[Global Science and Technology Report] According to the Yonhap News Agency reported on March 13, a recent industry report shows that Korea’s information technology industry is extremely dependent on hardware and has failed to keep up with the global trend of focusing on software.
The report classifies the IT industry into eight categories: semiconductors, electronic components, software, the Internet, IT services, home appliances, IT hardware, and communications equipment. The ratio of hardware and software is the percentage of the combined market value of each category and the total market value of the IT industry. According to the ICT Association's report, software companies accounted for 15% of the total market capitalization of local IT companies in 2016, compared with 9% 10 years ago. It is worth noting that the share of the IT hardware business, including South Korea's top Samsung Electronics company, hovered at over 50%, indicating that the IT industry is over-focused in a certain sector.
The report also shows that the share of Korean software lags far behind the United States and China. Last year, software accounted for 62% of the IT industry in the United States (the rest was hardware), which was 50% 10 years ago. The proportion of software in China is 42%, and the proportion of hardware is 58%. 10 years ago, the two numbers were 70% and 30%. The proportion of Japan's hardware and software is 31% and 69%.
The report concludes that according to an analysis of the market share of the top 100 IT companies in the world, the focus of the IT industry has shifted from hardware to software in a significant way. There were 24 software companies in 1990 and 51 in 2015. This is the first time that the number of hardware companies has changed. (Internship Compilation: Guo Yihua Reviewer: Li Zongze)
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