Market Trends of Denmark ICT Industry
This section covers the major market trends shaping the Denmark ICT Market according to our research experts:
Digitalization Drives the Market
- Digital skills are essential for society's and the economy's continuing and effective digital transformation. The Danish Government Digitization Partnership will suggest how Denmark should harness and exploit its future technological potential. It contains nine recommendations on digital skills in education, the labor force, and digital inclusion. Denmark presented its national digital strategy in May last year, including four initiatives based on the Partnership's digital skills and education recommendations.
- According to the European Commission, Denmark has a new broadband strategy that has been agreed upon at the political level. It recently replaced the previous strategy goal of network coverage of 100 Mbps download and 30 Mbps upload for all households and businesses. Last year, when coverage was 96%, the goal was almost met. The new strategy's aims are as follows: all houses and companies must have a 100/30 Mbps connection by 2025; 98% of households and businesses must have a 1 Gbps download speed by 2025; and take stock in 2025 to identify the needs and demand for gigabit speeds by 2030.
- Further, Denmark ranks eighth in the EU for public services and outperforms the EU average on all indicators. The percentage of e-government users climbed by 93% last year and remained significantly higher than the EU average of 65%. Denmark outperforms the rest of the EU in terms of pre-filled forms. Furthermore, digital public services for citizens (83 points) and businesses (89 points) outperform the EU averages of 75 and 82 points, respectively. The use of open data is at 91%, which is 10% higher than the EU average.
- Recently, Denmark launched several initiatives to accelerate digital transformation by improving digital technology integration for private and public sector organizations. Through SME digital enterprises, technologies such as PIM systems were used to reduce the need for large component stocks, resulting in cost savings. The initiatives demonstrate a strong determination to invest to achieve a rapid and effective digital transformation of the Danish economy and society.
- According to Microsoft, a survey was done to determine which industries have the greatest potential for artificial intelligence by 2030. According to 96 percent of respondents, the health and welfare technology sector placed first on the list.
Understand The Key Trends Shaping This Market
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E-Commerce is One of the Factor Driving Market
- According to the International Trade Administration, about 70% of online buyers purchased apparel and sporting goods, demonstrating the prominence of fashion e-commerce in Denmark. On the other hand, the value of online fashion sales varies from season to season. Danes tend to spend more on clothes and accessories in the months before some of their most important national holidays, which happen in the second and fourth quarters of the year.
- According to PPRO, a digital payment infrastructure in Denmark, the share of GDP ascribed to e-commerce expenditure has consistently increased in recent years, rising from 5.6 percent of the European country's total GDP in 2017 to 7.8 percent in the last year. According to projections, e-commerce expenditure might reach 9.6 percent of the country's GDP by 2026.
- Fashion has always been an essential part of Danish culture, and while it is well-known worldwide, it is also one of the country's mainstays of e-commerce. French people are fairly price-sensitive, and businesses can benefit significantly from offers, discounts, and bargains. This appears to be true regardless of whether the brand is sold by a high-end or low-cost retailer. This is primarily because customers can discover enormous selections of brands online, whereas the discount store was only profitable as a physical location. Small and large brands have benefited from the ease of shipping.
- The increase in technological developments and the deployment of those technologies in e-commerce will give users a better user experience. For instance, augmented reality (AR) has been one of the significant drivers of e-commerce. This type of technology allows shoppers to see what they're looking for up close, which aids in their purchasing decision. In certain areas, such as fashion and home decor, AR significantly impacts the shopping experience since customers may get a better feel for an item without seeing it in person.
- Contextual and programmatic advertisements are witnessing gradual growth. To accommodate these changes, social networking sites are already altering their designs. Programmatic advertising is a new trend that uses datasets to determine the target audience. These advertisements are shown to a consumer-targeted audience. After some time, they are retargeted to create a higher ROI. It's about attracting the appropriate audience to the right ad at the right time. Compared to traditional retargeting, e-commerce business owners who use programmatic advertising have a better chance of reaching a wider audience.
