0,90%

Tokelau 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Tonga 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Trinidad and Tobago 0,05% 0,05% 0,05% 0,04% 0,03% 0,03% 0,03%

Turkmenistan 0,05% 0,05% 0,05% 0,07% 0,07% 0,07% 0,07%

Tuvalu 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Uzbekistan 0,13% 0,19% 0,20% 0,15% 0,15% 0,15% 0,15%

Vanuatu 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Vietnam 0,36% 0,43% 0,45% 0,43% 0,45% 0,45% 0,45%

Wallis and Futana 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00%

Asia Pacific 8,18% 8,80% 9,08% 8,73% 8,73% 8,69% 8,59%

Asia Pacific Total 35,61% 36,61% 37,14% 40,15% 40,53% 40,61% 41,56%

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The BECH Index 2020

The BECH Index

We changed the algorithm behind the BECH Index from 2016 and onwards. We still use the Gross

Domestic Product 9 (GDP) as estimated and published by the CIA in their World Factbook 10 and we

still use the Purchasing Power Parity version that adjusts for the differences in the cost of living and

price levels across the world.

The new BECH Index uses the GDP composition on agriculture, industry and services. We assume

that the demand for information technology will grow as a society moves from dependency on agriculture,

through being dominated by industry to mainly producing services. We recognize that the

productivity improvements that enable a society to survive and prosper with relatively small portions

of the GDP coming from agriculture and industry is enabled and supported by information

technology (and free international trade). However, we presume that the post-industrial activities are

consuming far more information technology products and services than the primary and secondary

sectors. 11

We have also decided to rename the annual report so that the current version is based on GDP data

from the previous year. GDP data are published by the national statistical departments, but not all

countries publish at the same time and some do not publish the data each year. We therefore wait

for the CIA to gather and assess the data before we calculate and publish the BECH Index.

_______________________________________________________________________________________

9

The GDP is a monetary measure of the market value of all final goods and services produced in a period (quarterly

or annually). Nominal GDP estimates are commonly used to determine the economic performance of a

whole country or region, and to make international comparisons.

10

https://www.cia.gov/library/publications/resources/the-world-factbook/

11

The new BECH Index is based on the three-sector theory: https://en.wikipedia.org/wiki/Three-sector_theory

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The BECH Index 2020

About the Author

Hans Peter Bech

Hans Peter Bech is an Amazon bestselling author. He is a frequent

blogger on how to make information technology companies global

market leaders and has written several books and numerous whitepapers

on business development in the IT industry. Hans Peter also

facilitates workshops for the TBK Academy® and is an advisor to

governments and multi-nationals. He holds a M.Sc. in macroeconomics

and political science from the University of Copenhagen.

More about Hans Peter Bech

Other publications by the author

TBK-WIPA-035

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