By Alexia Sotiriou

 

The value of the Greek business software market is estimated at 400 million euros, and it is expected to double over the next 5 years, reaching 1 billion euros. These are essentially investments in software products on the part of both private and public sector enterprises.

 

According to sector representatives, the increased digitization needs of businesses combined with the requirements from the legal framework (e.g. mandatory receipt of electronic invoices from public entities, ERPs interfacing with POS card payment systems, expansion of the requirement to use the digital card etc.) constantly create new needs and increase the demand for business software products and services.

 

For example, a significant part of the expenses in the financial sector now concerns the improvement and enrichment of online and mobile banking services. In addition, there is an increased demand for services related to the automation of processes in order to improve overall performance and reduce costs.

 

However, a significant number of small companies are still operating with outdated software solutions or products from much smaller companies. These solutions lag behind technologically, since they do not support databases, mobility, analytics and do not utilize the Internet.

 

The domestic IT Software and Services market has shown a remarkable increase in value over the last three years (2021-2023), recording an average annual rate of change of 9.8%. In 2022 overall the Software and Services market grew by 12.3% compared to the previous year. For 2023, a further increase of 6.0% compared to 2022 is expected.

 

However, the largest part of the total value is occupied by IT Services with a percentage of 62% while the remaining 38% concerns the purchase of Software. The Software market increased by 17% in 2022 compared to the previous year, while for 2023 the rate of increase is estimated at 10%. The IT Services market has also strengthened in recent years, recording an annual rate of change of 10% in 2022 compared to 2021. Accordingly, in 2023, the market is estimated to increase but at a lower rate (4%).

 

Greece sees a spike in technological investments

 

A spike in technological investments has been recorded lately with telecom providers leading the trend. More specifically, OTE has announced one of the largest investment programs, followed by Nova and Vodafone, while PPC is entering the network and data center market. In total, investments in fiber to the home and business (FTTH) networks that have been announced amount to 5.880 billion euros.

 

If they are actually carried out, we will have the so-called overbuild, i.e. there will be areas where more than one FTTH network will be developed, a development that is considered positive for competition, provided that the areas of the country that are not of commercial interest will not be left uncovered.

 

Telecommunication networks

 

OTE | 3 billion euros: OTE is implementing an investment plan of approximately 3 billion euros until 2027 for the development of the FTTH and 5G network. In 2024 the group's investments will be between 610 million and 620 million euros. OTE's goal is to cover approximately two-thirds of the country's connections – telephone lines with FTTH (about 3 million connections). It has manufactured 1.5 million so far and will reach 1.8 million at the end of this year.

 

Nova | 1.2 billion euros: Nova has announced the implementation of an investment plan of 2 billion euros until 2027. To date, 800 million euros have been invested in, among other things, the expansion of the FTTH network, the development of 5G and television content (1.2 billion euros remaining). By the end of the year, 540 thousand FTTH connections will have been built by the company and  a total of 1 million by the end of 2026.

 

Vodafone | 1 billion euros: About 300,000 FTTH lines will have been implemented by Vodafone by the end of the year. In 2025 its network will be commercially available in 500,000 homes and businesses and 850,000 by 2028. In addition to the FTTH network, its 1-billion-euro investment program, which will be completed within the next five years, includes the continued development of the 5G network.

 

PPC | 680 million euros: PPC attempts to enter the telecommunications sector. Its goal, as announced by its management, is 500 thousand connections by the end of 2024, 1.7 million in 2025 and 3 million for the period 2024-2026, amounting to 680 million euros. The announcements of the PPC management regarding how it will operate in retail are eagerly awaited, as so far have been focused on wholesale services.