Computer Processor TAM: Nordics Breakdown
The TAMs of computer processors in the Nordics are as follows:
- IT professionals: 312,865
- business users: 947,160
- advisers: 1,252
- Linkedin reports that there are 312,865 IT professionals in the Nordics.
- Denmark, Finland, Norway, and Sweden are currently facing a major shortage of IT professionals. For example, Denmark is expected to have a deficit of 19,000 IT professionals by 2030.
- Since we are targeting every IT professional and not only the ones entering in a new purchase cycle, the computer processor TAM for Nordic IT professionals would be 312,865.
- In official statistics, small and medium-sized enterprises (SMEs) are identified by an employment size of less than 250 employees.
- For these findings, we will be looking at small business owners or employees. This includes micro-businesses and small businesses.
- The number of employees at enterprises that are categorized as SMEs (excluding medium enterprises) in the Nordic countries are as follows:
- Denmark: micro: 337,192; small: 416,928
- Finland: micro: 352,559; small: 331,483
- Sweden: micro: 797,617 ; small: 748,188
- Norway: micro: 381,660; small: 368,372
- Iceland: micro: 29,218; small: 25,422
- The total number of employees at small businesses in the Nordic countries is therefore 3,788,639.
- The purchase cycle for the group is assumed to be about 4 years. Assuming that all small business employees purchase new PCs every four years, there would be 25% of business users who would purchase a new PC every year.
- 0.25 x 3,788,639 indicates that the TAM of computer processors for business users would be approximately 947,160.
- In 2018, the number of employees in the electronic technology sector was the highest in Finland out of all the other Nordic countries at 586 people. On the lower end in Denmark, it was 166.5 people. This was the only piece of information on the computer and electronic technology sector in the Nordics.
- Because only information on Finland and Denmark were found, and they are the countries with the highest employment and lowest employment, respectively, we decided to estimate the TAM by assuming that Norway, Iceland, and Sweden have Denmark's employee count. This will underestimate the number of individuals who fit the profile for advisers, but it is a safer estimate given that we do not know where the last three Nordic countries fall on the scale.
- Therefore, we estimate the TAM for advisers would be 586 + (4 x 166.5), which would be 1,252.
We were able to obtain the number of IT professionals in the Nordics from Linkedin, which was also the estimated TAM of computer processors for the particular group. However, Linkedin did not provide any additional sources as to where they obtained the statistic, which leaves room to speculate whether Linkedin is only counting Nordic IT professionals who have Linkedin profiles. This may not encompass the whole population of Nordic IT professionals. Therefore, the statistic should be acknowledged with caution.
Business employee statistics were taken from studies by the European Commission. It is important to note that while the statistics for Sweden, Finland, and Denmark are from 2019, the statistics from Norway and Iceland are from 2014 and 2016, respectively. This is most likely because Norway and Iceland are not part of the European Union, and the European Commission seems to favor reports of countries in the EU.
We were not able to find much information on the Nordic adviser population besides two data points on Finland and Denmark. There was no information on the demographics of OEM or distribution companies, nor was there information on employment in the computer retail sector. Therefore, as described in the findings, we decided to assuming that Norway, Iceland, and Sweden have Denmark's employee count to provide a safe, albeit underestimated TAM.