Market Monitor - ICT industry - The Netherlands

Market Monitor

  • Netherlands
  • Electronics/ICT

16th June 2016

The industry is characterised by sharp price erosion and fierce competition, especially in the wholesalers segment. Market concentration is still on-going.

  • In 2016 the Dutch ICT sector is expected to grow further, on the back of the country’s  continued economic rebound (GDP is forecast to grow 1.6% in 2016) and increasing consumer spending. Another driver of ICT growth is the rising business investment in big data and cloud computing solutions.
  • The industry is characterised by sharp price erosion and fierce competition, especially in the ICT wholesalers segment. Market concentration is still on-going in this subsector. While margins are under pressure, most ICT businesses are still able to realize solid profits.
  • While ICT businesses’ bank financing requirements are generally high, banks are willing to provide credit to ICT companies.  
  • Payments in the ICT sector take 60 days on average and payment delays are expected to remain stable in the coming months.
  • The insolvency level remains low compared to other industries. The ICT insolvency environment is expected to improve in 2016 after a slight deterioration in 2015.
  • Our underwriting stance remains generally open, and we assess and determine the risks on a case-by-case basis. Our requirements regarding financial information of ICT buyers are very high, given that many companies in this industry face low margins and high competition.

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.